Sec. 109. Demonstration projects

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Section 18 of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1769 ) is amended— by striking subsections (g), (h), (j), and (k); by redesignating subsection

(i)as subsection (g); in subsection (g)(5), as so redesignated, by striking 2011 through 2015 and inserting 2017 through 2021 ; by inserting after subsection

(c)the following: The Secretary shall carry out a program to assist eligible schools, State and local agencies, Indian tribal organizations, agricultural producers or groups of agricultural producers, and nonprofit entities through grants, technical assistance, and research to implement farm to school programs that improve access to local foods and improve nutrition education in eligible schools. In this subsection: The term agricultural producer means a farmer, rancher, or fisher (including of farm-raised fish). The term eligible school means a school or institution that participates in— a program under this Act, including the summer food service program for children under section 13 and the early care and afterschool portions of the child and adult care food program under section 17; or the school breakfast program established under section 4 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1773 ). The Secretary shall award competitive grants under this subsection to be used for implementing farm to school programs for the purposes of improving access to local foods and improving nutrition education, through— research, training, and technical assistance; supporting operations; planning; purchasing equipment; developing school gardens; and developing partnerships to facilitate nutrition education and healthy eating. In making awards under this subsection, the Secretary shall, to the maximum extent practicable, ensure— geographical diversity; and equitable treatment of urban, rural, and tribal communities. Funds provided under this subsection may be used to improve local food procurement and distribution options between agricultural producers and eligible schools, including innovative approaches to aggregation, processing, transportation, and distribution. The total amount provided to a grant recipient under this subsection shall not exceed $150,000. The term of an award shall not exceed 3 years. The Secretary shall not award any entity more than 1 grant at any given time. In carrying out this subsection, the Secretary shall make awards of diverse amounts and duration so as to best match a variety of purposes, scopes, and needs of the project proposals. The Secretary shall not award a grant under this subsection if the majority of grant funds would be used solely for the purpose of carrying out a conference. The Federal share of costs for a project funded through a grant awarded under this subsection shall not exceed 75 percent of the total cost of the project. As a condition of receiving a grant under this subsection, a grant recipient shall provide matching support in the form of cash or in-kind contributions, including facilities, equipment, or services provided by State and local governments, nonprofit organizations, and private sources. To the maximum extent practicable, in providing assistance under this subsection, the Secretary shall give priority to proposals to— serve a high proportion of children who are eligible for free or reduced price meals; incorporate nutrition education activities that encourage the participation of school children in farm and garden-based agricultural education activities; provide families the opportunity to participate in educational programming, including through materials and engagement activities, to improve nutrition outside the school environment; demonstrate collaboration between eligible schools, nongovernmental and community-based organizations, agricultural producer groups, and other community partners; make local food products available on the menu of reimbursable meals under this Act at the eligible school; demonstrate the potential for long-term program sustainability with non-Federal funds; and expand the selection of local commodities available for eligible schools. In the case of projects serving tribal communities, the Secretary shall, to the maximum extent practicable, give highest priority to projects that propose to use products from tribal agricultural producers, in addition to the priorities under subparagraph (A). As a condition of receiving a grant under this subsection, each grant recipient shall agree to cooperate in an evaluation of the program by the Secretary. The Secretary shall provide technical assistance, research, and information through amounts reserved under this subsection for such purposes, to assist schools, State and local agencies, Indian tribal organizations, agricultural producers, and nonprofit entities— to facilitate the coordination and sharing of information and resources that may be applicable to the farm to school program; to collect and share information on best practices; to disseminate research and data on existing farm to school programs and the potential for programs to begin in underserved areas; and to increase awareness of, and participation in, farm to school programs among agricultural and aquiculture producers or agricultural producer groups, including beginning, veteran, and socially disadvantaged farmers and ranchers. Not later than 1 year after the date of the enactment of the Improving Child Nutrition and Education Act of 2016 and every 3 years thereafter, the Secretary shall review and submit to the Committee on Agriculture and the Committee on Education and the Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the regulatory and other barriers related to including locally or regionally produced food products in school food programs, including any progress that has been made in identifying and eliminating such barriers through examining— barriers to the development and implementation of successful farm to school programs; the direct and indirect costs affecting the production and marketing of locally or regionally produced agricultural food products for school food programs; the costs local school food programs incur by acquiring such local foods for school meal programs in comparison to the costs for other foods in such school meal programs; and local and regional market access for such food