FY 2024 Food and Administrative Funding for TEFAP

DATE:	April 19, 2024
SUBJECT:	Fiscal Year (FY) 2024 Food and Administrative Funding for The Emergency Food Assistance Program (TEFAP)
TO:	Regional Directors Special Nutrition Programs	State Directors TEFAP State Agencies

Introduction

Six pieces of legislation currently govern the level of food and administrative resources available to TEFAP in fiscal year (FY) 2024:

• The Agriculture Improvement Act of 2018 (PL 115-334, the 2018 Farm Bill);
• The Food and Nutrition Act of 2008 (PL 88-525, as amended);
• The Emergency Food Assistance Act of 1983 (PL 98-8, as amended);
• Division B, Title 1, Office of the Secretary, The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (PL 116-136);
• The Consolidated Appropriations Act, 2023 (PL 117-328, the 2023 Appropriations Act).
• The Consolidated Appropriations Act, 2024 (PL 118-42, the 2024 Appropriations Act).

Food Funds

Section 27(a) of the Food and Nutrition Act of 2008 (the Act) established the amount of funding available for TEFAP food purchases for FY 2009, and indexes that amount to annual changes in the Thrifty Food Plan (TFP). Section 4018 of the Agriculture Improvement Act of 2018 (2018 Farm Bill) maintained the funding formula established in Section 27(a) of the Act. The 2018 Farm Bill also added specified amounts annually, separate and distinct from the inflationary adjustments referenced above. Additionally, it required USDA to re-evaluate the TFP by 2022 and every five years thereafter based on current food prices, food composition data, consumption patterns, and dietary guidance.

Based on changes in the TFP and the additional funds authorized by the 2018 Farm Bill, the amount available for TEFAP food purchases through the FY 2024 Appropriations Act is $461.5 million. Of this, $7.745 million is needed to pay costs associated with ordering and transporting the food, leaving $453.755 million for the purchase of food.

Carryover of State TEFAP Food Entitlement

Section 27(a) of the Food and Nutrition Act of 2008 allows funds authorized for the purchase of TEFAP food to remain available for two fiscal years, subject to such terms and conditions as determined by USDA. Therefore, states are able to keep any remaining TEFAP food entitlement balance at the end of the first fiscal year and place orders against it during the subsequent fiscal year. However, funds remaining at the end of the second fiscal year after which they were initially appropriated will no longer be available to USDA and will be unavailable for states to place orders against. Any remaining state balance of FY 2023 TEFAP food entitlement will expire at the end of FY 2024 (September 30, 2024). State agencies should ensure that any carryover FY 2023 food entitlement balance is expended by the end of this fiscal year.

Conversion of Food Funds to Administrative Funds

TEFAP state agencies have the opportunity to convert their fair-share of up to 20 percent of their entitlement food funds into TEFAP administrative funds (PL 118-42, the 2024 Appropriations Act). Accordingly, $92.3 million in FY 2024 TEFAP entitlement food funds are available for conversion into TEFAP administrative funds. FNS Headquarters must be informed by April 29, 2024, whether TEFAP state agencies want to accept their portion of the convertible $92.3 million as food funds, administrative funds, or any combination of the two.

Administrative Funds and their Conversion

The 2024 Appropriations Act includes $80 million in TEFAP administrative funds. Through March 8, 2024, per the terms of a Continuing Resolution, and a subsequent 30-day allowance, TEFAP received a pro-rated portion of the level of administrative funds it received in FY 2023 totaling $46,773,200. The remaining $33,226,798 in appropriated funds were released to TEFAP state agencies on April 8, 2024.

As always, TEFAP state agencies may convert any portion of their administrative funds into food funds. FNS Headquarters must be informed by April 29, 2024, regarding what portion, if any, of their administrative funds TEFAP state agencies wish to convert to food funds.

In FY 2024, TEFAP state agencies should carefully consider the amount of administrative funding available through regular and supplemental sources in making conversion decisions. States should only convert an amount of administrative funds that they are able to obligate by Sept. 30, 2024.

FY 2024 Entitlement and Administrative Funding Worksheets

FNS has provided four administrative worksheets to TEFAP state agencies detailing administrative funding allocations under Continuing Resolutions in FY 2024 and subsequent 30-day allowance. Attached, please find the FY 2024 food and administrative funding worksheets that provide further details regarding FY 2024 TEFAP funding.

A. Worksheet #5 shows each state's share of the $38,456,000 in FY 2024 TEFAP administrative funds that has been provided under the Continuing Resolutions as well as each state's share of the $8,317,200 provided under the 30-day allowance. Finally, it shows the remaining $33,226,800 in appropriated fund, which were allocated under the final FY 2024 Appropriations Act, and the total of these amounts.

B. Worksheet #6 shows each state's allocation of FY 2024 TEFAP food funds provided in the Food and Nutrition Act that are not convertible to administrative funds, each state's share of convertible funds, each state's FY 2023 carryover balance of entitlement foods available in FY 2024, and the total of these amounts. Each state's FY 2023 entitlement carryover balance available in FY 2024 was determined based on an entitlement summary report pulled from the Web-Based Supply Chain Management system.

Conclusion

To review, FNS headquarters must be informed whether TEFAP state agencies want to (a) accept their remaining portion of the $92.3 million in convertible TEFAP food funds as food funds, administrative funds, or some combination of the two by April 29, 2024; and (b) convert any portion of their administrative funds into food funds by April 29, 2024. Regional office staff will provide further guidance on applicable timeframes for submission to their offices, which will enable them to provide the information to FNS headquarters in a timely manner.

Kiley Larson
Acting Director
Funding and Technology Division
Supplemental Nutrition and Safety Programs

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