Child Nutrition in the Build Back Better Act

Child Nutrition in the Build Back Better Act

INSIGHTi

Child Nutrition in the Build Back Better Act
December 2, 2021
On November 19, 2021, the House passed the Build Back Better Act (H.R. 5376). Subtitle E, Child
Nutrition and Related Programs, of Title II of the bill would expand existing U.S. Department of
Agriculture (USDA)-administered child nutrition activities and newly authorize others. According to an
estimate from the Congressional Budget Office (CBO), the child nutrition policies in the House-passed
bill would cost $10.09 billion over 10 years. Much of that spending would occur in FY2022-FY2027.
The child nutrition provisions in the House-passed bill are virtually identical to those in versions of the
bill released by the House Rules Committee on November 3, 2021, and October 28, 2021, and are
different from related proposals in the bill as reported by the House Budget Committee on September 27,
2021, and in the Biden Administration’s American Families Plan released on April 28, 2021.
Community Eligibility Provision (CEP)
Section 24001 would expand eligibility and funding for the Community Eligibility Provision (CEP), a
policy through which a school, group of schools, or school district offers free meals to all students
through the National School Lunch Program (NSLP) and School Breakfast Program (SBP). Such entities
are currently eligible for CEP if at least 40% of their students are approved for free meals through direct
certification, a process through which the district or state agency uses data from other programs, including
the Supplemental Nutrition Assistance Program (SNAP), to automatically enroll children in free meals
without household applications. Section 24001 would lower this eligibility threshold (called the identified
student percentage [ISP]) for CEP to 25%.
The section would also increase a multiplier used in CEP’s reimbursement formula from 1.6 to 2.5, which
would increase funding among participating schools. The formula is such that participating schools
receive the free meal reimbursement rate (e.g., $3.66-$3.90 per lunch) for a percentage of meals equal to
the product of their ISP and the multiplier; the remainder of meals are reimbursed at a lower paid meal
rate (e.g., 35-50 cents per lunch). For example, under the current formula a school with a 40% ISP
receives the free rate for 64% (40% x 1.6) of meals, and the paid rate for the remaining 36% of meals.
Under Section 24001, the same school would receive the free rate for 100% (40% x 2.5) of meals.
Section 24001 would also establish a new option for states to operate CEP on a statewide basis. States that
opted in would get to use the 2.5 reimbursement multiplier (ISP would be calculated on a statewide basis)
if the state agreed to provide the remaining amount of funding necessary to ensure that every meal is
reimbursed at the free rate.
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The policies under this section would be in effect from school years 2022-2023 through 2026-2027, after
which they would revert to current law. CBO estimated the cost of Section 24001 at $6.56 billion over 10
years.
Summer Electronic Benefits Transfer (EBT) for Children Program
Section 24002 would establish a nationwide summer EBT program for two years, providing electronic
benefits to eligible families to purchase groceries during the summer months. Children certified for free or
reduced-priced school meals through NSLP or SBP in the school year prior to the summer would be
eligible for benefits.
Fifty states, the District of Columbia, and the territories would be eligible to operate the program, as
would Indian Tribal Organizations (ITOs) that operate WIC (Special Nutrition Program for Women,
Infants, and Children). For most jurisdictions, the benefits would be redeemable at retailers authorized to
accept SNAP benefits for SNAP-eligible foods. Some jurisdictions would operate the program via WIC or
nutrition assistance block grant retail models.
This federal program would not be the first to provide EBT summer food assistance. In the summer of
2021, jurisdictions operated a similar Summer Pandemic EBT program (Summer P-EBT) for certain
eligible school- and child care-aged children. (The P-EBT authorizing law allows Summer P-EBT
operation following a school year during which there was a federal public health emergency designation
based on an outbreak of SAR-CoV-2. As of the date of this report, USDA had released initial guidance on
P-EBT for summer 2022.) Separately, before the pandemic, beginning in summer 2011, a Summer EBT
for Children Program has operated on a pilot basis in selected states and ITOs.
This section would provide implementation funding in FY2022 and authorize program benefits for the
summers of 2023 and 2024. Benefits would be $65 per summer month per child in the first year and be
adjusted for inflation in the second year. CBO estimated the cost of Section 24002 at $3.25 billion over 10
years.
Healthy Food Incentives Demonstration
Section 24003 would authorize and provide $250 million for a new demonstration that would fund
nutrition-related activities in states and territories participating in USDA’s child nutrition programs. The
demonstration would support “grants and monetary incentives” to (1) improve the nutritional quality of
meals and snacks; (2) enhance the nutrition and wellness environment (including by reducing the
availability of “less healthy foods” during the school day); (3) increase procurement of fresh, local,
regional, and culturally appropriate foods and foods produced by underserved or limited-resource
farmers; and/or (4) fund a statewide nutrition education coordinator. Funding would be provided for
FY2022 and remain available until expended.
School Kitchen Equipment Grants
Section 24004 would provide additional funding of $30 million for school kitchen equipment grants and
related USDA technical assistance. Similar to previous laws that funded similar grants (e.g., P.L. 116-260,
which funded 2021 grants), USDA would provide grants to states and territories, which would make
competitive awards to schools and local educational agencies to purchase equipment with a value of
greater than $1,000 to serve healthier meals and improve food safety. Differing from prior laws, the grants
would also be used to increase scratch cooking, and USDA could use some of the funds to provide
technical assistance to support scratch cooking. (Scratch cooking is not defined in the law, and the term
has varying definitions.) Funding would be provided for FY2022 and remain available until expended.

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Author Information

Kara Clifford Billings
Randy Alison Aussenberg
Analyst in Social Policy
Specialist in Nutrition Assistance Policy

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