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The Department of Agriculture Food and Nutrition Service awarded the South Dakota Department of Education $39.147 million on October 1, 2025, under the National School Lunch Program (CFDA 10.555), a formula grant providing cash subsidies and USDA Foods to support nutritious nonprofit lunch service for school children in participating institutions through September 30, 2026.

The recipient administers the NSLP block grant statewide, distributing funds as sub-awards to over 70 local educational agencies, school districts, nonprofit organizations, and community providers across South Dakota to operate school lunch programs. The award finances reimbursable meals served at participating public and nonprofit private schools and residential child care institutions, which must meet federal meal pattern requirements and offer lunches at free or reduced price to eligible children. Participating school food authorities receive per-meal cash reimbursements and commodity foods; in exchange, they maintain records of nonprofit food service operations and make records available to the state for review.

Sub-recipients delivering NSLP services include school districts spanning South Dakota (Sioux Falls School District No. 49-5, Rapid City Area School District 51-4, Hill City School District 51-2, Brookings School District 5-1, Huron School District 2-2, and dozens of rural and small districts); the Bureau of Indian Education serving Native American students; nonprofit organizations providing services to vulnerable populations (Abbott House, Children's Home Society of South Dakota, Boys and Girls Clubs, YMCA locations, and youth service providers); tribal schools and tribal entities (Lower Brule Sioux Tribe, Wounded Knee District School, Tiospa Zina Tribal School, Oglala Lakota County School District); and specialized service providers including Sanford Medical Center and Lutheran Social Services of South Dakota. Place of performance is South Dakota.