Expert panel explores challenges, opportunities of personal online financial management tools – National Consumers League

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September 27, 2012

Contact: Carol McKay, NCL Communications (412) 945-3242, carolm@nclnet.org

Washington, DC – Consumers’ use of personal financial management tools (PFMs), such as Web- and smart phone-based applications, to manage their money is on the rise, according to research from Deloitte Consulting. To examine this trend, advocates at the National Consumers League (NCL), the nation’s oldest consumer advocacy organization, hosted a live expert chat today to discuss whether the increasing use of PFMs is helping consumers get a better grip on their financial lives while managing potential concerns about privacy and security.

Estimates are that more than one in three online households (34 percent) will use PFMs by 2014. Still, nearly 20 percent of consumers are not regularly monitoring or managing their personal finances. Advocates are rightfully concerned about consumers’ financial futures and are looking at PFMs as a one part of the solution.

The live online chat, sponsored by Chase Blueprint®, included participation by a panel of consumer advocates, analysts, PFM industry leaders, and government representatives, who examined topics such as how PFM tool use is improving consumers’ financial management habits, what can be done to address consumer concerns about privacy, and the impact of mobile PFM tools.

“PFM tools give consumers a powerful way to keep track of multiple credit cards, bank and retirement accounts,” said Sally Greenberg, NCL Executive Director. “However, with the amount of sensitive personal financial data that consumers are sharing with these tools, we wanted to examine what value they are getting in return. We are pleased that we were able to bring together such an all-star group of experts to examine the issues these tools create.”

“Consumers are emerging from the recession with a better handle on their daily expenses and a need to have greater control, simplicity and predictability in managing their finances,” said Phil Christian, general manager, Chase. “Our experience with Chase Blueprint has shown that when given the right personal financial management tool, consumers are more likely to pay down their balances faster, pay their bills on time and save money on interest.”

“Free personal financial management tools and apps from banks or other financial Web sites are a great way to set financial goals, track spending and measure progress,” said Linda Sherry of Consumer Action. “PFMs have the potential to change consumer behavior by giving consumers aggregated, real-time information to better control of their finances.”

Additional panelists at the event included John Breyault, Vice President of Public Policy, Telecommunications and Fraud, National Consumers League; Sophie Raseman, Director of Smart Disclosure, U.S. Department of Treasury’s Office of Consumer Policy; Mark Schwanhausser, Director of Multichannel Financial Services, Javelin Strategy & Research; Ron Shevlin, Senior Analyst, Aite Group; and Ken Sun, Group Product Manager, Mint.com.

The full event has been recorded and can be viewed on NCL’s YouTube channel.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

National Consumers League to honor UMWA International President Roberts with 2012 Trumpeter advocacy award – National Consumers League

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September 25, 2012

Contact: Carol McKay, NCL Communications, (412) 945-3242, carolm@nclnet.org

Washington, D.C.— The National Consumers League (NCL), the nation’s oldest consumer advocacy organization, will honor United Mine Workers of America International President Cecil E. Roberts with its highest honor, the Trumpeter Award, on Thursday, October 4, in Washington DC. The event will bring together a diverse group of representatives from labor unions, consumer advocates, nonprofit organizations, and industry to celebrate the honoree’s career in service to worker rights.

“The Trumpeter Award is NCL’s highest honor, given to leaders who are not afraid to speak out for social justice and for the rights of consumers and workers. No one fits that description better than Cecil Roberts, a legend among working families and their advocates,” said NCL Executive Director Sally Greenberg. “Roberts’ lifelong dedication to improving the quality of life for workers in the United States has earned him this year’s Trumpeter Award.” 

Roberts’ long and fearless tenure as UMWA leader has led to a great many victories for North American mine workers, including reopening the UMWA’s National Agreement for the first time in the union’s history and winning significant improvements in wages; negotiating new National Agreements that included historic 20-year and out and 30-and-out pension provisions that have benefited thousands of UMWA members to date; and successfully leading the 1989 strike against the Pittston Co., which had cut off health benefits to its retirees and was backing out of obligations to the UMWA Health and Retirement Funds—a victory that earned Roberts the Rainbow Coalition’s Martin Luther King, Jr., award, as well as awards from Citizen Action and the Midwest Academy.

NCL will also honor Linda Hilton, Director of Coalition of Religious Communities at Crossroads Urban Center in Salt Lake City, with the Florence Kelley Consumer Leadership Award, named for NCL’s early leader and awarded to grassroots consumer advocates.