products, partnerships, small-scale production, and any barriers to and long-term feasibility of such access. On October 1, 2016, and each October 1 thereafter, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this subsection $10,000,000, to remain available until expended. The Secretary shall be entitled to receive, shall accept, and shall use to carry out this subsection the funds transferred under subparagraph (A), without further appropriation. Of the funds made available to the Secretary under subparagraph (A), not more than 5 percent may be used to pay administrative costs incurred by the Secretary in carrying out this subsection and evaluating the program in accordance with paragraph (6). From the funds made available under the summer food service program under section 13, the Secretary shall award grants on a competitive basis to not more than 4 State agencies to improve delivery of such summer food service program for low-income children in underserved areas during the summer through sustainable, scalable, business-driven solutions. A grant awarded under this subsection shall be for a period of not more than 3 years. In awarding grants under this subsection, the Secretary shall give priority to State agencies that have met the application requirements under this subsection and which demonstrate a severe unmet need for serving children in additional eligible areas in the State through the summer food service program under section 13. Funds under this subsection will— be awarded for the purpose of reducing childhood hunger and allowing parents to better participate in the labor force or an education or workforce development program; and not preempt or prevent operation of the summer food service program under section 13. A State seeking to improve delivery of the summer food service program in such State in accordance with this subsection shall submit an application at such time and in such manner as the Secretary may reasonably require. The application shall contain— State plans to implement and manage the program in accordance with other applicable Federal requirements under this Act; a determination of the eligible areas in the State in which poor economic conditions exist in accordance with the program, but where an eligible service institution is not currently in operation, where the State may reimburse a vendor; identified eligible vendors which the State has determined to be qualified to provide meals in accordance with this subsection; a proposed timeline for entering into contracts with eligible vendors and strategies for effective communication; and an assurance that funds will be used to provide meals to the most vulnerable, underserved, and rural populations, as determined by the State. For purposes of this subsection, an eligible vendor is a food vendor which the State determines has the administrative capacity and proven operating performance to provide eligible meals to children in underserved areas in accordance with this subsection and the summer food service program requirements on management responsibilities of sponsors and self-preparation sites, including requirements that the vendor— accepts final administrative and financial responsibility for management of an effective food service, including auditing and reporting responsibilities, but will not receive administrative funding from the State to do so; has not been determined ineligible to participate in any other program under this Act or the Child Nutrition Act of 1966 by reason of violation of the requirements of that program; will provide adequate supervisory and operational personnel for monitoring and management of a self-preparation site; contracts directly with the State as a sponsor; ensures that meals are inspected periodically as required under existing program regulations; participates in applicable State and Federal reporting and auditing requirements under this Act as appropriate, including to provide other information determined relevant by the Secretary in accordance with paragraph (5); has State or local health certification for the facilities in which meals will be prepared and distributed for use in the program, and ensures that State and local health and sanitation requirements are met at all times; and has the organizational capacity to offer meals in underserved communities, including preparation and delivery logistics. A State shall use the grant awarded to the State under this subsection to reimburse an eligible vendor for meals served to eligible children in accordance with the summer food service program under section 13 and with this subsection, as follows: Reimbursements shall be available for an eligible vendor operating in an eligible area in which poor economic conditions exist where no sponsor is currently operating the program under section 13. To the extent practicable, a State shall give priority to eligible vendors that— demonstrate partnerships with entities providing summer enrichment activities such as schools, local government agencies, and nonprofit agencies; and provide meals at a congregate site. A State shall follow established procedures in entering into contracts with a vendor, such as through a Request for Proposal, Invitation for Sealed Bid, Small Purchase Procedure, or other common method. Not later than 1 year after the end of the grant period for a grant awarded to a State under this subsection, the State shall submit to the Secretary a report on— the activities carried out with such grant; and the impacts of such activities on children, families, and eligible service institutions during the summer. No later than 4 years after the first grant is awarded under this subsection, the Secretary shall provide to the Committee on Education and the Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the grant program under this subsection, which shall include— a review of information submitted by States under subparagraph (A); and best practices on reducing childhood hunger in the summer months. The following rules shall apply with respect to this subsection: No commodities shall be provided to businesses or vendors under this subsection. Vendors shall assume all administrative costs under this subsection. Meals shall be provided to children eligible for the summer food service program under section 13. A vendor receiving reimbursements shall not profit directly from such reimbursements under this