USDA Cuts $1B in Local Food Programs, Impacting Schools and Food Banks

The U.S. Department of Agriculture (USDA) has eliminated two major federal programs that supported local food purchases, cutting over $1 billion in funding. The move affects schools, food banks, and farmers nationwide.

The Local Food for Schools (LFS) program, which allocated $660 million annually to help schools buy food from local farms, has been discontinued for 2025, according to the School Nutrition Association. Additionally, Politico reported that the Local Food Purchase Assistance Cooperative Agreement Program (LFPA)—which provided nearly $500 million annually to food banks—has also been cut.

The USDA has not yet issued a formal statement regarding the cuts, but the decision aligns with President Donald Trump’s efforts to reduce federal spending. The move comes amid escalating trade tensions, as the administration has imposed new tariffs on Canada, Mexico, and China, impacting U.S. agricultural exports.

With reduced funding and growing uncertainty, farmers and food organizations are now facing major challenges. Many are cutting staff and freezing investments as USDA grant programs are scaled back. Agricultural support groups warn that these cuts could have widespread economic consequences, particularly for small farmers and food-insecure communities.

The cuts mark a significant shift in federal agricultural policy, raising concerns about the future of local food sustainability, school nutrition programs, and food security in the U.S.