[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR240.3]

[Page 279]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 240--CASH IN LIEU OF DONATED FOODS--Table of Contents
 
Sec. 240.3  Cash in lieu of donated foods for program schools.

    (a) Not later than June 1 of each school year, FNS shall make an 
estimate of the value of agricultural commodities and other foods that 
will be delivered to States during the school year under the food 
distribution regulations (7 CFR part 250) for use in program schools. If 
the estimated value is less than the total value of assistance 
authorized under section 6(e) of the Act for the National School Lunch 
Program, FNS shall determine the difference between the value of the 
foods then programmed for each State for the school year and the 
required value and shall pay the difference to each State agency not 
later than July 1 of that school year.
    (b) Notwithstanding any other provision of this section, in any 
State in which FNS administers the National School Lunch Program in any 
of the schools of the State, FNS shall withhold from the funds payable 
to that State under this section an amount equal to the ratio of the 
number of lunches served in schools in which the program is administered 
by FNS to the total number of lunches served in all program schools in 
the State.

[47 FR 15982, Apr. 13, 1982, as amended at 52 FR 7267, Mar. 10, 1987; 58 
FR 39120, July 22, 1993]