The actual legislation is here:
"Section 303 of the HHFKA : Fines for Violating Program Requirements
Section 303 of the HHFKA requires the Secretary to establish criteria for the imposition of fines in the Child Nutrition Program s , referred to as
assessment s in this proposed rule .
An assessment refers to a required payment of funds from non - Federal sources. Under section 303, the Secretary or a State agency may establish an
assessment against any school food authority or school administering the Child Nutrition Programs if the Secretary or the State agency determines that
the school or school food authority failed to correct severe mismanagement of any program, failed to correct repeated violations of program
requirements, or disregarded
a requirement of which they have been informed.
Section 303 also provides the Secretary the authority to establish an assessment against any State agency if the Secretary determines the State agency
has failed to correct severe mismanagement of any program, failed to correct repeated violations of program requirements, or disregarded a requirement
of which they have been informed."
It's obvious what the intention of this progam is - to replace the supply of crap meals with "healthy options".
But with everywhere from small towns to large cities, anyone with money and power will try and funnel that cash
to their pals. So they set up a company, buy pork rinds, chicken leftovers, end of season vegetables on the cheap, mulch then together to make cheap
meals, sign a education department contract and pocket the difference.
This happens to workplace lunch contracts even in prosperous cities. My last workplace relocated their offices and then attempted to sign contracts
with local restaurants to open at lunch-time and provide a variety of meals like chicken tikka masala, burgers and chips, and kebab slices. The first
meal gradually become more rice and sauce and less chicken. Burger and chips remained the same, but the kebab slices would keep you up all night and
suddenly let you crash out.