In a decision that’s already drawing sharp criticism nationwide, the U.S. Department of Agriculture (USDA) has announced the cancellation of more than $1 billion in federal funding that enabled schools and food banks to purchase food from local farmers and ranchers. States were officially informed on Friday that two crucial programs – integral to supporting local agriculture and combating food insecurity – will see their funding halted for fiscal year 2025.

This surprising announcement means that approximately $660 million, initially earmarked for the Local Food for Schools (LFS) Cooperative Agreement Program, will not reach schools and childcare facilities as planned. More than 40 states had previously participated in these initiatives, according to the School Nutrition Association (SNA) and various state agencies.

Moreover, USDA’s Local Food Purchase Assistance Cooperative Agreement Program (LFPA)—which provided critical financial support to food banks and other hunger-relief organizations—is also being discontinued. Although the agency will release previously frozen funds for existing LFPA agreements, officials confirmed they will not offer any new funding rounds in 2025.

A spokesperson from USDA clarified the agency’s stance, stating that the previously announced funds are “no longer available,” and all current agreements are set to terminate following a required 60-day notification period.

“These programs, created under the former Administration via Executive authority, no longer effectuate the goals of the agency,” the spokesperson said, adding reassurance that existing LFPA and LFPA Plus agreements, with substantial funding still available, will remain active through their original durations.

This reversal comes despite recent efforts by the Biden administration to strengthen these programs. Last year, the USDA had expanded their budgets significantly, injecting over $1 billion through the Commodity Credit Corporation, a historic fund established during the New Deal era to stabilize agricultural markets and supply chains. These initiatives were specifically designed to lessen reliance on large scale corporate food suppliers by encouraging schools and food banks to source directly from local farms.

The USDA’s sudden funding cuts, occurring now under the Trump administration, coincide with rising anxiety among school nutrition administrators nationwide. Many have openly expressed concerns about their ability to provide nutritious meals under the current federal reimbursement rates, which have not kept pace with inflation and escalating food costs.

Massachusetts Governor Maura Healey, a Democrat, sharply condemned the administration’s decision, highlighting the immediate impact of losing approximately $12 million intended for her state’s school districts.

“Donald Trump and Elon Musk have declared that feeding children and supporting local farmers are no longer ‘priorities,’ and it’s just the latest terrible cut with real impact on families across Massachusetts,” Healey said emphatically in a public statement.

As inflation continues to squeeze household budgets, reliance on food banks has significantly increased nationwide, underscoring the vital importance of federal support programs. Advocates fear that eliminating these funds will exacerbate existing food insecurity, leaving schools and charitable organizations scrambling to bridge critical nutritional gaps.

With communities now grappling to adjust to this unexpected financial blow, the question remains: How will schools and food banks adapt without these pivotal federal programs that had promised a brighter future for local agriculture and food access?