Sneak Preview: FNS Amends FDPIR Requirement for Match, Waivers

(The following was excerpted from a recent article in the Federal Grants Management Handbook.) The U.S. Department of Agriculture Food and Nutrition Services (FNS) recently amended its regulations to reduce the mandatory administrative match for recipients under the Food Distribution Program on Indian Reservations (FDPIR) (CFDA No. 10.567). The rule, which became effective Sept. 3, also revised other match requirements, including requests for waivers, under the program.

Under FDPIR, FNS provides federal funds to state agencies and Indian tribal organization (ITOs) to provide food to income-eligible households living on Indian reservations and to Native American households residing in designated areas near reservations or in Oklahoma. Applicants for FDPIR, prior to receiving administrative funds, must submit a proposed budget reflecting planned administrative costs to the FNS regional office for approval.

The final rule codifies new and revised statutory requirements under the Agriculture Improvement Act of 2018 (2018 Farm Bill) (Pub. L. 115-334) that revised FDPIR provisions at 7 C.F.R. Part 253. Previously, FNS provided 75 percent of FDPIR administrative funds and required state agencies/ITOs to contribute the remaining 25 percent in matching funds, unless FNS waived the match requirement. The nonfederal administrative match had to be either cash or noncash (i.e., in-kind contribution).

In light of provisions in the 2018 Farm Bill, FNS has now increased the federal share of FDPIR administrative costs to at least 80 percent. As such, the state agency/ITO match has been reduced to 20 percent. The new matching requirement will apply to new FDPIR administrative grants for federal fiscal year (FY) 2020 and thereafter. FDPIR administrative grants for FY 2019 that have a period of performance through Sept. 30, 2020, will continue to maintain the 25 percent match.

FNS “is issuing this final rule in order to ensure that the provisions in this rulemaking apply to the next FDPIR administrative grant cycle, FY 2020, which begins Oct. 1, 2019,” FNS explained in the final rule published in the Sept. 3 Federal Register. “State agencies and ITOs that administer FDPIR benefit from the timely implementation of these provisions as they have a direct and positive impact on individual state agency and ITO grant allocations to operate the program.”

(The full version of this story has now been made available to all for a limited time here.)

Join us for our following Federal Grants Forum:
Federal Grants Forum for Experienced Grant Recipients | September 18-20, 2019
Federal Grants Forum: Dallas, TX | October 16 – 18, 2019
2020 dates to be announced soon!
Learn more at http://grants.thompson.com/conferences.aspx.