Food Banks Stay Resilient Despite Funding Uncertainty

Food banks across the country are staying calm and continuing their critical work despite uncertainty around federal hunger relief program funding following directives from the new administration.

Federal funding supports numerous essential programs, including TEFAP, which supplies food to food banks; SNAP, the country’s largest nutrition assistance initiative; WIC, aimed at women and children; school lunch programs; and several others. Concerns about potential disruptions emerged in the administration’s first week when it froze federal grants and loans. Before specific impacts could materialize, a court temporarily blocked the freeze, offering immediate but perhaps only short-term relief.

Despite the temporary reprieve, substantial uncertainty remains. The administration continues reviewing funding programs to determine alignment with its new priorities, leaving initiatives like SNAP potentially vulnerable to legislative actions that might limit their reach. Food banks, however, appear largely unshaken.

“We’ve been through lots of transitions, lots of crises, lots of disasters,” said Michael McKee, CEO of Virginia’s Blue Ridge Area Food Bank. “We know how to put our heads down and get the work done.”

Amid the uncertainty from Washington, food banks have intensified their emphasis on statewide initiatives. In Virginia, Blue Ridge Area Food Bank is dedicating significant effort to collaborating with fellow food banks on state level strategies, including legislative advocacy, joint fundraising, coordinated programming, and forming partnerships with non-food service organizations. McKee explained, “I think that’s keeping us grounded.”

Similarly proactive, Minnesota’s Second Harvest Heartland recently hosted a summit at the end of January to unite hunger relief organizations statewide and build new collaborations. During the event, Second Harvest shared findings from a recent hunger study, highlighting that one in five Minnesota households struggles to afford sufficient food.

“We’re being as proactive as we can be at a time when there are more questions than answers,” noted Allison O’Toole, CEO of Second Harvest Heartland, emphasizing the importance of collaborative problem-solving around the universal issue of hunger.

In Oregon, food banks are leaning further into local initiatives. Andrea Williams, President of Oregon Food Bank, highlighted the importance of a statewide advocacy campaign launched in 2022, now involving over 160 organizations. The campaign aims to extend SNAP – like benefits to immigrant communities currently excluded from federal assistance. “This is a moment for us in Oregon and in states with similar values to lean into local solutions,” Williams stressed.

However, food banks remain vigilant about federal developments. Williams noted that about 40 percent of charitable food in Oregon is supplied through TEFAP, underscoring potential vulnerabilities. One federal program of particular concern is USDA’s Local Food Purchase Assistance (LFPA) program, which helps food banks buy produce from underserved local farmers, often people of color. While popular among both farmers and food banks, LFPA may face risks from the administration’s stance against diversity, equity, and inclusion programs.

Scott Carter, President and Chief Strategy Officer at Conduit Government Relations, expressed cautious optimism that LFPA would avoid targeting because USDA’s definition of “underserved” populations includes broad categories such as veterans, rural residents, and seniors, not solely communities defined by race.

The future of programs related to Food is Medicine, particularly Medicaid 1115 waivers, also remains unclear. R.J. Briscione, Principal at Health Management Associates, suggested during a recent webinar that new Medicaid 1115 waivers would likely not be approved under this administration. Yet, McKee from Blue Ridge Area Food Bank remains optimistic, emphasizing the ongoing federal focus on social determinants of health, including food security. “When you wave away all the smoke and disregard the noise, I’m as optimistic about this as I was six months ago,” McKee stated.

The administration’s trade tariffs also pose implications for food banks. During previous tariff escalations, food banks benefited from programs that purchased surplus produce from affected farmers. However, Joe Slater, Chief Operating Officer of Gleaners Food Bank of Indiana, pointed out a potential downside: higher consumer prices due to tariffs could drive more people toward food banks.

To weather potential disruptions, Gleaners has diversified its revenue streams, reducing reliance on federal funding sources such as TEFAP, which now represents just about 10 percent of its food supply. “We want as diversified a revenue stream as we possibly can,” Slater explained. “In times like this, it pays off.”