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Reuters
22-05-2025
- Politics
- Reuters
Exclusive: US farm agency cancels food aid for children in poor countries
WASHINGTON, May 22 (Reuters) - The U.S. Department of Agriculture has terminated 17 projects under a foreign aid program that funds school meals for children in low-income countries, according to an email sent from USDA to congressional staff. The cuts to the McGovern-Dole Food for Education program are in addition to 27 projects canceled last week under USDA's Food for Progress aid program, which sends U.S. commodities abroad for economic development. Those cuts were previously reported by Reuters. The terminations are another blow to U.S. foreign aid initiatives as President Donald Trump slashes government spending, leaving food intended for aid programs to rot in warehouses. The moves have raised concerns about increased hunger abroad. In all, 44 projects have been canceled in countries including Honduras, Kyrgyzstan, Sierra Leone and Nepal. The projects are "not in alignment with the foreign assistance objectives of the Trump Administration," said the email sent to congressional staff, which was seen by Reuters. A USDA spokesperson said the programs were canceled in accordance with a January 20 executive order on aligning foreign aid with U.S. interests. Earlier, the White House and the Department of Government Efficiency had pressured the USDA to reduce spending on overseas programs, according to a source familiar with the situation. The White House did not immediately respond to a request for comment. Twelve of the canceled McGovern-Dole projects are administered by the Catholic Relief Services, according to the email. Haydee Diaz, CRS's country representative in Honduras, said the group's program there serves 97,000 children across more than 1,700 schools in rural municipalities where malnutrition and stunting - a condition where children's growth is hindered due to a lack of adequate food - are serious issues. The program uses corn, rice, beans and a fortified soy blend from U.S. farmers for school meals that are prepared by 10,000 volunteers, Diaz said. The aid can help reduce migration to the U.S. because it provides parents the assurance their children will at least have one healthy meal per day in their home community, Diaz said. "What we'll see is more desperation, and more migration," Diaz said. U.S. farmers have received payment for the donated commodities and grantees must deliver commodities to their final destinations, said the email to Congress. Grantees were told by the USDA to dispose of their commodities within 30 days, according to another source familiar with the situation. That could mean giving the food away, or destroying it, the source said. Diaz said her program aims to distribute as much of the aid as it can in the short window. Despite the cuts, the USDA is still administering 14 remaining Food for Progress projects in 17 countries and 30 McGovern-Dole projects in 22 countries, the email said. The agency has also published a funding notice for next year's McGovern-Dole program and is finalizing the funding notice for Food for Progress, the email said. McGovern-Dole fed 2.5 million food-insecure children in 2023, according to a program report to Congress. McGovern-Dole awards totaled $248 million and sent more than 37,000 metric tonnes of U.S. commodities abroad.
Yahoo
05-02-2025
- Business
- Yahoo
Exclusive-US food purchases for foreign aid halted despite waiver, sources say
By Lisa Baertlein, Leah Douglas and Tom Polansek (Reuters) - The U.S. has stopped purchases for foreign food aid programs since the Trump administration began a sweeping review of federal aid spending, despite a waiver issued nearly two weeks ago for food assistance, according to nine sources. The freeze in purchases of wheat, soybeans and other commodities produced by U.S. farmers could hinder or halt the operations of organizations that provide millions of tons of food each year to help alleviate poverty in countries such as Madagascar, Tanzania and Honduras, the sources said. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. It also means added pain for U.S. farmers, already facing low commodity prices and uncertainty from potential tariffs in an emerging trade war, and who see foreign aid programs as opportunities to promote their farm products abroad, four of the sources said. The sources requested anonymity for fear of retribution. "Down the road it could definitely lead to more vulnerable populations not being able to access food," said Virginia Houston, director of government affairs for the American Soybean Association. "It also hurts our supply chains," she said. Commodity purchases and shipments for the Food for Progress, Food for Peace, and McGovern-Dole Food for Education programs were frozen after Trump signed a Jan. 20 executive order - shortly after his inauguration - pausing U.S. foreign aid for 90 days, two sources told Reuters. It was unclear why the food purchases remained halted into February, however, after Secretary of State Marco Rubio on Jan. 24 issued a waiver to the aid freeze for food assistance. That waiver applies to "core life-saving medicine, medical services, food, shelter, and subsistence assistance". "This one just kind of got thrown out with the bathwater," said one source who works to implement U.S. government food aid contracts. The U.S. Department of Agriculture and State Department did not respond to requests for comment. The USDA administers Food for Progress and Food for Education, while USAID, a State Department agency that has been functionally shuttered by the Trump administration, administers Food for Peace. In 2024, USDA purchased more than a million metric tons of U.S. crops, including soybeans, rice, and wheat, for a total of more than $510 million across the three programs, according to agency data. Planned grain sales for Food for Progress alone in January and February totaled about 315,000 metric tons, worth $150 million, said one source familiar with the program contracts. Food for Peace, meanwhile, provided nearly 4 billion pounds of American-grown food to 58 million people globally in 2022, according to the U.N. World Food Programme, which counts the U.S. as its largest single donor. Seven sources said the USDA has not issued any communication about the pause in purchases. One organization that received an award from Food for Progress in 2024 told Reuters it expected a $1.5 million installment of their grant this week but has not heard anything from the agency. "COULD BE DEVASTATING" About 60,000 metric tons of soy products worth $23 million, bought under the Food for Progress program, cannot be delivered, American Soybean Association's Houston said. Grants to purchase 235,000 metric tons of U.S. wheat under Food for Progress have also been paused, said Dalton Henry, vice president of policy for U.S. Wheat Associates, a trade group that promotes exports. "We hope to see that pause lifted," Henry said. "It is an important program that uses U.S.-grown wheat to support development projects and, in the process, gives us a chance to showcase the quality and value of U.S. wheat in local markets." Purchases of U.S. wheat for aid programs have recently ranged from about 250,000 metric tons up to about 1 million metric tons per year, the group said. Other deals for 25,000 metric tons of rice and 20,000 metric tons of soybean meal are "circling the drain" due to the freeze, according to the source that works to implement aid contracts. Those deals were in the works before Trump was inaugurated. For farmers, the loss of sales to food aid programs could be devastating, said Gordon Stoner, a retired farmer in Montana who sold peas for food aid in 2021. "They're a large buyer and suddenly if this U.S. aid program remains suspended, or terminated, or whatever the administration is doing, that market goes away for us," Stoner said.
