S. 2778 — Local School Foods Expansion Act of 2025

This section converts the pilot project for procurement of unprocessed fruits and vegetables for school meals under the National School Lunch Act (i.e., the program provides USDA funding to states to purchase such commodities for distribution to participating schools) into a permanent program for procurement of domestically grown unprocessed fruits and vegetables and expands the maximum number of participating states from 8 to 14. The section further (1) revises state project limits to allow 2 projects in 1 or more states; (2) adds state selection criteria based on commitments to small, local, and socially disadvantaged farmers, Tribal agricultural producers and traditional foods, and serving a high proportion of children from socially disadvantaged backgrounds; (3) expands state reporting requirements to cover program challenges and opportunities; (4) requires USDA to evaluate program impacts (e.g., quantities/costs procured, benefits to school meals, economic effects on producers, barriers to participation) and submit a report to Congress within 4 years of enactment; and (5) appropriates mandatory funding of $25 million for each of FY2026 through 2030, reserving $10 million annually for administrative costs and technical assistance in participating states (with a minimum $500,000 allotment per state) and $1 million for technical assistance to nonparticipating states if fewer than 14 states participate that year.