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Ending participation in CACFP?

" October 27, 2021 - Ending your participation in CACFP requires more than just saying good-bye...
October 27, 2021 - Once an organization has successfully applied to participate in either or both the Child and Adult Care Food Program (CACFP) and Summer Food Service Program (SFSP), they must sign a contract or “permanent agreement” in which they acknowledge and agree to the terms of that participation. That contract remains in effect until such time as TDA determines that the terms of the contract are not being met by the CE, or the CE decides it is no longer in their best interest to continue to participate in the programs.

Whether ending a CE’s participation is voluntary, or involuntary, TDA is required to ensure that all funds, equipment and supplies remaining in the CE’s possession that were acquired with USDA grant funds are accounted for. To accomplish this, TDA conducts a “closeout review”, sometimes referred to as a “mutual termination request”, which is an assessment of a CE’s accounting for USDA grant funds and any equipment (typically worth $5000.00 or more) that may need to be recovered by TDA.

This assessment may be done by further analyzing the CE’s most recent administrative review, or it may involve a new and focused financial review of a recent month’s financial activities. It should be noted that if a one-month financial review is deemed to be necessary, the CE is obligated under terms of the permanent agreement to provide the documentation requested by TDA.

If a CE does not provide the requested documentation, it could lead to the organization and its principals being placed on the National Disqualified List (NDL). A voluntary program termination will not be allowed if a CE has any outstanding debt payable to TDA/USDA.

For CEs who wish to voluntarily end their participation in the program(s) and who are sponsors of either or both affiliated day care homes and affiliated childcare centers, they can allow their affiliated sites to transfer to another sponsor while they are pursuing a voluntary mutual termination.

If the participation is terminated in the open enrollment period, no further action is required on the part of the terminating sponsor to facilitate a site’s transfer. If the termination happens at any other time of the year, a good cause transfer request will need to be made on behalf of each transferring site.


Assistance available in English and Spanish. Please call 877-TEX-MEAL (877-839-6325) for help.

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA.

Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English.

To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: How to File a Complaint, and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:

U.S. Department of Agriculture
Office of the Assistant Secretary for Civil Rights
1400 Independence Avenue, SW
Washington, D.C. 20250-9410
Fax: (202) 690-7442; or
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Texas Department of Agriculture

Commissioner Sid Miller

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