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July 12, 2004

P.L. 108-265
“Child Nutrition and WIC Reauthorization Act of 2004”
As Signed by President Bush on June 30, 2004

S. 2507, the Child Nutrition and WIC Reauthorization Act of 2004, was signed into law (P.L. 108-265) by President Bush on June 30, 2004, just prior to the expiration of the temporary extension of Child Nutrition programs.  This legislation reauthorizes the School Lunch Program, School Breakfast Program, Summer Food Service Program, Child and Adult Care Food Program, and WIC (Special Nutrition Program for Women Infants and Children) for five years, through 2009.  S. 2507, as enacted, is modeled after a Senate Agriculture Committee-passed bill (S. 2507) sponsored by Chairman Thad Cochran (R-MS) and Ranking Member Tom Harkin (D-IA).  Earlier this spring, the House of Representatives adopted its own version of child nutrition reauthorization, the Child Nutrition Improvement and Integrity Act (H.R. 3873).  After the Senate Agriculture Committee passed the bill on May 19, 2004, bipartisan negotiations between the House and Senate over the detail of a consensus approach began.  This bipartisan agreement, a reworking of S. 2507, was approved under unanimous consent by voice vote in the Senate on June 23.  On June 24, the House of Representatives considered the bill under unanimous consent and approved it without objection.  This analysis reflects the contents of the bill that was passed by Congress and signed into law on June 30, 2004. 

Analysis of Provisions of P.L. 108-265

Nutrition Education and Promotion

S. 2507 contains a variety of provisions aimed at improving the nutrition of children.  Specific provisions include:

  • Funds for Nutrition Promotion: S. 2507 authorizes funding to be made available to state agencies to promote nutrition in child nutrition programs.  The funding level is based on the number of lunches served by a school food authority under the National School Lunch Program.  A state agency may reserve some of the funding to distribute nutrition messages and materials developed by USDA.  State agencies or other institutions receiving the funds are required to document nutrition promotion activities conduced with the money. 

  • Fluid Milk: This legislation expands the types of milk that can be served under the Child Nutrition Programs and requires schools to offer milk in a variety of fat contents.  In addition, schools will be required to provide a nutritionally-equivalent substitute to milk for children that submit written documentation from a physician that they are unable to consume milk.  If the cost of providing the substitute exceeds the amount reimbursed under the School Lunch Program, school authorities will be responsible for the excess cost.  Finally, S. 2507 prohibits a school from imposing any restrictions on days or times when milk may be sold on school grounds.   

  • Dietary Guidelines: S. 2507 requires the USDA to issue regulations for increased consumption of foods and food ingredients in accordance with the most recent Dietary Guidelines for Americans.

  • Fresh Fruit and Vegetable Program: S. 2507 expands the Fresh Fruit and Vegetable Program to additional states and specifies that program expansion should target children in low-income areas. 

  • Access to Local Foods and School Gardens: S. 2507 authorizes the USDA to provide grants and technical assistance to improve access to local foods in schools and institutions participating in the Child Nutrition programs.  The grants may support farm-to-cafeteria activities such as school gardens, nutrition education activities or curriculum planning that incorporates agricultural activities. 

  • Local Wellness Policy: S. 2507 directs local educational agencies to establish a local school wellness policy for schools that (1) includes goals for nutrition education, physical activity, and other school-based activities; (2) includes nutrition guidelines for all foods available on each school campus during the school day with the objectives of promoting student health and reducing childhood obesity; (3) provides an assurance that guidelines for reimbursable meals will at least reflect the minimum standards established by the USDA; (4) establishes a plan for measuring implementation of the local wellness policy; and (5) involves a variety of community members in the development of the school wellness policy.  The USDA will support the development of local wellness policies by providing technical assistance and making best practices information available. 

  • Team Nutrition Network: S. 2507 defines the purposes of the Team Nutrition Network and makes available grants to establish team nutrition networks in individual communities.  Team nutrition networks will promote nutrition education and active lifestyles.  The bill also allows for an independent evaluation of the Team Nutrition program. 

  • Sense of Congress: S. 2507 contains a section indicating the sense of Congress regarding efforts to prevent and reduce childhood obesity.  This section notes efforts made by the State of Arkansas to combat childhood obesity and suggests that these efforts could serve as a model for other states.  Actions taken by the State of Arkansas include: annual measurements of body mass index of all children from kindergarten - 12th grade, providing health information about body mass index to parents and children, and interventions as the community and school level to address obesity, the risk of obesity, and the condition of being overweight, including efforts to encourage healthy eating habits and increased physical activity. 

