Food Distribution Program on Indian Reservations: Revisions to the Administrative Match Requirement
| Published date | 03 September 2019 |
| Citation | 84 FR 45873 |
| Record Number | 2019-18815 |
| Section | Rules and Regulations |
| Court | Food And Nutrition Service |
Federal Register, Volume 84 Issue 170 (Tuesday, September 3, 2019)
[Federal Register Volume 84, Number 170 (Tuesday, September 3, 2019)]
[Rules and Regulations]
[Pages 45873-45877]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18815]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 84, No. 170 / Tuesday, September 3, 2019 /
Rules and Regulations
[[Page 45873]]
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Part 253
[FNS-2019-0031]
RIN 0584-AE74
Food Distribution Program on Indian Reservations: Revisions to
the Administrative Match Requirement
AGENCY: Food and Nutrition Service, USDA.
ACTION: Final rule; request for comments.
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SUMMARY: Through this rulemaking, the U.S. Department of Agriculture's
(the Department or USDA) Food and Nutrition Service (FNS) is codifying
new and revised statutory requirements included in the Agriculture
Improvement Act of 2018 (the 2018 Farm Bill). First, the Department is
revising the minimum Federal share of the Food Distribution Program on
Indian Reservations (FDPIR) administrative costs and State agency/
Indian Tribal Organization (ITO) mandatory administrative match
requirement amounts. Second, the Department is revising its
administrative match waiver requirements by allowing State agencies and
ITOs to qualify for a waiver if the required match share would be a
substantial burden. Third, the Department is limiting the reduction of
any FDPIR benefits or services to State agencies and ITOs that are
granted a full or partial administrative match waiver. Last, the
Department is allowing for other Federal funds, if such use is
otherwise consistent with both the purpose of the other Federal funds
and with the purpose of FDPIR administrative funds, to be used to meet
the State agency/ITO administrative match requirement.
DATES:
Effective Date: This rule is effective September 3, 2019.
Comment Date: Written comments on this rule must be received on or
before November 4, 2019.
ADDRESSES: The Food and Nutrition Service (FNS), USDA, invites
interested persons to submit written comments on this rule. Comments
may be submitted in writing by one of the following methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
Mail: Send comments to Erica Antonson, Branch Chief, Food
Distribution Division, Food and Nutrition Service, U.S. Department of
Agriculture, 3101 Park Center Drive, Room 506, Alexandria, Virginia
22302-1592, (703) 305-2680.
Email: Send comments to [email protected]. Include Docket
ID Number FNS-2019-0031, ``Food Distribution Program on Indian
Reservations: Revisions to the Administrative Match Requirement'' in
the subject line of the message.
All written comments submitted in response to this Final
Rule with Request for Comments will be included in the record and will
be made available to the public. Please be advised that the substance
of the comments and the identity of the individuals or entities
submitting the comments will be subject to public disclosure. FNS will
make the written comments publicly available on the internet via http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Barbara Lopez, Food and Nutrition
Service, U.S. Department of Agriculture, 3101 Park Center Drive, Room
506, Alexandria, Virginia 22302-1592, or by email at
[email protected].
SUPPLEMENTARY INFORMATION:
I. Public Comment Procedures
II. Background and Discussion of Final Rule With Request for
Comments
A. State Agency/ITO Administrative Match Requirement
B. State Agency/ITO Administrative Match Waiver
C. Limitation on Reducing Benefits or Services to State
Agencies/ITOs Granted an Administrative Match Waiver
D. Use of Other Federal Funds To Meet the State Agency/ITO
Administrative Match
III. Procedural Matters
I. Public Comment Procedures
Your written comments on this rule should be specific, should be
confined to issues pertinent to the rule, and should explain the
reason(s) for any change you recommend or oppose. Where possible, you
should reference the specific section or paragraph of the rule you are
addressing. This rule is effective upon publication. If the Department
determines that comments received change any provisions of this rule,
the Department will publish a new final rule in the Federal Register.
Comments must be received on or before the comment period (see DATES)
to be assured of consideration.
Executive Order 12866 requires each agency to write regulations
that are simple and easy to understand. We invite your comments on how
to make these regulations easier to understand, including answers to
questions such as the following:
(1) Are the requirements in the regulation clearly stated?
(2) Does the rule contain technical language or jargon that
interferes with its clarity?
(3) Does the format of the rule (e.g., grouping and order of
sections, use of heading, and paragraphing) make it clearer or less
clear?
