Child and Adult Care Food Program: National Average Payment Rates, Day Care Home Food Service Payment Rates, and Administrative Reimbursement Rates for Sponsoring Organizations of Day Care Homes for the Period, July 1, 2016 Through June 30, 2017

AGENCY:

Food and Nutrition Service, USDA.

ACTION:

Notice.

SUMMARY:

This notice announces the annual adjustments to the national average payment rates for meals and snacks served in child care centers, outside-school-hours care centers, at-risk afterschool care centers, and adult day care centers; the food service payment rates for meals and snacks served in day care homes; and the administrative reimbursement rates for sponsoring organizations of day care homes, to reflect changes in the Consumer Price Index. Further adjustments are made to these rates to reflect the higher costs of providing meals in the States of Alaska and Hawaii. The adjustments contained in this notice are made on an annual basis each July, as required by the laws and regulations governing the Child and Adult Care Food Program.

DATES:

These rates are effective from July 1, 2016 through June 30, 2017.

FOR FURTHER INFORMATION CONTACT:

Jessica Saracino, Branch Chief, Program Monitoring and Operational Support Division, Child Nutrition Programs, Food and Nutrition Service, U.S. Department of Agriculture, 3101 Park Center Drive, Room 640, Alexandria, Virginia 22302-1594; phone 703-457-7743.

SUPPLEMENTARY INFORMATION:

Definitions

The terms used in this notice have the meanings ascribed to them in the Child and Adult Care Food Program regulations, 7 CFR part 226.

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). These rates are in effect during the period, July 1, 2016 through June 30, 2017.

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. In accordance with this mandate, the United States Department of Agriculture (USDA) last published the adjusted national average payment rates for centers, the food service payment rates for day care homes, and the administrative reimbursement rates for sponsoring organizations of day care homes, for the period from July 1, 2015 through June 30, 2016, on July 17, 2015, in the Federal Register at 80 FR 42474.

Adjusted Payments

The following national average payment factors and food service payment rates for meals and snacks are in effect from July 1, 2016 through June 30, 2017. 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.

National Average Payment Rates for Centers

Payments for breakfasts served are: Contiguous States—paid rate—29 cents (no change from 2015-2016 annual level), reduced price rate—141 cents (5 cents increase), free rate—171 cents (5 cents increase); Alaska—paid rate—44 cents (1 cent increase), reduced price rate—243 cents (7 cents increase), free rate—273 cents (7 cents increase); Hawaii—paid rate—33 cents (no change), reduced price rate—169 cents (5 cents increase), free rate—199 cents (5 cents increase).

Payments for lunch or supper served are: Contiguous States—paid rate—30 cents (1 cent increase from 2015-2016 annual level), reduced price rate—276 cents (9 cents increase), free rate—316 cents (9 cents increase); Alaska—paid rate—49 cents (1 cent increase), reduced price rate—472 cents (13 cents increase), free rate—512 cents (13 cents increase); Hawaii—paid rate—35 cents (1 cent increase), reduced price rate—329 cents (9 cents increase), free rate—369 cents (9 cents increase).

Payments for snack served are: Contiguous States—paid rate—7 cents (no change from 2015-2016 annual level), reduced price rate—43 cents (1 cent increase), free rate—86 cents (2 cents increase); Alaska—paid rate—12 cents (no change), reduced price rate—70 cents (2 cents increase), free rate—140 cents (3 cents increase); Hawaii—paid rate—9 cents (no change), reduced price rate—50 cents (1 cent increase), free rate—101 cents (2 cents increase).

Food Service Payment Rates for Day Care Homes

Payments for breakfast served are: Contiguous States—tier I—131 cents (1 cent decrease from 2015-2016 annual level) and tier II—48 cents (no change); Alaska—tier I—209 cents (2 cents decrease) and tier II—74 cents (1 cent decrease); Hawaii—tier I—153 cents (1 cent decrease) and tier II—55 cents (no change).

Payments for lunch and supper served are: Contiguous States—tier I—246 cents (2 cent decrease from 2015-2016 annual level) and tier II—149 cents (1 cent decrease); Alaska—tier I—399 cents (3 cents decrease) and tier II—241 cents (2 cents decrease); Hawaii—tier I—288 cents (2 cents decrease) and tier II—174 cents (1 cent decrease).

Payments for snack served are: Contiguous States—tier I—73 cents (1 cent decrease from 2015-2016 annual level) and tier II—20 cents (no change); Alaska—tier I—119 cents (1 cent decrease) and tier II—33 cents (no change); Hawaii—tier I—86 cents (no change) and tier II—23 cents (1 cent decrease).

Administrative Reimbursement Rates for Sponsoring Organizations of Day Care Homes

Monthly administrative payments to sponsors for each sponsored day care home are: Contiguous States—initial 50 homes—112 dollars (1 dollar increase from 2015-2016 annual level), next 150 homes—86 dollars (1 dollar increase), next 800 homes—67 dollars (1 dollar increase), each additional home—59 dollars (1 dollar increase); Alaska—initial 50 homes—182 dollars (2 dollar increase), next 150 homes—139 dollars (2 dollar increase), next 800 homes—108 dollars (1 dollar increase), each additional home—95 dollars (1 dollar increase); Hawaii—initial 50 homes—131 dollars (1 dollar increase), next 150 homes—100 dollars (1 dollar increase), next 800 homes—78 dollars (1 dollar increase), each additional home—69 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, 2016, through June 30, 2017.

The changes in the national average payment rates for centers reflect a 2.64 percent increase during the 12-month period, May 2015 to May 2016, (from 255.322 in May 2015, as previously published in the Federal Register, to 262.074 in May 2016) in the food away from home series of the CPI for All Urban Consumers.

The changes in the food service payment rates for day care homes reflect a 0.69 percent decrease during the 12-month period, May 2014 to May 2015, (from 241.019 in May 2015, as previously published in the Federal Register, to 239.354 in May 2016) in the food at home series of the CPI for All Urban Consumers.

The changes in the administrative reimbursement rates for sponsoring organizations of day care homes reflect a 1.02 percent increase during the 12-month period, May 2015 to May 2016 (from 237.805 in May 2015, as previously published in the Federal Register, to 240.236 in May 2016) in the series for all items of the CPI for All Urban Consumers.

The total amount of payments available to each State agency for distribution to institutions participating in CACFP is based on the rates contained in this notice.

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 notice has been determined to be not significant and was reviewed by the Office of Management and Budget (OMB) in conformance with Executive Order 12866.

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), 11, 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)).