USDA termination of local food program could leave $1.7M hole in FY26 appropriations, committee told

Tom (committee member) told the House Appropriations Committee on March 13, 2025, that the U.S. Department of Agriculture had terminated the Local Food Purchase Assistance Program, affecting roughly $1,700,000 in federal funds that Vermont agencies had expected to use to buy local food for schools and child-care programs.

The committee was told the affected programs distribute fresh local food to schools and child-care sites and support local farmers. “The USDA terminated the Local Food Purchase Assistance Program, which is — we have received $1,700,000 federal funds for that program,” Tom said, adding that other related programs and one-time staff costs may also be affected.

Why this matters: those federal dollars were included in agency planning for the upcoming fiscal year, and without them departments may need to either backfill with state funds or reduce program activity. That choice would be part of the committee’s FY26 appropriations work.

Tom said he had spoken with Abby Willock (staff member) and that the agencies will be the primary source of further details. He also flagged a separate line item of about $182,000 tied to a different local-food program. “There is a program that was a one-time program where there is staff money involved that may not get reimbursed,” Tom said, noting agencies were still assembling specifics about obligations and administrative costs.

Committee members discussed the downstream effects on related farm-support programs. Tom referenced Vermont programs such as Working Lands and crop-support grants and said one line in the budget request included $2,000,000 for Working Lands grants and other larger program budgets; he cautioned that those figures and program staffing levels vary year to year and that agencies had not yet completed application processes for the affected USDA funds.

Committee Chair (House Appropriations Committee) urged members to monitor agency communications and follow up if they discovered changes on news outlets or other channels before formal notifications arrived. The chair reminded members that the appropriations committee’s role is to evaluate the money attached to proposals rather than rewrite policy: “When we vote in here, we're really not voting on the policy and whether we like the bill or not. We are voting on the money,” the chair said.

What the committee will do next: members were told the agencies will provide more detailed information as it becomes available and that staff will share updates with the committee. Tom said he would pass along materials he receives from agency contacts so the committee can decide whether to adjust FY26 proposed appropriations or identify alternative funding.

The committee did not take any formal votes during the March 13 check-in. Staff and members emphasized that final decisions about backfilling federal shortfalls will await agency confirmation of obligations and timing.