USDA updates reimbursement rates for school nutrition programs

The U.S. Department of Agriculture has released its annual reimbursement rates for child nutrition programs in the 2016-2017 academic year. Puerto Rico was among the biggest winners of the adjustments; however, some aspects of the National School Lunch and School Breakfast Programs also will receive increased funding. 

Released before each school year, the updated reimbursement rates are based on consumer price index changes. In order to offset the heightened food and preparation costs in Puerto Rico, the department approved a 17% increase for school meals.

School Breakfast Program reimbursements also increased overall, with contiguous states’ free and reduced-price breakfasts increasing by 5 cents compared to last year. However, paid breakfasts for the adjoining states remains stagnant at 29 cents. The hikes fall short of the School Nutrition Association's demand for increased USDA Foods support for the School Breakfast Program. The group of school nutrition professionals has called for 10 cents per breakfast in commodity support to balance the cost of the additional 27 cents of preparing school breakfasts. National School Lunch Program payments will increase by 1 cent for most of the U.S.

Special reimbursements as part of Section 11 of the National School Lunch Act, which provides funding based on the percentage of students who demonstrate need for free and reduced-price programs and the economic state of the area and the program, will receive an additional 8 cents for lunch in the continental U.S. 

Related:School lunch proposal raises breakfast reimbursement—and CEP admission standard

Most snack programs will increase marginally by 2 cents, and schools who participate in the Special Milk Program will experience a .25-cent decrease due to lower price indexing for the good.

The reimbursement rates went into effect beginning July 1.