FNS Documents & Resources

This policy memo revises Policy Memo 83-16, dated July 21, 1983 and supersedes all previous policy clarification on this same subject.

Section 17(a) of the National School Lunch Act (NSLA) previously allowed the participation of a proprietary Title XX child care center “if such organization receive[d] compensation under such title for at least 25 percent of the children for which the organization provides such nonresidential day care services.”

A fundamental issue in the design of the Food Stamp Program (FSP) is the form benefits should take. Advocates of the current coupon system argue that coupons are a direct and inexpensive way to ensure that food stamp benefits are used to purchase food; that, despite some evidence of fraud and benefit diversion under the current system, the unauthorized use of food stamps is relatively limited; and that coupons provide some measure of protection to food budgets from other demands on limited household resources. Advocates of replacing coupons with cash argue that the current system limits the food purchasing choices of participants, places a stigma on participation; and entails excessive costs for coupon issuance, transaction, and redemption.

Section 226.23 (h) requires states to conduct follow-up reviews when the verification process reveals that deficiencies in eligibility determinations or application procedures exceed certain levels established by FNS.

This Instruction provides policy guidance regarding allowable costs related to the distribution of bonus commodities by sponsors of family day care homes in the CACFP.