USDA Terminates $1 Billion in Local Food Funding for Schools and Food Banks

 

State governments have been informed that financial support for schools to procure food from regional farms in 2025 will not be provided.

The U.S. Department of Agriculture (USDA) has discontinued two initiatives that allocated funds to schools and food banks for purchasing locally sourced food, effectively halting over $1 billion in federal expenditures.

According to the School Nutrition Association (SNA), approximately $660 million that schools and childcare centers were expecting through the Local Food for Schools Cooperative Agreement Program (LFS) in 2025 has been withdrawn.

On Friday, state officials were officially notified that the LFS program would not continue this year. Reports from the SNA and several state agencies indicate that more than 40 states had previously signed agreements to participate.

Another impacted initiative, the Local Food Purchase Assistance Cooperative Agreement Program (LFPA), which aids food banks and similar organizations, has also been discontinued. While USDA informed states that existing LFPA agreements could still utilize remaining funds, there will be no new funding round for fiscal year 2025.

A USDA spokesperson confirmed in a statement that the funds, initially announced in October, “is no longer available and those agreements will be terminated following 60-day notification.”

The spokesperson further explained: “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 the funding for these programs to create a more diversified and resilient food supply chain, reducing dependence on large-scale food corporations. Last year, the USDA injected over $1 billion into these initiatives via the Commodity Credit Corporation, a USDA fund established during the New Deal era to procure agricultural products.

The Trump administration’s decision to terminate the programs has raised concerns among school nutrition officials, who are already struggling with rising food costs under the current federal reimbursement rate. As food prices have surged in recent years, more families have been seeking support from food banks and similar organizations.

Massachusetts Governor Maura Healey, a Democrat, strongly criticized the move, highlighting the financial impact on her state’s 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.