subsection. The Secretary shall include payments to States under this subsection in its calculations for administrative costs incurred by States under subsection (k)(1) of section 13. The purposes of the provision of electronic benefits provided through this subsection are to assess the use of alternate methods of providing access to food for children during the summer months when school is not in regular session that are intended to— increase summer food service program effectiveness and efficiency; reduce or eliminate the food insecurity and hunger of children; and improve the nutritional status of children. A State that, as of the date of enactment of the Improving Child Nutrition and Education Act of 2016 , is operating, or has operated, a summer electronic benefit transfer for children demonstration may elect to continue operating such demonstration in accordance with the requirements of this subsection as an alternative to other delivery models of providing meals to children during the summer months when school is not in regular session. As a condition of participating in the demonstration under this subsection, a State shall— comply with the requirements under this subsection; and agree to provide such information the Secretary may require for the evaluation of the demonstration as required under this subsection. In this subsection: The term eligible household means a household that includes 1 or more school-aged child determined as eligible to receive free or reduced price school meals during the prior school year, but such child is not participating in a program that provides food during the summer through the summer food service program under section 13. The term State includes a tribal entity. The term summer electronic benefit transfer for children demonstration means an electronic benefit transfer demonstration project under section 748(g)(1) of the Agriculture, Rural Development, Food and Drug Administration, and Related Appropriations Act, 2010 ( Public Law 111–80 ; 123 Stat. 2132). The Secretary shall approve States seeking to make an election under paragraph (2)(A) that will evaluate the impact of providing a variety of differentiated benefit levels to eligible children as a way to reach such children to the greatest extent practicable. The values of such benefits shall be determined by the State, but shall be between $15 and $30 per month for each school-aged child in an eligible household. In determining the values under subparagraph (A), a State may consider differentiating rates based on the need for such benefits, which may be determined through factors such as— the proportion of applicants that are eligible for free price meals; total number of households and children seeking to participate; food security in children across communities in such State; average redemption rates of benefits; impact of such values at improving food security in children; availability of other community programs that provide meals to children during the summer months when school is not in regular session where children might otherwise receive nutrition assistance; and any other information a State determines is useful for determining such rates. No child may receive more than 3 months of benefits under this paragraph in any 12-month period. No child may receive more than $30 of benefits under this paragraph per month. Nothing in this paragraph shall be construed to prohibit States or local entities from providing additional non-Federal resources for the purposes of this subsection. In administering this subsection and providing benefits to children in accordance with this subsection, a State shall consider previous State experiences and best practices in implementing the summer electronic benefit transfer for children demonstration carried out before the date of enactment of the Improving Child Nutrition and Education Act of 2016 , including information evaluating findings of the demonstration (including the 2013 final report published by the Department of Agriculture). The Secretary shall provide, and periodically update, technical assistance to States for purposes of this paragraph. Benefits issued to families through the election under paragraph (2)(A) may be used only for the purchase of food for consumption by school-aged children in such family. Benefits issued through the election described in this subparagraph may be redeemed only when school is out of session for the summer period. In administering this subsection, the State shall— ensure that benefits are issued only to eligible households that live— in areas with high rates of poverty or long-term poverty that are rural and have no congregate feeding sites or access to meals otherwise provided through the summer food service program authorized under section 13; or outside an area in which poor economic conditions exist but in an area with no access to meals otherwise provided through the summer food service program authorized under section 13; issue benefits to eligible households only after such household has made an oral or written request to receive electronic benefit transfer benefits under this subsection; and document how the election will be administered in the management and administration plan described in subsection (n), including the process for identifying areas in which benefits will be issued. The Secretary shall provide for an ongoing, independent evaluation of the demonstration carried out under this subsection, including quasi-experimental or other methods that are capable of producing scientifically valid information to determine effectiveness in achieving the purposes described in paragraph (1), including examining or assessing— feasibility of, or barriers to, successful implementation of this subsection; varied approaches in State implementation of this subsection, including different approaches, challenges, and lessons learned; specific levels of use and receipt of benefits; impact on children’s food security and nutritional impacts, including by the different impacts on children in a variety of geographical areas such as rural, urban, and suburban areas, localities, and States; total cost (including administrative cost) of implementing and operating this subsection, including in comparison to other methods of providing summer meal service to school-aged children; impacts and results of such evaluation in comparison to evaluations of the