|DATE:||April 23, 2021|
|SUBJECT:||Commodity Supplemental Food Program (CSFP): Allocation of Further Consolidated Appropriations Act, 2021 Supplemental Appropriations|
Special Nutrition Programs
MARO, MPRO, MWRO, NERO,
SERO, SWRO, and WRO
CSFP State Agencies
All Current and New States
On Dec. 27, 2020, the Further Consolidated Appropriations Act, 2021 (PL 116-260) (COVID Relief Bill) was signed into law. The Act provides $13 million in supplemental funds for the Commodity Supplemental Food Program (CSFP) for fiscal year (FY) 2021. Up to $2.6 million of this supplemental funding is available for CSFP administrative costs. These funds are available in addition to the FY 2021 grant per caseload allotments.
In light of the increased distribution needs of CSFP program operators resulting from the ongoing coronavirus pandemic, FNS is offering the full $2.6 million to all CSFP state agencies as administrative funding. FNS is allocating these funds pro-rata based on 2021 final caseload assignments, except that a $5,000 minimum grant amount is established. Please see the attached CSFP funding worksheet, which provides each state agencies’ share of the supplemental administrative funds. State agencies must notify FNS of whether they will accept any or all of their share of the $2.6 million by April 30, 2021. Any funds not accepted will be used by FNS for CSFP food costs.
COVID Relief Bill supplemental funds must be obligated by Sept. 30, 2021 and can be used for any allowable FY 2021 CSFP administrative costs incurred during the performance period, Oct. 1, 2020 through Sept. 30, 2021. As is the case with regular administrative funds, these funds are also are subject to all CSFP regulatory requirements at 7 CFR part 247, including the limitation on the total amount of administrative funding which may be retained at the state level. Per 7 CFR 247.23, states may retain administrative funds at the state level according to the following: (1) 15 percent of the first $50,000 received; (2) 10 percent of the next $100,000 received; (3) 5 percent of the next $250,000 received; and (4) A maximum of $30,000, if the administrative grant exceeds $400,000. When calculating the amount of administrative funding that states may retain in FY 2021, states should combine their regular CSFP administrative funding with the funding outlined in this memo. Note that, consistent with 7 CFR 247.23(b), a state agency may request to retain a larger amount of administrative funds for special needs.
Finally, state agencies will need to separately report on these administrative funds apart from their normal reporting for regular CSFP administrative funds. Further guidance on reporting will follow.
The Covid Relief Bill supplemental funds will be made available to CSFP state agencies once all states have submitted their decisions regarding the allocation of the funds. In the meantime, if you have any questions, CSFP state agencies may contact their respective FNS regional office. Regional office staff may contact Katie Treen.
Food Distribution Division