(4) Would the rule be easier to understand if it was divided into
more (but shorter) sections?
(5) Is the description of the rule in the preamble section entitled
``Background and Discussion of Final Rule with Request for Comments''
helpful in understanding the rule? How could this description be more
helpful in making the rule easier to understand?
II. Background and Discussion of Final Rule With Request for Comments
In the following discussion and regulatory text, the term ``State
agency,'' as defined at 7 CFR 253.2, is used to include ITOs authorized
to administer FDPIR and the Food Distribution Program for Indian
Households in Oklahoma (FDPIHO) in accordance with 7 CFR parts 253 and
254. The term ``FDPIR'' is used in this rulemaking to refer
collectively to FDPIR and FDPIHO.
The 2018 Farm Bill (Pub. L. 115-334) was signed into law on
December 20, 2018. Section 4003 included FDPIR-specific provisions and
modified Section 4(b) of the Food and Nutrition Act (FNA) (7 U.S.C.
2013(b)). This rule
[[Page 45874]]
codifies new and revised statutory requirements included in the 2018
Farm Bill by amending FDPIR regulations at 7 CFR part 253. Upon
publication, this rulemaking makes the following changes: (1) Revises
the required minimum Federal share of FDPIR administrative costs and
State agency/ITO mandatory administrative match amounts; (2) allows
State agencies/ITOs to qualify for an administrative match waiver if
their required match share would be a substantial burden; (3) limits
the reduction of FDPIR benefits or services to State agencies/ITOs that
are granted a full or partial administrative match waiver; and (4)
allows for other Federal funds to be used to meet the State agency/ITO
administrative match requirement, if such use is otherwise consistent
with the purpose of the other Federal funds. The amendments are
discussed in more detail below.
The Administrative Procedure Act (APA) at 5 U.S.C. 553(a)(2)
specifically exempts rules involving grants and benefits from notice-
and-comment requirements, giving the Department the authority to issue
final rules in grants and benefits programs, like FDPIR.\1\ The
Department does, however, retain the discretion to issue a final rule
with a request for comments, and FNS welcomes comments on the specified
sections below. The Department is issuing this final rule with request
for comments in order to ensure that the provisions in this rulemaking
apply to the next FDPIR administrative grant cycle, fiscal year (FY)
2020, which begins October 1, 2019. State agencies and ITOs that
administer FDPIR benefit from the timely implementation of these
provisions as they have a direct and positive impact on individual
State agency and ITO grant allocations to operate the program. The
Department determined that prolonging the implementation of these
provisions would negatively impact State agencies and ITOs that
administer the FDPIR by delaying their ability to utilize the new
flexibilities provided for in the 2018 Farm Bill. As previously stated,
if the Department, upon consideration of the comments received, decides
to amend any provisions of the rule, the Department will publish a new
final rule in the Federal Register with an explanation of the changes.
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\1\ Previous USDA practice pursuant to the Statement of Policy
published on July 24, 1971 (36 FR 13804) was to utilize APA notice-
and-comment rulemaking procedures regardless of the APA's stated
exceptions, but that memo was rescinded in 2013. 78 FR 64194 (Oct.
28, 2013).
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A. State Agency/ITO Administrative Match Requirement
Under Federal regulations at 7 CFR 253.11(b) and (c), the
Department provides 75 percent of FDPIR administrative funds and State
agencies/ITOs are required to contribute the remaining 25 percent in
matching funds, unless a match waiver is granted by the Department. The
State agency/ITO administrative match requirement may be a cash or non-
cash (i.e., in-kind) contribution, per 7 CFR 253.11(c)(1).
Section 4003 of the 2018 Farm Bill modified Section 4(b)(4) of the
FNA (7 U.S.C. 2013(b)(4)) to require the Department to pay not less
than 80 percent of State agencies and ITOs' administrative costs in
FDPIR. Therefore, the corresponding State agency/ITO administrative
match requirement would be a maximum of 20 percent. This rule amends 7
CFR 253.11(b) and (c)(1) and (2) to increase the Federal share of FDPIR
administrative costs from 75 to 80 percent. This rule also amends 7 CFR
253.11(c)(1) and (2) to reduce the State agency/ITO match requirement
from 25 to 20 percent.
