On Sept. 28, 2023, FNS released three new memos and revised two existing memos in response to an audit conducted by the USDA Office of Inspector General (OIG), Consolidated Report of FNS and Selected State Agencies’ Controls Over SFSP, Audit Report 27601-0005-41. 

To complement the written guidance, FNS published this recorded webinar on Feb. 28, 2024 for state agencies. The webinar includes a summary of the new memos released in Sept. 2023 and goes into detail about best practices for unused reimbursements and site proximity.

Memos released Sept. 28, 2023

New Memos

• SFSP 13-2023 Unused Reimbursement in the Summer Food Service Program- provides guidance to state agencies and program operators for managing situations in which sponsors receive more reimbursement than they have spent on allowable costs in the SFSP. 
• SFSP 14-2023 Best Practices for Managing Unused Reimbursement in the Summer Food Service Program - provides guidance to state agencies for managing those situations in which sponsors have unused reimbursement in the SFSP. The memo provides clarification to sponsors on how to identify, calculate, monitor, and verify sponsor’s unused meal reimbursements to ensure compliance with FNS regulations governing proper funds usage in the SFSP. 
• SFSP 15-2023 Best Practices for Determining Proximity of Sites in the Summer Food Service Program- assists state agencies in preventing approval of multiple sites offering meal services at the same time to the same population of children. 

Revised Memos

• SFSP 05-2017 Summer Food Service Program Questions and Answers - updates previously issued questions and answers to clarify SFSP requirements found in 7 CFR Part 225, FNS Instruction 796-4, and other official federal program guidance. Out of date language concerning unused reimbursement has been removed. 
• SFSP 01-2008 Nationwide Expansion of Summer Food Service Program Simplified Cost Accounting Procedures – updates previously issued guidance to clarify SFSP simplified cost accounting requirements, as found in 7 CFR Part 225. Out of date language concerning unused reimbursement has been removed.

This guidance updates previously issued questions and answers to clarify the rural non-congregate summer meals option established through the Consolidated Appropriations Act, 2023 (the Act) (PL 117-328), and codified through the interim final rulemaking (IFR), Establishing the Summer EBT Program and Rural Non-congregate Option in the Summer Meal Programs (88 FR 90230). The Act authorized permanent, non-congregate meal service through the Summer Food Service Program (SFSP) and National School Lunch Program’s (NSLP) Seamless Summer Option (SSO) for rural areas with no congregate meal service. This memorandum and its attachment supersede SFSP 01-2023, SP 05-2023, Implementation Guidance: Summer 2023 Non-Congregate Meal Service in Rural Areas – Revised, issued Feb. 28, 2023, and SFSP 07-2023, SP 14-2023, Questions and Answers #2: Summer 2023 Non-Congregate Meal Service in Rural Areas, issued April 20, 2023.

Please note that the purpose of this guidance memorandum is to update earlier guidance originally issued for summer 2023 operations, and to ensure consistency with the provisions of the IFR. Future Q&A guidance will address additional implementation topics based on feedback received by state agencies and program stakeholders.

FNS appreciates the exceptional efforts of state agencies and local program operators working to meet the nutritional needs of participants during the summer months. SFSP and SSO rely on innovative and collaborative efforts to provide summer meals to children in need. We look forward to working with our program partners and other stakeholders on the administration and operation of the non-congregate meal service for rural communities.

State agencies are reminded to distribute this memorandum to program operators immediately. Program operators should direct any questions concerning this guidance to their state agency. State agencies with questions should contact the appropriate FNS regional office.

Attachment

• Questions and Answers

Summary

This rulemaking proposes important modifications to make the application of serious deficiency procedures in the Child and Adult Care Food Program and Summer Food Service Program consistent, effective, and in line with current requirements under the Richard B. Russell National School Lunch Act.

The serious deficiency process provides a systematic way for state agencies and sponsoring organizations to correct serious management problems, and when that effort fails, protect child nutrition program integrity through due process. In response to public comments received on a prior rulemaking, the Food and Nutrition Service (FNS) proposes improvements to ensure that application of the serious deficiency process is fair and fully implemented. 

FNS proposes to add clarity to the serious deficiency process by defining key terms, establishing a timeline for full correction, and establishing criteria for determining when the serious deficiency process must be implemented. This rulemaking will also address termination for cause and disqualification, implementation of legal requirements for records maintained on individuals on the National Disqualified List, and participation of multi-state sponsoring organizations.

