School Program Reimbursement Rates 2019-2020
Effective July 1, 2019 - June 30, 2020
USDA Foods Value $ 0.3625
|1/2 Pint Rate||$0.2150|
Meal PricingEspecially Needy rate is provided to local agencies serving a school population in which 60% or more of meals are served to children qualifying for free and reduced-price meals. An extra $.02/lunch is provided in meal reimbursement.
Severe Need rate for breakfast is provided to local agencies in which at least 40% of the lunches served two years previous were claimed at the free or reduced price rate.
*NSLP (National School Lunch Program)
*ASP (After School Snack Program)
*SBP (School Breakfast Program)
*SN (Severe Need Breakfast Program)
Federal regulations provide guidance on pricing student and adult meals.
Pricing Student Meals
Sponsors may operate as a charge or no-charge program. Charge programs establish and collect student payments. No-charge programs do not collect payments from students. The sponsor has some discretion in establishing student meal prices. It is recommended that the established charge, at a minimum, cover the cost of producing the meal. The maximum reduced-price meal charges are established by regulation and are currently $.40 for lunch and $.15 for snack. For School Year 2019-2020 (SY 19/20) you will not be charging for reduced price breakfast. The $0.30 charge for reduced breakfast will be reimbursed to you by the state. Please set your NDFoods and POS systems prices for reduced breakfast to zero. NDFoods will automatically calculate and reimburse you for these meals. Sponsors may vary the reduced charge within the maximums allowed or choose not to collect it. The Healthy, Hunger Free Kids Act has a provision to gradually raise prices to the amount USDA reimburses for free meals. The following memo has the current formula.
- Pricing Memo
- PLE Tool 2019-2020 - Please contact our office for assistance
Pricing Adult Meals
Adult meal prices must be high enough to compensate for the paid reimbursement and the commodity value that USDA does not provide for these meals. The paid reimbursement and commodity value rates increase each school year; adult meal prices may need to be adjusted upward accordingly. For the SY 19/20 the paid reimbursement for lunch is 37 cents and the commodity value is 34 cents. This means the adult lunch meal price must be AT LEAST 75 cents higher than your highest student meal cost. For the SY 19/20 the paid reimbursement for breakfast is 31 cents and no commodity value. This means the adult breakfast meal price must be AT LEAST 35 cents higher than your highest student meal cost.
UNITED STATES DEPARTMENT OF AGRICULTURE FNS INSTRUCTION 782-5
Food and Nutrition Service REV. 1
3101 Park Center Drive Alexandria, VA 22302
ACTION BY: Regional Directors
Special Nutrition Programs SOURCE CITATION: Section 210.6 and 220.6
Pricing of Adult Meals in the National School Lunch And School Breakfast Programs
This Instruction sets forth the policy on pricing of meals served to adults under the National School Lunch, Commodity School and School Breakfast Programs in participating schools and institutions which claim reimbursement under Sections 4 and 11 of the National School Lunch Act and Section 4 of the Child Nutrition Act. Since the expressed purpose of Federal assistance is to safeguard the health and well-being of the Nation’s children, meals served to adults are neither eligible under the authorizing legislation and regulations for Federal cash reimbursement, nor do they earn donated food assistance for the school food authority.
Since implementation of the cost accountability revisions of Public Law 97-35, program funds (other than severe need breakfast funds) are available to school food authorities for use within their overall nonprofit school food service operations, rather than being restricted solely to the financing of program specific costs. Nevertheless, school food authorities must ensure to the extent practicable, that the Federal reimbursements, children’s payments, and other nondesignated nonprofit food service revenues do not subsidize program meals served to adults.
Also, while FNS Instruction 770-1 allows donated foods to be used for preparing food items served in adult meals, the current per-meal value of entitlement and/or bonus donated foods must be taken into consideration in establishing the price charged to adults for meals.
Breakfasts and lunches served to teachers, administrators, custodians and other adults must be priced so that the adult payment in combination with any per-lunch revenues from other sources designated specifically for the support of adult meals (such as State or local fringe benefit or payroll funds, or funding from voluntary agencies) is sufficient to cover the overall cost of the lunch. Including the value of any USDA entitlement and bonus donated foods used to prepare the meal. If cost data are not available, the minimum adult payment should reflect the price charged to
Students paying the school’s designated full price, plus the current value of Federal cash and donated food assistance (entitlement and bonus) for full price meals. In nonpricing programs, the adult charge should be at least the amount of reimbursement received for a free lunch under Section
4 and 11 of the National School Lunch Act, plus the per-meal value of both entitlement and bonus donated foods, or for breakfasts, the rate established for free meals under Section 4 of the Child Nutrition Act, plus the value of bonus commodities.
Meals served to adults who are directly involved in the operation and administration of the school nutrition programs may, at the discretion of the school food authority, be furnished at no charge. As such, their cost may be fully attributed to and supported by the nonprofit food service operation.
Meals served to these adults may not be claimed for reimbursement or counted towards the donated foods entitlement. The determination of individuals, positions involved, and the degree to which their services are attributed to the nonprofit food service program operations is left to State and local officials.