Use of TEFAP Administrative Funds for Expenses Associated with Foods Secured From Other Sources

This memorandum is being issued to emphasize that states may use TEFAP administrative funds to pay for direct and indirect expenses associated with both the distribution of TEFAP foods and of foods secured from other non-federal sources, as set out in 7 CFR 251.8(e)(1). Foods secured from other sources is defined as any foods not obtained from USDA food assistance programs. This includes, but is not limited to, private donations, eligible recipient agency (ERA) food purchases using non-USDA funds, and USDA foods re-donated to TEFAP from other federal food assistance programs. TEFAP administrative funds cannot be used for costs associated with the distribution of USDA foods from federal food and nutrition assistance programs other than TEFAP.

Per 7 CFR 25l.8(e)(2), states may restrict the use of TEFAP administrative funds by disallowing one or more of the types of expenses listed in 7 CFR 251.8(e)(1). If the state restricts the use of administrative funds in any way, the types of expenses that are allowable must be identified in the state agency's agreement with its ERAs, or provided by other written notification to the ERA and incorporated into the agreement by reference.

This memorandum applies to appropriated TEFAP administrative funds and TEFAP administrative funds received through the American Recovery and Reinvestment Act of 2009 (ARRA).

Cathie McCullough
Director
Food Distribution Division