Request for Comments

Written comments must be received on or before May 21, 2024 to be assured of consideration.

• Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the online instructions for submitting comments.
• Mail: Send comments to: Navneet Kaur Sandhu, Program Integrity and Innovation Division, USDA Food and Nutrition Service, 1320 Braddock Place, Alexandria, VA 22314.

All written comments submitted in response to the provisions of this proposed rule will be included in the record and will be made available to the public. Please be advised that the substance of the comments and the identity of the individuals or entities submitting the comments will be subject to public disclosure. USDA will make the written comments publicly available on the internet via https://www.regulations.gov.

USDA’s Food and Nutrition Service recently published a proposed rule that will help ensure the federal child nutrition programs are being operated properly. These regulatory updates will strengthen and clarify the process for correcting major mismanagement problems, also called serious deficiencies, found in FNS’ child nutrition programs.

The proposed changes will ensure that procedures in Child and Adult Care Food Program and Summer Food Service Program, also known as CACFP and SFSP, align with current requirements under law, by:

1. Providing operators a fair path to fully correct serious mismanagement problems;
2. Clarifying termination and disqualification criteria for SFSP operators;
3. Addressing legal requirements for obtaining records of individuals who are disqualified from the program and sponsoring organizations that operate in multiple states;
4. Establishing a serious deficiency process for unaffiliated child care and adult day care centers in CACFP.

USDA is also proposing a standard definition of what it means for an operator to be in “good standing,” which currently does not exist.

This rule is one of many steps that USDA is taking to continually bolster the integrity of the federal child nutrition programs, which help millions of children across America reach their full potential.

The public is invited to comment on the proposed changes. The comment period is open until May 21, 2024.

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USDA is an equal opportunity provider, employer, and lender.

The Consolidated Appropriations Act, 2023 (the Act) (PL 117-328) signed Dec. 29, 2022, included significant policy changes for child nutrition programming, including the authorization of a permanent, rural non-congregate meal service through the Summer Food Service Program (SFSP). Per direction from Congress in the Act, on Dec. 29, 2023, FNS published an interim final rule (IFR) titled, Establishing the Summer EBT Program and Rural Non-congregate Option in the Summer Meal Programs. This rulemaking, effective Dec. 29, 2023, codified the permanent rural non-congregate summer meal service for SFSP. The interim final rule amends and updates program regulations at 7 CFR 225 to include congregate and non-congregate SFSP sites and meal service models. The purpose of this memorandum is to clarify the new criteria states must consider when determining which SFSP sites require pre-approval visits. The IFR requires state agencies to develop a process to determine which sites need pre-approval visits and must consider sites that are new to non- congregate. States are not required to visit each site that is new to operating non-congregate meal service.

SFSP Pre-Approval Visits

Long-standing regulations at 7 CFR 225.7(d) require state agencies to conduct pre-approval visits of certain SFSP sponsors and sites including 1) sponsors who did not participate in the program in the prior year; 2) applicant sponsors that had operational problems noted in the prior year; and 3) all sites that the state agency has determined need a pre-approval visit.

The IFR adds the new requirement that state agencies must establish a process for determining which SFSP sites to visit using criteria identified by FNS. Characteristics states must consider when developing their selection process include:

• Sites that did not participate in the program in the prior year;
• Existing sites new to non-congregate meal service; and
• Existing sites that exhibited operational problems in the prior year.

These criteria must be considered by states in developing the process for selecting proposed sites for pre-approval visits. This does not mean that states must conduct a pre-approval visit for all sites meeting the criteria above. States continue to have discretion when selecting SFSP sites for pre-approval visits and should focus staff resources on proposed sites most at- risk for operational challenges.

Site Selection

In developing a plan to determine which SFSP sites need pre-approval visits, along with considering the characteristics prescribed by FNS, state agencies should prioritize their pre- approval visits to make best use of staff resources and discover potential challenges with proposed sites.

When planning pre-approval visits, states should consider the following for sites that did not operate in the previous year:

• Does the site information sheet provide adequate and credible details describing the proposed meal service operation?
• Has the site operated the SFSP previously? If so, how long ago?
• Have the site staff and supervisors listed on the site information sheet operated the program before?

