USDA cutting millions of dollars that Minnesota schools, child care centers and food banks used to buy local food

Minnesota schools, child care centers and food banks will have less money to work with this year, following cuts by the U.S. Department of Agriculture (USDA) in two programs that allowed local groups to buy food directly from local farmers and producers.

The USDA on Friday notified states that it is scrapping the Local Food for Schools and Child Care Cooperative Agreement and a second program that allowed food banks to buy food locally, enabling it to ax more than $1 billion in spending.

Early estimates indicate Minnesota will lose about $18 million in funding as the pandemic-era programs are eliminated. According to the USDA, the programs no longer deliver on the goals of the agency and will end within 60 days of notification.

The USDA’s cuts come as President Donald Trump’s administration seeks to sharply shrink the federal government and how much money it spends. A USDA spokesperson defended the cuts, saying they are “marking a return to long-term, fiscally responsible initiatives.”

“With 16 robust nutrition programs in place, USDA remains focused on its core mission: strengthening food security, supporting agricultural markets, and ensuring access to nutritious food,” the spokesperson said in an email to the Minnesota Star Tribune. “The COVID era is over — USDA’s approach to nutrition programs will reflect that reality moving forward.”

About $660 million will no longer be available to schools and child care facilities across the nation. The spending cuts threaten school meal programs and limit student access to healthy meals, according to the Arlington, Va.-based School Nutrition Association.

“These proposals would cause millions of children to lose access to free school meals at a time when working families are struggling with rising food costs,” according to a statement from association president Shannon Gleave. ”Congress needs to invest in underfunded school meal programs rather than cut services critical to student achievement and health.”

The Local Food Purchase Assistance Cooperative Agreement Program was slated to provide about $500 million this year to food banks.

The cuts will be felt by Minnesota schools and farmers, said state Deputy Agriculture Commissioner Andrea Vaubel, who called the programs “beautiful.” The USDA had signed agreements with Minnesota to provide $13.2 million for schools and child care centers, and $4.7 million for the food bank program during fiscal year 2025.

“We are bummed,” Vaubel said. “This really would have helped.”

While the state has provided some money for the Agriculture Department’s Farm to School program, which will continue, she said that ”we won’t have nearly the $13.2 million and have the impact, had we gotten funded."

Over the past few years, the USDA has sent $3.45 million to Minnesota, which was disbursed to 114 school districts, and awarded $8.14 million to dozens of groups including tribes, government entities and organizations.

The programs “had a lot of success,” Vaubel said.

The USDA will honor agreements already in place, she said, but the money allocated for fiscal year 2025 has been pulled.

More than 40 states participated in the programs providing funding to state, tribal and territorial governments to purchase food produced within the state or within 400 miles of the delivery destination. The programs helped support local, regional and underserved producers.