The corresponding State agency/ITO match requirement for FY 2019
FDPIR administrative grants is 25 percent as those grants precede this
rulemaking. At the time this rulemaking goes into effect (see DATES),
the revised Federal share of 80 percent and revised State agency/ITO
administrative match requirement amount of 20 percent, as described in
this rulemaking, will apply to new FDPIR administrative grants only
starting in FY 2020. FDPIR administrative grants for FY 2019 that have
a period of performance through September 30, 2020 will retain the
Federal share of 75 percent and the State agency/ITO administrative
match requirement amount of 25 percent. This rulemaking applies to FY
2020 FDPIR administrative grants and to FDPIR administrative grants
annually thereafter.
The Department does not request comments on the minimum amount of
the Federal share, as the 80 percent is specified in statute. However,
rulemaking is necessary to implement the 80 percent provision because
the Department must exercise discretion in determining the inextricably
related issues of changes to the standard for receiving an
administrative match waiver, the prohibition on reducing benefits and
services to State agencies and ITOs in receipt of the administrative
match waiver, and the determination of what other Federal funds may
count towards the 20 percent State agency/ITO administrative match
requirement. This issue is discussed below.
B. State Agency/ITO Administrative Match Waiver
FDPIR regulations at 7 CFR 253.11(c)(2) allow State agencies and
ITOs to request an administrative match waiver to reduce or eliminate
their match requirement in the event that a State agency/ITO is unable
to meet the match requirement. In its request, the State agency/ITO
must provide compelling justification and include a summary statement
and recent financial documents. Section 4003 of the 2018 Farm Bill adds
a provision at Section 4(b)(4)(B)(i) of the FNA (7 U.S.C.
2013(b)(4)(B)(ii)) to codify the existing regulation to allow State
agencies and ITOs to submit a match waiver request if they are
financially unable to meet the State agency/ITO administrative match
requirement. Section 4003 of the 2018 Farm Bill also provides a new
provision in Section 4(b)(4)(B)(ii) of the FNA to allow State agencies
and ITOs to qualify for the administrative match waiver if funding
their share of the costs would be a substantial burden for the State
agency/ITO.
The Department interprets substantial burden to mean the State
agency/ITO would be substantially negatively impacted if it is required
to provide the full or partial share of administrative funds. For
example, an ITO may submit an administrative match waiver request
demonstrating substantial burden by detailing how providing its share
of the administrative match requirement would deplete the Tribe's
reserves to a level that would have a substantial negative impact on
the Tribe.
The Department has also determined that the submission of a waiver
request and corresponding documents for review cannot, in and of
itself, constitute a substantial burden for purposes of qualifying for
the administrative match waiver. For example, if an ITO submits an
administrative match waiver request based solely on the difficulty of
collecting compelling justification as a reason to qualify for the
waiver under the substantial burden standard, then the Department would
deny the administrative match waiver request.
The Department has determined that, in order to approve an
administrative match waiver request based on substantial burden, the
State agency must submit compelling justification to the FNS Regional
Office for review and approval, similar to the current process as
outlined at 7 CFR 253.11(c)(2). To apply for a waiver of the
administrative
[[Page 45875]]
match based on substantial burden, the State agency/ITO must submit a
signed letter from the leadership of a State agency or, in the case of
an Indian Tribal Organization, a signed letter from the Tribal Council,
describing why providing the match would be a substantial burden for
the State agency/ITO along with supporting documentation, as needed.
This rulemaking revises the existing regulatory requirements at 7
CFR 253.11(c)(2) introductory text and (c)(2)(i) and (ii) to allow for
an administrative match waiver request to be submitted under financial
burden or substantial burden.
Under the revised 7 CFR 253.11(c)(2), this rule adds language on
how a State agency/ITO can qualify for the administrative match waiver
based on compelling justification submitted for either of the two
standards, the existing financial burden standard and the new
substantial burden standard. Under the revised 7 CFR 253.11(c)(2)(i),
this rule keeps the existing regulatory requirement in 7 CFR
253.11(c)(2) that a State agency/ITO must submit a summary statement
and recent financial documents showing that the State agency/ITO is
unable to meet the matching requirement and that additional
administrative funds are necessary for the effective operation of the
program. Under the revised 7 CFR 253.11(c)(2)(ii), this rule adds new
language to allow a State agency/ITO to submit a signed letter from the
leadership of a State agency or, in the case of an Indian Tribal
Organization, a signed letter from the Tribal Council, describing the
State agency/ITO's substantial burden along with supporting
documentation, as needed, to qualify for the administrative match
waiver based on substantial burden. This option is in lieu of the
summary statement and financial documentation currently required under
7 CFR 253.11(c)(2) for waiver requests based on financial inability to
meet the match requirement.
