103 STAT. 892 PUBLIC LAW 101-147—NOV. 10, 1989 the Senate concerning the efforts of the Secretary and the States to increase the participation of schools in the program."; and (3) by adding at the end the following new subsection: State and local governments. Reports. STAKTUP COSTS "(g)(1) The Secretary shall make payments, totalling not less than $3,000,000 in the fiscal year 1990 and $5,000,000 for each of the fiscal years 1991, 1992, 1993, and 1994, on a competitive basis to State educational agencies in a substantial number of States for distribu- tion to eligible schools to assist such schools with nonrecurring expenses incurred in initiating a school breakfast program under thLs section. Pa3mients received under this subsection shall be in addition to payments to which State agencies are entitled under subsection (b)- "(2)(A) In making payments vmder this subsection in any fiscal year, the Secretary shall provide a preference to State educational agencies that— "(i) submit to the Secretary a plan to expand school breakfast programs conducted in the State, including a description of— "CD the manner in which the agency will provide tech- nical assistance and funding to schools in the State to expand such programs; "(H) a State law that requires the expansion of such programs during such year; or "(HD significant public or private resources that have been assembled to carry out the expansion of such pro- grams during such year; or " (ii) either— "(1) do not have a breakfast program available to a large number of low-income children in the State; or "(ID serve a low percentage of free and reduced price breakfasts under the school breakfast program when the number of such breakfasts is measured as a percentage of the number of free and reduced price lunches served in such State under the school lunch program carried out under the National School Lunch Act. "(B) The Secretary shall act in a timely manner to recover and reallocate to other States any amounts provided to a State edu- cational agency under this subsection that are not used by such agency within a reasonable period. "(C) The Secretary shall allow States to apply on an annual basis for assistance under this subsection. "(3) EJach State agency, in allocating funds within the State, shall give preference for assistance under this subsection to eligible schools that demonstrate the greatest need for a breakfast program. "(4) Expenditures of funds from State and local sources for the maintenance of the breakfast program shall not be diminished as a result of payments received under this subsection. "(5) As used in this subsection, the term 'eligible school' means a school— "(A) attended by children a significant percentage of whom are members of low-income families; and "(B) that agrees to operate the breakfast program established with such assistance for a period of not less than 3 years. "(6) Not later than December 31, 1993, the Secretary shall submit a report to the Committee on Education and Labor of the House of
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