Senate approves 8 percent boost in U.S. nutrition funds

WASHINGTON (Reuters) –
The Senate sent President Barack Obama a bill to boost spending on U.S. public nutrition programs, including food stamps and school lunch, by 8 percent, a reflection of the economic recession, on Thursday.

The bill would allow the government to compensate poor families for lunches missed if schools are closed due to an H1N1 flu outbreak. Based on the local school lunch price, the aid would be worth $13-$14 a week per child.

Nutrition programs would get $82.8 billion for the fiscal year that opened on Oct 1, up 8 percent from fiscal 2009. Nutrition accounts for two-thirds of the money in the $121 billion Agriculture Department spending bill.

Senators gave final congressional approval to the bill, 76-22, a day after the House passed it, 263-162. The bill is a compromise of versions passed by each chamber.

Food stamps, which help poor people buy food, would get $58.3 billion for this fiscal year, up $4.3 billion. A record 35.85 million people received benefits at latest count, nearly one in eight Americans.

Child nutrition program, which include school lunch and breakfast, would receive $16.9 billion, a $1.9 billion increase, and the Women, Infants and Children program would get $7.25 billion, up $398 million.

If schools are closed for at least five days in a row due to a pandemic, the government could compensate families with children who receive free or reduced-price lunches under an initiative in the bill.

Earlier this year, USDA said schools could provide lunches in "either pick-up or delivery models" if they wish when classes are canceled due to an H1N1 flu outbreak.

Also in the bill are:

-- $350 billion in aid for dairy farmers, who face the lowest farm-gate price for milk in three decades. USDA will decide how to apportion $290 million in aid directly to farmers. The remaining $60 million will buy cheese and other dairy products for donation to food banks. Sen. Herb Kohl of Wisconsin said milk prices are below the cost of production for most producers;

-- a resolution to a two-year-old ban on imports of poultry meat processed in China. USDA must inspect Chinese plants before shipments are allowed, must conduct audits annually and step up inspections of their products at U.S. ports of entry;

-- a minimal $5.3 million for a livestock tracking system. The traceback plan was embraced as a response to discovery of the first U.S. case of mad cow disease. Lawmakers say USDA showed inconsistent leadership and the system is far from ready to operate.

"If significant progress is not made, (we) will consider eliminating funding for the program," said the House and Senate negotiators who wrote the final version of the bill.

(Reporting by Charles Abbott; Editing by David Gregorio)