"NONPROFIT PROGRAMS "SEC. 20. The food and milk service programs in schools and nonprofit institutions receiving assistance under this Act shall be conducted on a nonprofit basis. "STATISTICAL DATA "SEC. 21. Data on numbers of children of ages five through seventeen and on per capita income shall be made available by the Secretary of Commerce to the Secretary and, except where otherwise expressly stated in this Act, shall be the latest available. "REGULATIONS "SEC. 22. The Secretary shall prescribe such regulations as he may deem necessary to carry out this Act. "PROHIBITIONS "SEC. 23(a) In carrying out the provisions of section 13 of this Act, neither the Secretary nor the State shall impose any requirements with respect to teaching personnel, curricullm, instruction, methods of instruction, and materials of instruction in any nonprofit institution. "(b) The value of assistance to children under this Act shall not be considered to be income or resources for any purpose under any Federal or State laws including, but not limited to, laws relating to taxation, welfare, and public assistance programs. Expenditures of funds from State and local sources for the maintenance of food programs for children shall not be diminished as a result of funds received under this Act. "SEC. 24. The Secretary may extend the benefits of school feeding programs under this Act to include preschool programs operated as part of the school system." SENATE COMMITTEE ON AGRICULTURE AND FORESTRY STAFF EXPLANATION OF S. 3467 The bill would amend the National School Lunch Act by adding provisions for(1) A special milk program for fiscal years 1968, 1969, and 1970; (2) A pilot breakfast program for needy children in schools drawing attendance from poor economic areas and in schools to which the children must travel long distances for fiscal years 1967, 1968, and 1969; (3) A permanent program for nonfood assistance to schools drawing attendance from areas in which poor economic conditions exist; and (4) General administration (sections 16 through 24), including provision for (A) use of up to 11⁄2 percent of the funds appropriated for the various programs for program administrative expenses of State educational agencies; (B) coordination with, and preference to, programs carried on under the Elementary and Secondary Education Act of 1965 and the Economic Opportunity Act of 1964; (C) requiring the food and milk service programs to be conducted on a nonprofit basis; (D) in the case of the milk program, prohibiting imposition of requirements dealing with teaching; (E) providing that assistance under the Act not be deemed income and that State expenditures for child food programs not be reduced; (F) authorizing the Secretary to extend school feeding programs under the Act to include pre-school programs operated as part of the school system. SECTION-BY-SECTION EXPLANATION Section 1(A) keeps the appropriation authorization for the national school lunch program separate from those for the new programs. Section 1(B) excludes funds appropriation for the new programs from section 6 of the National School Lunch Act, which provides that part of the funds may be 64-823-66- -2 used for Department administrative expenses and part may be used for direct food purchases. Section 1(C) defines "nonprofit institution" as an institution, other than a school, which provides for the care and training of children and no part of the net earnings of which inures to the benefit of any private shareholder or individual. Section 1(D) adds new sections 13 through 24 to the National School Lunch Act which provide as follows: Section 13. Special Milk Section 14. School Breakfast Section 15. Nonfood Assistance Section 16 through 24. General Provisions New section 13, which provides for the special milk program is identical to section 2 of the Act of July 1, 1958, the current authority for the special milk program, except that the current authority runs only through June 30, 1967, while the new authority runs through fiscal 1970, and appropriations would be limited to not more than $100 million per year. However, since the new authority would be part of the National School Lunch Act, the general provisions of that Act would be applicable. Section 14 provides for a pilot school breakfast program for fiscal years 1967, 1968, and 1969. Subsection (a) authorizes appropriations for such program in schools serving children from low-income areas and in schools drawing attendance from children who have to travel long distances. Subsections (b) and (c) provide for apportionment to States. Three percent would be apportioned to Guam, the Virgin Islands, Puerto Rico, and American Samoa, on the basis of the number of children ages 5 through 17. From the balance the other States would each receive first, a basic grant of $50,000 and, second, additional funds on the basis of need as indicated by the number of children in the State, ages 5 through 17, in families with income of less than $2,000 plus children, ages 5 through 17, in families receiving assistance under the program for Aid to Families with Dependent Children. Subsection (d) requires States to disburse funds to schools found eligible by the State educational agency at rates per meal that will be established by the Secretary. These funds are to be spent only for food for needy children. the extent practicable, first consideration will be given to schools in areas of economic need. To Subsection (e) provides that in instances of severe need, the Secretary may authorize assistance up to 90 percent of the operating cost of a breakfast program, including the cost of obtaining, preparing and serving food. Subsection (f) requires meals served under this section to meet nutritional requirements prescribed by the Secretary on the basis of tested nutritional research and to be served free or at reduced cost to those children found, by local school authorities, to be unable to pay the full cost. This is similar to the requirement contained in the existing National School Lunch Act. Subsection (g) provides that the Department of Agriculture will administer the program in nonprofit private schools in those States whose educational agency is forbidden, by law, to disburse funds to other than public schools. This is similar to the method followed under the National School Lunch Act. Section 15 provides for a permanent nonfood assistance program in schools drawing attendance from poor economic areas. Subsection (a) authorizes appropriations to assist States in