This article from Civil Eats tracks the latest developments relating to the policy question of what foods are considered “processed” for the USDA Fresh Fruits and Vegetables Program. School food was apparently the subject of some last minute rule changes by President Bush--which means it's considered important enough for such maneuvers!
The Battle Over Sliced Apples: New York Senators Gillibrand and Aubertine Take Secretary Vilsack to Task on School Food
In a letter to USDA Secretary Tom Vilsack, Senators Gillibrand and Aubertine said:
The Fresh Fruit and Vegetable Program requires these snacks be served outside of standard school meal programs. Therefore, it is illogical to prohibit local produce as “processed” simply because it is in a form that can be served to students outside of the lunchroom.