Despite federal and state regulations prohibiting the sale of nonnutritious foods in competition with school lunch programs, powerful market forces are keeping vending machines in schools. In 1997, schools generated $750 million for the vending machine market. Soft-drink companies are offering million-dollar contracts to some schools. Student…

Presents procedures and findings of a Virginia Tech-conducted study-in-process of two alternatives to the United States Department of Agriculture's school lunch commodity surplus distribution program. Both alternatives--the direct cash subsidy and the commodity letter of credit--offer added flexibility to the existing system. (JBM)

Reviews United States Department of Agriculture's school lunch subsidy program, including such problems as delivery of large quantities of certain food types rejected by school children and the expense and inconvenience of subsidy food distribution. Proposes cash equivalency or commodity letters of credit as alternatives to the existing delivery…