USDA announces new round of funding to support local procurement in schools

The U.S. Department of Agriculture (USDA) has announced it is investing $1.2 billion to go toward local food purchases at schools, childcare facilities, food banks, and other institutions. 

As part of the new round of funding, $500 million will be made available to school meal programs to make local food purchases. States, territories, and Tribal nations will also receive $500 million to purchase local foods for emergency food providers and underserved communities. In addition, childcare facilities will receive $200 million to also go toward procuring locally. 

The funding comes from the Commodity Credit Corporation (CCC). 

“The investments USDA is announcing today provide immediate and long-term assistance to American farmers, families, and communities,” said Agriculture Secretary Tom Vilsack in a statement. “By delivering food from domestic producers to schools, child care facilities and emergency feeding organizations, we’re securing local and regional markets for those farmers and ensuring our students, young children and neighbors in need are getting nutritious, reliable meals. These types of investments keep local economies strong and help build resilient food systems with lasting impact.”

The School Nutrition Association (SNA) applauded the new round of funding saying that it will help school nutrition professionals as they continue to struggle with rising costs. According to a school nutrition director survey conducted by the SNA last fall and released earlier this year, 99.3% of respondents said they are challenged by rising costs and only 17% said that the federal reimbursement rate is sufficient to cover the cost of producing a school lunch.

“School nutrition professionals greatly appreciate Agriculture Secretary Tom Vilsack’s recognition of the need to provide greater financial support to school meal programs as they work to ensure America’s students are fueled for success,” SNA President Shannon Gleave said in a statement. “These funds will connect more students with nutritious, locally grown foods while helping offset costs for school meal programs squeezed by tight budgets.”

The USDA has focused on investing in local over the past couple of years. In 2022, it announced its $100 million Healthy School Meals Incentives initiative which aims to help schools strengthen their procurement efforts and increase the amount of scratch-made meals on school menus. 

Under the incentive, the department partnered with Boise State University, Chef Ann Foundation, Full Plates Full Potential and the Illinois Public Health Institute to launch its School Food System Transformation Challenge Sub-Grant program which supports projects aimed at strengthening the supply chain for school foodservice programs.

In addition, the department awarded a record-breaking $14.3 million in farm-to-school grant funding earlier this summer as part of its Patrick Leahy Farm to School Program.