[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR240.3]

[Page 286-287]
 
                          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

[[Page 287]]

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]