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Table 65.-FEDERAL PAYMENTS TO COUNTIES IN THE VARIOUS STATES FROM COLLECTIONS RECEIVED THE PRECEDING CALENDAR YEAR FOR RENTAL OF SUBMARGINAL LANDS, AND DISTRIBUTED FOR ROADS AND SCHOOLS: 1958 AND 1959

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The Department of Agriculture cooperates with the States in carrying on the National School Lunch and Special Milk Programs. These programs started in 1935 when Public Law 320 was approved by the Seventy-fourth Congress. Although school lunches were not mentioned specifically, section 32 of the law did provide for an annual appropriation to the Secretary of Agriculture equal to 30 percent of the gross receipts from duties collected under custom laws to be used for several purposes, one of which was:

To encourage the domestic consumption of such commodities or products by diverting them by the payment of benefits or indemnities or by other means, from the normal channels of trade or commerce or by increasing their utilization through benefits, indemnities, donations, or by other means, among persons in low-income groups.

Purchases of surplus food commodities by the Department of Agriculture for distribution to nonprofit school lunch programs, charitable institutions, and families receiving welfare assistance were made under section 32 of Public Law 320. Also, under section 32 funds were made available to the Department of Agriculture for the School Milk Program established in 1940 and the Indemnity Plan enacted in 1943. The provisions of these several enactments were then consolidated into the National School Lunch Act of 1946. Approximately 8 years later in 1954 additional benefits were provided under the Special Milk Program.

SCHOOL LUNCH PROGRAM

The Seventy-ninth Congress in 1946 approved Public Law 396, known as the National School Lunch Act. The purpose was:

To safeguard the health and well-being of the Nation's children and to encourage the domestic consumption of nutritious agricultural commodities and other food by assisting the States through grants-in-aid and other means in providing an adequate supply of foods and other facilities for the establishment, maintenance, operation, and expansion of nonprofit school lunch programs.

Under this act each State receives an apportionment of funds based upon the number of children from 5 to 17 years of age and upon variations of the per capita income, and disburses these funds to schools for school lunch services. The formula provided in the act operates to allocate proportionately larger amounts of money to the financially weaker States. This accomplishes some equalization. An exception to this method of distribution is noted for funds allocated directly to the school lunch programs in private schools where specific State laws or court decisions do not permit the State office to make payments to private schools.

Annual and total amounts of Federal funds allotted in accordance with the provisions of the National School Lunch Act over the 10-year period from 1950-51 to 1959-60 are listed in column 4 of table 66. The value of commodities also provided under this act are presented in column 5. Table 67 shows amounts of Federal assistance distributed to the various States and Territories for the School Lunch Program for the 1957-58 school year. Amounts distributed in 1958-59 are given in columns 7 and 8 of summary table 4.

Table 66.-FEDERAL FUNDS ALLOTTED AND ESTIMATED VALUE OF COMMODITIES DISTRIBUTED FOR THE SCHOOL LUNCH PROGRAM: 1950-51 TO 1959-60

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Table 67.-FEDERAL ASSISTANCE TO THE STATES AND TERRITORIES FOR THE SCHOOL LUNCH PROGRAM: 1957-58

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SPECIAL MILK PROGRAM

This program, originally authorized by the Agricultural Act of 1954 to increase the consumption of fluid milk, provides reimbursement payments to nonprofit elementary and secondary schools for school milk purchases not to exceed $50 million annually from funds of the Commodity Credit Corporation.

Through subsequent legislative action the program has been extended and expanded. The amount authorized was increased to $60 million in 1956, and $75 million annually was authorized in 1957 and 1958. Also in 1957 and 1958 there were included as eligible participants all nonprofit nursery schools, child-care centers, settlement houses, summer camps, and similar nonprofit institutions devoted to the care and training of children. Since 1958, the authorization has been increased to $78 million for 1958-59, $85 million for 1959-60, and $95 million for 1960-61.

The Department of Agriculture establishes the maximum amounts that may be paid to participating schools and child-care institutions. Schools serving Type A meals under the National School Lunch Program may receive up to 4 cents reimbursement for each half pint served in excess of the first half pint in a Type A lunch. All other schools and child-care institutions may receive up to 3 cents reimbursement for each half pint served.

Where milk is sold to children as a separately priced item in schools or institutions, the reimbursement payment except for a small handling charge must be used to reduce the price of milk to children. Generally, the price paid by children is not more than 3 or 4 cents per half pint and the school handling cost is usually 1 cent or less per half pint. In schools and child-care institutions where milk is not sold as a separately priced item, the amount of assistance is measured by the cost of the extra milk served over and above that normally consumed before entering the program.

The School Lunch Program and the Special Milk Program are administered in the States by State departments of education. These State offices administer the program for both public schools and nonprofit private schools, except where the State educational agencies cannot legally disburse funds to these private schools. In such States, the Agricultural Marketing Service administers the programs. directly in nonprofit private schools through a system of five area offices. The Special Milk Program is administered in child-care institutions by various State agencies and by the Agricultural Marketing Service.

Table 68.-ESTIMATED EXPENDITURES OF FEDERAL FUNDS IN THE SPECIAL MILK PROGRAM: 1957-58

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As indicated in table 68, the total reimbursement for the program was $65,182,562 for 1957-58. For 1959-60, it is estimated that the amount will be $79,400,000. Final figures for the 1958-59 school year indicate that over 78,216 public and nonprofit private schools participated in the Special Milk Program and about 2.1 billion half pints of milk were served in these schools. Amounts distributed for this program in 1958-59 are shown in column 9 of summary table 4.

STATE AGRICULTURAL EXPERIMENT STATIONS

Federal funds for agricultural experiment stations, which operate chiefly as units of the land-grant colleges of agriculture and mechanic arts, have been provided in congressional acts dating back to 1887. The first three enactments, which provided annual flat grants totaling $90,000 to each of the States, were provided in 1887, 1906, and 1925. Additional Federal support in excess of the flat grants has been allocated, for the most part, on a matching basis.

The Federal legislation which authorizes the State agricultural experiment stations states that it is the policy of Congress to promote the efficient production, marketing, distribution, and utilization of farm products and to assure agriculture a position in research equal to that of industry. Thus, it is the object and duty of the State agricultural experiment stations to conduct original and other re

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