The US Department of Agriculture (USDA) is cutting two federal programs that gave over US$1 billion in funding to schools and food banks to purchase food from local farms and ranches. 

According to the School Nutrition Association (SNA), the Local Food for Schools Cooperative Agreement Program, which provided US$660 million to schools and childcare facilities to expand fresh and local menu options, will no longer be available as a result of the move.

The nonprofit is calling on supporters to urge Congress to reject the proposed cuts that threaten school meal programs.

“With research showing school meals are the healthiest meals Americans eat, Congress needs to invest in underfunded school meal programs rather than cut services critical to student achievement and health,” says SNA president Shannon Gleave.

“These proposals would cause millions of children to lose access to free school meals at a time when working families are struggling with rising food costs. Meanwhile, short-staffed school nutrition teams, striving to improve menus and expand scratch-cooking, would be saddled with time-consuming and costly paperwork created by new government inefficiencies.”

Reports online also indicate that the department has cancelled the Local Food Purchase Assistance Cooperative Agreement Program, which would have spent over US$500 million this year supporting food banks.

“Terrible cut with real impact”

Massachusetts governor Maura Healey has criticized the Trump administration for cutting more than US$12 million, which was given under the Northeast Food for Schools award to fund meals in schools and food banks in the state.

“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,” says Healey.

“There is nothing ‘appropriate’ about it. Trump and Musk are continuing to withhold essential funding in violation of court orders, and our children, farmers, and small businesses are bearing the brunt of it.”

The USDA emailed Politico to say that it had informed states, territories, and tribes that fiscal year 2025 funding “is no longer available, and those agreements will be terminated following 60-day notification.”

The spokesperson also noted that the programs were launched by executive orders issued during Joe Biden’s presidency and no longer serve the agency’s goals.

Canceling the programs is part of the Trump administration’s larger effort to scale back federal government spending. The F&B industry is already under pressure from recently enforced import tariffs on Canada, Mexico, and China.

Industry experts foresee vegetables, alcoholic drinks, and other agricultural products to take a big hit while fears of price hikes for both businesses and consumers loom.

The tariffs and budget cuts are also forcing food and farmer organizations to downsize or stop investments.