Requires payments to certain private nonprofit organizations (that are not otherwise eligible) for: (1) the full cost of food service operations, up to adjusted maximum amounts; and (2) State-approved administrative costs, up to maximum allowable levels determined by the Secretary of Agriculture under a certain study. Requires payments to all other eligible service institutions (including certain eligible private nonprofit organizations) in amounts equal to: (1) those maximum amounts for food service; and (2) those maximum levels for administrative costs.