USDA cuts over $1 billion in local food funding, impacting schools & food banks

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The United States Department of Agriculture (USDA) has cut more than $1 billion in funding for programs that helped schools and food banks buy food from local farms, as reported by The Guardian. About $660 million of these funds were part of the Local Food for Schools Cooperative Agreement Program, which is now being eliminated, while the remainder supported the Local Food Purchase Assistance Cooperative Agreement Program for food banks, according to the news source.

The cuts come as part of the Trump administration's aggressive efforts to reduce federal spending, The Guardian notes. At a time when food banks are already facing increased demand due to rising food prices, Republicans in Congress are also pushing for significant cuts to the Supplemental Nutrition Assistance Program (SNAP).

Reuters confirms that the USDA has eliminated two federal programs that provided over $1 billion annually to support schools and food banks in purchasing food from local farms and ranches. The School Nutrition Association, representing cafeteria workers and directors nationwide, announced that the department cut the $660 million Local Food for Schools program for 2025, as the news agency reported. Additionally, the USDA also cut the Local Food Purchase Assistance Cooperative Agreement Program, which would have funded approximately $500 million this year to support food banks, according to information obtained by Reuters.

The elimination of these programs is part of President Donald Trump's broader effort to drastically reduce the size and spending of the federal government, as the news agency points out. This action coincides with Trump's implementation of new tariffs on goods from Canada, Mexico, and China, which has triggered trade wars with the largest buyers of U.S. farm products. Farmers and food organizations across the country are reducing staff and stopping investments as the USDA freezes other grants and programs, according to farmers and agricultural support groups who spoke with Reuters.

Politico reveals that state officials were informed last Friday about the USDA's decision to end the Local Food for Schools program for this year, affecting more than 40 states that had signed agreements to participate in previous years. The news outlet explains that the Biden administration had expanded funding for both programs to build a more resilient food supply chain that didn't solely rely on major food companies. Last year, the USDA announced more than $1 billion in additional funding through the Commodity Credit Corporation, a New Deal-era USDA fund for purchasing agricultural commodities.

The Trump administration's decision to halt these programs comes at a time when school nutrition officials are increasingly worried about affording healthy food with current federal meal reimbursement rates, according to Politico's reporting. As food costs have risen in recent years, more people are turning to food banks and other feeding organizations to supplement their growing grocery bills. According to Mass Gov, Massachusetts Governor Maura Healey criticized the administration's decision, pointing out that her state would lose $12 million intended for school districts.

https://www.theguardian.com/us-news/2025/mar/11/usda-cuts-food-banks-schools

https://www.reuters.com/world/us/usda-cuts-over-1-billion-funding-schools-local-food-purchases-2025-03-11/

https://www.politico.com/news/2025/03/10/usda-cancels-local-food-purchasing-for-schools-food-banks-00222796

https://www.usda.gov/about-usda/news/press-releases/2024/12/10/usda-announces-availability-113-billion-local-food-programs

https://www.mass.gov/news/governor-healey-denounces-president-trumps-decision-to-cut-12-million-in-federal-funding-to-feed-children-support-local-farmers-in-massachusetts

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