Consider the following for sites proposing to operate non-congregate meal service options:

• Is the site switching its meal service type from congregate to non-congregate or adding non-congregate meal service?
• What type of non-congregate meal service model is the site proposing to serve? I.e., single meal, multi-day meal issuance, bulk meal issuance?
• Will the site operate a non-congregate home delivery meal model?
  • If so, is the proper hot/cold storage equipment in the delivery vehicle?
  • How many children are they planning to serve on one route?
  • How will the site securely maintain personally identifiable information of each eligible child?
    • The site should store route sheets electronically with only the first name of the child and address.
• Does the state have reason to believe the site will have problems operating non- congregate service?

The following red flags might trigger a preapproval visit:

• The sponsor’s management plan indicates that it will employ only a small number of site staff while planning to serve numerous children at multiple sites. The state agency may want to prioritize pre-approval visits to these sites to ensure adequate staffing levels for the proposed number of children to be served.
• Missing/incomplete items on the site information sheet such as failing to identify the method of non-congregate meal distribution.
• Existing sites that exhibited operational problems in the prior year:
  • For example, a site that distributed meals to ineligible participants (such as adults) and claimed those meals for reimbursement.
  • Sites under sponsors that received frequent technical assistance from the state agency.

Off-site Flexibilities

State agencies have the discretion to utilize various virtual technologies to confirm the existence of sites and viability of their operations. By verifying addresses and physical locations of potential sites virtually, state agency staff can focus on conducting pre-approval visits of sites that could potentially pose risks to the overall integrity of the program, such as those who have applied to participate but do not have the proper facilities to operate. State agencies may also request to review some documentation virtually such as health grades, and previous reviews of sites conducted by sponsors.

State agencies are reminded to distribute this memorandum to program operators. Program operators should direct any questions concerning this guidance to their respective state agency. State agencies with questions should contact the appropriate FNS regional office.

Jessica Saracino
Director
Program Monitoring and Operational Support Division
Child Nutrition Programs

On Dec. 29, 2022, President Biden signed the Consolidated Appropriations Act, 2023 (the Act) (PL 117-328). The Act included significant policy changes for Child Nutrition Programs, including the authorization of a permanent, non-congregate meal service through the Summer Food Service Program (SFSP) and Seamless Summer Option (SSO) for rural areas with no congregate meal service and established the permanent Summer EBT Program beginning in summer 2024.

On Dec. 29, 2023, FNS published the Interim Final Rule: Establishing the Summer EBT Program and Rural Non-Congregate Option in the Summer Meal Programs. This webinar is geared towards state agencies and will address key provisions in the Interim Final Rule as related to providing non-congregate summer meals in rural areas.

On Aug.23, 2023, the Food and Nutrition Service (FNS) published the Child Nutrition Program Integrity Final Rule, 88 FR 57792 which establishes changes to the SAE recovery process in fiscal year (FY) 2023 and going forward. The changes and clarifications outlined below impact SAE reallocation funds received beginning in FY 2023. CACFP sponsor administrative funds are reported on the same form as SAE funds. As a result of the changes to how SAE funds are tracked and reported on the SAE Financial Status Report (FNS-777 SAE), FNS is also providing the following guidance for reporting sponsor administrative funds and carryover.

Background

SAE funds are allocated by FNS to state agencies, in accordance with 7 CFR 235.4, for administrative costs incurred in the National School Lunch Program, School Breakfast Program, Special Milk Program, Child and Adult Care Food Program (CACFP), Summer Food Service Program, and the Food Distribution Program. Publication of the Child Nutrition Program Integrity Final Rule amends 7 CFR 235.5 by making changes to the process by which state agencies return SAE funds that they are unable to spend within their allotted timeframe.

Changes to the SAE Recovery Process

The Child Nutrition Program Integrity Final Rule amends 7 CFR 235.5(d) and (e) to require state agencies to return any unobligated SAE funds to FNS at the end of the fiscal year following the fiscal year for which the funds are awarded. This is a departure from the previous regulation that required state agencies obligate and expend funds by Sept. 30 of the second year of the grant and to return to FNS any unexpended SAE funds. This change provides state agencies more flexibility as it permits them to liquidate obligations (i.e., expend) after Sept. 30. There is no change to what a state agency can carry forward as an unliquidated obligation into the 2nd year of SAE funding, and there is no change in the carryover limitations (i.e., 20% of funding can be carried over after subtracting expenditures and unliquidated obligations).

