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SFSP 2019 Reimbursement Rates

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Reimbursement Rates
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This notice informs the public of the annual adjustments to the reimbursement rates for meals served in the Summer Food Service Program for Children. These adjustments address changes in the Consumer Price Index, as required under the Richard B. Russell National School Lunch Act. The 2019 reimbursement rates are presented as a combined set of rates to highlight simplified cost accounting procedures. The 2019 rates are also presented individually, as separate operating and administrative rates of reimbursement, to show the effect of the Consumer Price Index adjustment on each rate.

This notice informs the public of the annual adjustments to the reimbursement rates for meals served in SFSP. In accordance with sections 12(f) and 13, 42 USC 1760(f) and 1761, of the Richard B. Russell National School Lunch Act (NSLA) and SFSP regulations under 7 CFR part 225, the United States Department of Agriculture announces the adjustments in SFSP payments for meals served to participating children during calendar year 2019.

The 2019 reimbursement rates are presented as a combined set of rates to highlight simplified cost accounting procedures. Reimbursement is based solely on a “meals times rate” calculation, without comparison to actual or budgeted costs.

Sponsors receive reimbursement that is determined by the number of reimbursable meals served, multiplied by the combined rates for food service operations and administration. However, the combined rate is based on separate operating and administrative rates of reimbursement, each of which is adjusted differently for inflation.

Calculation of Rates

The combined rates are constructed from individually authorized operating and administrative reimbursements. Simplified procedures provide flexibility, enabling sponsors to manage their reimbursements to pay for any allowable cost, regardless of the cost category. Sponsors remain responsible, however, for ensuring proper administration of the Program, while providing the best possible nutrition benefit to children.

The operating and administrative rates are calculated separately. However, the calculations of adjustments for both cost categories are based on the same set of changes in the Food Away From Home series of the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the United States Department of Labor. They represent a 2.6 percent increase in this series for the 12-month period, from November 2017 through November 2018 (from 271.152 in November 2017 to 278.306 in November 2018).

Table of 2019 Reimbursement Rates

Presentation of the 2019 maximum per meal rates for meals served to children in SFSP combines the results from the calculations of operational and administrative payments, which are further explained in this notice. The total amount of payments to State agencies for disbursement to SFSP sponsors will be based upon these adjusted combined rates and the number of meals of each type served. These adjusted rates will be in effect from Jan. 1, 2019 through Dec. 31, 2019.

These changes are reflected below.

All states except Alaska and Hawaii—Rural or Self-prep Sites—Breakfast—2 dollars and 29.75 cents (6.5 cent increase from the 2018 reimbursement rate), Lunch or Supper—4 dollars and 3.25 cents (11 cent increase), Snack—95.25 cents (2.25 cent increase); All Other Types of Sites—Breakfast—2 dollars and 25.5 cents (6.5 cent increase), Lunch or Supper—3 dollars and 96.75 cents (11 cent increase), Snack—93.25 cents (2.25 cent increase).

Alaska—Rural or Self-prep Sites—Breakfast—3 dollars and 72.5 cents (9.75 cent increase), Lunch or Supper—6 dollars and 52.75 cents (16.5 cent increase), Snack—1 dollar and 54.75 cents (4.5 cent increase); All Other Types of Sites—Breakfast—3 dollars and 65.5 cents (9.5 cent increase), Lunch or Supper—6 dollars and 42.25 cents (16.25 cent increase), Snack—1 dollar and 51.25 cents (4.25 cent increase).

Hawaii—Rural or Self-prep Sites—Breakfast—2 dollars and 68.25 cents (6.5 cent increase), Lunch or Supper—4 dollars and 71.5 cents (12 cent increase), Snack—1 dollar and 11.25 cents (2.5 cent increase); All Other Types of Sites—Breakfast—2 dollars and 63.25 cents (6.5 cent increase), Lunch or Supper—4 dollars and 64 cents (12 cent increase), Snack—1 dollar and 8.5 cents (2.25 cent increase).

 

See Also
03/20/2019