[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR240.3]



[Page 281]

 

                          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]