The compliance date for this provision is Sept. 22, 2023. Therefore, this change affects FY 2023 SAE reallocation funds. State agencies must still obligate, but do not need to expend, all FY 2023 SAE reallocation funds by Sept. 30, 2023.

The final rule and revised regulations supersede the following previously released guidance memos and instruction:

• SP 57-2013 and FD-131, Questions and Answers Regarding the Use of State Administrative Expense (SAE) Funds and SAE Reallocation Funds in the Food Distribution Program for Child Nutrition Programs
• SP 09-2020, CACFP 04-2020, Updated Instructions for the Recovery and Reallocation of State Administrative Expense (SAE) Funds in Child Nutrition Programs
• FNS Instruction 781-2

Reporting Using the FNS-777 SAE

To accommodate these changes, FNS is extending the reporting due date for the final (FNS-777 SAE) specified in 7 CFR 235.7(b). This change will align the due date with the 120-day due date for the final FNS-777 report as specified in program regulations at 7 CFR 210.5(d)(3)(ii), 7 CFR 215.11(c)(2), 7 CFR 220.13(b)(2), 7 CFR 225.8(c), and 7 CFR 226.7(d). The report extension will affect the closeout timeline for the FY 2022 SAE and CACFP sponsor administrative funds.

State agencies will be allowed to expend FY 2022 SAE funds which have already been obligated by Sept. 30, 2023, and submit the final FNS-777 SAE in the Food Program Reporting System (FPRS) within 120 days after the end of the federal fiscal year. Therefore, the final FNS-777 SAE report for the FY 2022 grant period should be certified in FPRS no later than Jan. 29, 2024. For FY 2023 and future years, state agencies will be required to submit an eighth quarter FNS-777 SAE report and a subsequent FNS-777 SAE final report to account for the new 120-day liquidation period.

The FNS-777 SAE report in FPRS currently contains the reporting for the CACFP sponsor administrative funds. Please note that for CACFP sponsor administrative funds, the state agency should continue to report for FY 2023 and forward the final dollar amounts for these CACFP sponsor administrative funds on the eighth quarter FNS-777 SAE, which is due 30 days after the end of fiscal year. The Program Integrity Rule does not make any changes to the reporting requirements for CACFP sponsor administrative funds. This eighth quarter report will be used to close out the CACFP sponsor administrative funds each year, beginning with the FY 2023 program year. However, since the eighth quarter report will be followed by a final report for SAE funds, state agencies will need to also include CACFP sponsor administrative funds on the final report. It is important to note that there can be no changes to the CACFP sponsor administrative funds figures reported between the eighth quarter and the final reports. Accordingly, all current requirements outlined in CACFP 24-2012 Family Day Care Home Administrative Reimbursements: Carryover Reporting Requirements for Fiscal Year 2012 and All Subsequent Years remain in effect.

For the FY 2022 closeout of these CACFP sponsor administrative funds, FPRS does not contain an eighth and final FNS-777 SAE report. As a result, FPRS contains a due date of Jan. 29, 2024, for the final FNS-777 SAE report. To avoid confusion with the due dates contained in FPRS, the CACFP sponsor administrative funds final report due date has been extended to coincide with the closeout of the FY 2022 SAE grant. However, please note that this one-time extension does not impact the period of performance for the CACFP sponsor administrative funds, which will remain unchanged.

State agencies should direct questions to the appropriate FNS regional office.

Jessica Saracino
Director
Program Monitoring and Operational Support Division
Child Nutrition Programs

On Dec. 29, 2022, President Biden signed the Consolidated Appropriations Act, 2023 (the Act) (PL 117-328). The Act included significant policy changes for Child Nutrition programming, including the authorization of a permanent, non-congregate meal service through the SFSP and National School Lunch Program (NSLP) Seamless Summer Option (SSO) for rural areas with no congregate meal service and creation of the Summer Electronic Benefits Transfer for Children Program (Section 502 of the Act). On Dec. 29, 2023, FNS published the Interim Final Rule, Establishing the Summer EBT Program and Rural Non- congregate Option in the Summer Meal Programs. Through this rule, USDA codified changes to the regulations to include additional requirements made to Section 13(n)(2) of the Richard B. Russell National School Lunch Act (NSLA, 42 USC 1760(n)(2)). The Act amended the requirements for information state agencies must include in their SFSP MAP, including a new requirement to identify rural areas with no congregate meal service and identify how each state will target areas for non-congregate meal service.

