Financial Management for School Nutrition Programs

Paid Lunch Equity

Section 7 CFR 210.14 (e) of the NSLP regulations requires that SFAs must ensure that schools are providing the same level of support for lunches served to students who are not eligible for free or reduced-price lunches (i.e., paid lunches) as they are for lunches served to students eligible for free lunches. SFAs must compare the average price charged for lunches served to students receiving paid lunches to the difference between the higher federal reimbursement provided for free lunches and the lower federal reimbursement provided for paid lunches.

Paid Lunch Equity (PLE) Tool

The USDA provides the PLE Tool annually to assist SFAs with making price adjustment calculations. During the NSLP application renewal process, SFAs must use the PLE Tool to ensure that paid lunch prices are set appropriately to cover the cost of a paid student meal. If the average paid lunch price is less than the difference, the SFA must either gradually adjust average prices or provide non-federal funding to cover the difference.