Subsidy for local supply chain cancelled
In March 2025, the federal Agriculture Department of the US axed two pandemic-era programs that gave schools and food banks money to buy food from local farms and ranchers, halting more than $1 billion in federal spending.
It said the Local Food Purchase Assistance (LFPA) programs created under the previous administration “no longer effectuate the goals of the agency.”
Ending the programs seems part of an effort by the Trump administration to shrink the federal government and how much money it spends.
Some 8,000 food banks (who provide food to elderly and low income families) benefitted from the program and were able to supply fresh local produce like meat, fruit and vegetables.
This decision also cancels roughly $660 million that schools and child care facilities were counting on to purchase food from nearby farms through the Local Food for Schools Cooperative Agreement Program in 2025.
The cuts have significantly impacted food banks, schools, and small farmers across more than 40 states.
For example, Harvesters Food Bank in Missouri and Kansas lost federal commodity shipments tied to these programs, compounding existing challenges in meeting rising food insecurity.
In Massachusetts, organizations like Eastie Farm used LFPA grants to distribute food boxes sourced entirely from New England farmers, serving quadrupled demand before the funding ended.
Similarly, the Treasure Coast Food Bank in Florida, which previously received $3.5 million, now faces reliance on more processed foods despite efforts to promote healthier diets.
Small and socially disadvantaged farmers, including early-career and minority producers, are particularly affected. In Illinois, the program prioritize support for farmers who faced racial or ethnic discrimination, helping many launch their businesses.
In Wisconsin, over half of the nearly 300 farmers benefiting from the food bank program were early-career farmers.
Anna Pesek of Over the Moon Farm in Iowa said the program accounted for about 10% of her business and helped build sustainable supply chains with local feed mills and butchers.
Meanwhile…
While several states like Iowa and Texas have launched or maintained their own local food initiatives, they fall far short of the federal investment.
Meanwhile, the USDA announced $10 billion in expedited payments to commodity farmers (growing soybeans, wheat, corn, etc.), drawing criticism for favoring large-scale operations over small, local producers.
Multiple efforts continue to reinstate the programs through the upcoming farm bill negotiations and by other mechanisms, including at state level.