Federal Funding for Small Farms and Food Banks Set to Expire

Program that supports local food production and distribution faces uncertain future as government pulls back COVID-era aid

Published on Feb. 13, 2026

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A federal program that provides funding to purchase produce from small local farms and distribute it through food banks and schools is set to lose its funding in July, leaving hundreds of farms and millions of meals in jeopardy. The Local Food Purchase Assistance Cooperative Agreement (LFPA) program has been a lifeline for small organic farmers like James Thao, who says it provides 80% of his farm's income. With no clear path for continued funding, farmers and food bank operators are bracing for the program's end and the impact it will have on their communities.

Why it matters

The LFPA program has played a crucial role in supporting small, local farms and improving food security in underserved communities during the COVID-19 pandemic. Its potential loss threatens the livelihoods of hundreds of farmers and the food access for millions of people who rely on food banks and school meal programs.

The details

The LFPA program uses federal funds to purchase produce directly from small local farms, which is then distributed through food banks and schools. James Thao, a farmer in Yuba City, says the program has been essential for his organic farm, providing 80% of his income. Without the steady orders from the LFPA, Thao and many other small farmers would be forced to rely on less reliable income streams like flea markets. The program has already dried up for 500 farms in California, resulting in the loss of 5.4 million meals for local communities.

  • The LFPA program's federal funding is set to expire in July 2026.
  • In March 2025, Agriculture Secretary Brooke Rollins announced the administration would be "pulling back" the COVID-era funding for the LFPA program, stating it was meant to be temporary aid.

The players

James Thao

A farmer in Yuba City, California who grows organic produce and has relied on the LFPA program for 80% of his farm's income.

Brooke Rollins

The United States Secretary of Agriculture who announced the administration's plans to end federal funding for the LFPA program.

Steve Dambeck

The program buyer for the Yuba area who coordinates LFPA purchases from local farms.

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What they’re saying

“Without the program, we wouldn't have steady income as at this time of year our only other option is flea markets, which aren't reliable, and people want supermarket prices.”

— James Thao, Farmer (spectrumnews1.com)

“It's helping food security, it's helping neighborhood farms, it's helping the local economy, it's a good investment. And at the same time, it's actually feeding people who otherwise would have had to be funded some other way.”

— Steve Dambeck, Program Buyer (spectrumnews1.com)

What’s next

There is a bipartisan bill in Congress that aims to make the LFPA program's funding permanent, which supporters hope to attach to the upcoming farm bill. However, the future of the program remains uncertain as the Biden administration has signaled its intention to end the COVID-era funding.

The takeaway

The potential loss of the LFPA program highlights the fragility of the support systems that many small farms and food banks have come to rely on during the pandemic. Without a long-term commitment to funding local food systems, the livelihoods of farmers and the food security of vulnerable communities remain at risk.