The Department requests comments on this section of the rulemaking.
C. Limitation on Reducing Benefits or Services to State Agencies/ITOs
Granted an Administrative Match Waiver
Current FDPIR regulations at 7 CFR 253.11(c)(2) provide the FNS
Regional Office with discretion on whether to provide additional
Federal administrative funds above the required Federal share when a
State agency/ITO is granted a match waiver. For example, if the FNS
Regional Office waives a State agency/ITO's current 25 percent match
requirement, the FNS Regional Office may provide the State agency/ITO
with only 75 percent of its requested funding level or make up the
difference by supplementing this amount with additional Federal funds,
up to the State agency/ITO's total requested funding level, or 100
percent. The FNS Regional Office decision regarding additional Federal
funds is often dependent on funding availability and currently may not
account for whether any funding gap would lead to a reduction of FDPIR
benefits or services at the State agency/ITO level.
Section 4003 of the 2018 Farm Bill adds a new provision at Section
4(b)(4)(C) of the FNA (7 U.S.C. 2013(b)(4)(C)), prohibiting the
Secretary from reducing FDPIR benefits or services to State agencies
and ITOs that are granted an administrative match waiver. The
Department interprets this limitation to mean that the same level of
program benefits or services must be maintained.
This rulemaking adds a new 7 CFR 253.11(c)(3) to require the FNS
Regional Office to not reduce any benefits or services to State
agencies/ITOs in receipt of an administrative match waiver.
The Department requests comments on this section of the rulemaking.
D. Use of Other Federal Funds To Meet the State Agency/ITO
Administrative Match
Current FDPIR regulations at 7 CFR 253.11(c)(1) allow for the State
agency/ITO administrative match requirement to be met with cash or non-
cash contributions, including in-kind contributions. Furthermore, 7 CFR
253.11(c)(1)(v) provides that such contributions may not be paid for by
the Federal Government under another assistance agreement unless
authorized under the other agreement and its subject laws and
regulations. Section 4003 of the 2018 Farm Bill adds a new provision at
Section 4(b)(4)(D) of the FNA (7 U.S.C. 2013(b)(4)(D)) to allow for
other Federal funds to be used towards meeting the State agency/ITO
administrative match requirement, if that use is otherwise consistent
with the purpose of the other Federal funds.
In addition, the Department has determined that existing
regulations at 7 CFR 253.11(c)(1)(i), (iii), (iv), and (vi) apply to
the use of other Federal funds because matching funds must be
verifiable; not be contributed for another Federally-assisted program
unless authorized by Federal legislation; be necessary and reasonable
to accomplish program objectives; be allowable costs under 7 CFR part
277; and be included in the approved budget.
The Department has also determined that a State agency/ITO seeking
to use other Federal funds towards its FDPIR administrative match must
demonstrate that such use is not prohibited by law for those funds to
be used to meet a Federal match of another program. For example, an ITO
has AmeriCorps VISTA volunteers, who are paid from another Federal
source, working at the food distribution center in support of FDPIR
operations. The ITO could submit the salary of the AmeriCorps VISTA
volunteers as an in-kind contribution towards their administrative
match requirement. By contrast, the salary of AmeriCorps VISTA
volunteers working for an ITO on a project unrelated to FDPIR could not
be used as an in-kind contribution towards their administrative match
requirement.
This rulemaking, therefore, requires State agencies and ITOs
seeking to use other Federal funds to meet their State agency/ITO
administrative match requirement to submit documentary evidence for
review and approval by the FNS Regional Office that details the source,
value, and purpose of those other Federal funds. This rule revises 7
CFR 253.11(c)(1) to allow for the use of other Federal funds, requires
documentary evidence to be submitted on the source, value, and purpose
of those other Federal funds, and requires approval by the FNS Regional
Office for those funds to be used towards the State agency/ITO
administrative match. The rule also removes 7 CFR 253.11(c)(1)(ii) as
the provision is already captured under part 277, removes existing
regulation at Sec. 253.11(c)(1)(v) which prohibits the use of Federal
funds, redesignates Sec. 253.11(c)(1)(iii), (iv), and (vi) to Sec.
253.11(c)(1)(ii), (iii), and (iv), and revises newly redesignated Sec.
253.11(c)(1)(iii) (formerly Sec. 253.11(c)(1)(iv)) to add an ``and''.
The Department requests comments on this section of the rulemaking.
Procedural Matters
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a major rule, as defined by 5 U.S.C. 804(2).
