Under the statutory authority of the Commodity Credit Corporation, the USDA is administering a Trade Mitigation Food Purchase and Distribution Program to purchase up to $1.2 billion in USDA Foods.
This memorandum provides guidance to state distributing agencies and recipient agencies on the use of market basket analysis in procuring processed end products for USDA Foods in Schools and commercial goods for the National School Lunch Program, School Breakfast Program, Summer Food Service Program, and Child and Adult Care Food Program.
This Instruction establishes policy for charging allowable costs associated with the administration of TEFAP, and for assigning such costs to states and eligible recipient agencies (ERAs). Such classification of costs is necessary in order to demonstrate compliance with the statutory and regulatory requirements described in section II, of this document.