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National Flood Insurance Program Payments

Nutrition Services Division Management Bulletin

To: School Nutrition Program Sponsors

Number: 06-101, 06-201, 06-701

Attention: Food Service Director

Date: January 2006

Subject: Treatment of National Flood Insurance Program Payments

Reference: United State Department of Agriculture Policy Memorandum SP 06-01, CAC 06-01, SFS 06-01

This Management Bulletin provides guidance from the United States Department of Agriculture (USDA) on the treatment of National Flood Insurance Program (NFIP) payments made under the National Flood Insurance Act of 1968, as amended by Public Law 109-64, enacted September 20, 2005, for the purpose of determining eligibility for meal benefits in the federal child nutrition programs.


Public Law 109-64 provides that payments made under the NFIP for flood mitigation activities shall not be counted as income or resources of the property owner when determining eligibility for any federal means-tested program. The Federal Emergency Management Agency awards grants to states and communities, which distribute the funds to individuals and businesses for activities that reduce the risk of repetitive flood damage. State agencies must exclude NFIP payments received by property owners when determining income eligibility for any USDA, Food and Nutrition Service program.

Please share this information with staff responsible for reviewing and certifying program participants’ income eligibility applications.

If you have any questions regarding this subject, please contact your Nutrition Services Division representative in the Field Services Unit at 916-445-0850 or 800-952-5609. You may also contact your program administration analyst at 916-445-0850.

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Friday, July 31, 2015

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