USDA Cancels $1 Billion in Local Food Purchasing for Schools and Food Banks

In a move that has sparked concern among school nutrition advocates and food security organizations, the U.S. Department of Agriculture (USDA) has canceled two significant programs designed to support local food procurement for schools and food banks. The decision halts more than $1 billion in federal spending intended to bolster local food supply chains and ensure access to fresh, nutritious food for children and low-income families. The decision follows the Donald Trump administration and Elon Musk’s Department of Government Efficiency (DOGE) announcing broad federal spending cuts to reduce government waste. The USDA programs were financed through the Commodity Credit Corporation, a fund established during the Great Depression to purchase agricultural products directly from farmers.

End of Local Food Programs

The USDA announced the end of the Local Food for Schools (LFS) Cooperative Agreement Program and the Local Food Purchase Assistance (LFPA) Cooperative Agreement Program. These programs funded schools, child care centers, and food banks to buy food directly from local farms and ranchers, strengthening community-based food systems.

The decision affects approximately $660 million that schools and child care facilities expect to receive in 2025 under the LFS program. According to the School Nutrition Association (SNA), state officials were notified of the cancellation last Friday. More than 40 states had previously signed agreements to participate in these programs.

The LFPA program, which supports food banks and other feeding organizations, has also been eliminated. While the USDA has stated that existing agreements will continue using previously allocated funds, it will not issue any new funding for the next fiscal year.

Trump is cutting $660M meant for local farmers to provide healthy food for kids in schools.

Big win for the giant processed food corporations who poured millions into Donald Trump’s campaign.

How does hurting farmers and kids make America great again?https://t.co/Skcbk0CWId

— Melanie D’Arrigo (@DarrigoMelanie) March 11, 2025

USDA’s Rationale and Policy Shift

A USDA spokesperson confirmed the decision, explaining that the funds previously announced in October 2023 are “no longer available” and that agreements will be formally terminated after a 60-day notice period. The spokesperson further noted that these programs, created initially through executive authority under the Trump administration, no longer align with the USDA’s priorities.

Although the Biden administration expanded funding for these initiatives as part of a broader effort to build a resilient food supply chain, the current administration has now reversed course. In 2023, the USDA allocated over $1 billion in additional funding through the Commodity Credit Corporation (CCC), a USDA fund historically used to stabilize agricultural markets.

Concerns Over Rising Food Costs

The abrupt cancellation comes as many school nutrition officials struggle with increased food costs and stagnant federal reimbursement rates for school meals. As inflation continues to impact grocery prices, more families are turning to food banks for assistance, making the loss of LFPA funding particularly significant.

State officials and advocacy groups have voiced strong objections. Massachusetts Governor Maura Healey (D) criticized the decision, emphasizing that her state would lose $12 million that had been earmarked for 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 said in a statement.

No matter a family’s income, zip code, or situation: kids should be able to eat healthy food — even when school’s out.

The Summer Child Nutrition Program will help 600,000 students eat healthy all summer long.

Great to celebrate with @RepMcGovern, @USDA’s Cindy Long, and… pic.twitter.com/Y8Rajs0W6F

— Maura Healey (@MassGovernor) July 17, 2024

The USDA’s move raises questions about the future of local food supply chains and whether alternative federal or state programs will step in to fill the gap. For now, schools, food banks, and farmers who relied on these funds face uncertainty as they plan for the year ahead.