New York Schools Benefit from 30% Local Food Lunch Program

By Blake Jackson

The New York State Department of Agriculture and Markets’ (Ag & Markets) program offering higher reimbursements to school districts that spend at least 30% of lunch costs on eligible New York-produced and processed foods is growing, but an audit by State Comptroller Thomas P. DiNapoli suggests it could better achieve its goals by reducing administrative challenges.

“The 30% New York school lunch program has an excellent goal, to provide healthy, locally produced food to New York school children while supporting our local farms and agricultural economy,” said DiNapoli.

“But there’s room to do better to expand on the good work of the Department of Agriculture and Markets by reducing the red tape that discourages school districts from participating in this important initiative.”

The “30% NYS Initiative,” enacted in 2018, provides an additional state reimbursement for school lunches when at least 30% of food costs come from New York sources, increasing the per-meal reimbursement from 5.9 cents to 25 cents.

Eligible School Food Authorities (SFAs) must apply annually to receive the funding, which is supported by a $10 million state appropriation.

Audit findings reveal that only 73 of the 762 SFAs outside New York City were approved for reimbursement in the 2024-25 school year, receiving $2.9 million 29% of the available funding. This is an improvement from 51 SFAs in 2022-23 but leaves $7.1 million unclaimed.

A survey of SFA officials identified the primary barriers to participation as the administrative burden of separately tracking lunch costs from other meals, challenges in sourcing eligible products, and concerns over the cost of New York-sourced foods.

The audit recommends that Ag & Markets reduce participation obstacles by connecting SFAs with suppliers and distributors and providing resources for sourcing eligible foods.

Additionally, requiring SFAs to include documentation of total annual food costs would allow the department to verify the 30% calculation during the application process, improving access and efficiency.

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