42 U.S.C. § 1754 — Nutrition promotion

(a) In general. If funds are available under subsection (g), the Secretary^* must pay State^* agencies each fiscal year to promote nutrition in the food-service programs under this chapter and the school breakfast program established under the Child^* Nutrition Act of 1966.

(b) Total amount for each fiscal year. The amount available for payments under this section may not be more than ½ cent multiplied by the number of lunches reimbursed during the second preceding fiscal year through the chapter’s food-service programs in participating schools, institutions, and service institutions.

(c) Payments to States.
(1) Allocation. Subject to paragraph (2), the Secretary must allocate each State agency the greater of:
(A) a uniform base amount set by the Secretary; or
(B) an amount based on this ratio: the number of reimbursed lunches in participating schools, institutions, and service institutions in that State, divided by the number of reimbursed lunches in participating schools, institutions, and service institutions in all States.
(2) Reductions. The Secretary must reduce allocations based on paragraph (1)(B), in the way the Secretary decides, as needed to keep all allocations within the amount appropriated under subsection (g).

(d) Use of payments.
(1) Use by State agencies. A State agency may keep up to 5 percent of its payment for the year to help distribute and use nutrition messages and materials developed by the Secretary. For a “small State,” as the Secretary determines that term, the agency may keep a higher percentage set by the Secretary.
(2) Disbursement to schools and institutions. Subject to paragraph (3), the State agency must distribute the rest to school food authorities and participating institutions for distributing and using the Secretary’s nutrition messages and materials.
(3) Summer food service program for children. For the summer food service program established under section 1761, in addition to amounts kept under paragraph (1), the State agency may keep a portion of the funds made available under subsection (c), as the Secretary determines, and use it with that program to distribute and use the Secretary’s nutrition messages and materials.

(e) Documentation. A State agency, school food authority, and institution that receives funds must keep records of the nutrition-promotion activities conducted under this section.

(f) Reallocation. The Secretary may reallocate funds made available for this section that, as the Secretary determines, have not been obligated or spent, in order to carry out this section.

(g) Authorization of appropriations. Congress may appropriate whatever amounts are necessary to carry out this section. Those amounts remain available until they are spent.