Pennsylvania has filed a lawsuit against the US Department of Agriculture (USDA) for unlawfully terminating a US$1 billion food assistance program that supported small and mid-sized farms and food banks across states. 

Pennsylvania’s Local Food Purchase Assistance (LFPA) Program is a US$13 million initiative aimed at strengthening local supply chains by purchasing locally grown food for food banks.

The federal agency, under the Trump administration, “abruptly ended” the contract in March 2025, though it was meant to run until 2027, according to the state.

According to the governor’s office, the program supported 189 Pennsylvania farms and 14 food banks.

“When the USDA abruptly terminated our agreement without cause, they ripped away a reliable source of income for 189 Pennsylvania farms — and cut off funding that would have helped provide over 4.4 million meals to families across the Commonwealth,” says Governor Josh Shapiro.

Implications for local economy

The Governor’s office first attempted to resolve the issue through discussions with USDA, including Secretary Brooke Rollins, and filing administrative appeals but received no explanation for the termination.

The office notes that USDA officials falsely claimed Pennsylvania was “sitting on tens of millions” in unspent LFPA money in public statements, even though the program was running on a reimbursement basis.

“The USDA’s decision was not just unexpected — it was unlawful, and it has already caused serious harm to Pennsylvania’s agriculture industry,” says Pennsylvania Agriculture Secretary Russell Redding, who challenged the decision after receiving notice.

“This is about real people — the farmers, producers, and rural communities who are now facing uncertainty. These hardworking men and women put food on our tables, support local economies, and preserve our farmland for future generations. Governor Shapiro is fighting for our farmers because the stakes are far too high.”

Canceling such 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.

Additionally, 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, is also no longer available due to the move.