Several provisions in this law affect the administration of CACFP. We intend to publish regulations to implement these provisions as soon as possible. However, except as noted below, these provisions must be implemented in accordance with the statutory effective date. This memorandum provides guidance for state agencies to use until final rules are published.
This memorandum attempts to answer specific questions raised about CACFP providers incorporating their day care home operations under the laws of their respective states and the effect incorporation has on program participation.
In response to questions from regional offices, state agencies, and sponsoring organizations, this memorandum clarifies how sponsoring organizations may establish the income eligibility of children enrolled in tier II day care homes.