The SFSP MAP does not include Summer EBT. Summer EBT will have a Plan for Operations and Management (POM) that will be developed and submitted separately from the SFSP MAP. Guidance on the POM will be released separately. The purpose of this memorandum is to provide guidance for state agencies on the interim final rule that included updated requirements related to SFSP MAPs.

Program regulations at 7 CFR 225.4 require state agencies to annually submit a MAP to their respective FNS regional office (FNSRO) by February 15 of each year.¹ The MAP is a comprehensive description of the state’s management and administrative structure, as well as its funding needs. Once the MAP is reviewed and approved by the FNSRO, the state will receive their SAF. The previous requirements for the MAP remain the same with the interim final rule adding two additional requirements as a result of the Act.

Additional Summer MAP Requirements²

The rule codified amendments made to Section 13(n)(2) of the NSLA to include additional requirements in the MAP. The first new requirement is that state agencies must provide a plan for ensuring reasonable opportunity for eligible children to access program meals (including both congregate and non-congregate) across all areas of the state, including children residing in remote areas (7 CFR 225.4(d)(9)). The state agency may consider including in their MAP the following information related to this new requirement:

• How the state agency will identify and target areas that do not currently have reasonable access to program meals, and
• How the state agency will identify and overcome barriers that limit meal access for children.

The second new requirement is that state agencies must include a plan for program delivery in areas that could benefit the most from non-congregate meal service. This includes requirements that the state agency must identify rural areas with no congregate meal service, and target priority areas for non-congregate meal service as outlined in 7 CFR 225.4(d)(10). The state agency may consider including the following information in their MAP related to rural non-congregate meal service operations:

• Descriptive statistics such as:
  • the number of sponsors and sites that will operate rural non-congregate meal service,
  • the anticipated number of children that will participate in non-congregate meal service, and
  • the estimated number of non-congregate meals that will be served.
• Details about state rural non-congregate meal service administration, such as:
  • the meal service flexibilities offered, including any considerations regarding limiting flexibilities on a case-by-case basis to sponsor(s) that do not have the capability to operate or oversee non-congregate meal services at their sites,
  • the training and technical assistance provided to sponsors, including outreach,
  • the data collection methods for rural non-congregate meal service data,
  • methods for monitoring non-congregate meal service operations (including ensuring food safety requirements are met), and
  • how the state agency will determine areas with no congregate meal service as outlined in 7 CFR 225.6(a)(2)(ii).

Non-Congregate Meal Service Program Integrity MAP Information

In addition to these two new MAP requirements, the rule codified several safeguards that are critical to maintaining integrity while increasing access to nutritious meals for children in rural areas. Only sponsors that are in good standing, as determined by the state agency, may utilize the non-congregate meal service flexibilities (specifically multi-day meal issuance, parent or guardian meal pick-up, and distribution of bulk food items, as outlined in 7 CFR 225.16(i)). Additionally, state agencies may only prohibit sponsors from using the meal service flexibilities outlined in 7 CFR 225.16(i) on a case-by-case basis if it determines that a sponsor does not have the capability to operate or oversee non-congregate meal service at their sites.

Keeping these safeguards in mind, if state agencies implement any statewide requirements and/or operational safeguards to maintain integrity, they should include that information as part of the state agency’s MAP. The MAP should also include other integrity safeguards that the state may be implementing, potentially including (but not limited to) how the state agency will prevent meal duplication in the same area, and how they will ensure claims for non-congregate meals are limited to eligible children.

SAF and MAPs

SAF funding provides state agencies with financial resources to administer the SFSP. 7 CFR 225.5(a)(1) contains the formula dictating the minimum amount of SAF each state agency administering SFSP may receive. It also provides the stipulations for receiving funds above the SAF formula amount. Appropriate adjustments in the level of SAF may be made due to anticipated changes in program size from the preceding fiscal year. Projections in program growth must be provided during the MAP approval process. FNS anticipates that states will generally predict program growth with the new rural non-congregate option and encourages states to work with their FNSRO to reflect these projections in the MAP for 2024.

