The New York State Department of Agriculture and Markets’ (Ag & Markets) program that reimburses school districts at a higher rate for using New York-produced and processed foods in lunches is growing, but an audit from State Comptroller Thomas P. DiNapoli finds that the initiative could be more effective if administrative obstacles were reduced.
“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,” established in 2018, increases state reimbursement for schools spending at least 30% of lunch food costs on eligible products from 5.9 cents to 25 cents per meal. School Food Authorities (SFAs) must apply annually for these funds, with $10 million allocated each year.
Despite growth since its launch, participation remains limited. Out of 762 eligible SFAs outside New York City, only 73 received approval for reimbursement in the 2024-25 school year—about 10 percent—resulting in just $2.9 million drawn from the available $10 million fund. This marks an increase from previous years but leaves most funding unused.
A survey conducted as part of the audit identified key barriers: administrative challenges separating lunch costs from other meal expenses like breakfast or snacks; difficulty sourcing qualifying products; and concerns over product cost.
Auditors suggested Ag & Markets could help schools by connecting them with suppliers and creating resources for sourcing eligible foods. The audit also recommended changes to streamline applications by requiring total annual food cost information up front, allowing easier verification of eligibility.
Senator Michelle Hinchey (D-Saugerties) stated: “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) added: “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) said: “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) noted: “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 purchase of healthy New York State produced food products benefiting New York farms…”
Assemblymember Carrie Woerner (D-Round Lake) expressed support for basing calculations on total annual food purchases because many items such as milk or apples are used across multiple meals when bought in bulk.
Assemblymember Anna Kelles (D-Ithaca) commented: “The 30% New York School Lunch Reimbursement Program strengthens our local food systems while ensuring children have access to healthy nutritious meals… However… unnecessary red tape… standing in way of real progress… Programs like this are critical… Every dollar we invest… is a dollar reinvested …to support small family farms…”
Bryan McCoy from NY School Nutrition Association praised efforts connecting students with local foods through partnership between his organization and Ag & Markets.
David Fisher from NY Farm Bureau described how new markets opened up through this initiative benefit both farmers’ businesses as well as student nutrition.
Heidi Exline from American Farmland Trust echoed appreciation for recommendations designed toward making participation easier while expanding access throughout state communities.
To address findings raised by auditors—including calls for increased outreach assistance—Ag & Markets agreed with recommendations provided within the full report released by Comptroller DiNapoli’s office—and outlined steps already taken such as implementing planning tools for applicants alongside updated documentation requirements.