National School Lunch Program and School Breakfast Program

The Child Nutrition and WIC Reauthorization Act of 2004 reauthorizes the National School Lunch and School Breakfast Programs for five years, through 2009.  In addition, the legislation includes a variety of provisions aimed at expanding program access and reducing the administrative burden of the School Lunch and Breakfast programs.  Specific changes include:

  • Direct Certification: S. 2507 requires state education agencies and state food stamp agencies to establish the process of direct certification.  With direct certification, categorically-eligible children are automatically eligible to receive free school meals without having to be separately deemed eligible for school meals.  Categorically-eligible groups include: children from households participating in the food stamp program, children from families participating in Temporary Assistance for Needy Families, homeless children or youth (as defined by the McKinney-Vento Homeless Assistance Act), homeless or runaway children served by the Runaway and Homeless Youth Act, or migrant children (as defined by the Elementary and Secondary Education Act of 1965).  In order to implement direct certification, the local educational agency must verify a child’s status with the appropriate State or local agency.  The requirements for direct certification are phased in over time, depending on the size of the school district.  S. 2507 also establishes guidelines to limit access to information regarding household income and eligibility for free meals and establishes criminal penalties for misuse of such information.  Finally, funding in the amount of $9,000,000 is authorized to implement direct certification. 

  • Program Applications:  S. 2507 simplifies the application process for school meals, by limiting the number of applications that must be submitted for one household.  A family only has to submit one application for all children in the household (even if the children attend different schools). 

  • Verification: Local educational agencies are required to randomly select for verification the lesser of three percent of approved applications or 3,000 error prone applications.  An error prone application refers to an approved household that indicates monthly income that is within $100, or an annual income that is within $1,200, of the income eligibility limitation for free or reduced price meals.  If the local educational agency has a non-response rate of less than 20 percent or has more than 20,000 children certified to receive free or reduced price meals, the agency conducts the verification process by using an alternative sample size of the sum of the lesser of 1,000 or one percent of all applications and the lesser of 500 or half of one percent of directly certified applications.  Directly certified applications can also be verified by obtaining household income information from the public agency administering the Food Stamp Program, the food distribution program on Indian reservations, the Temporary Assistance to Needy Families Program, or the state Medicaid program.  Finally, S. 2507 commissions an evaluation of the direct verification procedure.  Based on the results of this evaluation, the USDA may require additional States or state agencies to implement direct verification. 

  • Duration of Eligibility: Once a student is certified to receive free or reduced-price meals, this eligibility will remain in place until the following school year.

  • Runaway, Homeless, and Migrant Youth: Children meeting the requirements outlined in the McKinney-Vento Homeless Assistance Act, the Runaway and Homeless Youth Act, or defined as a migratory child by the Elementary and Secondary Education Act of 1965 are categorically eligible to receive free lunches and breakfasts.

  • Certification by Local Educational Agencies: S. 2507 replaces the term “local school authorities” with the term “local educational agencies.”  In addition, the definition of “local educational agencies” is expanded to include private nonprofit schools that participate in the child nutrition programs.

  • Purchases of Locally Produced Foods: This initiative is extended from 2007 to 2009. 

  • Food and Nutrition Projects Integrated With Elementary School Curricula: This program is eliminated by S. 2507.

  • Training and Technical Assistance: S. 2507 authorizes funds to provide technical assistance and training in the procurement of goods and services under the Child Nutrition programs. 

  • Free Meal Eligibility: S. 2507 authorizes the USDA to implement a pilot program in five states which would make it possible for children from households with incomes up to 185% of poverty to receive free school meals.  This program would be evaluated after three years.  The impact of this program would be evaluated in terms of: certification and participation rates in the school lunch and breakfast programs, rates of lunch and breakfast skipping, academic achievement, and the allocation of funds authorized in Title I of the Elementary and Secondary Education Act. 

School Breakfast Program

S. 2507 contains two provisions specific to the School Breakfast Program:

  • Severe Need Assistance: S. 2507 provides additional assistance in initiating or operating a school breakfast program to schools that qualify to receive severe needs assistance.  Schools that qualify for this assistance are those that serve a high number of free or reduced-price meals. 

  • Review of Best Practices: S. 2507 provides that the USDA should contract with an independent research organization to collect and disseminate a review of best practices in the School Breakfast Program. 

Summer Food Service Program

S. 2507 reauthorizes the Summer Food Service Program for five years, through 2009.  In addition, the bill makes a number of improvements aimed at increasing access to the program.  These changes include:

Seamless Summer Option: S. 2507 continues the provision that allows school food service authorities to provide meals during the summer and school vacations under the school lunch and breakfast programs. 

