$1 billion in federal cuts just changed how local food programs operate
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A recent federal decision is causing ripples in school cafeterias and food programs nationwide.
Funding once set aside to support local food purchases for schools and community aid has been abruptly cut, sparking concerns about its broader impact.
As policies shift, questions arise about what this means for school meals, food banks, and local suppliers.
The US Department of Agriculture is ending two federal programs that allocated approximately $1 billion for schools and food banks to source food directly from local farmers, ranchers, and producers.
The USDA's decision directly affects two key programs: the Local Food for Schools program, which had been operating in 40 states with about $660 million in funding, and the Local Food Purchase Assistance Cooperative Agreement, which was set to provide around $420 million to help food banks and community organizations.
These programs were designed to create a bridge between local farms, ranchers, and producers and the institutions that serve our communities, such as schools and food banks.
The cancellation of these funds means that schools like those in the Scottsdale Unified School District in Arizona are facing a substantial loss.
The decision comes as the Trump administration, along with Elon Musk’s Department of Government Efficiency (DOGE), moves to cut federal spending in an effort to reduce government waste.
The USDA programs were financed through the agency’s Commodity Credit Corporation, a fund established during the Great Depression to purchase goods directly from farmers.
A USDA spokesperson told CBS MoneyWatch in an email: "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."
In recent days, schools were notified that they would lose $660 million in federal funding for the current year, according to Diane Pratt-Heavner, director of media relations for the School Nutrition Association, which represents thousands of school meal workers.
She noted that the funding withdrawal will impact schools across the US at a time when they are already struggling with high food costs.
The district anticipated spending $100,000 on local beef and produce to enrich students' meals with fresh fruits and vegetables.
"It's a pretty big hit, and that's mostly fresh fruits and vegetables," said Patti Bilbrey, director of nutrition services at the Scottsdale Unified School District in Arizona. "It wasn't just about keeping food costs low — it meant supporting your community and your local farmers in your state."
While the $100,000 accounts for only about 2% of the school district’s approximately $6 million annual food budget, Bilbrey emphasized that it enabled the district to source food from small farmers and introduce items like microgreens to students.
The USDA has framed this decision as a step towards “returning to long-term, fiscally responsible initiatives.” They argue that the previous administration's approach lacked a sustainable plan for the future.
However, critics of the move point out that these programs provided immediate relief to schools and food banks struggling with high food costs, while also fostering community ties and supporting local agriculture.
Source: ABC 7 Chicago / Youtube.
The loss of funding is particularly troubling as it comes at a time when many school districts are already grappling with the challenges of keeping meal costs affordable amidst rising food prices and labor costs.
The Local Food for Schools program was seen as a “godsend” by many, including Patti Bilbrey, director of nutrition services at the Scottsdale Unified School District, who emphasized the dual benefits of cost savings and community support.
What are your thoughts regarding the USDA's recent decision? What ideas do you have for maintaining strong school nutrition programs and local food systems? Share your thoughts and insights in the comments below!
Funding once set aside to support local food purchases for schools and community aid has been abruptly cut, sparking concerns about its broader impact.
As policies shift, questions arise about what this means for school meals, food banks, and local suppliers.
The US Department of Agriculture is ending two federal programs that allocated approximately $1 billion for schools and food banks to source food directly from local farmers, ranchers, and producers.
The USDA's decision directly affects two key programs: the Local Food for Schools program, which had been operating in 40 states with about $660 million in funding, and the Local Food Purchase Assistance Cooperative Agreement, which was set to provide around $420 million to help food banks and community organizations.
These programs were designed to create a bridge between local farms, ranchers, and producers and the institutions that serve our communities, such as schools and food banks.
The cancellation of these funds means that schools like those in the Scottsdale Unified School District in Arizona are facing a substantial loss.
The US Department of Agriculture has cancelled approximately $1 billion in funding meant for schools and food banks to procure food from local suppliers. Image source: ABC 7 Chicago / Youtube.
The decision comes as the Trump administration, along with Elon Musk’s Department of Government Efficiency (DOGE), moves to cut federal spending in an effort to reduce government waste.
The USDA programs were financed through the agency’s Commodity Credit Corporation, a fund established during the Great Depression to purchase goods directly from farmers.
A USDA spokesperson told CBS MoneyWatch in an email: "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."
In recent days, schools were notified that they would lose $660 million in federal funding for the current year, according to Diane Pratt-Heavner, director of media relations for the School Nutrition Association, which represents thousands of school meal workers.
She noted that the funding withdrawal will impact schools across the US at a time when they are already struggling with high food costs.
The district anticipated spending $100,000 on local beef and produce to enrich students' meals with fresh fruits and vegetables.
The cancellation affects the Local Food for Schools program, operating in 40 states, and the Local Food Purchase Assistance Cooperative Agreement which supports food banks. Image source: ABC 7 Chicago / Youtube.
"It's a pretty big hit, and that's mostly fresh fruits and vegetables," said Patti Bilbrey, director of nutrition services at the Scottsdale Unified School District in Arizona. "It wasn't just about keeping food costs low — it meant supporting your community and your local farmers in your state."
While the $100,000 accounts for only about 2% of the school district’s approximately $6 million annual food budget, Bilbrey emphasized that it enabled the district to source food from small farmers and introduce items like microgreens to students.
The USDA has framed this decision as a step towards “returning to long-term, fiscally responsible initiatives.” They argue that the previous administration's approach lacked a sustainable plan for the future.
However, critics of the move point out that these programs provided immediate relief to schools and food banks struggling with high food costs, while also fostering community ties and supporting local agriculture.
Source: ABC 7 Chicago / Youtube.
The loss of funding is particularly troubling as it comes at a time when many school districts are already grappling with the challenges of keeping meal costs affordable amidst rising food prices and labor costs.
The Local Food for Schools program was seen as a “godsend” by many, including Patti Bilbrey, director of nutrition services at the Scottsdale Unified School District, who emphasized the dual benefits of cost savings and community support.
What are your thoughts regarding the USDA's recent decision? What ideas do you have for maintaining strong school nutrition programs and local food systems? Share your thoughts and insights in the comments below!
