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USDA to Invest $1B to Purchase Healthy Food for Food Insecure Americans and Build Food Bank Capacity

The U.S. Department of Agriculture (USDA) today announced an investment of up to $1 billion, including $500 million in American Rescue Plan funding, in The Emergency Food Assistance Program (TEFAP) to support and expand the emergency food network so food banks and local organizations can reliably serve their communities. Building on lessons learned during the COVID-19 pandemic, USDA will enter into cooperative agreements with state, Tribal and local entities to more efficiently purchase food from local producers and invest in infrastructure that enables partner organizations to more effectively reach underserved communities. USDA believes the food system of the future should be fair, competitive, distributed, and resilient; it must support health and ensure producers receive a fair share of the food dollar while advancing equity and contributing to national climate goals. This investment represents the first part of USDA’s new Build Back Better initiative to help achieve that vision and start building a better food system today.


If you need assistance with developing the scope of work and budgets for these Cooperative Agreements - please contact us for assistance.


This effort is funded through the American Rescue Plan Act ($500 million) and the Consolidated Appropriations Act, 2021 ($500 million) and includes:


$500 Million to Support Emergency Food Assistance


USDA’s Agricultural Marketing Service (AMS) will purchase $500 million in nutritious, domestically produced food for state food bank networks through TEFAP. USDA’s Food and Nutrition Service (FNS) and AMS will work collaboratively with the state to distribute the food to TEFAP providers. USDA will purchase food from registered vendors for nationwide distribution. Small business, women-owned, minority-owned, and veteran-owned set-asides during the solicitation process will provide an enhanced opportunity for USDA-registered small businesses to submit competitive bids. This funding will continue to support demand from states for the new TEFAP Fresh Produce offering.


Up to $400 Million to Support Local, Regional, and Socially Disadvantaged Farmers


As part of this effort, AMS will establish cooperative agreements with state and Tribal governments or other local entities to purchase food for the food bank network from local and regional producers (within the state or within 400 miles) and from socially disadvantaged producers. AMS will use innovative approaches to ensure these agreements facilitate relationships between farmers, ranchers and producers and local and regional food systems.


Up to $100 Million In Infrastructure Grants to Build Capacity for Food Banks and Expand Reach into Underserved Areas


FNS will administer a new grant program aimed at helping food assistance organizations meet TEFAP requirements, strengthen infrastructure, and expand their reach into rural, remote, and low-income communities. This grant program incorporates lessons learned from the Farmers to Families Food Box program. It can help local organizations and former food box groups participate in the state’s emergency food network and help pantries build capacity for storage and refrigeration. These grants will help support organizations serving underserved communities and communities of color.

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