This memorandum clarifies FNS regulations and policies regarding the allowability of requiring payment and soliciting contributions (i.e., "payments" or "pay") in exchange for foods from FNS program participants.
The purpose of this policy memorandum is to clarify the responsibilities of the state administering agency and the state distributing agency with respect to ensuring compliance with requirements for donated foods in the National School Lunch Program, the Summer Food Service Program and the Child and Adult Care Food Program.
Section 10 of the Child Nutrition Act of 1966 permits the Secretary to authorize any state or regional office, where applicable, to reserve up to 1 percent of the funds earned in any fiscal year under both the National School Lunch Act and the CNA for special developmental projects.