Determining Eligibility for Two Cent Differential Reimbursement in New Schools
Section 4 of the Richard B. Russell National School Lunch Act (NSLA) provides general cash for food assistance payments to States to assist schools in purchasing food. The NSLA provides two different section 4 payment levels for lunches served under the National School Lunch Program. The base payment applies to lunches served by School Food Authorities (SFAs) in which less than 60 percent of the lunches served during the second preceding year were served free or reduced price. Those SFAs in which 60 percent or more of the lunches served in the second preceding school year were served at free or reduced price receive two cents more. This higher payment rate is referred to as the two cent differential.