Pennsylvania officials filed a federal lawsuit against the US Department of Agriculture (USDA) on Wednesday over its termination of the Local Food Purchase Assistance 2025 Cooperative Agreement (LFPA25 Agreement).

The Local Food Purchase Assistance Cooperative Agreement Program (LFPA) provides federal funding to states to purchase local food from regional producers for distribution through food banks and school lunch programs. The USDA notified state officials in March that the program was being cut for the remainder of the 2025 fiscal year. In a letter sent to the impacted states, the USDA explained the program was being cut because it “no longer effectuates agency priorities”.

Pennsylvania touts the success of previous LFPA funding, which provided 30 million pounds of food, with 100 percent of funds used for food purchases and no money allocated to administrative costs. Under the LFPA25 Agreement, which was executed in December, the USDA agreed to supply over $13 million to the Pennsylvania Department of Agriculture (PDA). In a statement, Governor Josh Shapiro explained:

When the USDA abruptly terminated our agreement without cause, they ripped away a reliable source of income for 189 Pennsylvania farms — and cut off funding that would have helped provide over 4.4 million meals to families across the Commonwealth. That’s not just bad policy — it’s a broken promise. A deal is a deal, and I’ve taken legal action today to ensure the federal government honors its commitment to Pennsylvania.

Under 2 CFR § 200.340, a federal agency may terminate funding “pursuant to the terms and conditions of the federal award, including, to the extent  authorized by law, if an award no longer effectuates the program goals or agency priorities.” However, Wednesday’s lawsuit argues that the cancellation of the LFPA25 Agreement violated the Administrative Procedure Act, which allows courts to hold agency actions unlawful if they are deemed to be “arbitrary” or “capricious,” Here, Pennsylvania claims the USDA failed to explain which agency priorities the food assistance program no longer serves and ignored the reliant interests of Pennsylvania constituents.

The lawsuit also claims that the USDA failed to provide the legally required appeal process when it terminated the LFPA25 Agreement. Under 2 CFR § 200.342, federal agencies have to provide recipients of terminated grants “an opportunity to object and provide information challenging the action.” The suit further states that Pennsylvania was deprived of due process as guaranteed under the Fifth Amendment of the US Constitution, as it was denied meaningful opportunity to challenge the decision.

This comes amidst a series of similar legal challenges raised against the Trump administration. In April, attorneys general from 23 states and the District of Columbia filed a lawsuit against the US Department of Health and Human Services and HHS Secretary Robert F. Kennedy Jr. over cuts to public health funding. Last month, a US federal court in Rhode Island issued a preliminary injunction against a presidential executive order that cuts funding for several federal agencies, including the Institute of Museum and Library Services.

Source - https://www.jurist.org