In a major announcement, Agriculture Secretary Tom Vilsack has stated that the Biden-Harris administration will allocate $2.7 billion to bolster American agriculture, enhance school meal programs, and support emergency food operations. This funding, sourced from USDA’s Commodity Credit Corporation, includes nearly $1.3 billion for state purchases of food for school meal programs and nearly $1 billion for states to acquire commodities for emergency food providers, such as food banks and community kitchens, which are currently facing high demand and supply chain challenges.

This investment forms part of USDA’s broader initiative to increase the accessibility of nutritious, domestically produced food for American families and students. Additionally, USDA is offering up to $400 million in grants to enhance domestic fertilizer production capacity, aiming to reduce costs for producers.

Secretary Vilsack emphasized the resilience of American agriculture amidst significant, unpredictable challenges, noting, “To help ease the burden of these challenges, USDA is taking action and providing additional support for producers and food program operators.” The investments are intended to aid producers by increasing commodity purchases for schools and emergency food providers, and by supporting expanded domestic fertilizer capacity.

The USDA will provide funding to states and territories for purchasing domestic foods for school distributions, bringing the total additional commodity support for school meals to nearly $3.8 billion since December 2021. This action addresses increased food and labor costs affecting school meal programs, especially as schools will lose temporary financial support authorized for the 2022-2023 school year in the bipartisan Keep Kids Fed Act of 2022.

To support families facing food and nutrition insecurity, USDA is allocating nearly $1 billion for commodity purchases from U.S. farmers to bolster the emergency food network. This funding is critical as many households report food insufficiency, exacerbated by the expiration of pandemic-related SNAP Emergency Allotments.

Moreover, USDA is dedicating up to an additional $400 million for grants through the Fertilizer Product Expansion Program (FPEP). This program aims to expand domestic fertilizer manufacturing and processing, thereby providing American farmers with more reliable and affordable nutrient sources. With immense interest in the program, USDA is also announcing $30 million in grants under FPEP’s first round and is seeking public comments on potential projects for a second funding round.