Hilton is being honored by NCL for her work on the funding of critical needs for low-income and homeless residents of Utah, the reduction of Utah’s grocery tax, and increased regulation of the payday loan industry, including scrutiny of short-term loan products offered through credit unions nationwide. She speaks frequently to community and religious groups about the struggles of low-income and homeless families; she trains students and members of faith communities to advocate for low-income citizens; and she conducts community workshops on the need for increased wages for the working poor and adequate benefits for those who are unable to work.

“Linda Hilton’s advocacy for low-income and underserved communities is remarkable, and she has personally had a measurable impact on the lives of people in her community—both those for whom she advocates, and the students and community members she trains to become their own advocates at the grassroots level,” said Greenberg.

The event will feature a reception, dinner, and speaking appearances by NCL leadership and the honorees, as well as:

 

  • Richard Trumka, President, AFL-CIO
  • Dan Kane, Secretary-Treasurer, United Mine Workers of America
  • Susie Johnson, Director of Public Policy, Washington Office, United Methodist Women

 

Event details

What: National Consumers League’s 2012 Trumpeter Awards Dinner
When: Thursday, October 4, 2012 | 6 p.m. Reception | 7 p.m. Dinner and Presentation of Awards
Where: Capital Hilton, 1001 16th Street NW, Washington, DC
Questions or to RSVP: Larry Bostian, National Consumers League (202) 835-3323 

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL applauds NYC ban on oversized sugary beverages – National Consumers League

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September 13, 2012

Contact: Carol McKay, NCL Communications, (412) 945-3242, carolm@nclnet.org

Washington, DC–The National Consumers League (NCL), the nation’s oldest consumer advocacy organization, applauds the New York City Board of Health for its decision, announced today, to approve Mayor Bloomberg’s proposal to limit the sale of sugary beverages over 16 ounces.

“This decision is a great step forward for public health,” said Sally Greenberg, Executive Director of the National Consumers League. “By placing limits on the sale of large beverages, Mayor Bloomberg and the city of New York are promoting healthier habits. America has been plagued in recent years by oversized portions which result in expanding waistlines and negative health outcomes. In a nation where two-thirds of American adults and one-third American children are either overweight or obese, we encourage other leaders to adopt similar creative strategies to combat this growing health epidemic.”

The measure, which was introduced earlier this year by Mayor Bloomberg, would limit the sale of sweetened beverages over 16 ounces at establishments, such as restaurants, which are monitored by the City Board of Health. Members of the public health community, including Sally Greenberg, testified before the board in July in support of the measure. Advocates pointed out that sweetened beverages are the single-largest source of calories in the American diet.

“The decision to support the Mayor’s proposal shows the Board of Health’s clear commitment to New York City’s wellbeing,” added Greenberg. “It is a courageous step in the fight against high obesity rates. We hope that other cities will follow New York’s lead and enact limits on the sale of sugary beverages.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

National Consumers League announces support for Farm Bill – National Consumers League

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September 12, 2012

Contact: Carol McKay, NCL Communications, (412) 945-3242, carolm@nclnet.org

Washington, DC–Today, the National Consumers League (NCL), the nation’s oldest consumer advocacy organization, will participate in the Farm Bill Now! rally being held in Washington, DC, joining farmer, conservation, and nutrition groups, as well as members of Congress, to call for the passage of the farm bill that provides stability and a fair marketplace to farmers and protects the social safety net programs like SNAP (food stamps) for families in need.

“We are pleased to join this rally to support a robust and dynamic farm bill,” said Sally Greenberg, NCL Executive Director, who will speak at the rally. “NCL is pleased to provide a consumer perspective on this issue.”

The current farm bill, a large piece of legislation that forms the bedrock of farm policy in the United States, will expire on September 30. The farm bill includes 37 programs, including conservation measures and programs that promote the growth of local farmers markets.

“Eighty percent of the money from the farm bill goes to nutrition programs, most notably the Supplemental Nutrition Assistance Program (SNAP), or food stamps. This critical measure is an essential part of the American safety net and has been particularly helpful during the recession of the past few years,” said Greenberg. “Without this program, which currently serves about 46 million Americans, many parents would have been unable to feed themselves and their children.”

As a program that kicks in during tough economic times, SNAP has proven not only a crucial part of the safety net but also a tool to stimulate economic activity. “Funding SNAP is of paramount importance and is good for those who benefit from the program and for the economy in general,” added Greenberg.

