TEFAP: Allocation of Disaster Supplemental Appropriations

On Jan, 29, 201 3, President Barack Obama signed the Disaster Relief Appropriations Act 2013 (PL 113-2, the "Act"), providing TEFAP with $6 million in supplemental funding. The Act gives the Secretary authority to provide these funds to the states affected by Hurricane Sandy without regard to the formula normally used to allocate TEFAP entitlement foods and administrative funding among the states. In addition, the Act also gives the Secretary authority to provide the supplemental funding as USDA Foods, administrative funds, or both. The TEFAP supplemental appropriation is subject to sequestration if a budget resolution is not enacted by March 1, 2013. Thus, at this time, we are estimating that approximately $5.7 million will be available for allocation.

The Department has decided to allocate the supplemental appropriation among the twelve states and the District of Columbia that were directly affected by Hurricane Sandy, as evidenced by major disaster declarations and eligibility for individual assistance by the Federal Emergency Management Agency (FEMA). The states that will receive TEFAP supplemental assistance are Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, and West Virginia, as well as the District of Columbia. One-half of the TEFAP supplemental funding is allocated to states based on the population of counties that received major disaster declarations from FEMA, and one-half of funding is allocated to states based on the population of counties eligible for individual disaster assistance from FEMA. This allocation methodology ensures that assistance is provided to all states that were impacted by the hurricane, but targets resources to states that were most impacted. The attachment provides the level of supplemental assistance offered to the twelve states and the District of Columbia.

The assistance offered through the Act is intended to be used to help replace food and administrative resources that were diverted for Hurricane Sandy relief. If states cannot meet that criterion, they should be encouraged to turn back the assistance, so that it may be reallocated to states that will be able use it for that purpose.

This assistance is being offered as additional USDA Foods. However, the Department is giving these states the option to convert some or all of their supplemental assistance to TEFAP administrative funds, provided the states can show sufficient justification for making this conversion. The justification should include a proposal for how the supplemental administrative funds will be allocated within the state, and the types of administrative expenses for which the funds will be spent. States should be made aware that all administrative funds must be obligated by Sept. 30, 20 I 3, and expenditures completed within 24 months. states should also be aware that the 40 percent pass through requirement for TEFAP administrative funding will apply to these supplemental administrative funds, as will the state matching requirement for any funds not passed through to emergency feeding organizations. Thus, the justifications should also indicate the source for any matching funds that will be used.

For program reporting purposes, states will need to separately report on supplemental funds from their normal reporting for the program. We are in the process of determining exactly how these requirements impact TEFAP, and will issue guidance in the near future. In the interim, states should be aware that these supplemental funds will need to be distinguishable from those made with funds provided through the normal appropriations process.

Please ask the state agencies in the District of Columbia and the twelve affected states whether they will accept any or all of their share of the estimated $5.7 million, and if they want their share as food funds, administrative funds, or as a combination of the two. We would like to have the states' answers, including the justification referred to above, as soon as possible, but no later than April 3, 2013, in order to allocate the supplemental funds on a timely basis.

Subsequently, we will release the additional TEFAP administrative funds for those states requesting them with sufficient justification, and adjust the USDA Foods entitlements for the states to conform with their decisions.

As noted above, the TEFAP supplemental funds will be made available to the states when they have made their decisions regarding the allocation of the funds.

Laura Castro
Director
Food Distribution Division

Attachment

• Hurricane Sandy Supplemental Appropriation