New York State Department of Agriculture and Markets’ (Ag & Markets) initiative to reimburse school districts at a higher rate if at least 30% of the costs for lunch is spent on eligible New York produced and processed food is growing, but it could better meet its objectives if some administrative burdens were addressed, according to an audit released today by State Comptroller Thomas P. DiNapoli.
“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.”
In 2018, New York enacted an additional state reimbursement for school lunch programs that spend at least 30% of their food costs on New York State sources, called the “30% NYS Initiative.” The program increases the reimbursement schools receive for lunches from 5.9 cents to 25 cents per meal. Eligible School Food Authorities (SFAs) that administer lunch programs must apply annually to Ag & Markets to receive the higher reimbursement which the State appropriates $10 million annually to support.
Auditors found that of the 762 SFAs outside New York City eligible to participate, only 73 (10%) were approved for reimbursement in the 2024-25 school year, drawing just $2.9 million (29%) of the program’s appropriation. That’s up from 51 that were approved in 2022-23 school year but still leaves $7.1 million sitting unused.
In response to a survey of SFA officials, the most common reason cited for the low participation was the administrative burden of having to account for school lunch costs separately from the district’s other food costs, such as breakfast or snacks, followed by difficulty sourcing eligible products from farms and distributors, and concerns over the cost of eligible products.
The audit found Ag & Markets could reduce some of the barriers to program participation and improve access to eligible foods by connecting SFAs with suppliers and distributors or developing other resources to assist with sourcing eligible foods. Auditors also found the application process could be improved if Ag & Markets required SFAs to include support for a district’s total annual food costs incurred, which would allow the department to verify the 30% calculation necessary to determine eligibility during the application process.
Senator Michelle Hinchey (D-Saugerties) said, “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) 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 for award 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) said, “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) said, “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 the Department of Ag & Markets for bettering the reimbursement process and taking into consideration schools’ purchasing practices in determining its valued incentive program.”
Assemblymember Anna Kelles (D-Ithaca) said, “The 30% New York School Lunch Reimbursement Program strengthens our local food systems while ensuring children have access to healthy, nutritious meals. This is exactly the kind of investment we should be making. However, this audit makes it clear that unnecessary red tape and administrative hurdles are standing in the way of real progress. Participation soars when we cut through those barriers and invest directly in our farm-to-school pipelines. Programs like this are critical to supporting New York’s farmers, reducing food insecurity, and keeping public dollars circulating in our local economies. Every dollar we invest in locally grown food is a dollar reinvested in our communities to support small family farms, create jobs, and shorten the distance from farm to table."
Bryan McCoy, President of the New York School Nutrition Association said, “We appreciate State Comptroller DiNapoli’s attention to the importance of school meals in nourishing New York’s students. NYSNA is proud to partner with the Department of Agriculture and Markets to ensure the 30% initiative continues to grow, connecting more schools with local farms and bringing healthy, homegrown foods to more children.”
David Fisher, New York Farm Bureau President said, “The 30% initiative has given farmers a new market for their products while helping to ensure New York kids are getting healthy, local food on their lunch trays. We appreciate State Comptroller DiNapoli evaluating this vital program and making recommendations for how to make it better. Improvements to the 30% initiative will not only help our schools and our children, but our farmers as well.”
Heidi Exline, New York and New Jersey Deputy Director, American Farmland Trust said, “At American Farmland Trust, we’ve heard from schools and farmers across New York: the 30% NYS Initiative is full of potential. That's why we're grateful for State Comptroller DiNapoli's report highlighting ways the program can work for more schools and farmers. Through our FINYS program, we’re committed to working with state leaders to expand access, simplify participation, and ensure every school can serve nutritious, New York-grown food. We’re especially grateful to the Department of Agriculture and Markets for their continued leadership and responsiveness in strengthening farm to school efforts and helping grow a more resilient, equitable food system.”
Auditors recommended Ag & Markets take steps to improve participation in the program by increasing outreach and assistance efforts and developing and maintaining information to help SFA’s with identifying and purchasing eligible food. Auditors also suggested that Ag & Markets provide guidance to SFAs and standardize and streamline documentation requirements.
In response, Ag & Markets agreed with the recommendations and outlined steps it has taken to address the findings and improve participation, including creating a planning calculator for SFAs and requiring total food costs during the application stage.