This document provides information on: (1) the number of schools that withdrew from the National School Lunch Program (NSLP); (2) characteristics of schools that withdrew; (3) reasons why schools withdrew; and (4) lunch services offered at the schools after they withdrew. Data were obtained through a questionnaire of 352 school food authorities (SFAs), onsite visits at five schools, and interviews with Food and Nutrition Service officials and each state's NSLP program official. The survey identified 302 schools that dropped out between July 1989 and February 1993. These withdrawals amount to less than one-half of one percent of the schools in the program. Nearly 60 percent of the schools that left the NSLP were public schools. Overall, they were small, elementary schools that served fewer NSLP meals and fewer free and reduced-price meals than other participating schools. Officials of dropout schools identified three reasons for leaving: (1) their lunch programs were losing money; (2) labor costs were high; and (3) students wanted to buy menu items prohibited by the program. More than 70 percent of the schools that withdrew continued to provide daily lunch service. Most schools also continued such program policies as providing benefits for students eligible for free and reduced-price lunches; serving lunches that follow a meal-pattern guideline; providing modified meals for students unable to consume a regular lunch; and maintaining policies to avoid overt identification of students receiving free or reduced-priced lunches. Appendices contain the questionnaire and schools' responses, locations of dropout schools by region, and a list of the major contributors to this report. Thirty-six figures are included. (LMI)