SFSP 2023 Reimbursement Rates

This notice informs the public of the annual adjustments to the reimbursement rates for meals served in SFSP. In accordance with sections 12(f) and 13, 42 USC 1760(f) and 1761, of the Richard B. Russell National School Lunch Act (NSLA) and SFSP regulations under 7 CFR part 225, the United States Department of Agriculture announces the adjustments in SFSP payments for meals served to participating children during calendar year 2023.

The 2023 reimbursement rates are presented as a combined set of rates to highlight simplified cost accounting procedures. Reimbursement is based solely on a “meals times rates” calculation, without comparison to actual or budgeted costs.

Sponsors receive reimbursement that is determined by the number of reimbursable meals served, multiplied by the combined rates for food service operations and administration. However, the combined rate is based on separate operating and administrative rates of reimbursement, each of which is adjusted differently for inflation.

Calculation of Rates

The combined rates are constructed from individually authorized operating and administrative reimbursements. Simplified procedures provide flexibility, enabling sponsors to manage their reimbursements to pay for any allowable cost, regardless of the cost category. Sponsors remain responsible, however, for ensuring proper administration of the Program, while providing the best possible nutrition benefit to children.

The operating and administrative rates are calculated separately. However, the calculations of adjustments for both cost categories are based on the same set of changes in the Food Away from Home series of the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the United States Department of Labor. They represent a 8.5 percent increase in this series for the 12-month period, from November 2021 through November 2022 (from 315.481 in November 2021 to 342.266 in November 2022).

Table of 2023 Reimbursement Rates

Presentation of the 2023 maximum per meal rates for meals served to children in SFSP combines the results from the calculations of operational and administrative payments, which are further explained in this notice. The total amount of payments to State agencies for disbursement to SFSP sponsors will be based upon these adjusted combined rates and the number of meals of each type served. These adjusted rates will be in effect from Jan. 1, 2023 through Dec. 31, 2023.

All States except Alaska and Hawaii —Rural or Self-prep Sites—Breakfast—2 dollars and 82.50 cents (22 cent increase from the 2022 reimbursement rate), Lunch or Supper—4 dollars and 95 cents (38.75 cent increase), Snack—1 dollar and 16.75 cents (9 cent increase); All Other Types of Sites—Breakfast—2 dollars and 77.25 cents (21.75 cent increase), Lunch or Supper—4 dollars and 87 cents (38.25 cent increase), Snack—1 dollar and 14 cents (8.75 cent increase).

Alaska —Rural or Self-prep Sites—Breakfast—4 dollars and 58.25 cents (36.25 cent increase), Lunch or Supper—8 dollars and 3 cents (63 cent increase), Snack—1 dollar and 89.75 cents (14.75 cent increase); All Other Types of Sites—Breakfast—4 dollars and 49.75 cents (35.75 cent increase), Lunch or Supper—7 dollars and 90 cents (62 cent increase), Snack—1 dollar and 85.25 cents (14.25 cent increase).

Hawaii —Rural or Self-prep Sites—Breakfast—3 dollars and 30.75 cents (26.25 cent increase), Lunch or Supper—5 dollars and 79.75 cents (45.25 cent increase), Snack—1 dollar and 37 cents (10.25 cent increase); All Other Types of Sites—Breakfast—3 dollars and 24.50 cents (25.75 cent increase), Lunch or Supper—5 dollars and 70.50 cents (44.50 cent increase), Snack—1 dollar and 33.75 cents (10 cent increase).

2023 Reimbursement Rates (Combined)