Commodity Letter of Credit Act

Commodity Letter of Credit Act - Amends the National School Lunch Act to direct the Secretary of Agriculture to issue commodity letters of credit each fiscal year to each State participating in the food service programs under such Act or under the Child Nutrition Act of 1966 for the purchase of domestic agricultural commodities and other foods for use in carrying out these programs. Directs the Secretary to specify the types of commodities and other foods to be purchased with such letters, with special emphasis to be given to high protein foods. Establishes the national average value of commodity letters of credit for fiscal year 1981. Sets forth the formula for the periodic adjustment of such average. Apportions such letters to each State based upon the number of school lunches served in such State. Directs each State to further apportion the value of the letters received to each school based upon the number of lunches served in such school.

Directs the Secretary to forward to each State an advance program payment to be used by the State under the letters for the purchase of foods for the requirements of lunches and breakfasts. Substitutes such commodity letter program for the direct purchase and donation of commodities by the Secretary.

Directs the Secretary to provide technical assistance for the reduction of transportation, storage, handling, and labor costs through the use of commodity letters of credit.

Directs the Secretary to issue commodity letters of credit in lieu of direct purchase and donation for the purchase of agricultural commodities for use in institutions participating in the child care food program. Sets forth the formula for determining the value of such letters. Permits each State participating in such program to elect to receive cash payments in lieu of some or all of such letters.

Directs the Secretary to make available to the Department of Defense the same payments and commodity letters of credit as are provided to the States for breakfasts and lunches for students attending dependents' schools outside the United States.

Amends the Child Nutrition Act of 1966 to substitute the commodity letters of credit for the direct purchase and donation of commodities by the Secretary.

Permits the Secretary to use funds of the Commodity Credit Corporation for the purpose of issuing commodity letters for specified programs. Establishes criminal penalties for violations respecting the application, procurement, claim for reimbursement, or record keeping in the commodity letters program.

Permit the issuance of commodity letters for summer camps for children. Amends the Older Americans Act of 1965 to permit the use of cash payments in lieu of the commodity letters.