Business
Federal Budget Cuts Tighten Grip on Struggling Food Banks and School Lunch Programs

Federal funding has significantly impacted the Day Eagle Hope Project, enabling volunteers to deliver fresh produce and meat to families on the Fort Belknap Indian Reservation in northern Montana. This initiative has not only provided essential nourishment but also supported local farmers, ranchers, and meat processors.
Historically, the nonprofit operates with a budget of less than $300,000 annually. However, a recent allocation of $200,000 from the U.S. Department of Agriculture (USDA) has vastly improved the quality and quantity of food it can offer. “They were a major, major contributor to our food,” stated Tescha Hawley, the organization’s director, underscoring the assistance’s critical role in enhancing the community’s physical, mental, and spiritual health.
In a concerning turn of events, the USDA has announced cuts exceeding $1 billion to programs that supported local food purchases for food banks and school meal initiatives. Among these cuts is the elimination of $660 million intended for schoolchildren, described by U.S. Agriculture Secretary Brooke Rollins as “nonessential.” This decision has left schools and food banks grappling with rising food prices and escalating food insecurity challenges.
Originally established during the COVID-19 pandemic, the Local Food Purchase Assistance and Local Food for Schools programs aimed to enhance domestic food supply chains by connecting educational institutions and food pantries with local producers. They were initially funded through the American Rescue Plan Act of 2021 and later expanded under the Biden administration.
These federal programs encouraged the purchase of locally sourced fruits, vegetables, dairy, and meats. This reciprocity not only benefited small farmers but also ensured that funded organizations could access high-quality food. Grants were distributed to all 50 states, the District of Columbia, and 84 tribal governments, benefiting over 8,000 farmers and supplying food to nearly as many food banks. However, the recent cuts threaten to dismantle these critical supports.
Hawley expressed concern about future food offerings without adequate funding. “I can get a truck in here with all highly processed food, no problem,” she noted, highlighting the dilemma of resorting to less nutritious options.
School districts, too, are reeling from the impacts. Some officials hope to provide local products but face challenges with affordability. In Milan, Tennessee, federal funds previously allowed local schools to purchase minimally processed foods from nearby producers. Vickie Dunaway, the food services supervisor, criticized the cuts, stating, “That will obviously have to be cut out, because our budget will not withstand being able to purchase local.”
In late 2022, USDA announced the two programs had surpassed $1 billion in local food expenditures and signaled an expansion of an additional $1.13 billion. With the recent cuts, however, that expansion is no longer an option, although previously committed funds will continue to be reimbursed. The Trump administration has justified these cuts by stating the programs “no longer effectuate the goals of the agency.”
The National Association of State Departments of Agriculture, a nonpartisan organization representing agricultural leaders nationwide, urged the federal government to maintain support for local food initiatives and to simplify procurement rules for school meal programs. Arkansas Secretary of Agriculture Wes Ward has backed the association’s stance, emphasizing that local food frameworks strengthen community connections and enhance supply chain resilience.
In New Mexico, food banks have utilized the now-defunct program to secure nearly 900,000 pounds of local food from over 200 farmers. The expected additional funding of $3 million was a crucial element for ongoing efforts. Jill Dixon, director of The Food Depot, labeled the cuts “devastating.”
In Texas, the San Antonio Food Bank has benefited from the USDA’s local food program, supplementing their offerings for families in need. President and CEO Eric Cooper noted, “This program allowed us to purchase those items that we didn’t get that then helped round out the food box.” Previously, the program provided about 20% of the food bank’s budget for bulk purchases, a significant blow as needs rise due to increased food prices and anticipated layoffs of federal workers.
School meal programs have struggled for years under tight budgets, often forced to cover unpaid meal debts while adhering to strict nutritional standards. For example, a school system in Arkansas found that $50,000 from the USDA program was a major help amid a $60,000 meal debt. Amanda West, the district’s nutrition director, emphasized that locally sourced beef noticeably improved meal quality.
The uncertainty surrounding the future of these programs remains a pressing issue. With congressional Republicans eyeing cuts to the school meal programs, the implications could affect millions of American students. The School Nutrition Association has highlighted the ongoing concerns regarding funding adequacy for these vital initiatives and the potential repercussions for the health of children across the nation.