A voluntary Local Food Purchase Option within the USDA Foods Program

Congress can create a new optional pathway for states and schools to redirect a portion of their existing entitlement dollars toward minimally processed, locally sourced proteins, grains, and produce. They can make this change by amending 42 U.S.C. § 1755(c) in the next Farm Bill or another agriculture-related legislative vehicle.

Rather than create a new program, we are proposing opening a new lane within a system that already exists. This is similar to how DoD Fresh works, but specifically with the purpose of creating decentralized local markets. This pathway would be entirely optional: schools that prefer to continue using Brown Box, Further Processing, or DoD Fresh as usual can keep doing exactly that.

In addition to this no-cost solution, we also support an increase in State Administrative Expense funding by approximately 5% to ensure effective implementation and program transparency and an increase in the 11-cent per-meal entitlement baseline, which has not been updated since 1982, despite major increases in Section 32 revenues from tariffs. 

This Local Food Purchase Option Would: 

• Support American farmers and ranchers by creating stable, accessible market opportunities for small and mid-sized producers who cannot compete through existing large-scale federal procurement channels;
• Increase scratch cooking and improve the nutritional quality of school meals by giving schools access to fresher, minimally processed local proteins, grains, and produce, consistent with the 2025-2030 Dietary Guidelines for Americans;
• Preserve state and local authority by establishing a fully voluntary opt-in structure that empowers states and school districts to make decisions tailored to their own agricultural economies, geographic realities, and procurement goals; and
• Strengthen the U.S. agricultural economy by diversifying market channels in a time of global uncertainty.

As we continue to advocate for dedicated federal funds for local food, this concept gives schools a path forward right now, freeing up dollars already on the table, without waiting for new appropriations for food costs.

Local decision-making built into an existing system

States and schools will have local control at every step. Here is how the option would work in practice:

1. States opt in
   NFSN wants state agency control to be the first step. Note, other proponents of this policy concept seek to make this program mandatory across the nation.
2. Schools choose how much to divert
   Each school food authority selects a portion of entitlement to direct toward local sourcing as part of their annual USDA Foods planning. This portion can be as much or as little as they’re comfortable with.
3. Funds go to the state agency
   Diverted entitlement dollars are sent to the state at the start of the year for administration and oversight. 
4. States have flexibility in program administration
   Funds can flow to schools through direct reimbursement, contracts with food hubs or distributors, or state-managed procurement and distribution. Regardless of model, SFAs must receive the full amount of any diverted funds to spend on local food.
5. Verification and accountability
   State agencies verify purchases to ensure program integrity. This is why increasing State Administrative Expense funding and including baseline SAE funding for participating state agencies is key.

Co-developed Key Partners and NFSN Partners At-Large

• Before 2025 - Years of partner feedback
  ‍NFSN heard consistently from food service providers and state partners that the current entitlement system did not give schools enough flexibility to buy local. Interest in pilot programs like Cash in Lieu of Commodities and Commodity Letters of Credit continued to grow.
• May 2025 - Brainstorming session with over 200 registrants
  ‍After the termination of USDA’s Local Food for Schools (LFS) program, the whispers about Cash in Lieu continued to grow. NFSN hosted a national brainstorming session to hear directly from partners about their experiences with entitlement spending and their ideas for more flexibility. The response was significant, as more than 200 individuals registered to participate.

• Starting May 2025 - Policy design with a core coalition
  ‍NFSN joined a core group of national partners to work through what this policy could look like in practice, drawing on their expertise in food law, school nutrition, sustainable agriculture, and food systems. Partners include:
  Friends of the Earth
  National Sustainable Agriculture Coalition
  Chef Ann Foundation
  Center for Good Food Purchasing
  ScratchWorks
  Harvard Food Law and Policy Clinic
• December 2025 - February 2026 - Listening Sessions
  ‍NFSN held four focused listening sessions covering state agencies, former USDA staff, child nutrition professionals, aggregators, and technical assistance providers on an earlier concept idea. The feedback from approximately 200 attendees directly shaped the final proposal.
• Spring 2026 - Policy finalized, Congressional Outreach, Building Momentum
  ‍NFSN finalized the policy proposal and began meeting with legislators on Capitol Hill to identify a congressional sponsor for the concept.
  Now we are seeking broad, visible support from organizations across the country to show Congress that communities everywhere stand behind this idea. 

See what this could mean for your state

Even a small diversion of entitlement funds can have outsized economic impact. In Arkansas, for example, redirecting just 5% of entitlement dollars would send $766,000 to local family farms, with an estimated $1.3 million in additional economic impact according to the USDA Agricultural Marketing Service Local Food Impact Calculator.

Use the calculator below to model what this option could look like in your own state.

Congress needs to hear from you

We need broad, bipartisan support to show Congress that more flexibility is needed. We want to hear from food service professionals, farmers, food producers, parents, public health advocates, and everyone in between. The wider and more diverse our list of signers, the stronger our case. Add your organization to our sign-on letter, and share more ways you can lend a hand to this effort.