(1) The Secretary shall make food assistance payments to each State educational agency each fiscal year, at such times as the Secretary may determine, from the sums appropriated for such purpose, in a total amount equal to the product obtained by multiplying
(A) the number of lunches (consisting of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary under section
1758 (a) of this title) served during such fiscal year in schools in such State which participate in the
school lunch program under this chapter under agreements with such State educational agency; by
(B) the national average lunch payment prescribed in paragraph (2) of this subsection.
(2) The national average lunch payment for each lunch served shall be 10.5 cents (as adjusted pursuant to section
1759a (a) of this title) except that for each lunch served in
school food authorities in which 60 percent or more of the lunches served in the
school lunch program during the second preceding
school year were served free or at a reduced price, the national average lunch payment shall be 2 cents more.
