Summary of Bill A-1492 (Session 222) – New Jersey
Purpose
- Establish the Farm to School Local Food Procurement Reimbursement Grant Program (the “program”) within the Department of Agriculture.
- The program provides reimbursement grants to eligible school districts and their local food procurement partners to encourage and support sourcing and procurement of local foods for students.
- Initial appropriation: $4.5 million total (with $4.0 million to a dedicated Farm to School Local Food Procurement Reimbursement Fund and $0.5 million for start-up administrative costs).
Key Provisions and Changes
1) Definitions and Scope
- Local food: 100% grown/raised/caught in New Jersey or state waters; raw, minimally processed forms; excludes fluid dairy milk.
- Eligible costs: documented costs incurred by districts or partners to implement or expand local procurement policies and activities described in the district’s local food procurement plan.
- Baselines: district-identified baseline levels for reporting and reimbursement purposes.
- Participating partner schools: partner schools within an eligible district that provide subsidized meals and will benefit from the program.
- Local Food Procurement Plan: a district plan describing new/expanded/modified local procurement policies and activities and how funds will be used.
- Food deserts, subsidized meals, School Lunch Program, School Breakfast Program, Summer Food Service Program: align with federal/state meal programs.
2) Program Establishment and Administration
- The Secretary of Agriculture must establish and operate the Farm to School Local Food Procurement Reimbursement Grant Program.
- Annual program grants are awarded to eligible districts that submit an attestation form.
3) Funding and Awards
- Annual minimum/maximum grant amounts (based on partner school enrollment):
- Small district (<5,000 partner-school students): $10,000 – $50,000
- Medium district (5,000–10,000): $20,000 – $125,000
- Large district (10,000+): $44,000 – $250,000
- Grants are distributed on a pro rata basis within the available appropriation and are proportional to the district’s size and need, as determined by a department-developed funding formula.
- Factors for the funding formula (subsection e) include:
- District size and number of participating partner schools
- Share of subsidized meals and student enrollment at partner schools
- Location in a food desert
- Use of funds to increase sourcing from small/mid-sized or socially disadvantaged farmers
- History of prior grant awards and whether prior funds were exhausted
4) Eligible and Ineligible Costs
- 100% of the program funds awarded to a district (excluding discretionary technical assistance) may reimburse eligible costs for increasing local procurement.
- Department may authorize up to 20% of funds for discretionary technical assistance to facilitate implementation, if requested in the attestation form with specified percentage/dollar amount.
- Ineligible costs include ordinary procurement at baseline levels, and costs for fluids (e.g., liquid dairy milk), among others.
5) Reimbursement Mechanics
- Reimbursement funds are disbursed in installments (monthly/quarterly, etc.) within the program year.
- Districts must submit periodic invoices with documentation (vendor details, receipts/photos, basis for eligibility, etc.).
- Funds may be allocated to participating partners to reimburse their eligible costs.
- Unclaimed or unused funds revert to the fund; no rollover is allowed unless the department approves a hardship exception for carryover.
6) Oversight, Reporting, and Federal Coordination
- The department must prioritize maximizing federal funds (e.g., Local Food for Schools Cooperative Agreement) before drawing on state funds.
- Annual program status report to the Governor and Legislature, detailing implementation status, funding formula performance, program impact, and recommendations.
- The department will maintain a dedicated Farm to School Local Food Procurement Reimbursement Fund (non-lapsing) to carry and manage program dollars, interest, and any other eligible funds.
7) Appropriations and Timeline
- Section 6: $4,000,000 initial deposit to fund initial grant awards (first program year) plus $500,000 for start-up administrative costs.
- Section 7: Additional $500,000 for administrative costs related to initial program establishment (in addition to the initial funding in Section 6).
- Section 8: Effective dates set; Section 7 takes effect immediately; Sections 1–6 take effect on the first day of the 13th month after enactment (or Jan 1 of the 2nd full calendar year after enactment, whichever is later). Department may begin anticipatory actions using funds from Section 7.
- Section 9: Act takes effect immediately for certain provisions; otherwise, phased implementation as above.
Who Is Affected
- Eligible school districts with partner schools serving subsidized meals.
- Local food procurement partners (partner schools and school food authorities) within those districts.
- Farmers and local suppliers providing local foods to districts and partners (through funded activities).
- Department of Agriculture, which administers the program, accounting, and reporting.
Significance and Impact
- Aims to expand and accelerate local Food-to-School procurement in New Jersey by providing predictable funding to districts.
- Encourages sourcing from New Jersey farms, particularly small/mid-sized and socially disadvantaged farmers.
- Uses a data-driven funding formula to prioritize districts with high need and strong local procurement potential.
- Includes mechanisms for administrative oversight, reporting, and coordination with federal programs to maximize funding leverage.
