SUPPLEMENTARY INFORMATION:

Background

Pursuant to sections 4, 11, and 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1753, 1759a and 1766), section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) and 7 CFR 226.4, 226.12 and 226.13 of the Program regulations, notice is hereby given of the new payment rates for institutions participating in the Child and Adult Care Food Program (CACFP). As provided for under the law, all rates in the CACFP must be revised annually, on July 1, to reflect changes in the Consumer Price Index (CPI), published by the Bureau of Labor Statistics of the United States Department of Labor, for the most recent 12-month period. These rates are in effect during the period July 1, 2019 through June 30, 2020.

Adjusted Payments

The following national average payment factors and food service payment rates for meals and snacks are in effect from July 1, 2019 through June 30, 2020. All amounts are expressed in dollars or fractions thereof. Due to a higher cost of living, the reimbursements for Alaska and Hawaii are higher than those for all other States. The District of Columbia, Virgin Islands, Puerto Rico, and Guam use the figures specified for the contiguous States. These rates do not include the value of USDA Foods or cash-in-lieu of USDA Foods which institutions receive as additional assistance for each lunch or supper served to participants under the Program. A notice announcing the value of USDA Foods and cash-in-lieu of USDA Foods is published separately in the Federal Register .

Adjustments to the national average payment rates for all meals served under the Child and Adult Care Food Program are rounded down to the nearest whole cent.

National Average Payment Rates for Centers

The changes in the national average payment rates for centers reflect a 2.94 percent increase during the 12-month period from May 2018 to May 2019 (from 275.307 in May 2018, as previously published in the Federal Register , to 283.394 in May 2019) in the food away from home series of the CPI for All Urban Consumers.

Payments for breakfasts served are: Contiguous States: Paid rate—31 cents (no change from 2018-2019 annual level), reduced price rate—1 dollar and 54 cents (5 cents increase), free rate—1 dollar and 84 cents (5 cents increase); Alaska: Paid rate—47 cents (1 cent increase), reduced price rate—2 dollars and 65 cents (8 cents increase), free rate—2 dollars and 95 cents (8 cents increase); Hawaii: Paid rate—36 cents (1 cent increase), reduced price rate—1 dollar and 85 cents (6 cents increase), free rate—2 dollars and 15 cents (6 cents increase).

Payments for lunch or supper served are: Contiguous States: Paid rate—32 cents (1 cent increase from 2018-2019 annual level), reduced price rate—3 dollars and 1 cent (10 cents increase), free rate—3 dollars and 41 cents (10 cents increase); Alaska: Paid rate—53 cents (2 cents increase), reduced price rate—5 dollars and 14 cents (16 cents increase), free rate—5 dollars and 54 cents (16 cents increase); Hawaii: Paid rate—38 cents (1 cent increase), reduced price rate—3 dollars and 60 cents (12 cents increase), free rate—4 dollars (12 cents increase).

Payments for snack served are: Contiguous States: Paid rate—8 cents (no change from 2018-2019 annual level), reduced price rate—47 cents (2 cent increase), free rate—94 cents (3 cents increase); Alaska: Paid rate—13 cents (no change), reduced price rate—76 cents (2 cents increase), free rate—1 dollar and 52 cents (4 cents increase); Hawaii: Paid rate—10 cents (1 cent increase), reduced price rate—55 cents (2 cent increase), free rate—1 dollar and 10 cents (4 cents increase).

Food Service Payment Rates for Day Care Homes

The changes in the food service payment rates for day care homes reflect a 1.19 percent increase during the 12-month period from May 2018 to May 2019 (from 239.287 in May 2018, as previously published in the Federal Register , to 242.145 in May 2019) in the food at home series of the CPI for All Urban Consumers.

Payments for breakfast served are: Contiguous States: Tier I—1 dollar and ( printed page 38595) 33 cents (2 cent increase from 2018-2019 annual level) and tier II—48 cents (no change); Alaska: Tier I—2 dollars and 12 cents (3 cent increase) and tier II—75 cents (1 cent increase); Hawaii: Tier I—1 dollar and 54 cents (1 cent increase) and tier II—56 cents (1 cent increase).

Payments for lunch and supper served are: Contiguous States: Tier I—2 dollars and 49 cents (3 cent increase from 2018-2019 annual level) and tier II—1 dollar and 50 cents (2 cent increase); Alaska: Tier I—4 dollars and 4 cents (5 cent increase) and tier II—2 dollars and 44 cents (3 cent increase); Hawaii: Tier I—2 dollars and 92 cents (4 cent increase) and tier II—1 dollar and 76 cents (2 cents increase).

Payments for snack served are: Contiguous States: Tier I—74 cents (1 cent increase from 2018-2019 annual level) and tier II—20 cents (no change); Alaska: Tier I—1 dollar and 20 cents (1 cent increase) and tier II—33 cents (no change); Hawaii: Tier I—87 cents (1 cent increase) and tier II—24 cents (1 cent increase).

Administrative Reimbursement Rates for Sponsoring Organizations of Day Care Homes

The changes in the administrative reimbursement rates for sponsoring organizations of day care homes reflect a 1.79 percent increase during the 12-month period, May 2018 to May 2019 (from 251.588 in May 2018, as previously published in the Federal Register , to 256.092 in May 2019) in the series for all items of the CPI for All Urban Consumers.

Monthly administrative payments to sponsors for each sponsored day care home are: Contiguous States: Initial 50 homes—120 dollars (2 dollar increase from 2018-2019 annual level), next 150 homes—91 dollars (1 dollar increase), next 800 homes—71 dollars (1 dollar increase), each additional home—63 dollars (1 dollar increase); Alaska: Initial 50 homes—194 dollars (3 dollar increase), next 150 homes—148 dollars (3 dollar increase), next 800 homes—115 dollars (2 dollar increase), each additional home—102 dollars (2 dollar increase); Hawaii: Initial 50 homes—140 dollars (2 dollar increase), next 150 homes—107 dollars (2 dollar increase), next 800 homes—83 dollars (1 dollar increase), each additional home—73 dollars (1 dollar increase).

Payment Chart

The following chart illustrates the national average payment factors and food service payment rates for meals and snacks in effect from July 1, 2019 through June 30, 2020.

( printed page 38596)

This action is not a rule as defined by the Regulatory Flexibility Act (5 U.S.C. 601-612) and thus is exempt from the provisions of that Act. This notice has been determined to be exempt under Executive Order 12866.

CACFP is listed in the Catalog of Federal Domestic Assistance under No. 10.558 and is subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. (See 2 CFR 415.3-415.6).

This rule has been determined to be not significant by the Office of Management and Budget (OMB) in conformance with Executive Order 12866. Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of Information and Regulatory Affairs designated this rule as not a major rule, as defined by 5 U.S.C. 804(2).

This notice imposes no new reporting or recordkeeping provisions that are subject to OMB review in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3518).

Authority: Sections 4(b)(2), 11a, 17(c) and 17(f)(3)(B) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1753(b)(2), 1759a, 1766(f)(3)(B)) and section 4(b)(1)(B) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(B)).