GM 12-106

Food Distribution Program on Indian Reservations Final Rule on Administrative Funding Allocations Published

On August 23, 2012, the Department of Agriculture published in the FEDERAL REGISTER the final rule (copy attached) on the administrative funding allocations for the Food Distribution Program on Indian Reservations and the Food Distribution Program for Indian Households in Oklahoma (both referred to as FDPIR).

The Farm Bill (PL 110-246) allows the Secretary of Agriculture to authorize tribes to administer the commodities program if the determination is reached that a tribal organization “is capable of effectively and efficiently administering a distribution … .” Further, the Secretary is also authorized to pay the administrative expenses associated with a tribe or state administering the Food Distribution Program on Indian Reservations. Currently members of 276 tribes receive FDPIR benefits through 100 tribal organizations and five state agencies. Participation in the FDPIR, however, has been declining in recent years. Individuals may not participate in both the FDPIR and the Supplemental Nutrition Assistance Program (formerly called the Food Stamp program).

The purpose of the administrative funding allocation methodology is to ensure equitable and fair distribution of resources. The regulations also clarify program requirements for distribution of administrative funds to tribal organizations and state agencies, and allowable costs for use of the administrative funds.

The formula, which is based on a FDPIR Funding Methodology Workgroup proposal and has been piloted since 2008, will allocate:

• 65 percent of all administrative funds available nationally to the each Food and Nutrition Service Regional Office based on its proportional share of the total number of participants nationally, averaged over the three previous fiscal years; and
• 35 percent of all administrative funds available nationally to each FNS Regional Office in proportion to its share of the total current number of state agencies administering the program nationally.

The rule will become effective September 24, 2012. Please let us know if we may provide additional information or assistance regarding the final rule for the Food Distribution Program on Indian Reservations.