The rally will take place at 11:00 a.m. at Union Square in front of the Capitol Reflecting Pond.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Letter from consumer groups in opposition to Independent Agency Regulator Analysis Act – National Consumers League

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September 11, 2012

Contact: Ben Klein, National Consumers League (202) 835-3323, benk@nclnet.org

Re:  S. 3468 Will Undermine Efforts by Independent Agencies to Protect Consumers

Dear Chairman Lieberman and Ranking Member Collins:

The undersigned national consumer protection organizations strongly oppose S. 3468, the Independent Agency Regulatory Analysis Act of 2012.  This bill would undercut the ability of independent federal agencies like the Consumer Financial Protection Bureau (CFPB), the Consumer Product Safety Commission (CPSC) and the Federal Trade Commission (FTC) to protect consumers from predatory financial schemes, dangerous consumer products and costly, anti-competitive practices. Before considering a mark-up of this bill, we urge you to conduct a legislative hearing to thoroughly exam the effect of the bill on the many crucial consumer protection efforts that independent agencies are currently undertaking.

Our organizations have previously expressed detailed concerns about this bill in a letter from over 50 public interest organizations and academics. Most significantly for consumers, S. 3468 imposes duplicative and time-consuming requirements on independent agencies to conduct cost-benefit analyses of proposed protections. The Dodd-Frank Act already requires the CFPB to perform a cost-benefit analysis of all proposed rules, consider the effects of rules on small financial institutions and rural consumers, and conduct a lengthy assessment of the impact of rules on small businesses (under the Small Business Regulatory Enforcement Fairness Act).  The Magnusson-Moss Act already requires the FTC to meet extraordinarily burdensome rulemaking requirements that can require the agency to take a decade to finalize a rule.  The CPSC is already required to conduct cost-benefit analysis for many of its rulemaking proceedings. In fact, the CPSC’s inability to promulgate mandatory standards that would effectively protect consumers from product hazards led to the passage of the Consumer Product Safety Improvement Act (CPSIA).

This bill authorizes the President to issue an executive order requiring the CFPB and other independent agencies to conduct 13 additional cost-benefit analyses.   Such burdensome requirements will simply undermine the ability of agencies like the CFPB, the FTC and the CPSC to fulfill their consumer protection missions in a timely and effective fashion.

S. 3468 would also undermine the independence of these agencies to act on behalf of consumers by requiring the Office of Information and Regulatory Affairs (OIRA) of the Office of Management and Budget to conduct a detailed review of significant policies (not just rules) proposed by independent agencies.  Congress establishes independent agencies in order to insulate them from undue political pressure from an Administration, whether Republican or Democratic. This measure would single-handedly eliminate that independence and hand special interests another tool that they can use to stop or delay urgently needed protections.

The federal rulemaking process is already lengthy and subject to undue influence by powerful special interests with prominent political patrons.  S. 3468 will make it even more arduous for independent agencies to propose and implement necessary consumer protection measures, while giving deep-pocketed opponents of such reforms another way to derail them. The end result will likely be harm to American consumers.

Sincerely,

Travis Plunkett
Legislative Director
Consumer Federation of America 

Rachel Weintraub
Director of Product Safety and Senior Counsel
Consumer Federation of America

Ellen Bloom
Senior Director of Federal Policy
Consumers Union

Ira Rheingold
Executive Director
National Association of Consumer Advocates

Gary Kalman
Director of Federal Policy
Center for Responsible Lending

Sally Greenberg
Executive Director
National Consumers League

Edmund Mierzwinski
Consumer Program Director
U.S. PIRG

Nasima Hossain
Public Health Advocate
U.S. PIRG

LifeSmarts launches 2012-2013 season at www.lifesmarts.org – National Consumers League

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September 10, 2012

Contact: Carol McKay, National Consumers League (412) 945-3242, carolm@nclnet.org

Washington, DC—The 2012-2013 LifeSmarts season is officially underway this week, with a new competition year going live at the program’s online home, www.lifesmarts.org, along with a variety of new consumer resources for adult and youth participants. LifeSmarts is an educational competition run by the National Consumers League that tests middle school and high school students nationwide on real-life consumer issues through online quizzes and live competition. It culminates in the annual national LifeSmarts championship, taking place this competition year in Atlanta, GA, where winning teams and individual students are awarded academic scholarships and prizes.

“We’re thrilled to be launching the 19th year of LifeSmarts,” said Program Director Lisa Hertzberg. “LifeSmarts delivers life skills to students and allows them to shine in competitions where they demonstrate their knowledge of personal finance and consumer issues. It also provides thousands of teachers across the country with up-to-date, broad-based consumer education resources.”

