---
kind: "section"
citation: "42 U.S.C. § 1765"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1765"
heading: "Election to receive cash payments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1765"
units:
  - "Chapter 13 — School Lunch Programs"
---

# §1765. Election to receive cash payments

- (a) Notwithstanding any other provision of law, where a [State](/usc/42/2021b.md?p=14) phased out its commodity distribution facilities prior to June 30, 1974, such [State](/usc/42/2021b.md?p=14) may, for purposes of the programs authorized by this chapter and the Child Nutrition Act of 1966 [[42 U.S.C. 1771](/usc/42/1771.md) et seq.], elect to receive cash payments in lieu of donated foods. Where such an election is made, the [Secretary](/usc/42/242q–4.md?p=2) shall make cash payments to such [State](/usc/42/2021b.md?p=14) in an amount equivalent in value to the donated foods that the [State](/usc/42/2021b.md?p=14) would otherwise have received if it had retained its commodity distribution facilities. The amount of cash payments in the case of lunches shall be governed by [section 1755(c) of this title](/usc/42/1755.md?p=c).
- (b) When such payments are made, the [State](/usc/42/2021b.md?p=14) educational [agency](/usc/42/8262.md?p=1) shall promptly and equitably disburse any cash it receives in lieu of commodities to eligible schools and institutions, and such disbursements shall be used by such schools and institutions to purchase United States agricultural commodities and other foods for their food service programs.

## Source credit

(June 4, 1946, ch. 281, § 16, as added Pub. L. 94–105, § 12, Oct. 7, 1975, 89 Stat. 515; amended Pub. L. 101–147, title III, § 309, Nov. 10, 1989, 103 Stat. 915; Pub. L. 105–336, title I, § 101(b), Oct. 31, 1998, 112 Stat. 3144.)

## Notes

### Editorial Notes

### References in Text

The Child Nutrition Act of 1966, referred to in subsec. (a), is Pub. L. 89–642, Oct. 11, 1966, 80 Stat. 885, which is classified generally to chapter 13A (§ 1771 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1771 of this title and Tables.

### Amendments

1998—Subsec. (a). Pub. L. 105–336 substituted “1755(c)” for “1755(e)”.

1989—Pub. L. 101–147 inserted “Election to receive cash payments” as section catchline.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1998 Amendment

Amendment by Pub. L. 105–336 effective Oct. 1, 1998, see section 401 of Pub. L. 105–336, set out as a note under section 1755 of this title.