Executive Order 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety
[[Page 45876]]
effects, distributive impacts, and equity). Executive Order 13563
emphasizes the importance of quantifying both costs and benefits, of
reducing costs, of harmonizing rules, and of promoting flexibility.
This final rule with request for comments has been determined to be
not significant and was reviewed by the Office of Management and Budget
(OMB) in conformance with Executive Order 12866.
Regulatory Impact Analysis
This rule has been designated as not significant by the Office of
Management and Budget; therefore, no Regulatory Impact Analysis is
required.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612) requires Agencies
to analyze the impact of rulemaking on small entities and consider
alternatives that would minimize any significant impacts on a
substantial number of small entities. Pursuant to that review, it has
been certified that this rule would not have a significant impact on a
substantial number of small entities. While there may be some burden/
impact on State agencies and ITOs that administer FDPIR, the impact is
not significant due to this rule providing a reduction in the State
agency/ITO administrative match requirement. This rulemaking also
provides flexibilities in meeting this requirement.
Executive Order 13771
Executive Order 13771 directs agencies to reduce regulation and
control regulatory costs and provides that the cost of planned
regulations be prudently managed and controlled through a budgeting
process.
This rule is not an E.O. 13771 regulatory action because it is not
significant under E.O. 12866.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, the
Department generally must prepare a written statement, including a cost
benefit analysis, for proposed and final rules with ``Federal
mandates'' that may result in expenditures by State, local, or tribal
governments, in the aggregate, or the private sector, of $146 million
or more (when adjusted for inflation; GDP deflator source: Table 1.1.9
at https://apps.bea.gov/iTable/iTable.cfm) in any one year. When such a
statement is needed for a rule, Section 205 of the UMRA generally
requires the Department to identify and consider a reasonable number of
regulatory alternatives and adopt the most cost effective or least
burdensome alternative that achieves the objectives of the rule.
This final rule with request for comments does not contain Federal
mandates (under the regulatory provisions of Title II of the UMRA) for
State, local, and tribal governments or the private sector of $146
million or more in any one year. Thus, the rule is not subject to the
requirements of sections 202 and 205 of the UMRA.
Executive Order 12372
The program addressed in this section is listed in the Catalog of
Federal Domestic Assistance under No. 10.567 and is subject to
Executive Order 12372, which requires intergovernmental consultation
with State and local officials. (See 2 CFR chapter IV.)
Federalism Summary Impact Statement
Executive Order 13132 requires Federal agencies to consider the
impact of their regulatory actions on State and local governments.
Where such actions have federalism implications, agencies are directed
to provide a statement for inclusion in the preamble to the regulations
describing the agency's considerations in terms of the three categories
called for under Section (6)(b)(2)(B) of Executive Order 13132.
The Department has determined that this rule does not have
federalism implications. This rule does not impose substantial or
direct compliance costs on State and local governments. Therefore,
under Section 6(b) of the Executive Order, a federalism summary impact
statement is not required.
Executive Order 12988, Civil Justice Reform
This final rule with request for comments has been reviewed under
Executive Order 12988, Civil Justice Reform. This rule is not intended
to have preemptive effect with respect to any State or local laws,
regulations, or policies which conflict with its provisions or which
would otherwise impede its full and timely implementation. This rule is
not intended to have retroactive effect unless so specified in the
Effective Dates section of the final rule. Prior to any judicial
challenge to the provisions of the final rule with request for
comments, all applicable administrative procedures must be exhausted.
Civil Rights Impact Analysis
FNS has reviewed this final rule with request for comments in
accordance with USDA Regulation 4300-004, ``Civil Rights Impact
Analysis,'' to identify any major civil rights impacts the rule might
have on program participants on the basis of age, race, color, national
origin, sex, or disability. After a careful review of the rule's intent
and provisions, FNS has determined that this rule is not expected to
affect the participation of protected individuals in FDPIR.
Executive Order 13175
Executive Order 13175 requires Federal agencies to consult and
coordinate with Tribes on a government-to-government basis on policies
that have Tribal implications, including regulations, legislative
comments or proposed legislation, and other policy statements or
actions that have substantial direct effects on one or more Indian
Tribes, on the relationship between the Federal Government and Indian
Tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian Tribes. In 2019, the Department
engaged in a series of consultative and coordinated sessions with
elected Tribal leaders and Tribal representatives from the FDPIR
community to discuss these provisions. Reports from the consultative
sessions will be made part of the USDA annual reporting on Tribal
Consultation and Collaboration. USDA is unaware of any current Tribal
laws that could be in conflict with this rule.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; 5 CFR
1320) requires the Office of Management and Budget (OMB) to approve all
collections of information by a Federal agency before they can be
implemented. Respondents are not required to respond to any collection
of information unless it displays a current valid OMB control number.