Over the years, LifeSmarts has steadily grown in numbers of student and adult participants, state partnerships, and supporters. In the most recent season, an estimated 100,000 students and teachers across the country answered more than 3.5 million LifeSmarts questions.

“As the consumer marketplace has become more challenging to navigate, LifeSmarts content is keeping up, preparing our teens and tweens to become the next generation of smart consumers and workers,” Hertzberg said.

LifeSmarts provides participants with practical advice and information on consumer issues ranging from personal finance and health and safety to the environment, technology, and consumer rights and responsibilities. Starting online each fall, the competition progresses to live state play-offs, and then builds to a high-spirited National Championship. At last year’s national competition held in Philadelphia, the Maryland team took home top honors after competing for four days against state champion teams from across the country.

This year, the National Consumers League is expanding LifeSmarts to partner with coordinators in 34 states, including new partners Georgia 4-H, the Louisiana Attorney General’s Office, the Maine Jump$tart Coalition, and the New Mexico Council on Economic Education. Other state coordinators include Better Business Bureaus, credit unions, consumer protection agencies, and State FCCLA organizations. Interested students and adults can visit the LifeSmarts Web site to connect with the program in their state.

“The National Consumers League’s mission is to inspire confidence and safety in the marketplace,” said Sally Greenberg, NCL Executive Director. “The LifeSmarts program fosters students’ understanding of consumer issues and provides them with real-world knowledge they will need to take charge of their lives.”

New this fall at www.lifesmarts.org are dozens of up-to-the-minute teaching resources for educators, including innovative lessons housed within the LifeSmarts U virtual campus, daily practice quizzes, question-of-the-day calendars, and more, all utilizing thousands of new competition questions.

Major LifeSmarts contributors include Visa, Western Union, UL, Experian, Toyota Financial Services, American Express, American Century Investments Foundation, Bridgestone Retail Operations, LLC, McNeil Consumer Healthcare, TracFone Wireless, Inc., and others. To see a full list of current LifeSmarts contributors, visit www.lifesmarts.org.

To test your LifeSmarts, take a sample daily quiz at www.lifesmarts.org.

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About the National Consumers League and LifeSmarts

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

LifeSmarts is a program of the National Consumers League. State coordinators run the programs on a volunteer basis. For more information, visit: www.lifesmarts.org, email lifesmarts@nclnet.org, or call the National Consumers League’s communications department at (202) 835-3323.

NCL urges FCC to protect consumers, preserve jobs in Verizon-SpectrumCo review – National Consumers League

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August 7, 2012

The Honorable Julius M. Genachowski
Chairman
Federal Communications Commission
445 Twelfth Street, SW
Washington, DC 20530

Re: Applications of Cellco Partnership d/b/a Verizon Wireless, SpectrumCo LLC, and Cox TMI Wireless, LLC, WT Docket No. 12-4.

Dear Chairman Genachowski:

On behalf of the National Consumers League[1] (NCL), the nation’s pioneering consumer and worker advocacy organization, I am writing to you to express our deep concerns regarding certain provisions of the above-referenced Verizon-SpectrumCo transaction. In particular, we believe that the proposed Joint Marketing Agreement (JMA) raises serious competition concerns that, if left unaddressed, will likely lead to higher prices, fewer choices and less innovation for consumers in the residential broadband market. In addition, we are concerned that the JMA will lead to fewer jobs being created due to reduced investment in Verizon’s FiOS network. It is therefore imperative that the Commission not grant the applications absent certain public interest safeguards.

NCL shares the concerns expressed by numerous public interest commenters regarding the impact of the JMA on consumers.[2] Millions of Americans lack robust choices in the residential broadband market. For the great majority of consumers, there are only two viable options when it comes to their home broadband provider – the local cable company or the local telecommunications company. The proposed JMA would remove any incentive Verizon may have to continue to expand its FiOS footprint, relegating millions of consumers to a poor choice between cable and increasingly outdated DSL for their home broadband service. Conversely, absent a competitive threat from Verizon, cable companies in potential FiOS territories will have less incentive to improve their service quality and keep prices affordable for consumers.

We are also concerned that reduced investment in the FiOS network will lead to a reduction in job growth. Specifically, we would urge the Commission to consider a recent analysis by economist Helene Jorgensen, which found that nearly 72,000 additional jobs would be created if Verizon were to expand its FiOS network to 95% of its wireline footprint.[3] At a time of high unemployment, a top priority of the Commission should be finding ways to increase, not reduce, the investment necessary to support the creation of good jobs.

