USDA Invests Nearly $2 Billion, Leverages American Agriculture to Feed Kids and Families

USDA Invests Nearly $2 Billion, Leverages American Agriculture to Feed Kids and Families

The agency said this support will help food banks and school meal programs endure supply chain challenges and elevated food costs as they provide food to children and families in need.

September 22, 2022

WASHINGTON, D.C. — The United States Department of Agriculture (USDA) announced that it will provide close to $2 billion in additional funding to food banks and school meal programs for purchasing American-grown foods. The support will help these organizations endure supply chain challenges and elevated food costs as they continue to fulfill their mission of providing nutritious foods to children and families in need.

The funds, provided through USDA’s Commodity Credit Corporation (CCC), will be used in three ways:

  • Nearly $1 billion to purchase food for emergency food providers like food banks
  • Nearly $500 million to expand the Local Food Purchase Assistance (LFPA) cooperative agreement program, through which 49 states, 33 tribes and four territories are already working to purchase local foods for their emergency food systems
  • Nearly $500 million for schools across the country to purchase food for their lunch and breakfast programs, bringing the total CCC investment in school food since December 2021 to close to $2.5 billion, benefiting the roughly 30 million students who participate in school lunch and 15 million who participate in school breakfast each day.

“Funding these initiatives is paramount in the fight against hunger and further demonstrates the Biden-Harris administration and USDA’s commitment to strengthen food and nutrition security,” said Agriculture Secretary Tom Vilsack. “We must ensure Americans have access to safe, healthy, affordable food for longevity and optimal health.”

The investment is part of the department’s broader commitment to strengthening the supply chain and making nutritious food more accessible for families.

“Food banks and schools are the backbone of our nutrition safety net, serving tens of millions of children and families,” said Stacy Dean, deputy under secretary for food, nutrition, and consumer services. “The Biden administration understands that supply chain disruptions and high food costs have created uncertainties for these crucial partners, and we are committed to equipping them with the resources they need to keep communities fed, strong and healthy.”

“These programs directly connect American producers with food banks and schools, strengthening our rural economies while helping those most in need,” said Under Secretary of Marketing and Regulatory Programs Jenny Lester Moffitt. “As part of the Biden Administration’s commitment to transforming our nation’s food system, USDA is dedicated to fostering partnerships between producers and food assistance programs. Working together, farmers, food banks and schools can improve our nation’s food and nutrition security.”

EMERGENCY FOOD PROVIDERS. USDA will use $943 million to procure USDA Foods for use by emergency feeding organizations facing increased need.

USDA’s Agricultural Marketing Service and Food and Nutrition Service will work jointly to identify products most likely to be available for purchase and offer those products based on a formula to The Emergency Food Assistance Program (TEFAP) state agencies for further distribution to local agencies, primarily food banks. 

USDA will open orders in 2023, with deliveries occurring on an ongoing basis throughout 2023 and 2024.

A percentage of the $943 million will support incidental costs incurred by local agencies for the storage and transportation of the USDA Foods. Funds will be allocated to state agencies in proportion to the amount of food ordered for local distribution, with all funds passed through to the local agencies.

USDA’s Agricultural Marketing Service and its Commodity Procurement Program annually buy more than $3 billion of domestically produced and processed meat, poultry, fruit, vegetables, dairy, grains and oilseed. These purchases of products, collectively called USDA Foods, support American agriculture by encouraging the consumption of domestic foods and provide safe, nutritious food for a variety of federal, state and international nutrition assistance programs. They are delivered to schools, food banks and households in communities across the country.

LFPA. LFPA supports states, territories and tribes to purchase food from historically underserved producers as well as local and regional producers to support emergency food assistance efforts. An allocation of $471.5 million will be used for cooperative agreements with states, tribes and territories to purchase locally available food grown within each state or within 400 miles of the delivery destination that will be distributed to meet the unique local needs of each community through emergency nutrition programs, including food banks, schools and organizations that reach underserved communities.

SCHOOL MEAL PROGRAMS. An investment of another $471.5 million will be used for the third round of Supply Chain Assistance funds provided to states to support the purchase of American-grown foods for their meal programs.

Supply Chain Assistance funding can be used by school districts to purchase unprocessed and minimally processed domestic food such as fresh fruit, milk, cheese, frozen vegetables and ground meat. Each state will allocate the funds to schools based on student enrollment, with a minimum amount per district to ensure that small schools are not left behind.

This assistance builds on the two rounds of Supply Chain Assistance funds that totaled nearly $2 billion that USDA previously allocated in December 2021 and June 2022. These funds deliver relief from ongoing supply chain issues and improve the quality and consistency of school meals for children in communities experiencing disruptions.