summer electronic benefits transfer for children demonstration published by the Secretary of Agriculture; and the potential for benefits provided under this subsection to improve effectiveness and efficiency of the summer food service program in comparison to other methods of providing summer meal service to school-aged children. Not later than one year after amounts are first appropriated under paragraph (10), and each year thereafter, the Secretary shall submit to Congress a report that— includes the information resulting from the most recent evaluation under paragraph (8); and takes into consideration evaluations of the summer electronic benefits transfer for children demonstration published by the Secretary of Agriculture. There is authorized to be appropriated to carry out this subsection not more than $10,000,000 for each of fiscal years 2018 through 2020, to remain available until expended. Of such appropriations, for each fiscal year— each State shall utilize a portion for administrative funds that shall be equal to the levels necessary to effectively and efficiently administer the State’s demonstration under this subsection, as determined by the State; not more than 1 percent may be spent on administrative funds by the Secretary; and not more than $499,999 shall be available for the Secretary to comply with paragraph (8). Not later than December 31, 2016, the Secretary shall provide guidance to States to implement this subsection, including recommendations for States to successfully continue to implement the summer electronic benefit transfer for children demonstration while complying with the new or additional requirements of this subsection. ; and by adding at the end the following: The purposes of this subsection are to provide States flexibility to develop programs and policies to best meet the nutritional needs of school-aged children in the State by providing flexibility over school meal programs under this Act and section 4 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1773 ) and other programs to address such needs more effectively and efficiently with less Federal involvement, including by— removing duplication, redundancies, regulatory burden, and unnecessary requirements resulting from the Federal administration of the school meal programs; more efficiently using Federal, State, local, and nongovernmental resources to strengthen delivery of the school meal programs and other programs; and supporting healthy meals through involvement by parents, family members, and the community, including nonprofit organizations, health organizations, and school officials from large and small urban, suburban, and rural areas in the State. The Secretary shall award grants, on a competitive basis, to up to 3 States to enable the States to carry out the activities described in this subsection. In awarding grants under this subsection, the Secretary shall— in a case in which more than 3 States apply for a grant under this subsection, give priority to States by taking into consideration regional diversity; and ensure each State awarded a grant under this subsection meets the required assurances under paragraph (3)(D), except that the Secretary shall not approve or disapprove an application on the basis of a State’s plan or proposed program. A grant to a State under this subsection— shall be awarded to the State for a 3-year period; and may be renewed by the Secretary for an additional 3-year period if the State can demonstrate success in meeting the nutritional needs of the school-aged children in the State. The amount of a grant awarded to a State under this subsection for each year of the grant period shall be equal to the amount described in paragraph (3)(C). Each State that receives a grant under this subsection shall provide funds from non-Federal sources (which may be provided in cash, commodities, or in kind) to support the activities under this subsection. A State that receives a grant under this subsection may not, during any period during which the State receives such grant, receive funds under any of the following: The school lunch program under this Act. The school breakfast program under section 4 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1773 ). The special milk program under section 3 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1772 ). The State administrative expenses funding under section 7 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1776 ). The team nutrition network under section 19 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1788 ). To receive a grant under this subsection, a State shall submit an application at such time and in such manner as the Secretary may reasonably require. The application shall contain— an assurance that each school-aged child in the State will have access to at least one affordable meal service option during the school day at the school in which the child is enrolled, and a plan for how the State will carry out such assurance, including— the income thresholds or other needs-based determinations to be used for determining— which students are eligible for free meals; which students are eligible for reduced price meals; and which students are required to pay the full price for meals; the estimated number of students in the State eligible for the thresholds for each meal category described in clause (i); the price to be charged to students eligible for reduced price meals and the price to be charged to students required to pay the full price for meals; how the State will identify and verify eligibility of such students, such as through census data, application processes, or any other State-determined method; an identification of any non-Federal sources, including State funds, the State will utilize to meet the needs of school-aged children in the State if the grant received under this subsection is not sufficient to cover the cost of the meals to be served during the period in which the State receives such grant; any other factors the State will use to determine distribution of funds received under the grant to each elementary school and secondary school in the State to reimburse the schools for the cost of the meals served, including how the State will ensure a fair distribution of such funds to address the need for such meals at each such school; and the monitoring plan the State will use to ensure the funding described in clause

