This hearing examined the impact of the Administration's 1987 budget proposal on child nutrition programs, which were cut significantly. A spokesperson for the Department of Agriculture testified that the proposed budget was designed to preserve benefits for those truly in need, to provide for the national defense, to maintain taxes at the current level, and to meet the deficit target called for by the Gramm-Rudman-Hollings law. As part of the budget, commodities and reimbursement for school lunch programs would be eliminated for students from families with an income of 185 percent greater than the poverty level. Other testimony and reports covered the following effects of the proposed budget among others: (1) a decrease in the number of pupils served by the School Lunch Program; (2) restructuring of assistance to schools; (3) a significant increase in the entitlement commodities received by schools with students who cannot afford to pay for lunch; (4)problems for subsidized students in schools with a high number of paying students; (5) distribution of commodities and related storage problems; (6) increased unemployment among food service workers; and (7) elimination of funding for the state level Nutrition Education and Training Program. Material submitted in addition to testimony is included. (PS)