Special Milk Program

The Special Milk Program (SMP) is a federal U.S. Department of Agriculture (USDA) Child Nutrition Program (CNP). In California, this program is administered by the California Department of Education (CDE). SMP operators provide milk to children in schools, childcare, and eligible camps that do not participate in other federal CNPs. Participating schools and institutions receive federal reimbursement for the milk served. SMP operators must manage their milk program on a non‐profit basis.

Program Information

• What types of agencies may participate?
• What type of milk must be offered, including fluid milk and non-dairy milk substitutions?
• What is involved in operating a Special Milk Program?
• How do we get paid?
• Where can we get assistance?
• Whom do we contact?

What types of agencies may participate?

With one exception, agencies that do not participate in the National School Lunch Program (NSLP), School Breakfast Program, Child and Adult Care Food Program (childcare component or adult day care component), or Summer Food Service Program are eligible to participate in the SMP. This includes public and private nonprofit schools, licensed residential child care institutions (e.g., group homes, juvenile halls, orphanages), nursery schools, child care centers, settlement houses and summer camps.

An exception is made for private nonprofit schools that participate in the above-mentioned CNPs, but have split-session kindergarten programs that do not have access to the CNPs. In this situation, the private nonprofit school may participate in the SMP, and milk served in the split-session kindergarten program may be claimed for reimbursement. (Title 7 Code of Federal Regulations Section 215.1) This flexibility does not apply to public schools, charter schools or county offices of education as these schools are required to make NSLP and SBP meals available to students each school day under the state meal mandate.

What type of milk must be offered, including fluid milk and non-dairy milk substitutions?

Fluid milk may be offered in half-pint containers or, if using bulk milk dispensers, in half-pint servings. At least one type of fluid milk must be offered, and additional types may be offered.

Type of Fluid Milk Offered:

As per Title 7 Code of Federal Regulations (7 CFR) Section 215.7a(a), all fluid milk served in the Special Milk Program must be pasteurized, meet State and local standards and contain vitamins A and D at levels specified by the Food and Drug Administration (FDA).

Requirements for the fat content of fluid milk served through the SMP, as well as the flexibility to offer flavored milk, are based on the age of the child and are as follows:

• One (1) year old– must be unflavored whole milk
• Two (2) to 5 years old– must be unflavored whole, reduced-fat (2 percent), low-fat (1 percent), or fat-free milk
• Six (6) and older and adults– may be unflavored and flavored whole, reduced-fat (2 percent), low-fat (1 percent), or fat-free milk

Program Operators are encouraged to offer milk choices that are low in added sugar, however the regulations do not specify a limit for the added sugar in milk served through the Special Milk Program.

Lactose-free and reduced-lactose milk that meet the fat content and flavor specifications for each age group may also be offered.

Fluid Milk Substitutions:

7 CFR Section 215.7a(b) states a school food authority (SFA) may offer fluid milk substitutes based on a written request from a child's parent or guardian, a State licensed healthcare professional, or registered dietitian. California, defines state licensed healthcare professionals as licensed physicians, physician assistants, and nurse practitioners.

An SFA choosing to offer fluid milk substitutes for a non-disability reason is not required to offer the specific fluid milk substitutes requested, provided the fluid milk substitutes offered meet the nutrient requirements listed in 7 CFR Section 215.7a(b)(2) and must be fortified in accordance with fortification guidelines issued by the FDA.

For more information, review Management Bulletin (MB) SNP-11-2026, Final Rule Regarding Fluid Milk Substitutions in School Nutrition Programs (SNP), available on the CDE Final Rule: Fluid Milk Substitutions web page.

What is involved in operating a Special Milk Program?

The SMP must be open to all enrolled children. Two different methods may be used when charging for milk:

1. The price charged for milk may be included in the tuition or camping fee so that all children automatically receive milk. This is called a non-pricing program.
   
   
2. There can be a separate charge for milk, so that the purchase of milk is optional. This is called a pricing program. If there is a separate charge for milk (a pricing program), the agency may choose to provide milk at no charge to children who qualify for free milk, according to specific family size and income standards.

Agencies must keep records documenting that the Program follows all federal and state rules and regulations. Some of the records that must be kept are:

• The number of half-pints of milk served each day, or, if using bulk milk, the number of half-pint servings of milk by site, and if applicable, by category (free milk and purchased milk).
  
  
• Applications for free milk submitted by the families, by site, if milk is provided at no charge to eligible children.
  
  
• Inventory records that document the amounts and types of milk used.
  
  
• Records of income, expenditures, and contributions received.
  

The CDE periodically reviews each agency's SMP. In addition, those agencies that annually receive more than $1,000,000 in federal funds (from all sources) must also be audited each year. This total does not include monies received as reimbursement for services rendered to individuals such as child care subsidies, Medi-Cal fees, or Medicaid service fees.

For more information on this subject, review the MB CNP-04-2017 Annual Audit Status Certification Form Requirements for Organizations Participating in the California Department of Education Nutrition Programs available on the School Nutrition Programs Management Bulletins web page.

How do we get paid?

The SMP is operated on a reimbursement basis, with agencies paid based on the number of half-pints of milk or, if using bulk milk, the number of half-pint servings of milk served. Agencies submit a monthly reimbursement claim through the Child Nutrition Information Payment System (CNIPS). After the CDE reviews and approves the claim, it is processed by the State Controller's Office and a check is issued. Agencies typically receive reimbursement within four to six weeks after submitting the reimbursement claim. Visit the fiscal Nutrition Services web page for reimbursement claim instructions and calculation worksheets.

For milk that is provided free of charge to eligible children, the amount of reimbursement is equal to the average cost paid by the agency for each half-pint serving of milk. Please see Rates, Eligibility Scales, and Funding for the current rates.

Where can we get assistance?

Nutritionists and program staff from the CDE are available to provide free technical assistance and guidance on how to operate a NSLP. Assistance is available on multiple topics, including record keeping, reporting, and clarifying federal and state regulations.

Whom do we contact?

SNP contacts can be found at the CDE’s School Nutrition Programs Specialist Directory web page. You may also contact the SNP Unit by email at SNPInfo@cde.ca.gov.