Summary
This notice announces the annual adjustments to the national average payment rates for meals and snacks served in child care centers, outside-school-hours care centers, at-risk afterschool care centers, and adult day care centers; the food service payment rates for meals and snacks served in day care homes; and the administrative reimbursement rates for sponsoring organizations of day care homes, to reflect changes in the Consumer Price Index. Further adjustments are made to these rates to reflect the higher costs of providing meals in Alaska, Guam, Hawaii, Puerto Rico, and Virgin Islands. The adjustments contained in this notice are made on an annual basis each July, as required by the laws and regulations governing the Child and Adult Care Food Program.
Background
Pursuant to sections 4, 11, and 17 of the Richard B. Russell National School Lunch Act (42 USC 1753, 1759a and 1766), section 4 of the Child Nutrition Act of 1966 (42 USC 1773) and 7 CFR 226.4, 226.12 and 226.13 of the program regulations, notice is hereby given of the new payment rates for institutions participating in the Child and Adult Care Food Program. As provided for under the law, all rates in the Child and Adult Care Food Program must be revised annually, on July 1, to reflect changes in the Consumer Price Index (CPI), published by the Bureau of Labor Statistics of the United States Department of Labor, for the most recent 12-month period. These rates are in effect during the period of July 1, 2024 through June 30, 2025.
Adjusted Payments
The following national average payment factors and food service payment rates for meals and snacks are in effect from July 1, 2024 through June 30, 2025. All amounts are expressed in dollars or fractions thereof. Due to a higher cost of living, the reimbursements for Alaska, Guam, Hawaii, Puerto Rico, and Virgin Islands are higher than those for all other states. The District of Columbia uses the figures specified for the contiguous states. These rates do not include the value of USDA Foods or cash-in-lieu of USDA Foods, which institutions receive as additional assistance for each lunch or supper served to participants under the program. A notice announcing the value of USDA Foods and cash-in-lieu of USDA Foods is published separately in the Federal Register.
Adjustments to the national average payment rates for all meals served under the Child and Adult Care Food Program are rounded down to the nearest whole cent.
National Average Payment Rates for Centers
The changes in the national average payment rates for centers reflect a 4.03 percent increase during the 12-month period from May 2023 to May 2024 (from 352.892 in May 2023, as previously published in the Federal Register, to 367.099 in May 2024) in the Food Away From Home series of the Consumer Price Index for All Urban Consumers.
Payments for breakfasts served are: Contiguous states —paid rate—39 cents (1 cent increase from the 2023-2024 rate), reduced price rate—2 dollar and 7 cents (9 cents increase), free rate—2 dollars and 37 cents (9 cents increase); Alaska —paid rate—60 cents (2 cents increase), reduced price rate—3 dollars and 50 cents (14 cents increase), free rate—3 dollars and 80 cents (14 cents increase); Guam, Hawaii, Puerto Rico and Virgin Islands —paid rate—49 cents (2 cents increase), reduced price rate—2 dollars and 76 cents (11 cents increase), free rate—3 dollars and 6 cents (11 cents increase).
Payments for lunch or supper served are: Contiguous states —paid rate—42 cents (2 cents increase), reduced price rate—4 dollars and 3 cents (18 cents increase), free rate—4 dollars and 43 cents (18 cents increase); Alaska —paid rate—69 cents (3 cents increase), reduced price rate—6 dollars and 78 cents (28 cents increase), free rate—7 dollars and 18 cents (28 cents increase); Guam, Hawaii, Puerto Rico and Virgin Islands —paid rate—55 cents (2 cents increase), reduced price rate—5 dollars and 36 cents (22 cents increase), free rate—5 dollars and 76 cents (22 cents increase).
Payments for snack served are: Contiguous states —paid rate—11 cents (1 cents increase), reduced price rate—60 cents (2 cents increase), free rate—1 dollar and 21 cents (4 cents increase); Alaska —paid rate—18 cents (1 cent increase), reduced price rate—98 cents (4 cent increase), free rate—1 dollar and 97 cents (8 cents increase); Guam, Hawaii, Puerto Rico and Virgin Islands —paid rate—14 cents (1 cents increase), reduced price rate—79 cents (3 cents increase), free rate—1 dollar and 58 cents (6 cents increase).
Food Service Payment Rates for Day Care Homes
The changes in the food service payment rates for day care homes reflect a 1.04 percent increase during the 12-month period from May 2023 to May 2024 (from 302.535 in May 2023, as previously published in the Federal Register, to 305.679 in May 2024) in the Food At Home series of the Consumer Price Index for All Urban Consumers.
Payments for breakfast served are: Contiguous states —Tier I—1 dollar and 66 cents (1 cent increase from the 2023-2024 rate) and Tier II—60 cents (1 cents increase); Alaska —Tier I—2 dollars and 66 cents (3 cents increase) and Tier II— 93 cents (1 cent increase); Guam, Hawaii, Puerto Rico and Virgin Islands —Tier I—2 dollar and 14 cents (2 cents increase) and Tier II—76 cents (1 cent increase).
Payments for lunch and supper served are: Contiguous states —Tier I—3 dollars and 15 cents (3 cents increase) and Tier II—1 dollar and 90 cents (2 cents increase); Alaska —Tier I—5 dollars and 10 cents (5 cents increase) and Tier II—3 dollars and 8 cents (3 cents increase); Guam, Hawaii, Puerto Rico and Virgin Islands —Tier I—4 dollars and 9 cents (4 cents increase) and Tier II—2 dollar and 47 cents (3 cents increase).
Payments for snack served are: Contiguous states —Tier I—93 cents (No Change) and Tier II—26 cents (1 cent increase); Alaska —Tier I—1 dollar and 52 cents (2 cents increase) and Tier II—42 cents (1 cent increase); Guam, Hawaii, Puerto Rico and Virgin Islands —Tier I—1 dollar and 22 cents (2 cents increase) and Tier II—33 cents (no change).
Administrative Reimbursement Rates for Sponsoring Organizations of Day Care Homes
The changes in the administrative reimbursement rates for sponsoring organizations of day care homes reflect a 3.27 percent increase during the 12-month period, May 2023 to May 2024 (from 304.127 in May 2023, as previously published in the Federal Register, to 314.069 in May 2024) in the series for all items of the Consumer Price Index for All Urban Consumers.
Monthly administrative payments to sponsors for each sponsored day care home are: Contiguous states —Initial 50 homes—147 dollars (5 dollar increase from 2023-2024 annual level), next 150 homes—112 dollars (4 dollar increase), next 800 homes—87 dollars (2 dollar increase), each additional home—77 dollars (2 dollar increase); Alaska —Initial 50 homes—238 dollars (8 dollar increase), next 150 homes—181 dollars (5 dollar increase), next 800 homes—142 dollars (5 dollar increase), each additional home—125 dollars (4 dollar increase); Guam, Hawaii, Puerto Rico and Virgin Islands —Initial 50 homes—191 dollars (6 dollar increase), next 150 homes—145 dollars (4 dollar increase), next 800 homes—114 dollars (4 dollar increase), each additional home—100 dollars (3 dollar increase).
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