helping such schools acquire facilities, other than land and buildings, for the storage, preparation, transportation and serving of food. Subsection (b) provides that funds shall be apportioned among the States on the same basis as school lunch funds under section 4. Payments to States are made on condition that one-fourth of the cost of any facilities financed shall be borne by State or local funds. Subsection (c) permits the State educational agency to disburse funds to eligible schools by advance or by reimbursement only on request from the school, accompanied by a detailed description of the facilities to be acquired and plans for their use to improve the nutritional needs of the children in the school. Subsection (d) requires the Department of Agriculture to administer the program in nonprofit private schools in those States where the State educational agency is not permitted, by law, to disburse funds to other than public schools. Section 16 provides that the Secretary shall certify to the Secretary of Treasury payments to be made to any State under the new provisions and the Secretary of Treasury shall make the payment. This is the same procedure currently used under the national school lunch program. Section 17 authorizes the Secretary to use up to 111⁄2 percent of the total funds appropriated under the National School Lunch Act for advances to State educational agencies for administrative purposes. However, no such agency would receive more than 1 percent of the funds apportioned to it under the Act or $7,500, whichever is greater. Section 18 provides that in the selection of schools and nonprofit institutions to receive Federal assistance under the special milk and other programs being added to the National School Lunch Act, the State agency shall adopt methods and procedures necessary to assure coordination with programs carried on under the Elementary and Secondary Education Act of 1965 and the Economic Opportunity Act of 1964 in such schools or institutions and, in cases of comparable need, give preference to these schools or institutions. The Elementary and Secondary Education Act of 1965 provides among other things for financial assistance to local educational agencies for the education of children of low-income areas. The purpose of the Economic Opportunity Act of 1964 is to eliminate poverty. Sections 611 and 612 of the latter Act now require other agencies, in the administration of related programs, to cooperate and assist in carrying out the purpose of the latter Act and to give preference to applications made in connection with community action programs under the latter Act. Section 19 requires schools and nonprofit institutions participating in the breakfast program to use to the extent practicable foods designated by the Secretary as being in abundance, and to receive foods donated by the Department of Agriculture. Section 20 requires all food and milk service programs receiving assistance under the Act to be operated on a nonprofit basis. This is similar to the requirement under the National School Lunch Act. Section 21 provides that information on numbers of children, ages 5 through 17, and on per capita income shall be made available by the Secretary of Commerce and, unless otherwise specified, shall be the latest available. Section 22 authorizes regulations. Section 23 prohibits (a) the Secretary and the States from imposing any requirements with respect to teaching personnel, curriculum, or materials of instruction in carrying out the special milk or other programs added to the National School Lunch Act. A similar provision now applies to the national school lunch program. (b) the value of assistance to children under the National School Lunch Act from being considered as income or resources for purposes of other programs. (c) State and local expenditures for food programs for children from being reduced as a result of funds received under the National School Lunch Act. Section 24 authorizes the Secretary to extend the benefits of school feeding programs under the Act to pre-school programs operated as part of the school system. The CHAIRMAN. Now, Mr. Secretary, you have just heard me place in the record my conception of the bill before us. If it is not as I stated, I wish you would say so. My understanding is that you have a prepared statement. The CHAIRMAN. Do you mind being interrupted as you go on, or do you want to read the whole statement and then be subjected to questions? Secretary FREEMAN. Either way, Mr. Chairman. I would be pleased to be interrupted if any questions arise. The CHAIRMAN. OK. You may proceed. STATEMENT OF HON. ORVILLE L. FREEMAN, SECRETARY OF AGRICULTURE Secretary FREEMAN. Mr. Chairman, and members of the committee. I noted the statement you made, Mr. Chairman, and I think it accurately summarizes the provisions of S. 3467, and as such I will direct my testimony to the bill as introduced by the chairman. The chairman very thoughtfully noted for the record that there were some provisions in the Child Nurition Act as submitted by the administration, primarily those that would have involved child feeding programs of a special nature outside of the school system. These programs are not covered under S. 3467, and, as a result, my testimony will be directed to S. 3467, rather than to those which have been touched on before this committee earlier. The CHAIRMAN. Mr. Secretary, at this point, I wonder if you could place in the record the programs under which the Government is giving assistance to the poor under various poverty programs? If you do not have that information available, I think it would be well to later put it into the record at this point. (The information is as follows:) SUMMARY OF OTHER LEGISLATIVE AUTHORITIES UNDER WHICH LOCAL SCHOOL LUNCH PROGRAMS MAY RECEIVE SUPPLEMENTARY ASSISTANCE 1. The major legislation under which this type of activity is being conducted is the Elementary and Secondary Education Act of 1965. A number of food service programs are being conducted with funds provided under Title IIFinancial Assistance to Local Educational Agencies for the Education of Children of Low-Income Families and under Title III-Supplementary Educational Centers and Services. A survey of the food service proposals submitted by local educational authorities to the State educational agencies indicates that as much as $16 million may have been earmarked in fiscal year 1966 for food service nationwide. No information is available yet on actual expenditures. 