New Act Mandates $200M Annually to Buy Local Food, Requires 25% Sourcing from Small Farms Starting 2026

If you’ve ever wanted to know where your food comes from, or you’re a local farmer trying to get your product into more kitchens, listen up. The Local Farmers Feeding our Communities Act establishes a brand new, federally funded program aimed at strengthening local food systems. Starting in fiscal year 2026, this program will use $200 million annually from the Commodity Credit Corporation (CCC) to fund agreements with state and tribal entities, essentially creating a massive, dedicated local food purchasing budget.

The Local Food Supply Chain Gets a Boost

The core idea here is straightforward: the federal government is funding state agencies to buy food locally and then distribute it to people who need it. The eligible state or tribal groups must use the funds to purchase food that is "unprocessed or minimally processed"—think fresh produce, meat, dairy, and grains—from local producers. A local producer is defined as a farmer, rancher, or fisherman located either within the state’s area or within 400 miles of the delivery point. This immediately means more direct business opportunities for folks farming or fishing nearby, cutting out some of the massive supply chain middlemen.

Crucially, this isn't just a handout to big regional farms. The bill mandates that at least 25% of the total dollar amount spent on food must go to small producers (making less than $350,000 annually), mid-size producers (making between $350,000 and $999,999), beginning farmers, or veteran farmers. This provision is designed to ensure that the smaller operations—the ones often squeezed out by large-scale agriculture—get a guaranteed piece of the action. For a smaller farmer, this 25% mandate could mean the difference between breaking even and expanding their operation.

Technical Support and Administrative Caps

Beyond just buying food, the local entities receiving the funding have two other major requirements. First, they must use the purchased food to improve access to healthy food, distributing it through established networks like nonprofits. Second, they must use some of the funds to provide technical assistance to local producers, covering things like food safety training and certification help. This is key because navigating regulatory hurdles is often a major barrier for smaller operations, and getting federal help with certification can be huge.

To keep things focused on the ground, the bill puts strict limits on overhead. The eligible group can spend no more than 25% of the total funds on both their own administrative costs and providing that technical assistance. And here’s the kicker: at least half of that 25% cap (meaning 12.5% of the total grant) must be dedicated specifically to providing that technical assistance to the producers. This ensures that the money isn't just swallowed up by state agency salaries and office supplies; a chunk has to go directly toward helping farmers get better at what they do.

How the $200 Million Gets Distributed

When it comes to dividing up the mandatory $200 million pot, the Secretary of Agriculture has a specific formula to follow. First, 10% of the money is set aside exclusively for Tribal governments, though the exact formula for distributing that 10% is left up to the Secretary’s discretion. Next, 1% of the remaining funds goes to each State. Whatever is left over after those two steps gets distributed using the existing formula from the Emergency Food Assistance Act of 1983. This method ensures that all states and Tribal communities get a baseline amount, with the bulk of the money distributed based on existing need metrics.

For taxpayers, the guaranteed $200 million annual funding from the CCC is a significant, mandatory commitment, signaling that the government is serious about investing in local food security for the long haul. This bill aims to be a win-win: supporting local businesses while simultaneously getting healthier food to communities that need it.