DTN Ag Policy Blog

OMAHA (DTN) -- Pennsylvania officials on Wednesday sued USDA for canceling the state's share of the $900 million Local Food Purchase Assistance Program (LFPA), which the Trump administration ended in March.

Pennsylvania is the first state to sue over the canceled contracts though other state officials, farmers and food advocates have complained about the loss of LFPA.

Gov. Josh Shapiro, a Democrat, and other state officials announced the lawsuit at a press conference in Philadelphia. The case was filed in federal court for the Middle District of Pennsylvania.

"When the USDA abruptly terminated our agreement without cause, they ripped away a reliable source of income for 189 Pennsylvania farms -- and cut off funding that would have helped provide over 4.4 million meals to families across the Commonwealth. That's not just bad policy -- it's a broken promise," Shapiro said in a news release. "A deal is a deal, and I've taken legal action today to ensure the federal government honors its commitment to Pennsylvania."

Through the LFPA agreement, USDA had committed to provide just over $13 million to the Pennsylvania Department of Agriculture to buy local, unprocessed or minimally processed foods from local farmers, as well as historically underserved farmers and fishers and small businesses. The department would then distribute that food to underserved communities.

Pennsylvania had participated in the LFPA for two previous funding rounds, receiving nearly $30 million and buying nearly 30 million pounds of food going to more than 5 million households in the state. The lawsuit noted Pennsylvania had purchased food from 189 farms in the state under the program. Those farmers face losing a market for their products without funding for the program.

When USDA canceled the program in March it was stated that LFPA "no longer effectuates agency priorities."

State officials claim USDA's actions violate the Administrative Procedures Act in multiple ways and infringe on due process under the U.S. Constitution.

The Pennsylvania Department of Agriculture twice wrote USDA officials seeking more details about the basis of USDA's decision and seeking a way to formally appeal the decision. In those letters, Pennsylvania Agriculture Secretary Russell Reding urged USDA to reconsider the termination notice. The complaint states USDA did not respond to the letters, though staff from USDA's Agricultural Marketing Service (AMS) later sent a form letter confirming the contract cancelation.

"The USDA's decision was not just unexpected -- it was unlawful, and it has already caused serious harm to Pennsylvania's agriculture industry," Redding said. "This is about real people -- the farmers, producers, and rural communities who are now facing uncertainty as a result. These are hardworking men and women who put food on our tables, support local economies, and preserve our farmland for future generations."

Funding for LFPA was started with the American Rescue Plan passed by Congress in 2021, providing $4 billion to buy local foods and distribute those to individuals in need, mainly through non-profit groups such as food banks.

The Biden administration announced in December the program would be extended for 2025, costing about $900 million. Along with that, USDA extended the Local Food for Schools (LFS) as well.

Pennsylvania officials cite the contract language which spelled out that USDA may halt funding for the award if the state was not in compliance with the agreement's terms. When USDA officials canceled the funding in early March, the letter stated the cancelation was in accordance with terms and conditions of the award.

However, Pennsylvania officials contend there was no provision in the contract that allowed USDA to cancel the funds because the program "no longer effectuates agency priorities."

On social platform X, Shapiro posted a video Wednesday with Ben Rice, president of Rice Apples, a packing facility in Pennsylvania. Rice said the funding cuts directly affect his business and others because they made business decisions based on those LFPA contracts.

"We're talking about removing food availability from people who are already managing a food security crisis," Rice said.

In the lawsuit, Pennsylvania officials cite that food banks across parts of the state continue to see increased demand. One food bank reported a 30% rise in food insecurity in one county since 2022.

Canceling the LFPA money allowed USDA to redirect those funds to support the department's response to managing highly-pathogenic avian influenza.

Agriculture Secretary Brooke Rollins also has argued LFPA and LFS the pandemic-era programs were never intended to become permanent. In congressional hearings last month Rollins also maintained states were sitting on unused funds from previous LFPA contracts.

In Shapiro's news release, it stated "USDA officials have falsely claimed Pennsylvania was 'sitting on tens of millions' of unspent LFPA funds -- despite the fact the program operates on a reimbursement basis." The state pays vendors and is reimbursed for it. The lawsuit stated Pennsylvania had less than $30,000 remaining out of nearly $30 million awarded.

Also see, "Pushback Over Cutting Local Food Grants:

How Does Cutting Local Food Programs Help Make America Healthy Again?," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

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