Rural Area Eligibility Pilot Program: S. 2507 authorizes a two-year pilot program in the State of Pennsylvania to reduce area eligibility in rural areas from 50 percent to 40 percent.  The USDA will conduct an evaluation of this pilot program to determine the effect of the reduced threshold on the number of sponsors in the area, the number of sites operating the program, the location of the sites, the services provided, and other factors determined by the USDA.  This report will be submitted to the appropriate Congressional committees. 

Rural Transportation: S. 2507 authorizes the USDA to provide grants for the purpose of providing transportation to and from summer food sites in rural areas.  These grants will be made available to up to five state agencies and up to 60 service institutions and grant funds can be used during the three-fiscal year period beginning in FY 2005. 

Lugar Pilot Program:  S. 2507 makes permanent the Lugar Pilot Program in the states in which it was currently operating in May 2004.  In addition, the legislation expands the program to an additional six states that are determined by a formula that takes into account Summer Food Service Program participation and renames the program “Simplified Summer Food Programs.”  Finally, eligibility to serve as a sponsor in the Simplified Summer Food Program is expanded to private nonprofit organizations.   

Residential Camp Eligibility: During the summers of 2004 and 2005, the USDA will select one residential camp in no more than two states to identify and evaluate alternative methods of determining the eligibility of residential private non-profit camps to participate in the Summer Food Service Program.  Residential camps selected will be reimbursed at the usual Summer Food Service Program rates for meals served to all children at the camp.  The camp will be reimbursed for up to three meals or two meals and one snack each day. 

Child and Adult Care Food Program (CACFP)

The Child and Adult Care Food Program is reauthorized through 2009.  In addition the following changes were made:

  • For-Profit Centers: S. 2507 makes for-profit child care centers permanently eligible to participate in the CACFP if they serve 25 percent or more low-income children. 

  • Simplifying Program Administration: S. 2507 makes a number of changes that will simplify CACFP administration.  First, the legislation extends the length of time that a home day care can be classified as Tier One from three to five years.  Also, the bill establishes an audit disregard level that is consistent with the disregard in other child nutrition programs.  Finally, S. 2507 makes it possible for state administering agencies and family home daycare sponsoring organizations to establish permanent agreements with CACFP providers. 

  • Rural Area Eligibility Pilot Program: S. 2507 authorizes a two-year pilot program in the State of Nebraska to reduce area eligibility for family daycare homes in rural areas from 50 percent to 40 percent.  The USDA will conduct an evaluation of this pilot program to determine the effect of the reduced threshold on the number of family daycare homes participating in the CACFP, the number of family daycare homes defined as Tier One as a result of the pilot program, the location of family home daycares, services provided to eligible children, and other factors determined by the USDA.  This report will be submitted to the appropriate Congressional committees. 

  • Children in Emergency Shelters: S. 2507 expands the age limit for CACFP eligibility from age 12 to age 18 for children residing in emergency shelters. 

  • Paperwork Reduction: The USDA will work with States to examine the feasibility of reducing paperwork resulting from regulations and recordkeeping requirements for all CACFP participants. 

  • Early Child Nutrition Education for Limited-English Proficient Families: S. 2507 establishes a limited number of grants to aid in the development of health and nutrition education programs for limited-English proficient individuals through the CACFP.  The grants will be awarded by the USDA in States that have experienced a growth in the limited-English proficient population of at least 100 percent between the years 1990 and 2000.  Grants can be used to develop an interactive tool kit for use by health educators, to conduct training and provide technical assistance for health educators, or to establish collaborations with child care centers and sponsoring organizations participating in the CACFP to identify limited-English-proficient families and enhance the capacity of child care centers and sponsoring organizations to use appropriate obesity prevention strategies. 

Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

The WIC Program is reauthorized through 2009.  In addition the following changes were made:

  • Definition of Nutrition Education: S. 2507 expands the definition of nutrition education in the WIC program to include physical activity. 

  • Definition of Supplemental Foods: The definition of supplemental foods is expanded to reference the promotion of health of the population served by the WIC program.

  • Other Definitions: S. 2507 adds definitions of the terms “primary contract infant formula” and “state alliance”

  • Certification Period: Breastfeeding women are certified for the WIC program for one year or until a woman stops breastfeeding, whichever is earlier.

