USDA Announces Termination of More Than $1 billion in Funding for U.S. Students

What Happened?

The U.S. Department of Agriculture (USDA) announced the termination of more than $1 billion in funding for local food banks and schools that aid government food purchases.

This move comes after the removal of two key programs that support the purchase and distribution of goods produced within 400 miles of the delivery destination.

The Local Food for Schools Cooperative Agreement Program and the Local Food Purchase Assistance Cooperative Agreement Program 'no longer effectuate the goals of the agency,' according to a statement obtained by The Hill.

Roughly $660 million in 2025 was set to purchase produce from local farms for schools and childcare facilities.

Another $500 million would have reportedly been allocated this year to food banks from the other program.

'With research showing school meals are the healthiest meals Americans eat, Congress needs to invest in underfunded school meal programs rather than cut services critical to student achievement and health,' School Nutrition Association (SNA) President Shannon Gleave said in a statement.

SNA reportedly opposed additional cuts for school meal programs at the U.S. Capitol Tuesday, citing various reductions listed in the House budget reconciliation package.

The Hill reports that the GOP resolution would require income verification to accompany every free and reduced-price school meal application.

Broad-based eligibility would essentially end which allowed automatic approval for families enrolled in the SNA program.

Officials estimate the move would take free meals away from 12 million U.S. students.

Why it Matters

The Trump administration has recently canceled more than 80% of all U.S. Agency for International Development (USAID) programs, as part of efforts to reduce federal spending.

President Donald Trump's advisor Elon Musk stated many of these moves have been tough but necessary.

Most federal departments will have limited power to hire more staff without the Department of Government Efficiency (DOGE) being coordinated.

Thousands of probationary employees have already been laid off.

A former USAID official warned that many of these actions can lead to large-scale issues surrounding national security and preventable deaths.

Most funding for agencies like the USDA has helped address food insecurities impacting families nationwide.

DOGE estimates, however, that such actions have saved $105 billion in spending so far.

How it Affects You

From funding cuts and legal challenges, the federal government has ensured vast amounts of changes under the current Trump administration.

Many actions have sparked concerns about constitutionality and whether Congress can require a president to spend money.

The Trump administration aims to cut at least $1 trillion from the $6.7 trillion federal budget.

Nonprofit agencies and many state governments are likely to bear the burden of these mass funding changes.