CACFP termination for cause ends participation after the applicable serious-deficiency and administrative-review procedures. A proposed termination is different from a final termination and disqualification. This article addresses centers and institutions facing serious-deficiency-related action; an ordinary voluntary departure from CACFP is a different situation.
Key takeaways
- Termination is the last step of the serious deficiency process: notice of serious deficiency → corrective action period → notice of proposed termination and disqualification → opportunity to request administrative review → final action.
- You have the right to appeal a proposed termination; the window and procedure are set by 7 CFR 226.6(k) and spelled out in your notice.
- Final termination places the institution and responsible individuals on the NDL.
- Reinstatement requires removal from the NDL and a new, approved CACFP application.
- The notice identifies the findings, proposed action, responsible parties, and relevant deadlines. Use it to determine your next step.
Updated October 7, 2026 · Scope: serious-deficiency-related termination for centers and institutions. Day care home appeal procedures differ under 7 CFR 226.6(l).
Being removed from the Child & Adult Care Food Program (CACFP) causes serious, long-lasting consequences for your business. CACFP termination not only disrupts your ability to provide nutritious meals, but it also stops you from receiving reimbursement you depend on.
It’s critical to understand what CACFP termination involves and how to avoid it if you’re at risk.
Read the Notice Before Choosing Your Next Step
- Serious-deficiency notice: respond to the cited findings and corrective-action deadline. Start with what happens after a notice.
- Proposed termination and disqualification: preserve your appeal opportunity by following the notice’s instructions. Do not assume sending another corrective action plan extends the appeal deadline.
- Final termination and confirmed NDL listing: verify the effective date and the organizations and individuals named. Read how NDL listings and removal work.
For a state-agency administrative review under 7 CFR 226.6(k)(5)(ii), the written request is due no later than 15 days after receipt of the notice of action. Check how your notice defines receipt and where the request must go. Sponsored centers should follow their sponsor’s notice and applicable state procedures; do not assume every situation has the same appeal process.
CACFP Solutions recommendation: keep the notice, attachments, proof of receipt, prior corrective-action submissions, and agency or sponsor responses together. Identify each organization and individual named and every deadline.
Why CACFP Termination Happens
It’s typically the result of serious, uncorrected problems. Some common reasons include:
- Poor Record-Keeping – including financial documentation, menus, and meal attendance records
- Non-Compliant Expense Records – using CACFP money for unallowable expenses or not having all receipts for your purchases.
- Failure to Submit Correction Documents on Time – Not submitting corrective documentation to your sponsor or state agency by required deadlines.
- Lack of Corrective Action – Neglecting to permanently resolve issues and operate within Program compliance.
The CACFP Termination Process
Termination doesn’t usually happen overnight. Here’s how – and with opportunities to still correct problems along the way:
1️⃣ Serious Deficiency Determination – Your sponsor or state agency identifies major noncompliances and prepares to notify you.
2️⃣ Notice of Serious Deficiency – Your sponsor or state agency sends you an official notice listing the areas of noncompliance.
3️⃣ Corrective Action – You’re allowed time to fix the issues. You must submit a detailed corrective action plan (CAP) for each area of noncompliance.
4️⃣ Notice of Proposed Termination – If problems aren’t corrected and your CAP doesn’t demonstrate a permanent way to keep them from recurring, your sponsor or state agency will send a notice proposing termination. You have the right to appeal.
5️⃣ Final Termination and Disqualification – If you lose the appeal – or fail to make one at all – your termination from CACFP becomes final.
Consequences of CACFP Termination
CACFP termination isn’t just a setback—it has serious, far-reaching consequences.
- Financial Liability – If you purchased unallowable items with CACFP funds, you may be required to pay those funds back to your sponsor or state agency.
- Loss of CACFP Meal Reimbursement – You’ll no longer receive funding to serve nutritious meals, which could have a major financial impact.
- National Disqualified List (NDL): final disqualification can list the institution and identified responsible principals and individuals. A listed organization cannot participate in CACFP; listed individuals cannot serve as principals in participating institutions or facilities or as day care home providers. Not every employee is automatically listed.
- Reputation Damage – Getting terminated from a federally funded program could harm your business’s reputation, making it more challenging to gain trust and obtain future opportunities.
Want more info about the National Disqualified List? Understand NDL listings and removal.
Can You Return After Termination and Disqualification?
Removal from the NDL and approval to participate again are separate decisions. For institutions and responsible principals or individuals, FNS decides early removal in consultation with the state agency. Seven years is the usual listing period, but approved early removal may occur; unpaid Program debt keeps the listing in place until repaid.
Start by verifying the listing and debt, obtaining your state agency’s removal instructions, and documenting the corrections. After removal, a new application must still be reviewed and approved before participation resumes. Texas has specific limits on early-removal requests involving lack-of-business-integrity findings; see the NDL article’s Texas guidance.
How to Avoid CACFP Termination
Proactive measures to stay in compliance are key, especially when it comes to managing financial aspects of the Program.
Here are some strategies to help keep your center in good standing:
- Responsibly Manage CACFP Funds – Ensure all funds are used for allowable expenses only, avoid overspending, and track reimbursements and expenses carefully.
- Take Corrective Actions Seriously – Address issues immediately – especially those related to financial management. This includes correcting inaccurate financial statements and expense records.
- Stay on Top of Recordkeeping – Keep accurate and up-to-date records, including receipts, financial statements, meal records, and attendance records.
- Participate in Training – Ensure all staff are properly trained in CACFP guidelines to prevent mistakes.
- Ask for Help – If issues arise, fix them quickly by working closely with your sponsor or state agency. If you’re not sure about a Program rule, reach out for guidance before mistakes become serious violations.
Need Help Understanding Your Notice or NDL Listing?
CACFP Solutions offers paid termination and NDL assessment support. An assessment reviews your notices, original findings, prior corrective actions, and relevant correspondence to evaluate what professional help may fit your situation.
Explore termination and NDL assessment support. Start by gathering those records and identifying any current deadline.
CACFP Solutions is a private team of CACFP specialists, not your state agency or USDA. We cannot extend deadlines, decide eligibility, or guarantee reversal, removal, or approval.
Frequently asked questions
What triggers CACFP termination?
Termination follows a serious deficiency that was not fully and permanently corrected within the time allowed. Common root causes are false or unsupported claims, missing meal counts or menus, unallowable spending, and failure to follow the approved budget or management plan.
Can you appeal a CACFP termination?
A notice of proposed termination provides the administrative-review instructions. For state-agency reviews under 7 CFR 226.6(k), a written request is due no later than 15 days after receipt of the notice of action. Sponsored centers should follow the applicable state or sponsor procedures. A final NDL listing and a denial of removal are different actions; do not assume they create a new appeal opportunity.
What happens after a center is terminated?
After final termination for cause and disqualification, CACFP participation ends. The institution and identified responsible principals and individuals may be placed on the NDL, which prevents CACFP participation in the prohibited roles nationwide.
Can a terminated center rejoin CACFP?
Removal from the NDL is required before a new application can be approved. Early removal may be approved when the deficiencies are corrected; otherwise the usual listing period is seven years. Unpaid Program debt keeps the listing in place until repaid. Removal does not itself authorize new claims.
Sources
- 7 CFR 226.6(c) — Serious deficiency, proposed termination, disqualification, and NDL removal
- 7 CFR 226.6(k) — State-agency administrative review procedures, including (k)(3) actions not subject to review and (k)(5)(ii) request deadline
- TDA NDL/TEXSL guidance — Texas sponsor notification and early-removal procedures