This rule contains information collection requirements that have been
approved by OMB under OMB# 0584-0594 Food Programs Reporting System
(FPRS). This rule, however, does not impact these information
collection requirements and therefore they are not subject to review
and approval by the Office of Management and Budget under the Paperwork
Reduction Act of 1995.
E-Government Act Compliance
The Department is committed to complying with the E-Government Act
of 2002 (Pub. L. 107-347) to promote the use of the internet and other
information technologies to provide increased opportunities for citizen
[[Page 45877]]
access to Government information and services, and for other purposes.
List of Subjects in 7 CFR Part 253
Administrative practice and procedure, Food assistance programs,
Grant programs, Indians, Social programs, Surplus agricultural
commodities.
Accordingly, 7 CFR part 253 is amended as follows:
PART 253--ADMINISTRATION OF THE FOOD DISTRIBUTION PROGRAM FOR
HOUSEHOLDS ON INDIAN RESERVATIONS
0
1. The authority citation for 7 CFR part 253 continues to read as
follows:
Authority: 91 Stat. 958 (7 U.S.C. 2011-2036).
0
2. In Sec. 253.11:
0
a. Revise paragraphs (b) and (c)(1) introductory text;
0
b. Remove paragraphs (c)(1)(ii) and (v);
0
c. Redesignate paragraphs (c)(1)(iii), (iv), and (vi) as paragraphs
(c)(1)(ii), (iii), and (iv);
0
d. Revise newly redesignated paragraph (c)(1)(iii) and paragraph
(c)(2); and
0
e. Add paragraph (c)(3).
The revisions and addition read as follows:
Sec. 253.11 Administrative funds.
* * * * *
(b) Allocation of administrative funds to State agencies. Prior to
receiving administrative funds, State agencies must submit a proposed
budget reflecting planned administrative costs to the appropriate FNS
Regional Office for approval. Planned administrative costs must be
allowable under part 277 of this chapter. To the extent that funding
levels permit, the FNS Regional Office allocates to each State agency
administrative funds necessary to cover no less than 80 percent of
approved administrative costs.
(c) * * *
(1) Unless Federal administrative funding is approved at a rate
higher than 80 percent of approved administrative costs, in accordance
with paragraph (c)(3) of this section, each State agency must
contribute 20 percent of its total approved administrative costs. Cash
or non-cash contributions, including third party in-kind contributions,
and the value of services rendered by volunteers, may be used to meet
the State agency matching requirement. Funds provided from another
Federal source may be used to meet the State agency matching
requirement, provided that such use is consistent with the purpose of
those funds and complies with this subsection. To use funds from
another Federal source, the State agency must submit documentation for
approval to the FNS Regional Office which shows the source, value, and
purpose of those funds. In accordance with part 277 of this chapter,
such contributions must:
* * * * *
(iii) Be allowable under part 277 of this chapter; and
* * * * *
(2) Upon request from a State agency, an FNS Regional Office may
approve a waiver reducing a State agency's matching requirement below
20 percent. To request a waiver, the State agency must submit
compelling justification for the waiver to the appropriate FNS Regional
Office. Compelling justification is based on either financial inability
to meet the match requirement or the match requirement imposing a
substantial burden. The request for the match waiver must be submitted
with the following and in accordance with other FNS instructions:
(i) For a waiver based on financial inability, a summary statement
and recent financial documents showing that the State agency is unable
to meet the 20 percent matching requirement and that additional
administrative funds are necessary for the effective operation of the
program; or
(ii) For a waiver based on substantial burden, a signed letter from
the leadership of the State agency or, in the case of an Indian Tribal
Organization, from the Tribal Council, describing why meeting the 20
percent matching requirement would impose a substantial burden on the
State agency, and why additional administrative funds are necessary for
the effective operation of the program, along with supporting
documentation, as needed.
(3) The FNS Regional Office may not reduce any benefits or services
to State agencies that are granted a waiver.
* * * * *
Dated: August 26, 2019.
Pamilyn Miller,
Administrator, Food and Nutrition Service.
[FR Doc. 2019-18815 Filed 8-30-19; 8:45 am]
BILLING CODE 3410-30-P