2. Title II of the Economic Opportunity Act has also been a source of funds for child food service. The Head Start Program, whether a summer or a yearround activity-whether administered by the school system or by a private agency has funded food service for the children enrolled. This food service is entirely free of charge to the child. Beyond this, under Title I of the Economic Opportunity Act, all of the food assistance programs for children have been made approved work stations for young people enrolled in the Neighborhood Youth Corps and for adults enrolled in the Work Experience Programs. These food assistance programs offer job and training opportunities while providing a general public service. OEO funds have eased the impact of labor costs in many localities. There is no specific estimate available as to the total amount of money involved directly and indirectly in the OEO assistance to USDA's food programs. RÉSUMÉ OF USDA'S FOOD ASSISTANCE PROGRAMS AS THEY AFFECT LowINCOME GROUPS The U.S. Department of Agriculture administers a group of four related food assistance programs. They are the food stamp and commodity donation programs for low-income families and the school lunch and special milk programs for children. THE FOOD STAMP PROGRAM This program improves the diets of low-income households and expands the market for domestically produced foods by supplementing the food purchasing power of eligible low-income families. Families exchange the money they would normally be expected to spend for food for coupons worth more. The U.S. Department of Agriculture pays for the difference between the amount each family pays and the total value of food coupons it receives. The coupons are used to buy food in retail stores. Except for items labeled as imported, the coupons may be used to buy any food for human consumption. Retailers redeem the coupons at face value at their local banks or authorized wholesalers. Families may participate if they live in an area that has the program, are found by local welfare officials to be in need of food assistance, are receiving some form of welfare assistance or are unemployed, part-time employed, working for low wages, or living on limited pensions. If families are not receiving welfare assistance, eligibility is based on family size and income, and their level of liquid assets. The Food Stamp Act of 1964 allows for gradual expansion of the program over the period of the next few years into areas of the country that want and need it. The State agency responsible for Federally-aided public assistance programs submits requests for the program to USDA's Consumer and Marketing Service on behalf of local political subdivisions that want to participate. At the present time, 325 areas in 40 States, as well as the District of Columbia are participating in this program. An estimated 1.2 million people in these areas are benefiting. The budget request for fiscal year 1967, now pending before the Congress, provides for a 50-percent increase in this program from the $100 million appropriated this fiscal year to $150 million in fiscal year 1967. THE COMMODITY DONATION PROGRAM This program helps to improve the nutrition of school children and families in need of food assistance and to increase the market for domestically produced foods acquired under surplus removal and price support operations. Available foods may be donated to nonprofit school lunch programs, summer camps for children, needy Indians on reservations, charitable institutions serving needy persons, and State and local welfare agencies for distribution to low-income households. All States have a donation program for one or more of the eligible outlets cited above. The U.S. Department of Agriculture pays for processing and packaging of foods and for transporting them in carload lots to receiving points chosen by the State. State and local governments pay all costs of intrastate transportation, storage, distribution and, in the case of low-income households, certification. Any local government may participate in the needy family program. If a county or city can demonstrate that it cannot finance a donation program for its low-income families, the Office of Economic Opportunity will consider an application for assistance under the Community Action Program. At the present time, over half the counties and more than 200 cities have a donation program for low-income families. In April, some 4.5 million people participated in the donation program. If an area moves into the Food Stamp Program, the donation program for low-income families is suspended. THE NATIONAL SCHOOL LUNCH PROGRAM This program provides commodity and cash grants to State educational agencies to assist them in providing adequate school lunches. This helps safeguard the health and well-being of children and encourages the consumption of domestically produced foods. Cash grants are distributed by the State agencies for food assistance to schools participating in the program. Part of the appropriation may be used by the Secretary of Agriculture for direct purchase of food to be donated to the States for distribution among participating schools. Not less than 75 percent of the sum appropriated each fiscal year is allotted to States on the basis of their participation_rate and their assistance need rate. In accordance with the National School Lunch Act, State educational agencies enter into an agreement with the Secretary of Agriculture that sets forth their mutual responsibilities. The State agencies, in turn, enter into agreements with participating public and nonprofit private high schools and grade schools. Private schools contract directly with the Department of Agriculture in those States where the State educational agency may not, by law, administer the program in such schools. To be eligible, schools must agree to: operate the lunch program on a nonprofit basis; serve meals that meet nutritional requirements established by the Secretary of Agriculture on the basis of tested research; provide lunches free or at reduced price to children who are unable to pay the full price. This year, 18 million children in 71,000 schools will consume a record 3 billion lunches. Under the regular program, some 1.6 million of these children will have lunch served at reduced price or free. In addition, with the $2 million appropriated by the Congress for special assistance to particularly needy schools, some 60 percent of 325,000 children attending 817 demonstration schools will benefit from a good lunch. |