FY 2013 Funding for TEFAP

Three pieces of legislation currently govern the level of food and administrative resources available to TEFAP in FY 2013: the Food and Nutrition Act of 2008; the Emergency Food Assistance Act of 1983; and the Continuing Appropriations Resolution, 2013 (i .e., the Continuing Resolution, or PL 112-175), which provides funding in FY 2013 at a pro rata share of the FY 2012 funding level through March 27, 2013.

Please be mindful that all amounts discussed in this memorandum are tentative, pending passage of a final FY 2013 appropriations bill. Congress could enact a final appropriations bill which provides more or less funding than what is projected in this memorandum.

Food Funds

Section 27(a) of the Food and Nutrition Act of 2008 established the amount of funding available for TEFAP food purchases for FY 2009, and indexes that amount to annual changes in the Thrifty Food Plan (TFP), which is also used to determine the maximum benefit level for the Supplemental Nutrition Assistance Program (SNAP). Based on changes in the TFP, the anticipated amount available for TEFAP food purchases in FY 2013 is $265.75 million. Of this, $3,501,030 is needed to pay costs associated with ordering and transporting the food, leaving $262,248,970 for the purchase of food.

Conversion of Food Funds to Administrative Funds

In previous year's, TEFAP state agencies had the opportunity to convert their fair-share of 10 percent of the TEFAP food funds provided for each year into TEFAP administrative funds. We do not expect this authority to be modified or rescinded when a final FY 2013 appropriations bill is enacted. Accordingly, we anticipate having $26.575 million in TEFAP food funds available for conversion into TEFAP administrative funds. With the potential for a full FY appropriation before the end of March, Food and Nutrition Service (FNS) Headquarters must be informed by April 3, 2013, whether TEFAP states agencies want to accept their portion of the convertible $26.575 million as food funds, administrative funds, or any combination of the two.

Administrative Funds

FNS does not know for certain how much money will be made available for TEFAP administrative funds until a final full-year appropriation for FY 2013 has been signed into law. However, the funding levels approved by appropriators in the House and Senate may be indicative of how much funding the Congress will agree to provide in a full-year appropriation. For FY 2013, the House Committee on Appropriations has approved a full-year appropriations bill including $47.04 million in TEFAP administrative funds.

The Senate Committee on Appropriations has approved a bill which would provide $49.401 million for FY 2013. Although the Congress could choose lo appropriate more or less than either of the Committee-approved funding levels, for planning purposes we assume the lower number will be enacted and will make adjustments as necessary. To date and through March 27, 2012, per the terms of the Continuing Resolution, TEFAP has received $24,092,868 in TEFAP administrative funds. If, based on the full-year bill approved by the House Committee on Appropriations, the total amount of TEFAP administrative funding available will be $47.04 million; this would leave $22,947,132 to be allocated for the balance of FY 2013.

Worksheets

FNS previously provided two worksheets to TEFAP state agencies detailing administrative funding allocations under the Continuing Resolution. Attached, please find two worksheets that provide additional details regarding FY 2013 TEFAP funding.

1. Worksheet #3 shows each state's allocation of FY 2013 TEFAP food funds provided in the Farm Bill that are not convertible to administrative funds, share of food funds that are convertible, and the Iota/ of these amounts.
2. For your planning purposes only, Worksheet #4 shows each state's share of the $24,092,868 in FY 2013 TEFAP administrative funds that has been provided under the Continuing Resolution, the estimated $22,947,132 we could potentially receive if the final FY 2013 appropriations bill is enacted at the level approved by the House Committee on Appropriations, and the total of these amounts. Keep in mind that the state-by-state amounts provided on Worksheet #4 in particular are subject to change, and final allocations could be higher or lower once a final full-year appropriations bill is enacted.

Conclusion

FNS Headquarters must be informed as to whether TEFAP state agencies want to accept their portion of the $26.575 million in convertible TEFAP food funds as food funds, administrative funds, or some combination of the two by April 3, 2013. Once FNS has received a full-year appropriation for FY 2013, a follow up memorandum will be issued with final administrative funding allocations. At that time, states will be asked to inform FNS if they intend to convert any portion of their administrative funds into food funds.

Further, as always, TEFAP funds are subject to apportionment by the Office of Management and Budget (OMB). We will keep you informed regarding the availability of these funds.

Laura Castro
Director
Food Distribution Division

Attachments

• TEFAP Allocation Worksheet #3
• TEFAP Allocation Worksheet #4