  • Review of Supplemental Foods: S. 2507 requires the USDA to review supplemental foods available under the WIC program, and taking into consideration the recommendations of a study conducted by the National Academy of Sciences, Institute of Medicine, update the supplemental foods available through the program. 

  • Healthy People 2010 Initiative: Directs state and local agencies to partner with employers, health care professionals, and other private sector entities to encourage breastfeeding. 

  • State Alliances: State alliances cannot be formed among States whose infant participation exceeds 100,000.  Exceptions are made for States with a small number of WIC participants and Indian or Tribal organizations.

  • Rebate Invoices: States should ensure that rebate invoices provide an accurate estimate or an actual count of the number of units sold to WIC participants. 

  • Cent-for-Cent Adjustments: Maufacuturers are required to adjust for price changes subsequent to the opening of the bidding process. 

  • Authorized Infant Formula Wholesalers, Distributors, Retailers, and Manufacturers: The state agency is required to maintain a list of licensed infant formula wholesalers, distributors, retailers, and manufacturers.

  • Vendor Cost Containment: S. 2507 implements procedures to maintain competitive pricing among WIC vendors.  

  • Farmers’ Market Nutrition Program: The Farmer’s Market Nutrition Program within the WIC program is reauthorized for five years through 2009.

Other

S. 2507 contains a number of provisions that affect all Child Nutrition Programs.  These include:

  • Exclusion of the Military Housing Allowance: S. 2507 permanently excludes the military housing allowance from the determination of household income. 

  • Year-Round Child Nutrition Program: S. 2507 creates a year-round child nutrition program in the State of California.  Service institutions or private nonprofit organizations can be reimbursed for up to two meals per day served during the summer months and for one snack per day served during the regular school calendar.  

  • Food Safety: S. 2507 requires that information about food safety inspections on food used in the child nutrition programs be posted in a visible location and be made available to the public.  Also, states and local government have the option to require more stringent and more frequent food safety inspections than are required by federal law. 

  • Notice of Irradiated Food Products: S. 2507 requires the USDA to establish procedures to govern the use of irradiated food products in the Child Nutrition programs.  The legislation establishes minimum requirements that states and school food service authorities are provided with information about the safety of irradiated foods, that states and school food authorities are given information about how to educate parents and students about these foods, and that irradiated foods must be labeled. 

Administration of the Child Nutrition Programs

S. 2507 contains a number of provisions aimed at improving the administration of Child Nutrition Programs.

  • Administrative Error Reduction: The USDA should work with state and local educational agencies to develop and distribute training and technical assistance material relating to the administration of school meals programs that are representative of the best management and administrative practices.  S. 2507 also authorizes federal funds to be used to provide training and technical assistance and material to improve program integrity and administrative accuracy and to assist state educational agencies in reviewing administrative practices of local educational agencies. 

  • Administrative Reviews: S. 2507 clarifies guidelines for administrative reviews of local educational agencies by state educational agencies.  The bill also clarifies steps that should be taken if a local educational agency fails to meet the criteria established by the USDA.  Finally, guidelines are established for retaining funds after administrative reviews.  Retained funds should be returned to the USDA and used to provide training and technical assistance to reduce future errors or to assist State educational agencies in reviewing the administrative practices of local educational agencies. 

  • Program Evaluation: S. 2507 authorizes the USDA to conduct annual performance assessments of the child nutrition programs.  These assessments may evaluate the cost of producing meals and the nutrient profile of meals served under the programs.  Also, an assessment may be conducted to determine the feasibility of improving the certification process for school meals programs. 

  • State Administrative Expenses: This legislation makes available to States for administrative costs not less than the amount made available for fiscal year 2004.  Beginning in 2008, the amount made available to States for administrative costs will be adjusted to reflect percentage change between the index published by the Bureau of Economic Analysis of the Department of Commerce in the second preceding fiscal year and the preceding fiscal year.  States are also required to submit to the USDA a plan that describes how funds will be used for technology and information management systems improvements. 

  • Technology Infrastructure Grants: The USDA will provide grants to local educational agencies, school food authorities, and schools to assist with the cost of purchasing or upgrading technology and information management systems. 

  • Food Service Management Institute: S. 2507 reauthorizes the Food Service Management Institute and clarifies the type of training and technical assistance that it should provide. 

For further information please contact: Sheri Steisel (sheri.steisel@ncsl.org), Lee Posey (lee.posey@ncsl.org) or Katie Gigliotti (katherine.gigliotti@ncsl.org)

Prepared by: Katherine Gigliotti, Emerson Hunger Fellow
Human Services and Welfare Committee
July 14, 2004

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