---
kind: "section"
citation: "7 U.S.C. § 9071"
title: "7"
title_heading: "Agriculture"
number: "9071"
heading: "Milk donation program"
release: "119-102"
url: "https://uscodex.org/usc/7/9071"
units:
  - "Chapter 115 — Agricultural Commodity Policy and Programs"
  - "Subchapter III — Dairy"
  - "Part B — Milk Donation Program"
---

# §9071. Milk donation program

- (a) **Definitions—** In this section:
  - (1) **Eligible dairy organization—** The term “eligible dairy organization” means a dairy farmer (either individually or as part of a cooperative), or a dairy [processor](/usc/7/609.md?p=d-7-D), who—
    - (A) accounts to a [Federal milk marketing order](/usc/7/7982.md?p=a-3) marketwide pool; and
    - (B) incurs qualified expenses under [subsection (e)](#e).
  - (2) **Eligible distributor—** The term “eligible distributor” means a public or private nonprofit organization that distributes donated [eligible milk](#a-3).
  - (3) **Eligible milk—** The term “eligible milk” means Class I fluid milk products produced and processed in the [United States](/usc/7/6402.md?p=8).
  - (4) **Eligible partnership—** The term “eligible partnership” means a partnership between an [eligible dairy organization](#a-1) and an [eligible distributor](#a-2).
  - (5) **Participating partnership—** The term “participating partnership” means an [eligible partnership](#a-4) for which the [Secretary](/usc/7/9001.md) has approved a donation and distribution plan for [eligible milk](#a-3) under [subsection (c)(2)](#c-2).
- (b) **Program required; purposes—** Not later than 180 days after December 20, 2018, the [Secretary](/usc/7/9001.md) shall establish and administer a milk donation program for the purposes of—
  - (1) encouraging the donation of [eligible milk](#a-3);
  - (2) providing nutrition assistance to individuals in low-income groups; and
  - (3) reducing food waste.
- (c) **Donation and distribution plans—**
  - (1) **In general—** To be eligible to receive reimbursement under [subsection (d)](#d), an [eligible partnership](#a-4) shall submit to the [Secretary](/usc/7/9001.md) a donation and distribution plan that—
    - (A) describes the process that the [eligible partnership](#a-4) will use for the donation, processing, transportation, temporary storage, and distribution of [eligible milk](#a-3);
    - (B) includes an estimate of the quantity of [eligible milk](#a-3) that the [eligible partnership](#a-4) will donate each year, based on—
      - (i) preplanned donations; and
      - (ii) contingency plans to address unanticipated donations; and
    - (C) describes the rate at which the [eligible partnership](#a-4) will be reimbursed, which shall be based on a percentage of the limitation described in [subsection (e)(2)](#e-2), not to exceed 100 percent.
  - (2) **Review and approval—** Not less frequently than annually, the [Secretary](/usc/7/9001.md) shall—
    - (A) review donation and distribution plans submitted under [paragraph (1)](#c-1); and
    - (B) determine whether to approve or disapprove each of those donation and distribution plans.
- (d) **Reimbursement—**
  - (1) **In general—** On receipt of appropriate documentation under [paragraph (2)](#d-2), the [Secretary](/usc/7/9001.md) shall reimburse an [eligible dairy organization](#a-1) that is a member of a [participating partnership](#a-5) on a regular basis for qualified expenses described in [subsection (e)](#e).
  - (2) **Documentation—**
    - (A) **In general—** An [eligible dairy organization](#a-1) shall submit to the [Secretary](/usc/7/9001.md) such documentation as the [Secretary](/usc/7/9001.md) may require to demonstrate the qualified expenses described in [subsection (e)](#e) of the [eligible dairy organization](#a-1).
    - (B) **Verification—** The [Secretary](/usc/7/9001.md) may verify the accuracy of documentation submitted under [subparagraph (A)](#d-2-A) by spot checks and audits.
  - (3) **Retroactive reimbursement—** In providing reimbursements under [paragraph (1)](#d-1), the [Secretary](/usc/7/9001.md) may provide reimbursements for qualified expenses incurred before the date on which the donation and distribution plan for the applicable [participating partnership](#a-5) was approved by the [Secretary](/usc/7/9001.md).
- (e) **Qualified expenses—**
