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Bill

S 1637

Awards grants to municipalities for capital improvement projects; appropriation

2025 Regular Session Introduced by George Borrello

Creates a Farm to School Local Food Procurement Reimbursement Grant Program, with $4.5M to reimburse NJ districts for costs to expand local (NJ-grown) school meals procurement.

REFERRED TO FINANCE
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Bill Summary · S 1637

Summary — S.1637 (as reported by Senate Economic Growth Committee, 1st Reprint)

Status: Referred to Finance (introduced 05/07/2025; reported out of Senate Economic Growth Committee with amendments 12/12/2024).
Subject: Establishes a Farm to School Local Food Procurement Reimbursement Grant Program; appropriation of $4.5 million.

Purpose

To help New Jersey school districts expand procurement of “local foods” (defined as foods 100% grown, raised, or caught in New Jersey or State waters, excluding fluid dairy milk) by reimbursing documented costs associated with implementing new, expanded, or modified local food procurement policies, systems, and activities for school meals (school year and summer).

Key provisions

  • Creates the Farm to School Local Food Procurement Reimbursement Grant Program, administered by the Secretary of Agriculture.
  • Establishes the Farm to School Local Food Procurement Reimbursement Fund to receive appropriations.
  • Appropriates $4.5 million from the General Fund: $4.0 million for grants and $500,000 for Department of Agriculture administrative costs (per OLS fiscal estimate).
  • Grants available annually to eligible school districts that submit an attestation and supporting documentation (including a proposed local food procurement plan and baseline sourcing).
  • District award ranges by partner-student enrollment:
    • Small (<5,000 partner students): $10,000–$50,000
    • Medium (5,000–10,000): $20,000–$125,000
    • Large (≥10,000): $44,000–$250,000
  • Grants are allocated equitably on a pro rata basis within available appropriations, using a department-developed funding formula.
  • Funding formula must provide proportional adjustments to favor districts that: (1) have high numbers/percentages of subsidized students and will increase access to local foods; (2) are in food deserts; (3) prioritize procurement from small/mid-sized family farms or socially disadvantaged farmers; or (4) exhausted prior-year grants in compliance with requirements.
  • Generally, grant funds reimburse eligible costs tied to the increased sourcing/procurement of local foods. On a case-by-case basis, the department may authorize up to 20% of a district’s award to reimburse technical-assistance expenses necessary to implement the plan.
  • Prohibits using grant funds to reimburse ineligible costs or costs already paid/reimbursed by other State or federal funds.
  • Requires the Department, to the greatest extent practicable, to maximize and exhaust federal funding sources (e.g., USDA Local Food for Schools Cooperative Agreement Program) for these purposes before using State appropriations.
  • Districts may apply for grants in subsequent years; awarded funds generally cannot be rolled over and unclaimed funds may be reclaimed.

Eligibility & definitions

  • Eligible district = district in which all “participating partner schools” provide subsidized meals to eligible students.
  • “Local food” is narrowly defined (NJ-grown/caught), and “minimally processed” is specified.
  • Eligible costs are documented, actual costs tied to the expanded/modified procurement activities.

Fiscal and operational impact

  • OLS estimate: up to $4.5 million State expenditure increase in year 1 ($4M grants; $500K administration). Subsequent-year expenditures are indeterminate and would depend on future appropriations and program continuation.
  • Participating school districts will receive reimbursements (up to aggregate $4M per current appropriation) and may incur new operating expenses tied to implementation; some implementation costs may be reimbursed.

Procedural/timeline notes

  • Reported with committee amendments (Senate Economic Growth Committee) 12/12/2024.
  • Hearing scheduled (per docket) for 06/23/2025 (subject to committee scheduling).
  • Department required to submit an annual program status report to Governor and Legislature with budget requests.

Who is affected

  • Department of Agriculture (program administration, fund management, reporting)
  • Eligible school districts and participating schools (those offering subsidized meals)
  • Local growers, especially small/mid-sized family farms and socially disadvantaged farmers
  • Students (increased access to local foods) and potentially school food service providers/vendors

This bill supports increased farm-to-school purchasing through targeted reimbursements and programmatic guidance, with fiscal impacts tied to appropriations and an emphasis on coordinating available federal funds.

Compiled from official sources — confirm details with the bill’s official record.

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