USDA $1 billion cuts hit hard: U.S. schools, food banks, and farmers face uncertain future

By Lydia Gichuki

USDA $1 billion cuts hit hard: U.S. schools, food banks, and farmers face uncertain future

Millions of schoolchildren across the U.S. could soon face empty lunch trays, while small-scale farmers and food banks are bracing themselves for increasing financial pressure as the Trump administration moves to cut key federal food assistance programs.

No more free meals in U.S. schools?

The U.S. Department of Agriculture (USDA) has cut approximately $1 billion in funding, including more than $660 million from the Local Food for Schools (LFS) initiative, which supports schools and childcare centers to source local meals.

Over 40 states entered into agreements to participate in the LFS program last year and in December 2024, the USDA announced $1.13 billion in funding to help them to purchase and distribute locally sourced produce to schools, childcare centers, and food banks for the 2025 fiscal year. However, this program is now facing significant rollbacks.

The School Nutrition Association (SNA) warns that the move could remove free meal eligibility for 12 million low-income students in over 24,000 schools, potentially worsening food insecurity among children.

“With research showing school meals are the healthiest meals Americans eat, 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,” explained SNA President, Shannon Gleave.

Food crisis looming in the USA?

In addition, as reported by Politico, the USDA has cut roughly $500 million from the Local Food Purchase Assistance (LFPA) program which is a critical resource for food banks.

These cuts are exacerbating a food crisis, as U.S. food prices increased by 23.6% between 2020 and 2024, outpacing inflation. As a result, more Americans are turning to food banks which are already struggling with soaring food prices.

States are already reacting to these cuts. The Illinois State Department of Agriculture confirmed that the USDA had notified states that invoices for LFPA and the Resilient Food Systems Infrastructure Program submitted after January 19 would not be reimbursed which led to Illinois discontinuing its participation.

In a statement seen by the Associated Press, a USDA official defended the cuts, stating that the two programs, originally established during the COVID-19 era, are no longer necessary and that nutrition programs will be adjusted to align with the current post-pandemic landscape.

Low-income families, farmers further burdened

Broader food assistance programs are also coming under scrutiny. The Republican Party’s budget proposal includes a 20% cut to the Supplemental Nutrition Assistance Program which currently provides food aid to 41 million Americans, putting further pressure on low-income families.

These cuts come as part of the Donald Trump administration’s broader push to reduce federal spending and eliminate programs that are deemed to be non-essential.

At the same time, U.S. farmers are facing additional financial pressure as the administration implements new tariffs on key agricultural trading partners – Mexico, China, and Canada.

Mexico accounts for 36% of total U.S. corn export commitments, while China has retaliated with tariffs on $21 billion worth of American agricultural and food products, including an additional 10% levy on soybeans and a 15% tariff on corn.

The situation mirrors the 2018 trade war which led to a $27 billion decline in U.S. farm exports, forcing the administration to issue a $23 billion bailout to offset farming losses. With the latest budget cuts and trade tensions escalating, farmers, food banks, and millions of low-income families now face an uncertain future.