Millions in funds for Pennsylvania farms and food banks, including Philabundance, in jeopardy as USDA ends program

CBS News

27-03-2025

Philabundance, the largest food bank in the Philadelphia region, will now have to look at how to fill a million-dollar hole. This comes after the U.S. Department of Agriculture announced earlier this month it is terminating the Local Food Purchase Assistance Program.
"We're going to be losing about $1.5 million, about 18% of our food-sourcing budget," said Dorothy Wong with Philabundance. "This is probably one of the most significant reductions we've seen in a really long time."
The program provides funding for food banks to buy produce, dairy and meats from local vendors, and state leaders say the cuts will have impacts across Pennsylvania. On Tuesday, the head of the Central Pennsylvania Food Bank said the organization stands to lose nearly $2 million in funding and that around 500,000 fewer meals a month would go out.
Pennsylvania Gov. Josh Shapiro set his sights on the administration's decision this week.
"Pennsylvania farmers and food banks are owed $13 million, and I won't stand by and let our farmers get screwed," Shapiro said Tuesday from the Central Pennsylvania Food Bank.
That $13 million is how much the state stands to lose in funding over the three-year contract it says it signed with the USDA in December 2024. But it isn't just food banks impacted by the cuts.
This week, the Pennsylvania Department of Agriculture sent a list of 189 farms across Pennsylvania to the USDA that could be impacted by the loss of funding. These farms, the governor's office says, benefited from LFPA funding. One farm on that list is Living Hope Farm in Harleysville.
"It's a shame that this funding is being pulled away from small-scale farms and the mission of building a local food system," said Sam Chronister, manager at the farm.
Chronister says Living Hope has been open since around 2010 and grows a wide variety of seasonal fruits and vegetables. They also have a focus on filling food pantry shelves, with Chronister saying the farm donated more than 3,000 pounds of food to local food banks last year.
Around 20% of the farm's operation comes from various grants, according to Chronister. And while he didn't put an exact number of the impact losing LFPA money would have, he says every bit of money coming in matters, especially for small farms.
"It's already difficult, grants are already competitive. And taking that away is going to push us to find some other ways to make some money," Chronister said.
The cuts come at a time when the Trump administration is focused on
slashing federal spending
and the size of the
federal government as a whole
.
A spokesperson for the USDA said in part, "As a pandemic-era program, the Local Food Purchase Assistance (LFPA) will now be sunsetted at the end of the performance period, marking a return to long-term, fiscally responsible initiatives. This isn't an abrupt shift—earlier this month, USDA released over half a billion in previously obligated funds for LFPA and LFS to fulfill existing commitments and support ongoing local food purchases."
"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 the statement.
The
letter sent to USDA
by Pennsylvania Agriculture Secretary Russell Redding says the agency's termination notice said the contract "no longer effectuates agency priorities."
"It's hard for me to see how partnering with our farmers and feeding people doesn't align with the federal government's priorities," Shapiro said.
The governor on Tuesday called the termination of the contract between the state and USDA "unlawful," and said they have moved to appeal the decision. Shapiro said his administration would consider legal options if the USDA refused to rescind the termination.