A bill to provide for limited extension of alternative means of providing assistance under the school lunch program and to provide for national donated commodity processing programs.

Extends through the school year ending June 30, 1987, a school district's eligibility under the school lunch program to continue receiving all cash or all letters of credit in lieu of commodities. Makes such districts eligible for bonus commodities on the same basis as other districts participating in the school lunch program.

Directs the Secretary of Health and Human Services to enter into agreements with private companies for processing donated commodities into end food products at the expense of the eligible recipient agencies.