Federal cuts hit schools and food banks: USDA pulls $1 billion in funding to local food programes

The United States Department of Agriculture (USDA) is discontinuing two federal programmes totalling $1 billion in funding that enabled schools and food banks to procure food directly from local farms, ranchers and producers, citing a need to "return to long-term, fiscally responsible initiatives."
The cancellation affects approximately $660 million in funding this year for the

Local Food for Schools programme

, operational in 40 states, alongside $420 million for the Local Food Purchase Assistance Cooperative Agreement, which supported food banks and local organisations in

community food distribution

, as reported by CBS News.
This action aligns with efforts by the Trump administration and Elon Musk-led Department of Government Efficiency (DOGE) to reduce government expenditure. These USDA programmes were supported through the

Commodity Credit Corporation

, established during the Depression era for direct farmer purchases.
A representative from the USDA confirmed to Politico that after providing a 60-day notice, the selected programmes would be " terminated following 60-day notification”.

Additionally, justifying the decision, a USDA spokesperson stated via email to CBS MoneyWatch: "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."
Schools recently learnt about the $660 million funding reduction for the current year, according to Diane Pratt-Heavner from the School Nutrition Association. This withdrawal impacts schools nationwide already dealing with elevated food costs.
One affected school district reports losing $100,000 intended for local beef and produce purchases for student meals.
"It's a pretty big hit, and that's mostly fresh fruits and vegetables," stated Patti Bilbrey, nutrition services director at Scottsdale Unified School District, Arizona. "It wasn't just about keeping food costs low — it meant supporting your community and your local farmers in your state."
Though $100,000 comprises roughly 2% of the district's annual £6 million food budget, Bilbrey indicated it enabled purchases from small farmers and introduction of items like microgreens to students. "The Local Food for Schools programme was a godsend to us," Bilbrey said. "It keeps our meal costs down, and we're helping our community, which improves the perception of school meals."