Updated July 30, 2004

On Wednesday, June 30, 2004, President Bush signed the Child Nutrition and WIC Reauthorization Act of 2004 into law (Public Law 108-265). One important provision of the Act eliminates the cost-accounting requirement and waiting period for schools in low-income areas to receive extra "severe need" school breakfast reimbursements. (For the 2004-2005 school year, severe need schools may receive an additional $.24 per free or reduced price breakfast served.)

Paperwork Reduction:

Schools where at least 40% of lunches served are free or at reduced price are eligible for higher severe need breakfast reimbursement rates. Before the Act was passed, severe need schools were required to prove that their costs exceeded the standard breakfast reimbursement rates by submitting receipts and other documentation. Then they received reimbursement of their documented costs, up to the severe need rates.

The Act removes the requirement that schools document their costs in order to receive severe need assistance. Schools now may receive severe need breakfast reimbursements as long as they meet the 40% free or reduced price requirement mentioned above.

Removal of Waiting Period:

Also, before the Act was passed, schools qualified for severe need assistance only if at least 40% of their lunches were served free or at reduced price during the second preceding school year. In other words, a school was not eligible for severe need assistance before the third year that the school operated school lunch.

The Act now allows severe need eligibility for schools in which no lunches were served during the second preceding year. Such schools may qualify for severe need if the U.S. Department of Agriculture (which administers the School Breakfast Program) determines that the 40% free or reduced price requirement would have been met: for example, if the new schools draw their attendance from areas previously served by schools that were eligible for severe need assistance.

A USDA memo about this provision will be posted soon.

Click here for more information about the School Breakfast Program.

Click here for School Breakfast Program reimbursement rates.

Click here for hightlights of the Child Nutrition and WIC Reauthorization Act of 2004.

Click here to return to FRAC's Child Nutrition Reauthorization Implementation website.

Factsheets on Child Nutrition Programs School Breakfast  |  School Lunch  |  Afterschool  |  Summer Food Women, Infants, and Children  |  Child and Adult Care Food Program

Prepared by the Food Research & Action Center, 1875 Connecticut Ave. NW, Washington, DC 20009; 202-986-2200; www.frac.org