  - (1) **In general—** The amount of a reimbursement under [subsection (d)](#d) shall be an amount equal to the product of—
    - (A) the quantity of [eligible milk](#a-3) donated by the [eligible dairy organization](#a-1) under a donation and distribution plan approved by the [Secretary](/usc/7/9001.md) under [subsection (c)](#c); and
    - (B) subject to the limitation under [paragraph (2)](#e-2), the rate described in that donation and distribution plan under [subsection (c)(1)(C)](#c-1-C).
  - (2) **Limitation—** Expenses eligible for reimbursement under [subsection (d)](#d) shall not exceed the value that an [eligible dairy organization](#a-1) incurred by accounting to the [Federal milk marketing order](/usc/7/7982.md?p=a-3) pool at the difference in the Class I milk value and the lowest classified price for the applicable month (either Class III milk or Class IV milk).
- (f) **Preapproval—**
  - (1) **In general—** The [Secretary](/usc/7/9001.md) shall—
    - (A) establish a process for an [eligible partnership](#a-4) to apply for preapproval of donation and distribution plans under [subsection (c)](#c); and
    - (B) not less frequently than annually, preapprove an amount for qualified expenses described in [subsection (e)](#e) that the [Secretary](/usc/7/9001.md) will allocate for reimbursement under each donation and distribution plan preapproved under [subparagraph (A)](#f-1-A), based on an assessment of—
      - (i) the feasibility of the plan; and
      - (ii) the extent to which the plan advances the purposes described in [subsection (b)](#b).
  - (2) **Preference—** In preapproving amounts for reimbursement under [paragraph (1)(B)](#f-1-B), the [Secretary](/usc/7/9001.md) shall give preference to [eligible partnerships](#a-4) that will provide funding and in-kind contributions in addition to the reimbursements.
  - (3) **Adjustments—**
    - (A) **In general—** The [Secretary](/usc/7/9001.md) shall adjust or increase amounts preapproved for reimbursement under [paragraph (1)(B)](#f-1-B) based on performance and demand.
    - (B) **Requests for increase—**
      - (i) **In general—** The [Secretary](/usc/7/9001.md) shall establish a procedure for a [participating partnership](#a-5) to request an increase in the amount preapproved for reimbursement under [paragraph (1)(B)](#f-1-B) based on changes in conditions.
      - (ii) **Interim approval; incremental increase—** The [Secretary](/usc/7/9001.md) may provide an interim approval of an increase requested under [clause (i)](#f-3-B-i) and an incremental increase in the amount of reimbursement to the applicable [participating partnership](#a-5) to allow time for the [Secretary](/usc/7/9001.md) to review the request without interfering with the donation and distribution of [eligible milk](#a-3) by the [participating partnership](#a-5).
- (g) **Prohibition on resale of products—**
  - (1) **In general—** An [eligible distributor](#a-2) that receives [eligible milk](#a-3) donated under this section may not sell the products back into commercial markets.
  - (2) **Prohibition on future participation—** An [eligible distributor](#a-2) that the [Secretary](/usc/7/9001.md) determines has violated [paragraph (1)](#g-1) shall not be eligible for any future participation in the program established under this section.
- (h) **Administration—** The [Secretary](/usc/7/9001.md) shall publicize opportunities to participate in the program established under this section.
- (i) **Reviews—** The [Secretary](/usc/7/9001.md) shall conduct appropriate reviews or audits to ensure the integrity of the program established under this section.
- (j) **Funding—** Of the [funds](/usc/7/4531.md?p=5) of the [Commodity](/usc/7/1a.md?p=9) Credit [Corporation](/usc/7/1502.md?p=b-5), the [Secretary](/usc/7/9001.md) shall use to carry out this section $9,000,000 for fiscal year 2019, and $5,000,000 for each fiscal year thereafter, to remain available until expended.

## Source credit

(Pub. L. 113–79, title I, § 1431, as added Pub. L. 115–334, title I, § 1404(b)(1), Dec. 20, 2018, 132 Stat. 4519.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 9071, Pub. L. 113–79, title I, § 1431, Feb. 7, 2014, 128 Stat. 695, related to dairy product donation program, prior to repeal by Pub. L. 115–334, title I, § 1404(a), Dec. 20, 2018, 132 Stat. 4519.