Title 42, The Public Health and WelfareRelease 119-102

§1765 Election to Receive Cash Payments

Title 42 › CHAPTER 13 — SCHOOL LUNCH PROGRAMS › § 1765

Last updated Aug 21, 2026|Official source

Summary

A State that closed its commodity distribution centers before June 30, 1974, may choose to get cash instead of donated foods for the programs covered by this law and the Child Nutrition Act of 1966. If the State chooses cash, the Secretary must pay an amount equal to the value of the donated foods the State would have received. The payment amount for lunches is set by section 1755(c) of this title. When the cash is paid, the State educational agency must quickly and fairly give the money to eligible schools and institutions. Those schools and institutions must use the funds to buy United States agricultural commodities and other foods for their food service programs.

Full Legal Text

Title 42, §1765

The Public Health and Welfare, Source: USLM XML via OLRC

(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.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Child Nutrition Act of 1966, referred to in subsec. (a), is Pub. L. 89–642, Oct. 11, 1966, 80 Stat. 885, which is classified generally to chapter 13A (§ 1771 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 1771 of this title and Tables.

Amendments

1998—Subsec. (a). Pub. L. 105–336 substituted “1755(c)” for “1755(e)”. 1989—Pub. L. 101–147 inserted “Election to receive cash payments” as section catchline.

Statutory Notes and Related Subsidiaries

Effective Date

of 1998 AmendmentAmendment by Pub. L. 105–336 effective Oct. 1, 1998, see section 401 of Pub. L. 105–336, set out as a note under section 1755 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 1765

Title 42, The Public Health and Welfare

Last Updated

Aug 21, 2026

Release point: 119-102