USDA's WIC Program Amended to Incorporate Two Nondiscretionary Funding Provisions

The final rule implements two changes to the WIC program. The two changes are described in the Federal Register notice as follows: "The first change modifies the methodology used to calculate the national administrative grant per person, which is used to determine the amount of WIC funds to be used for food benefits and nutrition services and administration (NSA). The second change provides greater flexibility for State agencies in noncontiguous States containing a significant number of remote Indian or Native villages by permitting them to convert food funds to cover allowable NSA costs incurred in providing services and breastfeeding support to those areas."

The first change affects the amount of funds allocated for food benefits and nutrition services and administration (NSA) costs by altering how the national administrative grant per person (AGP) is calculated. Before this ruling the AGP was calculated using the implicit price deflator and fiscal year 1987 as the base year. Due to concerns about this methodology, the new rule changes the methodology by eliminating the requirement to use the implicit price deflator and by replacing 1987 as the base year and instead requiring that the adjustment be made to the AGP for the "preceding fiscal year."

The second change creates new conditions under which food funds may be converted to NSA funds. Previously, there existed two conditions under which the conversion could take place: (1) An approved plan outlining food cost reduction strategies and increases in participation levels above the FNS-projected participation levels; and (2) actual participation increases achieved in excess of participation projected by FNS. As described in the Federal Register, under the new rule food funds "may be converted to NSA funds to the extent the conversion is necessary to cover expenditures incurred in providing services (including the full cost of air transportation and other transportation) to remote Indian or Native villages and to provide breastfeeding support in those areas."