The use of SAF monies must be reasonable, allocable, and necessary to the benefit of the SFSP and funds are not transferrable for use in any other child nutrition program. Allowable SFSP costs include personnel employment and benefits, travel and related expenses, supervision and technical assistance to sponsors, and administrative expenses listed in the approved MAP.

SAF resources may also be used for the implementation, administration, and expansion of SFSP non-congregate meal service in rural areas, provided such expenses are detailed in the approved MAP.
Examples of allowable expenditures include:

• Salaries
• Benefits
• Travel expenses
• Sponsor training
• Technical assistance
• IT equipment used by state agency employees
• Reasonable outreach by the state agency, such as a website or media announcement, to ensure the community is aware of SFSP and the new non-congregate option

Examples of unallowable expenditures include:

• Activities not related to the SFSP
• SSO-related costs
• Summer EBT-related costs
• Local-level expenses
• Equipment for use by local sponsors
• Non-prorated equipment used by other child nutrition programs

FNS appreciates the exceptional effort of state agencies and local program operators working to meet the nutritional needs of participants during the summer months. State agencies should direct questions to the appropriate FNS regional office.

Attachment

• Appendix 1 - MAP Requirements for Summer 2024 and Beyond

¹ For summer 2023, the Consolidated Appropriations Act, 2023 extended the MAP deadline to April 1, 2023.
² Appendix 1 outlines all MAP requirements in 7 CFR 225.4(d)(1-10).

The Child Nutrition Program Integrity Final Rule recorded webinar is for state agencies and program operators.  This webinar gives an overview of the rulemaking process, highlights specific regulatory changes and provisions that impact the school meal programs, and provides information regarding resources for the final rule. This presentation and information was previously shared at the 2023 state agency meeting

On Dec. 29, 2022, President Biden signed the Consolidated Appropriations Act, 2023 (the Act) (PL 117-328). The Act amended section 13 of the Richard B. Russell National School Lunch Act, 42 USC 1761, to include the authorization of a permanent, rural non-congregate meal service through the Summer Food Service Program (SFSP) which the Food and Nutrition Service (FNS) is extending to the National School Lunch Program (NSLP) Seamless Summer Option (SSO). Per the statutory requirement, on Dec. 29, 2023, FNS published an interim final rule, Establishing the Summer EBT Program and Rural Non-Congregate Option in the Summer Meal Programs. This rulemaking, effective Dec. 29, 2023, codified the permanent rural non-congregate summer meal service for both SFSP and SSO, as well as created the Summer Electronic Benefits Transfer for Children Program (summer EBT). While non-congregate summer meal service for rural areas was initially implemented through FNS guidance during summer 2023, that guidance is superseded by the interim final rule.

This memorandum includes an attachment highlighting key information on the new regulatory requirements for non-congregate summer meal service in rural areas. The attachment:

• Reviews previously applicable regulatory requirements,
• Specifies previously applicable FNS guidance, including summer 2023 initial implementation guidance, and
• Details the regulatory changes effected by the interim final rule.

FNS intends to issue additional guidance for implementation of the rural non-congregate summer meal service provisions, including Q&As.

FNS appreciates the exceptional efforts of state agencies and local program operators working to meet the nutritional needs of participants during the summer months. SFSP and SSO rely on innovative and collaborative efforts to provide summer meals to children in need. We look forward to working with our program partners and other stakeholders to support administration and operation of the non-congregate meal service for rural communities.

State agencies are reminded to distribute this memorandum to program operators immediately. Program operators should direct any questions concerning this guidance to their state agency. State agencies with questions should contact the appropriate FNS regional office.

J. Kevin Maskornick
Director
Community Meals Policy Division

Attachment

• Implementation Guidance Table for the Rural Non-Congregate Options Provisions

USDA’s goal across all summer nutrition programs is simple: Connect children with nutritious food during the summer months to help them grow and thrive. The interim final rule published Dec. 29, 2023 is an important step forward in increasing access to these services.

Summer nutrition programs are vital in the fight against child hunger, and the interim final rule reinforces their structure and administration, providing:

• New Strategies: Two innovative approaches supplement our in-person summer meal sites.
• Direction: The rule provides a how-to for implementing these new options.
• Flexibility: States and sponsors have more choices to offer summer nutrition support in ways that best meet the needs of their communities.

