State officials received notification on Friday regarding the termination of the Local Food for Schools Cooperative Agreement Program, which had allocated approximately $660 million for schools and child care facilities to purchase food from nearby farms. This funding represented a significant resource for educational institutions seeking to incorporate fresh, locally produced foods into student meals while simultaneously supporting regional agricultural systems.
Program termination impacts diverse stakeholders across food system
The cancellation extends beyond educational institutions to include food assistance organizations nationwide. The Local Food Purchase Assistance Cooperative Agreement Program, which supported food banks and similar feeding organizations, has also been discontinued. While USDA officials confirmed they would allow existing agreements to continue until their scheduled conclusion, the agency will not implement the second funding round that had been scheduled for fiscal year 2025.
More than 40 states had formalized agreements to participate in previous iterations of these programs according to the School Nutrition Association and multiple state agencies. These partnerships had created economic relationships between schools, food banks and local agricultural producers, relationships that now face uncertainty with the sudden funding withdrawal.
The USDA confirmed in an official statement that funding announced last October “is no longer available and those agreements will be terminated following 60-day notification.” This announcement provides a brief window for affected organizations to adjust their operational strategies, though many had already incorporated these expected funds into their longer-term planning.
Policy shift reflects changing federal priorities
The decision to eliminate these programs represents a significant departure from previous agricultural policy directions. The agency statement explicitly acknowledged this shift, noting that “these programs, created under the former Administration via Executive authority, no longer effectuate the goals of the agency.”
The Biden administration had expanded spending for both initiatives as part of a broader strategy to create more resilient food supply chains that reduced dependence on major food corporations. Last year, USDA officials had announced more than $1 billion in additional funding through the Commodity Credit Corporation, a New Deal-era USDA mechanism designed for purchasing agricultural commodities.
This funding had been positioned as supporting dual objectives: enhancing school nutrition while simultaneously strengthening regional agricultural systems. The programs encouraged direct relationships between educational institutions and local farmers, creating new market opportunities for smaller agricultural producers who often struggle to compete with larger industrial farming operations.
Schools face financial pressures amid rising food costs
The cancellation of these programs comes at a particularly challenging time for school nutrition programs nationwide. School food service professionals have expressed mounting concerns about their ability to afford nutritious meals under current federal reimbursement rates as food costs have risen substantially in recent years.
These local food purchasing programs had provided supplemental resources that allowed schools to enhance meal quality while managing tight budgets. Without this additional funding, many school districts will need to reassess their meal planning and procurement strategies for the upcoming school year.
The School Nutrition Association, which represents school food service professionals nationwide, had identified these programs as valuable tools for expanding access to fresh, locally grown foods in educational settings. The organization has emphasized that maintaining high-quality nutrition standards becomes increasingly difficult as financial resources diminish.
Food banks lose procurement flexibility amid increasing demand
Food banks and emergency feeding organizations face similar challenges with the elimination of their corresponding local food purchase program. As economic pressures have increased household grocery costs, more families have turned to food assistance programs to supplement their nutritional needs.
The Local Food Purchase Assistance program had provided these organizations with flexible funding to source fresh produce and other perishable items directly from regional producers. This approach often yielded fresher food options than traditional commodity distribution channels while simultaneously supporting local agricultural economies.
Existing agreements that were established before the cancellation announcement will continue until their scheduled conclusion. The agency clarified that arrangements were in place prior to LFPA 25, which still have substantial financial resources remaining, and will continue to be in effect for the remainder of the period of performance.
Political response highlights regional economic impacts
The cancellation has drawn sharp criticism from some state officials who had incorporated these funds into their operational planning. Massachusetts Governor Maura Healey issued a statement expressing frustration with the decision, noting that her state would lose approximately $12 million previously designated for distribution to school districts.
The economic impact extends beyond school food service to affect local agricultural producers who had established or expanded production based on these institutional markets. Farmers who had modified growing plans to accommodate school and food bank purchasing schedules may now need to identify alternative markets for their products.
Future of local food initiatives remains uncertain
The termination of these programs raises questions about the future direction of federal support for local and regional food systems. The original initiatives had aimed to address vulnerabilities exposed during supply chain disruptions, promoting more distributed and resilient food procurement networks.
While the current agreements that remain in effect will provide some transition period, the long-term impact on local food purchasing initiatives remains unclear. Some states and local jurisdictions may explore alternative funding mechanisms to maintain relationships between schools, food assistance organizations and regional farmers.
School nutrition professionals, meanwhile, continue to advocate for adequate federal resources to meet their core mission of providing nutritious meals to students. As these specialized programs conclude, attention will likely shift to broader discussions about base funding levels for school food service operations and other nutrition assistance initiatives.
The 60-day notification period provides a brief window for affected organizations to adjust their operational strategies and for agricultural producers to seek alternative markets for products that had been designated for these institutional purchasing programs.