Given these concerns, NCL supports the merger conditions proposed by the Communications Workers of America and the International Brotherhood of Electrical Workers, including:

  • Requiring Verizon to continue to offer its FiOS residential broadband service and expand this service to 95% of the residences in its in-region territory;
  • Requiring Verizon to increase its FiOS deployment to rural, low-income and underserved areas with verifiable timetables and penalties for non-compliance;
  • Prohibiting Applicants from cross-marketing their services within the Verizon footprint.[4]

NCL strongly believes that the merger as proposed does not serve the public interest. The Commission should impose strict conditions that will preserve affordable access to residential broadband service, protect competition, encourage innovation and promote job creation.

Sincerely,

John D. Breyault

Vice President of Public Policy, Telecommunications and Fraud
National Consumers League
1701 K Street, NW
Suite 1200
Washington, DC 20006
202.207.2819

[1] NCL, founded in 1899, is the nation’s pioneering consumer organization.  Our non-profit mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit https://nclnet.org.

[2] See, e.g., Consumers Union. Letter to Chairman Genachowski et al. at 2-4 (filed March 26, 2012).

[3] See Communications Workers of America. “CWA Study: Verizon Wireless Cable Deal Is Job Killer,” Press Release.  July 10, 2012.  Online: https://www.cwa-union.org/news/entry/cwa_study_verizon_wireless_cable_deal_is_job_killer/#.UCGTwcie7Os

[4] See Reply Comments of the Communications Workers of America and International Brotherhood of Electrical Workers. WT Docket 12-4 at 29-30 (filed March 26, 2012).

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About the National Consumers League 
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Its mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL heralds results of Harkin Report on for-profit colleges – National Consumers League

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July 31, 2012

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC–The National Consumers League (NCL) is heralding Senator Tom Harkin (D-IA) for his HELP (Health, Education, Labor and Pensions) Committee’s comprehensive report on for-profit colleges, a study that reveals that for-profit colleges are a dubious investment for students.

According to the Harkin study, which took two years to complete and was released Monday, associate degrees and certificate programs at for-profit colleges cost about four times as much as those from community colleges and public universities. The majority of the students enrolled leave the school before receiving these costly degrees; half leave within the first four months. When they drop out they are saddled with thousands in student debt and nothing to show for it. The report documents that 80 percent of the funding of these schools comes from the Department of Education, and that the schools put most of their resources into recruitment, rather than teaching. So to add insult to injury, taxpayers are underwriting the profits of these for-profit institutions.

Not only do for-profit college students have higher tuition fees and a higher dropout rate, but they are more likely to default on loans. According to Senator Harkin, “students in for-profit schools represent 13 percent of the nation’s total college enrollment, but account for almost 50 percent of all loan defaults.”

 

“This report suggests that the for-profit model of higher education is more concerned with making money than in providing a quality education for students or providing solid work opportunities,” said Sally Greenberg, Executive Director of NCL. “We are hopeful that this report is the first step in cleaning up the exploitation of students by for-profit colleges, and thank Senator Harkin and the Senate Health, Education, Labor and Pensions Committee for their exemplary work in preparing this report and protecting and promoting the  rights and interests of both students and taxpayers.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL applauds introduction of legislation to increase federal minimum wage – National Consumers League

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July 24, 2012

Contact: NCL Communications, (202) 835-3323, media@nclnet.org

Washington, DC–The National Consumers League (NCL) applauds the introduction of the Fair Minimum Wage Act of 2012 to the U.S. Senate (S. 3453) by Senator Tom Harkin (IA) and the U.S. House of Representatives (H.R. 6211) by Congressman George Miller (CA-7).

“This vital piece of legislation will benefit low wage workers and be equally important to tipped workers,” said Sally Greenberg, Executive Director of NCL.  “Tipped workers, whose minimum wage is $2.13 an hour, have not had a raise since 1991 – 21 years.”

The Fair Minimum Wage Act would increase the federal minimum wage in three 85-cent steps over three years from $7.25 to $9.80 an hour.  After reaching $9.80 the rate would be indexed to inflation each year thereafter.  The federal tipped minimum wage would also receive a boost from its current $2.13 an hour. The bill would increase it in annual 85-cent installments until it reached 70 percent of the regular minimum wage.

