The National School Lunch Program (NSLP) and the School Breakfast Program (SBP) are key components of a national policy designed to safeguard and promote the nutritional well-being of the Nation’s children. The programs are administered by the Food and Nutrition Service (FNS) of the U.S. Department of Agriculture (USDA), operating through state agencies (SAs) that have agreements with the local school systems in their States. Despite the progress that has been achieved over the years in enhancing the quality of school meals, results of research conducted in the early 1990s indicated that school meals, on balance, were failing to meet certain key nutritional goals. In light of these findings, the USDA launched a far-reaching reform of the school meals programs, a reform aimed at upgrading the nutritional content of school meals. The reform began in late 1993 with public hearings followed by a proposed rule in 1994 and a final rule in 1995. The several elements of this reform are collectively referred to as the School Meals Initiative for Healthy Children (SMI). The status of this initiative, together with an examination of selected operational issues of these programs, are the principal subjects of this report.