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Consolidated Appropriations Act–Effect on CNPs

The U.S. Department of Agriculture issued policy memo SP 11-2021, CACFP 10-2021, SFSP 06-2021 on May 5, 2021, regarding sections 743, 764, 767, and 789 of Division A of the Consolidated Appropriations Act 2021 (Public Law 116-260). These sections effect the Child Nutrition Programs (CNPs) as follows:

Section 743

Allows school food authorities (SFAs) participating in the School Breakfast Program (SBP) to credit any vegetable offered, including potatoes and other starchy vegetables, in place of fruit without including vegetables from other subgroups in the weekly menus. This flexibility is effective for School Years 2020–21 and 2021–22, providing additional flexibility in planning breakfast menus, but does not require SFAs to make any menu changes.

Section 764

Prohibits the use of Appropriations Act funds to procure raw or processed poultry products imported into the United States from the People’s Republic of China for use in the Child Nutrition Programs.

Section 767

For School Year 2021–22, only an SFA that had a negative balance in the nonprofit school food service account as of December 31, 2020, is required to establish prices for paid lunches served through the National School Lunch Program (NSLP) in accordance with Title 7, Code of Federal Regulations, Section 210.14(e). For additional guidance on how SFAs can take advantage of this paid lunch equity exemption, please visit the California Department of Education’s (CDE) Management Bulletin, SNP-02-2021 Paid Lunch Equity Exemption Guidance web page.

Section 789

Prohibits the use of Appropriations Act or any other acts funds to restrict the offering of low-fat (one percent fat) flavored milk in the NSLP and SBP as long as such milk is not inconsistent with the most recent Dietary Guidelines for Americans published under Section 301 of the National Nutrition Monitoring and Related Research Act of 1990. This flexibility is effective through September 30, 2021, and provides additional flexibility in planning menus, but does not require SFAs to make any menu changes.

Contact Information

For questions regarding sections 743 and 789, please contact your Child Nutrition Consultant. The contact list is available in the Download Forms section of the Child Nutrition Information and Payment System, Form ID Caseload.

For questions regarding section 767, please contact the CDE Nutrition Services Division (NSD) Resource Management Unit by email at

For questions regarding section 764 please contact the CDE NSD Procurement Resources Unit by email at You can also contact the NSD at 800-952-5609 to be directed to the correct contact person or unit.

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Monday, May 24, 2021
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