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Nutrition

Nutrition Services Incentive Program

The Nutrition Services Incentive Program (NSIP) is not a new program; it was authorized by Section 311 of the Older Americans Act (OAA) of 2000, as amended, and has been authorized in one form or another under the OAA since 1978. Until this year, the program was administered by United States Department of Agriculture’s (USDA), which provided cash and/or commodities to supplement meals provided under the authority of the OAA. The Consolidated Appropriations Resolution, 2003, Public Law 108-7, amended the OAA to transfer the NSIP from the USDA to the Administration on Aging (AoA) within the Department of Health and Human Services (HHS). As will become clear from the information presented below, the transfer to AoA does not result in significant changes to the procedures for administering the program at the state, tribal and local levels.

Purpose
The NSIP is intended to provide incentives to States and Tribes for the effective delivery of nutritious meals to older adults.

Agency Participation
State Units on Aging (SUAs) funded through Title III of the OAA and Indian Tribal Organizations (ITOs) funded through Title VI of the OAA may receive grants of cash from the AoA and/or commodities from the USDA to support OAA nutrition programs

Allocation Formula
The NSIP cash or cash and commodity allocation to SUAs and ITOs is a proportional share of the annual appropriation based on the number of meals served in the prior year.

2003 Funding
Because of “continuing resolutions” in 2003, the USDA made two initial distributions, totaling about 39% of the available grant funds. In April 2003, the AoA provided a third interim distribution that increased the distribution to approximately 75 percent of the grant funds available to SUAs and ITOs. Another allotment will be provided during the fourth quarter after the meal count data and AoA management procedures are finalized.

2004 Funding
During federal fiscal year 2004 and later, the AoA will distribute an allotment to SUAs and ITOs of about 75 percent of the appropriation during the first quarter of the federal fiscal year. Another allotment will be made available in the third quarter. The remainder of the allotment will be provided at the end of fourth quarter after adjustments.

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