What's New?

• Rural Communities - Summer meal operators can offer grab-n-go or delivery meals when and where in-person meal service is not available.
• Summer EBT - States, territories, and certain tribal nations can help families buy food during the summer months via grocery benefits for eligible school-aged children.
• Coordinated Services Plan - By 2025, states must develop and submit a cross-agency coordination plan to promote a cohesive summer experience for families.
• Summer Meal Site Data Reporting - States must report summer meal site data to FNS on a regular basis, enhancing accuracy of the meal locator tool.

FNS will continue to assist states, territories, and eligible tribes in implementing these new options in 2024 and beyond.

Related Resources

• 2024 Summer EBT Implementing States, Territories, and Tribes
• Summer EBT Implementation Toolkit
• Summer EBT Outreach Toolkit 

Summary

The Consolidated Appropriations Act, 2023 requires the Secretary of Agriculture to make available an option to states to provide summer meals for non-congregate meal service in rural areas with no congregate meal service and to establish a permanent summer electronic benefits transfer for children program (Summer EBT) for the purpose of ensuring continued access to food when school is not in session for the summer.

This interim final rule amends the Summer Food Service Program (SFSP) and the National School Lunch Program’s Seamless Summer Option (SSO) regulations to codify the flexibility for rural program operators to provide non-congregate meal service in the SFSP and SSO, collectively referred to as the summer meal programs. This rule also establishes regulations and codifies the Summer EBT Program in the Code of Federal Regulations.

Dates

Effective date: This rule is effective Dec. 29, 2023.

Comment date: To be considered, written comments on this interim final rule must be received on or before the new date of Aug. 27, 2024.

Request for Comments

The Food and Nutrition Service, USDA, invites interested persons to submit written comments on this interim final rule. Comments may be submitted in writing by one of the following methods:

• Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the online instructions for submitting comments.
• Mail: Send comments to Community Meals Policy Division, USDA Food and Nutrition Service, 1320 Braddock Place, Alexandria, VA 22314.

All written comments submitted in response to this interim final rule will be included in the record and will be made available to the public. Please be advised that the substance of the comments and the identity of the individuals or entities submitting the comments will be subject to public disclosure. USDA will make the written comments publicly available on the Internet via https://www.regulations.gov.
 

Summary

FNS plans to collect periodic data to obtain information on operational challenges facing institutions who operate or administer child nutrition programs, including state agencies, SFAs and Summer Food Service Program (SFSP) sponsors. 

The Operational Challenges in Child Nutrition Programs (OCCNP) Surveys, are designed to collect timely data on emerging school food service operational challenges, including but not limited to supply chain disruptions, food costs, and labor shortages, and/or related issues in SY 2023-24, 2024-25, and SY 2025-26.

Need and Use of the Information

Access to a timely and reliable source of data on these topics has become particularly important following the COVID-19 pandemic. In addition to changing the ways that school meal programs operated, the pandemic has contributed to lasting supply chain issues and substantial changes in the cost and availability of food and labor. The ability to collect this data will allow FNS to provide the best possible support to states and program sponsors and operators facing continued food service operations challenges and enable FNS to respond more quickly and effectively to potential disruptions in the future

Request for Comments

Comments regarding this information collection received by Dec.13, 2023 will be considered. Written comments and recommendations for the proposed information collection should be submitted within 30 days of the publication of this notice on the following website www.reginfo.gov/​public/​do/​PRAMain. Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.

On April 4, 2023, FNS hosted a webinar to complement the policy memorandum released on March 7, 2023 titled SFSP 03-2023 Guidance on Performance Standards, Budgets, and Management Plans in the Summer Food Service Program. The recorded webinar includes detailed information on financial viability, administrative capability, and program accountability (VCA) in the Summer Food Service Program.

On March 7, 2023, FNS released policy memorandum SFSP 03-2023 Guidance on Performance Standards, Budgets, and Management Plans in the Summer Food Service Program. The guidance was published in conjunction with the Final Rule: Streamlining Program Requirements and Improving Integrity in the SFSP. To complement the written guidance, the recorded webinar provides additional information on the requirements for an acceptable SFSP budget and best practices for state agencies’ evaluation of budgets.