“NCL hails this critical bill which would help millions of working families make ends meet and help the economy flourish.  We thank Senator Harkin and Congressman Miller for their leadership and look forward to seeing it pass into law,” said Greenberg. 

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL comments to USDA regarding interim school lunch rules – National Consumers League

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July 26, 2012

Julie Brewer, Chief
Policy and Program Development Branch
Child Nutrition Division
Food and Nutrition Service, U.S. Department of Agriculture 

RE: Docket ID FNS-2011-0025

Sincerely,

Dear Ms. Brewer:

The National Consumers League (NCL), founded in 1899, is the nation’s oldest consumer advocacy group. Since its inception, NCL has worked tirelessly to protect and promote the rights of workers and consumers. NCL is pleased to have this opportunity to comment on the interim rule “Certification for Compliance with Meal Requirements for the National School Lunch Program Under the Healthy, Hunger-Free Kids Act of 2010” (7 CFR Part 210). NCL is pleased that the agency has taken such a strong stand to support the implementation of new and improved standards for school meals and strongly supports the interim rule. 

The Healthy, Hunger-Free Kids Act of 2010 (HHFKA) was enacted on December 13, 2010, as an update to the Richard B. Russell National School Lunch Act (NSLA). This crucial update means that for the first time in nearly 30 years the U.S. Department of Agriculture (USDA) will have the ability to modernize the nutritional standards of meals served in schools. A Congressional report on the law stated that:

“The purpose of this bill is to address those needs in order that fewer low-income children have to go without food, and to ensure that more children from all income levels adopt the kind of healthful eating habits and lifestyles that will enable them to live longer, more productive lives.[1]”

The new standards would increase the amount of fruits, vegetables and whole grains served at lunch and breakfast. Additionally, they would set maximum calorie counts for the first time; historically school meals have only had calorie minimums. Phased-in sodium limits also will lower the amount of salt allowed in school meals. Given that one-third of American children are overweight or obese, these common-sense standards, which will improve the breakfasts and lunches of millions of children each day, are long overdue, especially considering that 32 million children eat lunch and 12 million eat breakfast at school each day.[2] Section 201 of the HHFKA amends the NSLA to provide an additional six cents of reimbursement for school food authorities (SFA) that comply with the new rules.

As part of the HHFKA, two new paragraphs were added to the NLSA. 4(b)(3)(D) states that “to be eligible to receive an additional reimbursement described in this paragraph, a school food authority shall be certified by the State to be in compliance with the interim or final regulations.” 4(b)(3)(E) says that any SFA not in compliance with the new rules by October 1, 2012 “shall not receive the additional reimbursement for each lunch served.”

NCL supports the agency’s decision to bolster schools in their transition to new meal standards by providing a six cent increase in the funding schools receive for each lunch served. NCL commends the agency for “strik[ing] the appropriate implementation balance to achieve both the goal of expanding participation and of raising nutritional standards of the school meals served to America’s children.[3]”

We commend USDA on its dedication to help America’s children eat more healthfully and especially on the following aspects of the interim rule:

  • The establishment of a clear and transparent process for establishing whether or not a school is eligible for the 6 cent increase in reimbursement rates; and
  • The provision of guidance materials, training and technical assistance to school professionals that are both clear and timely.

Furthermore, we recommend that the agency take the following steps to ensure that the implementation of the certification process is fair and balanced.

  • All food service staff, especially those in smaller, rural or low-income schools, should receive adequate training as well as support as they carry out changes;
  • Schools that are likely to fail certification should be identified early on so that intensive interventions can assure their compliance before deadlines; and
  • Certification reports should be easily available to the public through an online portal so that parents, public health professionals and other advocates can access and assess them.

In conclusion, NCL supports the interim rule for performance-based certification. We urge the agency to ensure that this rule is implemented in a timely and even-handed fashion in all states. Ensuring that schools receive an additional six cents per meal in reimbursement will benefit children as it will allow schools to serve healthier meals. We appreciate this opportunity to comment.

Sincerely, 

Sally Greenberg
Executive Director
National Consumers League

 

[1] Senate Report 111-178, page 5.

[2] https://blogs.usda.gov/2012/07/16/healthierus-schools-challenge-reaches-major-milestone/ 

[3] “Certification of Compliance With Meal Requirements for the National School Lunch Program Under the Healthy, Hunger-Free Kids Act of 2010.” Federal Register, Vol. 77, No. 82. April 27, 2012, 25026.

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About the National Consumers League 
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Its mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.