(v)will be used in accordance with this subsection; a description of the requirements for meals provided under this subsection that the State will require, including requirements for meal standards and pricing; a request for an amount of grant funds for each year that the State will receive a grant under this subsection, which may not, for each such year exceed the amount the State received for fiscal year 2016— for free and reduced price meal reimbursements under the programs described in clauses

(i)and

(ii)of paragraph (2)(F), excluding any additional reimbursements received under section 4(b)(3) of this Act; and under the programs described in paragraphs

(iii)through

(v)of paragraph (2)(F); and assurances that the State will— provide healthy meals to school-aged children in the State to ensure maximum participation of students in the State; provide technical assistance to local educational agencies and schools to ensure maximum participation of students in the State; provide an annual report to the Secretary that outlines the activities and progress made in providing healthy meals to students in a more cost efficient manner than such meals were provided prior to the State receiving such grant; and work with school leaders, school nutrition providers, and health professionals to develop and implement the plan under subparagraph

(A)and to ensure that meals provided in schools in the State using the grant will be healthy and provided in an efficient and cost effective manner. A State that receives a grant under this subsection shall use the grant funds to— provide meals to school-aged children in accordance with paragraph (3); carry out the activities described in subparagraph

(B)of this paragraph; and carry out any other activities the State determines will support the goals of this subsection. Each State that receives a grant under this subsection shall, in addition to the activities described in clauses

(i)and

(ii)of subparagraph (A), provide nutritional assistance to low-income and vulnerable children, as determined by the State, by— addressing specific State and community nutritional needs; engaging partners to deliver the meal programs to spur innovation in such delivery, including local governments and school officials, businesses, non-profit and faith-based organizations, and other community partners; developing or strengthening private sector partnerships to support the community and nutritional needs of school-aged children; and achieving administrative and other programmatic cost savings. A State may use not more than 10 percent of the grant received under this subsection for administrative and outreach expenses. Not later than 2 years after receiving a grant under this subsection, a State shall submit to the Secretary a report on how the State was better able to operate school meals and other programs to address needs more effectively compared to how the State addressed such needs before the grant was awarded to the State. The report shall include— a description of how the State used the grant funds, the State costs of carrying out the activities under this subsection (including food, administrative, labor, oversight, and any other costs), and any revenue the State received by carrying out such activities (including Federal, non-Federal, and family contributions); the strategies and activities undertaken at the State and, if applicable, local level to meet the goals of this subsection; financial efficiencies the State has identified through the grant, including the extent to which activities under the grant have led to the addition, blending, or braiding of other Federal or private funding, and the specific or estimated amount of cost-savings, reduced burdens, and other efficiencies; the impacts the State has made in meeting the goals of this subsection; any barriers the State has identified in providing school meals, and ways in which to overcome such barriers; and other State-determined and voluntarily provided information intended to share best practices for future implementation of this subsection. Nothing in this subsection shall be construed to authorize the Secretary to establish, as a condition to receive a grant under this subsection or as requirement to operate such a grant, any criterion that specifies, defines, or prescribes— nutritional guidelines, standards, or meal requirements, including the methods that a State uses to develop, implement, or improve such nutritional guidelines, standards, or meal requirements; specific aspects, parameters, or measures of programmatic quality, including measures of compliance or evaluation; nutritional curriculum, programs of instruction, or instructional content; any aspect of meal provision criteria, including nutritional requirements, timing, duration, type, price, amount, or any other aspect of meals or meal program operation; any term under this subsection as such term applies to activities carried out by a State, including the terms healthy, affordable meal, school day, and nutritional needs; the ways in which a State identifies and verifies eligibility for benefits, including child, family, and provider eligibility; differentiated payment rates a State may use; the amount or sources of non-Federal funds that a State must provide; the percentages or amounts of grant funds to be used for specific activities within or among programs; the scope or structure of programs, including number of meals served, timing within the day, and length or time of year a program operates; and any aspect or parameter of programmatic evaluation. Not later than 4 years after the first grant is awarded under this subsection, the Secretary shall provide to the Committee on Education and the Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, and to States, a report on the feasibility of scaling the implementation of this subsection, including the efficiencies, cost savings, and other benefits identified by State implementation of the programs described in paragraph (2)(F) under this subsection. Such determination of feasibility shall be based on information including— State reports submitted under paragraph (5); a determination of the level of Federal cost-savings achieved and the amount of future cost-saving implications; programmatic simplifications the Federal Government could pursue; and other information provided by States or private entities that would be useful in recommendations to the public, States, and to Congress. .

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