USDA halts $1 billion in local food procurement for schools, food banks

States have been informed that they will not be allocated funding in 2025 for schools to purchase food from local farms.

USDA halts $1 billion in local food procurement for schools, food banks
The Agriculture Department has eliminated two programs that provided funding to schools and food banks for purchasing food from local farms and ranchers, resulting in the cessation of over $1 billion in federal expenditures.

According to the School Nutrition Association, approximately $660 million intended for schools and child care facilities to buy food from local farms under the Local Food for Schools Cooperative Agreement Program in 2025 has been canceled. State officials learned of the USDA’s decision to terminate the LFS program for this year on Friday. More than 40 states had participated in agreements in prior years, as reported by SNA and various state agencies.

The Local Food Purchase Assistance Cooperative Agreement Program, which aids food banks and similar feeding organizations, has also been discontinued. The USDA informed states that it was releasing funds for existing LFPA agreements but would not conduct a second round of funding for fiscal year 2025.

A USDA spokesperson stated that funding, previously announced last October, “is no longer available and those agreements will be terminated following 60-day notification.” The spokesperson also remarked: “These programs, created under the former Administration via Executive authority, no longer effectuate the goals of the agency. LFPA and LFPA Plus agreements that were in place prior to LFPA 25, which still have substantial financial resources remaining, will continue to be in effect for the remainder of the period of performance.”

The Biden administration had previously expanded funding for both programs to enhance the resilience of the food supply chain, moving away from reliance solely on major food companies. Last year, the USDA announced an additional investment of over $1 billion for these initiatives through the Commodity Credit Corporation, a USDA fund established during the New Deal for purchasing agricultural commodities.

The decision to end these programs by the Trump administration comes amid rising concerns from school nutrition officials about their ability to afford healthy food, especially given the current federal reimbursement rate for meals. With increasing food costs, more individuals are relying on food banks and other feeding organizations to help offset their higher grocery bills.

Massachusetts Governor Maura Healey, a Democrat, criticized the administration for its decision, pointing out that her state would forfeit $12 million intended for distribution to school districts. “Donald Trump and Elon Musk have declared that feeding children and supporting local farmers are no longer ‘priorities,’ and it’s just the latest terrible cut with real impact on families across Massachusetts,” Healey stated.

Max Fischer contributed to this report for TROIB News