Requires Secretary of Agriculture to establish Farm to School Local Food Procurement Reimbursement Grant Program to reimburse school districts for costs expended in sourcing and procuring local foods for students; appropriates $4,500,000.

S1650 FISCAL ESTIMATE

LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 1650

STATE OF NEW JERSEY

222nd LEGISLATURE

DATED: JUNE 23, 2026

SUMMARY

Synopsis:

Requires Secretary of Agriculture to establish Farm to
School Local Food Procurement Reimbursement Grant Program to reimburse school
districts for costs expended in sourcing and procuring local foods for
students; appropriates $4,500,000.

Type of Impact:

Time-limited State expenditure increase; time-limited
school district revenue and expenditure increases.

Agencies Affected:

Department of Agriculture; school districts.

Fiscal Impact

Year 1�

Year 2 & Thereafter

State Expenditure
Increase

Up to $4.5 million

Indeterminate

School District
Revenue Increase

Up to $4 million

Indeterminate

School District
Expenditure Increase

Indeterminate

Indeterminate

�

The Office of Legislative Services (OLS) determines that this
bill would result in a State expenditure increase of up to $4.5 million in the
first year. If the full $4.5 million is not expended in the first year, the
remaining amount will be spent in subsequent fiscal years until the full $4.5 million
is exhausted. Of this amount, $4 million would be dedicated to grant awards to
school districts, and $500,000 would be allocated for the administrative
expenses of the Department of Agriculture to establish and operate the program.

�

If the department determines that additional funds are necessary
to support and continue program operations, facilitate the achievement of
program goals, and finance individual program grant awards beyond the initial
$4.5 million appropriation, the department is to include this amount in its
annual request for appropriations.� School districts that elect to participate
in the program will incur additional operating expenses as well as revenue from
State reimbursements of up to $4 million across all participating school
districts.

BILL DESCRIPTION

����� This bill would require the Department of Agriculture
to establish and operate the Farm to School Local Food Procurement
Reimbursement Grant Program.� The grant program would provide reimbursement to
eligible school districts in the State that undertake expanded or modified
local food procurement policies and activities.

����� The department would be authorized to annually award a
grant to each eligible school district in amounts between $10,000 and $250,000,
depending upon the size of the district. Grants would be awarded to school
districts on an equitable, pro rata basis, in accordance with a formula
determined by the department. All funds would be used for the procurement of
increased types or amounts of local foods. Districts would be permitted on a
case-by-case basis to use up to 20 percent of the funds for technical assistance
expenditures necessary to implement the district�s proposed local food
procurement plan. The department would annually submit a program status report
to the Governor and Legislature upon submission of its annual budget request.

����� The bill would appropriate $4.5 million from the
General Fund to the department for the grant program. Of that amount, $4
million would be deposited into the newly established Farm to School Local Food
Procurement Reimbursement Fund for the financing of program grant awards. The
remaining $500,000 would support the department�s program-related
administrative expenses. The bill requires the department to include in its
annual appropriations request a request for future funding necessary, not to
exceed $4.5 million, to support and continue program operations, facilitate the
achievement of program goals, and finance individual program grant awards.

FISCAL ANALYSIS

EXECUTIVE BRANCH

����� None received.

OFFICE OF LEGISLATIVE SERVICES

����� The OLS finds that this bill would result in a State
expenditure increase of up to $4.5 million in the first year. If the full $4.5
million is not expended, the remaining amount will be spent in subsequent
fiscal years until the full $4.5 million is depleted. Of this amount, $4
million would reimburse schools participating in the program. The remaining
$500,000 would support the administrative expenses of the Department of
Agriculture to establish and operate the program, and the submission of an
annual program report. If the department requires additional funding to support
continued program operations and grant distribution, the department would be
required to request the necessary amount in its annual request for
appropriations.

����� School districts that elect to participate in the
program will incur additional operating expenses, as well as revenue from State
reimbursements of up to $4 million across all participating school districts.�
At its discretion, the department may authorize a school district to use up to
20 percent of the funds annually awarded to reimburse technical assistance
expenditures necessary to implement the district�s proposed local food
procurement plan.� A school district receiving a reimbursement grant in a particular
year is permitted to apply for a grant in subsequent years.� However, school
districts are prohibited from rolling grant funding from one year to the next.�
Subject to limited exceptions, any grant funds awarded to a school district
that are uncommitted at the end of the annual disbursement period are to be
reclaimed by the department and used for future grant program awards.

����� District administrative workloads of school districts may
also increase to submit attestation forms, develop procurement plans, track
expenditures, and comply with reporting requirements.� These administrative
responsibilities will depend on department operating decisions, which the OLS
cannot anticipate.

����� For context, California Assembly Bill 675 of the
2025-2026 legislative session aimed to establish a similar Farm to School
Program in the California Department of Food and Agriculture (CDFA); the bill
passed the California Assembly but was held under submission in the Senate
Appropriations Committee.� The bill requires the CDFA to increase procurement
of whole or minimally-processed foods, grown and produced in California, for
school meal programs.� The intent of the program was to encourage hands-on
nutrition education opportunities that educate pupils on the nutritional
profiles of foods and advance the California farm to school network.� Bill
analyses included written statements from the CDFA verifying that the bill
would result in an indeterminate fiscal impact.� The CDFA determined that
previous years� enacted budgets, which had approved $4.4 million for its
designated Office of Farm to Fork, could support the local planning and
implementation of the new Farm to School program.�

Section:

Environment, Agriculture, Energy, and Natural
Resources

Analyst:

Anna Heckler

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).