Reuters
05-02-2025
- Business
- Reuters
Exclusive: US food purchases for foreign aid halted despite waiver, sources say
Feb 5 (Reuters) - The U.S. has stopped purchases for foreign food aid programs since the Trump administration began a sweeping review of federal aid spending, despite a waiver issued nearly two weeks ago for food assistance, according to nine sources. The freeze in purchases of wheat, soybeans and other commodities produced by U.S. farmers could hinder or halt the operations of organizations that provide millions of tons of food each year to help alleviate poverty in countries such as Madagascar, Tanzania and Honduras, the sources said. It also means added pain for U.S. farmers, already facing low commodity prices and uncertainty from potential tariffs in an emerging trade war, and who see foreign aid programs as opportunities to promote their farm products abroad, four of the sources said. The sources requested anonymity for fear of retribution. "Down the road it could definitely lead to more vulnerable populations not being able to access food," said Virginia Houston, director of government affairs for the American Soybean Association. "It also hurts our supply chains," she said. Commodity purchases and shipments for the Food for Progress, Food for Peace, and McGovern-Dole Food for Education programs were frozen after Trump signed a Jan. 20 executive order - shortly after his inauguration - pausing U.S. foreign aid for 90 days, two sources told Reuters. It was unclear why the food purchases remained halted into February, however, after Secretary of State Marco Rubio on Jan. 24 issued a waiver to the aid freeze for food assistance. That waiver, opens new tab applies to "core life-saving medicine, medical services, food, shelter, and subsistence assistance". "This one just kind of got thrown out with the bathwater," said one source who works to implement U.S. government food aid contracts. The U.S. Department of Agriculture and State Department did not respond to requests for comment. The USDA administers Food for Progress and Food for Education, while USAID, a State Department agency that has been functionally shuttered by the Trump administration, administers Food for Peace. In 2024, USDA purchased more than a million metric tons of U.S. crops, including soybeans, rice, and wheat, for a total of more than $510 million across the three programs, according to agency data. Planned grain sales for Food for Progress alone in January and February totaled about 315,000 metric tons, worth $150 million, said one source familiar with the program contracts. Food for Peace, meanwhile, provided nearly 4 billion pounds of American-grown food to 58 million people globally in 2022, according to the U.N. World Food Programme, which counts the U.S. as its largest single donor. Seven sources said the USDA has not issued any communication about the pause in purchases. One organization that received an award from Food for Progress in 2024 told Reuters it expected a $1.5 million installment of their grant this week but has not heard anything from the agency. "COULD BE DEVASTATING" About 60,000 metric tons of soy products worth $23 million, bought under the Food for Progress program, cannot be delivered, American Soybean Association's Houston said. Grants to purchase 235,000 metric tons of U.S. wheat under Food for Progress have also been paused, said Dalton Henry, vice president of policy for U.S. Wheat Associates, a trade group that promotes exports. "We hope to see that pause lifted," Henry said. "It is an important program that uses U.S.-grown wheat to support development projects and, in the process, gives us a chance to showcase the quality and value of U.S. wheat in local markets." Purchases of U.S. wheat for aid programs have recently ranged from about 250,000 metric tons up to about 1 million metric tons per year, the group said. Other deals for 25,000 metric tons of rice and 20,000 metric tons of soybean meal are "circling the drain" due to the freeze, according to the source that works to implement aid contracts. Those deals were in the works before Trump was inaugurated. For farmers, the loss of sales to food aid programs could be devastating, said Gordon Stoner, a retired farmer in Montana who sold peas for food aid in 2021. "They're a large buyer and suddenly if this U.S. aid program remains suspended, or terminated, or whatever the administration is doing, that market goes away for us," Stoner said. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
