The U.S. Department of Agriculture (USDA) has announced significant cuts exceeding $1 billion annually to local food purchasing assistance programs. These initiatives are vital for schools and food banks seeking to access locally sourced food.
Funding details were revealed on March 10, 2025, with an official announcement following on March 11. The cuts will impact two critical programs, ultimately affecting funding that surpasses $1 billion aimed at supporting schools and food banks.
As reported by Politico, the USDA plans to terminate the $660 million Local Food for Schools Program by 2025. This program is slated to be accompanied by the cancellation of the $500 million Local Food Purchase Assistance Program, which has provided essential support to food banks.
Insights into USDA Cuts and Rationale

The allocated funding of $660 million under the Local Food for Schools program was specifically designed to facilitate the procurement of locally grown food. The USDA’s decision to phase out this initiative impacts numerous schools, particularly those in rural areas reliant on fresh, locally sourced produce.
The first program affected, the Local Food for Schools Program, has long supported institutions in sourcing organic and freshly grown food for their cafeterias. This vital link between local agriculture and educational nutrition is now threatened.
The other affected initiative, the Local Food Purchase Assistance Cooperative Agreement Program, was established to provide food banks with financial support to obtain food directly from local farms and ranches. Set to distribute $500 million to food banks, the program’s termination means these organizations will face challenges in managing rising food costs and demand.
The rationale behind these cuts points to budget constraints and the expiration of pandemic-related relief programs that previously provided additional support to these sectors.
Consequences for Schools and Food Banks

The School Nutrition Association, representing cafeteria workers and school administrators nationwide, has raised alarm over these funding cuts. They issued a statement highlighting that the elimination of the Local Food for Schools Program for 2025 will hinder schools’ ability to provide nutritious meals.
A USDA spokesperson remarked:
“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 elimination of the Local Food Purchase Assistance Cooperative Agreement Program means food banks will struggle to maintain the quality of meals they provide, impacting vulnerable populations in need of support.
Context of the Cuts
These USDA budget reductions are part of a broader strategy initiated by the Trump Administration to curb government spending, resulting in cuts across various sectors, including agriculture, education, and social services.
Moreover, these adjustments have contributed to escalating trade tensions with key partners like China, Mexico, and Canada. The implementation of new tariffs on exports to these countries has dramatically affected U.S. farmers and ranchers, forcing many to cut back on investments and staffing—thereby placing additional strain on funding for sustainable agricultural practices.
Broad Implications of Federal Budget Cuts

The recent USDA funding reductions have ignited an essential dialogue on the role of federal support in various economic sectors. Many voices in the community argue that such funding cuts will adversely affect vulnerable groups, including children, low-income families, and farmers.
As food security continues to be a pressing issue in the U.S., these funding reductions raise serious concerns about their long-term effects on public health, education, and the overall wellbeing of communities across the nation.