42 U.S.C. § 1765 : US Code - Section 1765: Election to receive cash payments

Search 42 U.S.C. § 1765 : US Code - Section 1765: Election to receive cash payments

(a) Notwithstanding any other provision of law, where a State
phased out its commodity distribution facilities prior to June 30,
1974, such State may, for purposes of the programs authorized by
this chapter and the Child Nutrition Act of 1966 [42 U.S.C. 1771 et
seq.], elect to receive cash payments in lieu of donated foods.
Where such an election is made, the Secretary shall make cash
payments to such State in an amount equivalent in value to the
donated foods that the State would otherwise have received if it
had retained its commodity distribution facilities. The amount of
cash payments in the case of lunches shall be governed by section
1755(c) of this title.
(b) When such payments are made, the State educational agency
shall promptly and equitably disburse any cash it receives in lieu
of commodities to eligible schools and institutions, and such
disbursements shall be used by such schools and institutions to
purchase United States agricultural commodities and other foods for
their food service programs.