The United States Department of Agriculture (USDA) is discontinuing two federal programmes totalling $1 billion in funding that enabled schools and food banks to procure food directly from local farms, ranchers and producers, citing a need to “return to long-term, fiscally responsible initiatives.”
The cancellation affects approximately $660 million in funding this year for the Local Food for Schools programme, operational in 40 states, alongside $420 million for the Local Food Purchase Assistance Cooperative Agreement, which supported food banks and local organisations in community food distribution, as reported by CBS News.
This action aligns with efforts by the Trump administration and Elon Musk-led Department of Government Efficiency (DOGE) to reduce government expenditure. These USDA programmes were supported through the Commodity Credit Corporation, established during the Depression era for direct farmer purchases.
A representative from the USDA confirmed to Politico that after providing a 60-day notice, the selected programmes would be ” terminated following 60-day notification”.
Additionally, justifying the decision, a USDA spokesperson stated via email to CBS MoneyWatch: “Unlike the Biden Administration, which funneled billions in [Commodity Credit Corporation] funds into short-term programs with no plan for longevity, USDA is prioritizing stable, proven solutions that deliver lasting impact.”
Schools recently learnt about the $660 million funding reduction for the current year, according to Diane Pratt-Heavner from the School Nutrition Association. This withdrawal impacts schools nationwide already dealing with elevated food costs.
One affected school district reports losing $100,000 intended for local beef and produce purchases for student meals.
“It’s a pretty big hit, and that’s mostly fresh fruits and vegetables,” stated Patti Bilbrey, nutrition services director at Scottsdale Unified School District, Arizona. “It wasn’t just about keeping food costs low — it meant supporting your community and your local farmers in your state.”
Though $100,000 comprises roughly 2% of the district’s annual £6 million food budget, Bilbrey indicated it enabled purchases from small farmers and introduction of items like microgreens to students. “The Local Food for Schools programme was a godsend to us,” Bilbrey said. “It keeps our meal costs down, and we’re helping our community, which improves the perception of school meals.”