On April 3, 2023, FNS released policy memorandum SFSP 05-2023 SFSP Best Practices for Meal Claim Verification and Ensuring Properly Payable Claims. The guidance offers best practices regarding meal claim validation. To complement the written guidance, this recorded webinar goes into detail about appropriate documentation that can be used for reconciling claims for reimbursement. In addition, the recording includes one example of how state agencies can use appropriate documentation to conduct reconciliation of a site’s meal counts.

USDA is implementing regulatory changes to the Summer Food Service Program (SFSP) regulations that simplify program requirements for SFSP program operators, improve the customer experience for participating children and families, and strengthen the integrity of the program. Many provisions codified through this final rule were previously allowed as program flexibilities and are demonstrated to facilitate program administration and service delivery for children and their families.

This rule is effective Oct. 1, 2022. Compliance with the provisions of this rule must begin May 1, 2023. View the Federal Register Notice of Final Rule.

Key Aspects of the Final Rule

• Make permanent operational flexibilities that are demonstrated to work well in the SFSP while decreasing paperwork burdens.
• Give sponsors the ability to focus their program oversight and technical assistance on sites that need it most.
• Ease redundant requirements for high performing, experienced program operators through a streamlined application process.
• Provide local control of meal service times and allow children to take one non-perishable item offsite to eat later.
• End confusion around important standards and requirements by clarifying performance standards, program definitions, and other program requirements.
• This rule also codifies FNS’ statutory waiver authority for all child nutrition programs including the National School Lunch Program, School Breakfast Program, Child and Adult Care Food Program and SFSP.

Additional Resources

• Streamlining Requirements and Improving Integrity in the SFSP Final Rule - Comparison Table
• Final Rule Webinar Recording 
• Evaluating and Approving SFSP Budgets Webinar Recording
• Guidance on Performance Standards, Budgets, and Management Plans Webinar Recording
• Best Practices for Meal Claim Verification of Self-Prep Sites Webinar Recording

USDA's Food and Nutrition Service (FNS) is aware that schools in multiple states are experiencing milk supply chain challenges related to packaging issues. This memorandum provides state agencies with information about existing authority related to schools and other child nutrition program (program) operators experiencing inadequate milk supply. FNS encourages state agencies to use this authority when needed to support program operators impacted by the current milk packaging challenges.

Under current program regulations found at 7 CFR 210.10(d)(2), 220.8(d), 225.16(f)(6), and 226.20(e)(1), state agencies may allow program operators experiencing milk supply shortages to serve meals during an emergency period with an alternate form of fluid milk or without fluid milk. Although program operators are expected to meet the fluid milk requirements to the greatest extent possible, supply chain disruptions, including disruptions that limit milk variety or affect serving size, would be considered a temporary emergency condition for purposes of this flexibility. Because this is an existing regulatory flexibility, a waiver is not required for state agencies to exercise this authority. Additionally, state agencies are reminded that administrative reviews should take into account any waivers or flexibilities that have been provided to program operators.

FNS appreciates the exceptional efforts of state agencies and program operators working to meet the nutritional needs of children during this time. State agencies are reminded to distribute this memorandum to program operators. State agencies with additional questions about this authority or reviews of program operators using this regulatory flexibility should contact the appropriate FNS regional office.

Tina Namian
Director
School Meals Policy Division

This memorandum updates requirements related to unused reimbursement originating in the fiscal year 2008 Omnibus Appropriations Act, Dec. 26, 2007, which were codified in Simplified Cost Accounting and Other Actions To Reduce Paperwork in the Summer Food Service Program (SFSP), 83 FR 25349, published on June 1, 2018. Out-of-date language concerning unused reimbursement has been removed.

This guidance updates previously issued guidance to clarify Summer Food Service Program (SFSP) simplified cost accounting requirements, as found in 7 CFR Part 225.

State agencies are reminded to distribute this information to program operators immediately. Program operators should direct any questions regarding this memorandum to the appropriate state agency. State agency contact information is available at https://www.fns.usda.gov/sfsp/program-contacts. State agencies should direct questions to the appropriate FNS regional office.

Sincerely,

J. Kevin Maskornick
Director
Community Meals Policy Division

Attachment

• Nationwide Implementation of SFSP Simplified Cost Accounting Procedures