; and (2) in paragraph (4), by striking Paragraph (2)(A) and inserting Subparagraphs (A) and (C) of paragraph (2) . 3. Buy American contract requirements Section 12(n) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1760(n) ) is amended by adding at the end the following: (5) Contracts (A) In general Any contract entered into between a school food authority and a supplier for a commodity or food product for programs under this Act or the Child Nutrition Act of 1966 ( 42 U.S.C. 1771 et seq. ) after the date of enactment of this paragraph shall include a provision (referred to in this paragraph as the covered provision ) that requires the supplier to comply with the requirements of this subsection. (B) Reimbursement in the case of noncompliance (i) In general A supplier that enters into a contract described in subparagraph (A) that does not comply with the covered provision in the contract shall be required to pay to the Secretary an amount equal to the amount of Federal funds the supplier used to purchase foreign commodities or products in noncompliance of the covered provision. (ii) Limitation Funds paid to the Secretary under clause (i) shall be available to the Secretary, without further appropriation or fiscal year limitation, to carry out subsection (m). (C) Use of noncompliant goods A school food authority that receives foreign commodities or products that were obtained in noncompliance with the covered provision in the contract of the school food authority may use those foreign commodities or products without requesting a waiver under paragraph (2)(C). (D) Reporting (i) Report to State educational agency A school food authority shall submit to the State educational agency that serves the school food authority an annual report describing any noncompliance of a covered provision in any contract described in subparagraph (A). (ii) Report to Secretary A State educational agency shall submit to the Secretary an annual report containing a compilation of each instance of noncompliance reported to