42 U.S.C. § 1773 — School breakfast program

(a) Establishment and funding. Congress authorizes whatever money is needed for the Secretary^* to help States and the Department of Defense start, continue, or expand nonprofit breakfast programs in every school that applies and agrees to follow this chapter. For budget purposes, this chapter is treated as a function of Health and Human Services, not Agriculture.

(b) Breakfast payments. (1)(A)(i) Each fiscal year, the Secretary must pay each State^* educational agency an amount equal to the number of breakfasts served in participating schools in that State multiplied by the applicable national average payment: the payment for a free breakfast, a reduced-price breakfast, or a breakfast for a child not eligible for either category. (ii) The agreements between the schools and State educational agencies must be permanent, but may be amended when needed. This does not limit an agency's power to suspend or end an agreement under the Secretary's regulations. (B) The national average payment is 57 cents for each free breakfast, adjusted under section 1759a(a). A reduced-price breakfast is paid at one-half of the free-breakfast rate, but the difference between the two rates may never be more than 30 cents. A breakfast for a child who is not eligible for free or reduced-price meals is paid at 8.25 cents, adjusted under section 1759a(a). (C) A school receiving these payments may not charge more than 30 cents for a reduced-price breakfast. (D) No payment may be made for a breakfast unless its combination of foods meets the Secretary's minimum nutritional requirements under subsection (e). (E) After a local educational agency submits its initial free-and-reduced-price policy statement, it does not have to submit another one unless its policy changes in a substantive way. A routine change, such as an annual adjustment of income-eligibility guidelines, is not enough to require a new statement.

(2)(A) The Secretary must make extra payments for free or reduced-price breakfasts served at schools in severe need. (B) The maximum payment for each such free breakfast is the higher of the Secretary's national average free-breakfast rate plus 10 cents, or 45 cents, adjusted under section 1759a(a)(3)(B). (C) The maximum payment for each such reduced-price breakfast is 30 cents less than the maximum free-breakfast payment. (3) The Secretary must increase by 6 cents the annually adjusted payment for each breakfast served under this chapter and section 1766. These funds must be used, as far as feasible, to help States improve breakfast nutrition. (4) Even if another law says otherwise, when the Secretary or the Commodity Credit Corporation obtains agricultural commodities that are unlikely to be sold or used in a commodity-sale or distribution program, the Secretary must make those commodities available to school food authorities and eligible institutions serving breakfasts under this chapter. The value must be at least 3 cents for each breakfast served under this chapter and section 1766. (5) State and local spending to maintain the breakfast program may not be reduced because a school receives the funds or commodities described in paragraphs (3) or (4).

(c) State distribution and priorities. A State educational agency must distribute money received under this section to schools it selects, to help them operate breakfast programs and carry out subsection (d). The agency must pay schools at meal rates or on another basis set by the Secretary. When choosing schools, the agency must, when practicable, first consider schools serving areas with poor economic conditions; schools where many children travel long distances each day; and schools with a special need to improve the nutrition and eating practices^* of children of working mothers or children from low-income families. Payments may be made in advance or as reimbursement under the Secretary's procedures.

(d) Severe-need assistance. (1) Each State educational agency must give extra assistance only to schools that have or want to start a breakfast program and meet one of these conditions: (A) During the most recent second preceding school year in which lunches were served, at least 40 percent of the school's lunches were free or reduced-price; or (B) if the school did not serve lunches during that school year, the Secretary otherwise determines that it would have met condition (A). (2) After a school submits appropriate documents showing its need and eligibility, it is entitled to the meal reimbursement rate in subsection (b)(2).

(e) Nutrition and free or reduced-price service. (1)(A) Breakfasts served by participating schools must be combinations of foods that meet the Secretary's minimum nutritional requirements, based on tested nutritional research. The requirements must be measured by at least the weekly average nutrient content of the breakfasts. Schools must serve these breakfasts free or at a reduced price to children under the same terms and conditions stated for free or reduced-price lunches in section 1758. (B) Through State educational agencies, the Secretary must give participating schools technical help and training. This includes help and training on preparing foods high in complex carbohydrates and lower-fat versions of foods commonly used in the program. The help must assist schools in meeting the nutrition rules and serving suitable meals to children with medically certified special dietary needs. (2) If a local school food authority chooses to allow it, a student may refuse no more than one breakfast item the student does not plan to eat. Refusing an offered item does not change the full price charged for a breakfast that meets this section or the payment made to the school.