STATE ADMINISTRATIVE EXPENSES.

SEC. 202. STATE ADMINISTRATIVE EXPENSES. (a) Withholding.— Section 7(a) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)) is amended by adding at the end the following new paragraph: “(9) (A) If the Secretary determines that the administration of any program by a State under this Act (other than section 17) or under the National School Lunch Act (42 U.S.C. 1751 et seq.), or compliance with a regulation issued pursuant to either of such Acts, is seriously deficient, and the State fails to correct the deficiency within a specified period of time, the Secretary may withhold from the State some or all of the funds allocated to the State under this section or under section 13(k)(l) or 17 of the National School Lunch Act (42 U.S.C. 1761(k)(1) or 1766). “(B) On a subsequent determination by the Secretary that the administration of any program referred to in subparagraph (A), or compliance with the regulations issued to carry out the program, is no longer seriously deficient and is operated in an acceptable manner, the Secretary may allocate some or all of the funds withheld under such subparagraph.’’. (b) Extension of Authority To Provide Funds for State Administrative Expenses.— Section 7(h) of such Act (42 U.S.C. 1776(h)) is amended by striking “1994” and inserting “1998”. (c) Prohibition of Funding Unless State Agrees To Participate in Certain Studies or Surveys.— Section 7 of such Act (42 U.S.C. 1776) is amended— 108 STAT. 4738 (1) by redesignating subsection (h) as subsection (i); and (2) by inserting after subsection (g) the following new subsection: “(h) The Secretary may not provide amounts under this section to a State for administrative costs incurred in any fiscal year unless the State agrees to participate in any study or survey of programs authorized under this Act or the National School Lunch Act (42 U.S.C. 1751 et seq.) and conducted by the Secretary.”.