The New York State Department of Agriculture and Markets’ initiative to reimburse school districts at a higher rate for purchasing locally produced and processed food has grown in recent years, but an audit by State Comptroller Thomas P. DiNapoli found that participation could increase if administrative challenges were addressed.
“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 initiative, known as the “30% NYS Initiative,” was established in 2018. It offers schools an increased reimbursement—from 5.9 cents to 25 cents per meal—if they spend at least 30% of their lunch food costs on products from New York State sources. The state allocates $10 million annually for this purpose.
Despite this funding, auditors found that only 73 out of 762 eligible School Food Authorities (SFAs) outside New York City received approval for reimbursement during the 2024-25 school year. This represents about 10% participation and accounts for just $2.9 million, or 29%, of available funds—leaving $7.1 million unused. The number is up from 51 approved SFAs in the 2022-23 school year.
A survey of SFA officials indicated that administrative burdens, such as separating lunch costs from other meal programs like breakfast or snacks, were a major barrier to participation. Other challenges included difficulty sourcing eligible products and concerns over product costs.
Auditors suggested that Ag & Markets could help overcome these barriers by connecting SFAs with suppliers and providing resources to make sourcing eligible foods easier. They also recommended improving the application process by requiring SFAs to submit documentation for total annual food costs, which would allow more accurate eligibility verification.
Senator Michelle Hinchey (D-Saugerties) commented on the audit findings: “Every New York student deserves to eat nutritious, high-quality food at school, and we have an obligation to make those meals the best they can be through strong farm-to-school partnerships. For years, we’ve been working on solutions to expand the program so that more schools can qualify, and State Comptroller DiNapoli’s report is the first state analysis to formally confirm what we’ve heard repeatedly from districts across the state: schools want to participate but face unnecessary hurdles that keep them out and leave the program vastly underutilized. We cannot let these barriers stand in the way of feeding our kids better food and supporting our farmers. Breaking down these hurdles and creating new farm-to-school connections will remain a top priority in the year ahead, and I thank State Comptroller DiNapoli for his partnership in bringing greater attention to this issue.”
Senator Rachel May (D-Syracuse) said: “The school district reimbursement program using New York farm produce is a win-win: it supports our farmers by helping them sell their food, while providing schools with essential funding for other needs. However, low participation, due to bureaucratic red tape, limits its potential. The New York State Department of Agriculture and Markets must streamline the process so that farmers and schools can maximize the program’s benefits. Thanks to State Comptroller DiNapoli for researching and analyzing this issue. I am confident that Ag and Markets will act quickly to address these challenges.”
Assemblymember Donna Lupardo (D-Binghamton) stated: “The 30% initiative was created to connect schools with farms in order to strengthen local agriculture and improve student nutrition. It has been a valued program for the limited number of schools who have participated, but we know many more would like to. We welcome the State Comptroller’s focus on this program and look forward to working with Ag & Markets and our legislative colleagues to address the barriers that have prevented entry into the program.”
Assemblymember Karen McMahon (D-Amherst) added: “Since the launch of the 30% NYS Initiative, over $35.8 million has been distributed to participating school districts. Encouragingly, 27-28% of participating School Food Authorities (SFAs) are spending over 40% on New York-grown food. Yet, as this audit highlights, the initiative remains underutilized due to structural and systemic barriers that disproportionately impact small, rural, and low-capacity school districts. I am proud to join my colleague, Senator Hinchey, in championing legislation (A.839-A/S.591-A) to include breakfast and snacks in the Farm-to-School reimbursement program. This simple change would enable more schools to qualify and encourage the purchase of healthy, New York State produced food products, benefiting New York farms and setting students on the path to success. I remain committed to strengthening New York State’s local food system by ensuring equitable access to healthy school meals while supporting local farmers, school food service professionals, and student success.”
Assemblymember Carrie Woerner (D-Round Lake) expressed support for basing reimbursement calculations on total annual food purchases: “I am in strong support of basing the calculations for the NY school lunch reimbursement program on the purchase of schools’ total annual food costs. To save money, schools order food in bulk. Items such as milk and apples can be offered for breakfast as well as lunch. In addition, when we encourage schools to purchase healthy, nutritious food from local farms everyone benefits – kids, schools, and our agricultural businesses. I’m grateful to Department of Ag & Markets for bettering reimbursement process and taking into consideration schools’ purchasing practices in determining its valued incentive program.”
Assemblymember Anna Kelles (D-Ithaca) highlighted broader impacts: “The 30% New York School Lunch Reimbursement Program strengthens our local food systems while ensuring children have access to healthy nutritious meals…However this audit makes it clear that unnecessary red tape…are standing in way real progress…Programs like this are critical supporting New York’s farmers reducing food insecurity keeping public dollars circulating our local economies…”
Bryan McCoy President New York School Nutrition Association said: “We appreciate State Comptroller DiNapoli’s attention importance school meals nourishing New York’s students…NYSNA is proud partner Department Agriculture Markets ensure initiative continues grow connecting more schools with local farms bringing healthy homegrown foods more children.”
David Fisher President New York Farm Bureau commented: “The initiative has given farmers new market their products while helping ensure kids getting healthy local food their lunch trays…We appreciate State Comptroller DiNapoli evaluating vital program making recommendations how make better…”
Heidi Exline Deputy Director American Farmland Trust noted: “At American Farmland Trust we’ve heard from schools farmers across state: initiative full potential…we’re grateful report highlighting ways program work more schools farmers…Through FINYS committed working leaders expand access simplify participation ensure every serve nutritious grown…”
Auditors recommended increasing outreach efforts assisting SFAs with identifying purchasing eligible foods providing standardized guidance streamlining documentation requirements.
Ag & Markets agreed with these recommendations stating it has taken steps including creating a planning calculator for SFAs requiring total cost information during application stage.
