FY 2024 Commodity Credit Corporation TEFAP Funding

This memorandum provides information about the approximately $943 million in additional support for emergency food programs that the United States Department of Agriculture (USDA) is providing in fiscal year (FY) 2024 under the statutory authority of the Commodity Credit Corporation (CCC) Charter Act for distribution through The Emergency Food Assistance Program (TEFAP). CCC funding will help emergency food organizations as they continue to deal with supply chain challenges and elevated food costs by supporting food purchases and TEFAP eligible recipient agencies’ (ERAs’)¹ operational costs for the storage and distribution of the additional food purchases. The CCC funds are being offered in addition to TEFAP entitlement foods, bonus foods, and TEFAP administrative funds.

The majority of fiscal year 2024 CCC funds will support the purchase of USDA Foods for distribution through TEFAP. USDA anticipates offering a variety of USDA Foods acceptable to emergency food programs. USDA expects to make the first ordering catalogs available to states this fall and anticipates the first deliveries for this allocation to begin early in calendar year 2024.

A portion of the FY 2024 CCC funding will be available to support TEFAP ERAs’ operational expenses associated with the USDA Foods purchased with CCC funds (CCC USDA Foods). While USDA will distribute the CCC funds for operational costs to state agencies, state agencies must pass through 100 percent of these funds to ERAs and cannot retain any funds for use at the state level. The allowable uses of this operational funding (referred to as “ERA operational funds”) are detailed in Attachment A, Conditions for Funds Available for the Storage and Distribution of CCC FY 2024 funds.

The operational funding is being provided to state agencies in the contiguous United States in the amount of $3,000 per truck of CCC USDA Foods ordered to distribute further to ERAs. Funding is being provided to noncontiguous states and U.S. territories administering TEFAP, to be distributed further to ERAs, in the amount of $4,000 per truck of CCC USDA Foods ordered to account for the increased costs of storage and distribution.

Attached to this memorandum is a summary table (Attachment B) showing the initial offer of ERA operational funds available to each state agency for phase one orders. ERA operational funding will be provided in multiple phases, corresponding to the food ordering phases. For phase one, a total of $13.5 million is available to state agencies that have ordered CCC USDA Foods. ERA operational funding amounts for the additional phases will be shared as it becomes available.

To receive the phase one ERA operational funds, state agencies must sign the attached agreement (Attachment C) and return it to their respective FNS regional office with the total amount they choose to accept no later than Dec. 8, 2023. A state agency’s acceptance of all or a part of these funds indicated by the signed agreement (Attachment C) will serve as acknowledgment of, and agreement with, the conditions outlined in Attachment A, which includes information about allowable uses, the period of performance, reporting and recordkeeping requirements, and oversight responsibilities. USDA appreciates the commitment of TEFAP state agencies to emergency feeding efforts and looks forward to continued partnership as additional funds are provided through the CCC.

Attachments

• Attachment A: Conditions for Funds Available for the Storage and Distribution of CCC USDA Foods in FY 2024
• Attachment B: TEFAP CCC Operational Funding FY 2024 Phase 1
• Attachment C: FY 2024 CCC Eligible Recipient Agency Operational Funds: USDA - State Agency Agreement

¹TEFAP ERAs are generally private nonprofit entities as defined in 7 CFR 251.3(d).