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The U.S. Department of Agriculture (USDA) has issued cuts of over $1 billion a year in local food purchase programs which enable schools and food banks to obtain local food.
Funding details surfaced on March 10, 2025, with the government's official statement following on March 11. The cuts target two major programs supporting schools and food banks, aiming to exceed $1 billion.
According to Politico, the USDA will end the $660 million Local Food for Schools program in 2025. Additionally, the $500 million Local Food Purchase Assistance Program, which funded food banks, has also been terminated.
The issued cuts towards the school schemes and food banks are due to the budget issue and expiration of the pandemic-era reliefs.
Details of the USDA cuts and the reason behind it
The money allocated for this program was $660 million specifically geared towards the procurement of locally produced food. The USDA's decision to eliminate that plan will affect many schools, especially those situated in rural regions, which heavily depended on fresh, wholesome, and locally-produced food.
The first of the two schemes that was affected by the cuts is the Local Foods For School Program, which allowed schools to purchase local food to serve in school cafeterias. This program has been active for years, to support local agriculture, connecting with schools in need of organic and freshly grown food.
Funding for this plan was $660 million, targeting the purchase of locally grown food. By cutting down this particular program, the USDA has affected the financial lifeline of many schools, especially in rural areas, which relied on nutritious and locally-sourced meals.
The second scheme affected by the cut is the Local Food Purchase Assistance Cooperative Agreement Program. This program has been started to support food banks by providing them financial reliability to source food from local farms and ranches.
The program was set to distribute $500 million to food banks, helping them meet rising demand. With funding cut, food banks now struggle to cope with increasing food prices.
The USDA cuts stem from budget constraints, shifting policies, and the end of pandemic-era relief programs that provided extra support.
Impact on schools and food banks
The School Nutrition Association, representing the cafeteria workers and school directors across the nation, expressed concerns regarding the cuts. The association stated in a press release that the removal of the Local Food School Program for 2025 will impact the schools that provide healthy meals to the school.
In a statement, a USDA spokesperson confirmed that the funding:
“is no longer available and those agreements will be terminated following 60-day notification. These programs, created under the former Administration via Executive authority, no longer effectuate the goals of the agency. LFPA and LFPA Plus agreements that were in place prior to LFPA 25, which still have substantial financial resources remaining, will continue to be in effect for the remainder of the period of performance.”
The Local Food Purchase Assistance Cooperative Agreement Program had allowed the food banks to purchase food directly from the farmers, with USDA eliminating it, the food banks will face challenges in maintaining the quality of food.
Broader context of cuts
The reductions linked to USDA plans form part of a comprehensive strategy by the Trump Administration looking to slash government budgets. This plan involves spending cuts in agriculture, as well as in education and social services.
In addition, the cuts also fueled trade conflicts with some of America’s key trading partners like China, Mexico, and Canada. The Trump administration also set new tariffs on goods exported from these countries, even as a lot of American farmers and ranchers depend on these countries for exports. This led to a situation where farmers have to reduce staff and stop investing money, thus putting pressure on funding for organic agriculture.
The larger debate on federal budget cuts
The USDA cuts have sparked conversations about the role of the Federal Government in supporting various sectors of the economy. Netizens argue that the reduction of government funding will impact the vulnerable groups, including children, low-income families, and farmers.
As food security remains a significant issue in the U.S., these cuts have raised concerns about the long-term impact on Public health, Education, and community wellbeing.
