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This rule updates the Child and Adult Care Food Program (CACFP) serious deficiency (SD) process and establishes SD processes for unaffiliated centers and the Summer Food Service Program (SFSP). Section 322 of the Healthy, Hunger-Free Kids Act of 2010 amended section 13 of the Richard B. Russell National School Lunch Act, 42 USC 1761 and 1766, to require the Secretary to establish procedures for the termination and disqualification of organizations participating in the SFSP. In 2016, USDA solicited public comments on a serious deficiency provision contained in USDA’s Child Nutrition Program Integrity proposed rule. In 2019, USDA sought additional input through a formal Request for Information (RFI - https://www.federalregister.gov/documents/2019/05/17/2019-10308/request-for-information-the-serious-deficiency-process-in-the-child-and-adult-care-food-program) specific to the serious deficiency process. The comments submitted by state agency officials, program operators, and program sponsors in response to these solicitations was critical to the development of this rule. For example, commenters described being declared seriously deficient for issues arising from human error. The proposed rule codifies an analysis process to identify when program violations rise to the level of serious deficiencies.

These are the stakeholders that will be most significantly affected by the rule’s proposed reforms. USDA also held a consultation with Tribal leaders on May 23, 2023, to inform on the development of this rule. The proposed rule was published on February 21, 2024.