Local Foods for Healthy Schools Act of 2026

This Act may be cited as the Local Foods for Healthy Schools Act of 2026.
Subtitle A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) is amended by adding at the end the following:
The Secretary shall establish a program, to be known as the Local Foods for Healthy Schools Program, (in this section referred to as the Program) under which the Secretary shall enter into noncompetitive cooperative agreements with eligible units of government for the purpose of—
purchasing local foods from covered producers; and
facilitating the distribution of such foods to schools operating in the geographic boundaries of each such eligible unit of government.
Under a cooperative agreement entered into under this section, an eligible unit of government shall—
with respect to the use of any funds received under the Program—
purchase only local foods from a covered producer and distribute such food to any school food authority that is interested in receiving such food; or
disburse such funds to any such school food authority to purchase only local foods from a covered producer; and
reserve not more than 5 percent of any funds received under the Program to—
provide training and technical assistance to persons involved in carrying out the activities described under this section;
with respect to purchasing local foods from a covered producer, pay the cost such producer incurs in obtaining any required food safety certification;
conduct oversight and reporting in the State of such eligible unit of government; and
administer the activities described under this section.
An eligible unit of government seeking to enter into a cooperative agreement under the Program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including—
a plan that—
identifies the lead agency responsible for carrying out such plan;
identifies any community partner, including an aggregator, that will contribute to implementation of such plan;
describes the proposed use of any funds received under the Program; and
demonstrates that, to the extent possible based on availability and local conditions, a wide variety of local foods will be purchased and distributed using funds received under the Program; and
an assurance that—
the funds received under this section will supplement, and not supplant, funds provided by the State in support of providing local foods to school food authorities or for school meals; and
the eligible unit of government has sufficient mechanisms in place to ensure the efficient and reliable transfer of funds received under the Program, or distribution of food, to school food authorities, schools, covered producers, and community partners in accordance with the plan required under paragraph (1).
In carrying out any requirements of the Program, an eligible unit of government shall coordinate with any other applicable eligible unit of government in the State in which such unit of government operates.
Of the amounts available to carry out the Program for each fiscal year, the Secretary shall develop an allocation formula that provides—
a State-based allocation that is equal for each State;
that any funds remaining after the allocation under subparagraph (A) are distributed such that the amount a State receives under this subparagraph bears the same proportion to such remaining funds as the number of students receiving meals under the programs described in subparagraphs (A) and (B) of subsection (h)(4) in that State bears to the number of such students in all States; and
in the case of funds allocated to an eligible unit of government that are not obligated by the end of the applicable performance period, for the rescission and reallocation, in the manner described in subparagraph (B), of such funds for purposes of carrying out the Program.
In developing the allocation formula under paragraph (1), the Secretary shall allot not more than 30 percent of the total funds available to carry out this section under subsection (g) to the State-based allocation under paragraph (1)(A).
From any funds that an eligible unit of government has not obligated by the end of the performance period for the cooperative agreement of such eligible unit of government, the Secretary may reallocate, in the manner described in paragraph (1)(B), such funds to 1 or more States in which an eligible unit of government has entered into a cooperative agreement with the Secretary, if such eligible unit of government in such a State has the capacity to expend additional funds.
Not later than 90 days after the date on which the Secretary requires any funds received under the Program to be expended, each eligible unit of government that enters into a cooperative agreement under the Program shall submit to the Secretary a report containing data relating to the purchase and distribution of local foods described under subsection (b)(1), including the amount of any funds expended, the name of the covered producer receiving any such funds, and the local foods purchased from such producer.
In establishing any additional requirement related to the submission of a report under paragraph (1), the Secretary shall minimize any administrative burden on eligible units of government, school food authorities, schools, and community partners involved in carrying out the activities described under this section.
An eligible unit of government that submits a report under paragraph (1) shall make such report available to the public on the website of the State educational agency (as defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)) of the applicable State at the time of such submission.
For fiscal year 2026, and each fiscal year thereafter, the Secretary shall use $200,000,000 of the funds of the Commodity Credit Corporation to carry out this section.
In addition to other funds and authorities available to the Secretary, there is authorized to be appropriated to carry out this section $200,000,000 for fiscal year 2026, and each fiscal year thereafter, to remain available until expended.
Notwithstanding any other provision of law, the Secretary may reserve not more than 0.50 percent of the total amount of funds made available under this subsection each fiscal year to support Federal administrative activities to carry out this section.
In this section:
The term covered producer means a farmer, producer, rancher, processor, distributor, or other such business involved in food production or distribution that—
is in the geographic boundaries of a State in which an eligible unit of government has entered into a cooperative agreement with the Secretary under this section;
is in a 400-mile radius of the location of the school food authority receiving a distribution under the Program; or
meets such other requirement proposed by such eligible unit of government and approved by the Secretary.
The term eligible unit of government means an agency, commission, or department of a State responsible for agriculture, child nutrition, procurement, food distribution, or such other similar activities, as determined appropriate by the Secretary, in such State.
The term local foods means agricultural products that—
are minimally processed, including products that are whole, cut, pureed, fresh, frozen, canned, or dried; and
are produced and distributed—
in the same State;
in a 400-mile radius of the school food authority receiving or purchasing such products under the Program; or
in a manner that meets any such other requirement proposed by such eligible unit of government and approved by the Secretary.
The term school means a school (as defined in section 12(d) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1760(d))) that participates in—
the school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.); or
the school breakfast program established under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
The term school food authority means the governing body that—
is responsible for the administration of a program described in subparagraph (A) or (B) of paragraph (4) in one or more schools; and
has legal authority to receive from an eligible unit of government a distribution of local foods or disbursement of funds under the Program.
The term Secretary means the Secretary of Agriculture.
The term State means any of the fifty States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands.