See page 32 of this publication:
http://teamnutrition.usda.gov/Resources/blocks2.pdf. Whole milk is no longer a requirement for the federal CACFP, though quite a few pediatricians still recommend it for children up to 2.
I use my best judgment when providing milk for the little ones, almost always serving whole milk until at least 1 year of age, lowering it to 2 or 1 percent milk after that, unless they are skinny minis or requested specifically by a parent.