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EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET Australia WASHINGTON, D.C. MAY 31 1946 My dear Mr. Latta: On May 25, 1946, you advised this office that H. R. 3370, "To provide assistance to the States in the establishment, maintenance, operation, and expansion of school-lunch programs, and for other purposes," had been re- ceived at the White House and requested reports and recommendations as to the approval of the bill. The purpose of this enactment is to provide a general, permanent legislative basis for the Federal Government's aid to the States in their school lunch programs, in lieu of the present method of providing such aid on a temporary, year-to-year basis through authorizations contained in ap- propriations to the Department of Agriculture. The bill, accordingly, authorizes, beginning with the fiscal year 1947, annual appropriations to carry out the Federal Government's aid to the school lunch programs of each State. (The word "State" is defined in the bill to include Alaska, Hawaii, Puerto Rico, and the Virgin Islands.) The Secretary of Agriculture, who is charged with administering the Federal Government's part of this aid program, is directed to apportion among the States, during each fiscal year, not less than 75 percent of the funds appropriated for supplying agricultural commodities and other foods, the apportionment to be on the basis of (1) the number of school children in the State, and (2) the need for assistance as indicated by the relation of the per capita income in the United States to the per capita income in the State. Approximately 25 percent of the funds appropriated in any fis- cal year is made available to the Secretary of Agriculture, without appor- tionment, for direct expenditure by him for agricultural commodities and other foods to be distributed among the States and schools participating in the school lunch program, in accordance with their needs. Section 5 makes available to the Secretary of Agriculture $10,000,000 of each year's appropriation for apportionment to the States, under the formula set forth above, for the purpose of providing equipment, on school premises, for storing, preparing, or serving food for school children. As a condition to receiving Federal funds under the Act, the States are required to match the Federal contribution in accordance with the following terms: For the period 1947 to 1950, inclusive, dollar for dollar; for the period 1951 to 1955, inclusive, each Federal dollar to be matched by one and one-half of State dollars; and for any fiscal year thereafter, each Federal dollar to be matched by three State dollars. Provision is made, however, that in the case of any State whose per capita income is less than