An Act establishing the Local Food Purchasing Incentive Grant Program, the Keystone Producer Grant Program, the Keystone Assistance Grant Program and the Keystone Fresh Farm to School Account; and imposing duties on the Department of Education and the Department of Agriculture.

PRIOR PRINTER'S NOS. 2177, 2596 PRINTER'S NO. 2638
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1768
Session of
2025
INTRODUCED BY BURGOS, FRITZ, KENYATTA, PASHINSKI, McNEILL,
GIRAL, HOHENSTEIN, PIELLI, KHAN, CEPEDA-FREYTIZ, SANCHEZ,
RABB, HADDOCK, BRENNAN, CIRESI, HILL-EVANS, HOWARD, MADDEN,
MALAGARI, NEILSON, FREEMAN, DAVIDSON, DEASY, WARREN, CERRATO,
CURRY, GUZMAN, SCHLOSSBERG, GREEN, PUGH, KINKEAD, HANBIDGE,
BOYD, FRIEL, DOUGHERTY, FRANKEL, TAKAC, K. HARRIS AND MADSEN,
JULY 28, 2025
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
NOVEMBER 19, 2025
AN ACT
Establishing the Local Food Purchasing Incentive Grant Program,
the Keystone Producer Grant Program, the Keystone Assistance
Grant Program and the Keystone Fresh Farm to School Account;
and imposing duties on the Department of Education and the
Department of Agriculture.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Keystone
Fresh Farm to School Nutrition Act.
Section 2. Findings and declarations.
The General Assembly finds and declares as follows:
(1) Schools across Pennsylvania serve more than
168,000,000 lunches per year, providing critical nutrients to
children across this Commonwealth. Due to the large volume of
food purchased to support nutrition programs, schools have
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the potential to be one of the largest markets for
agricultural producers across this Commonwealth. Farm to
School programs encourage schools to purchase, promote and
serve local foods.
(2) The purpose of the Local Food Purchasing Incentive
Grant Program is to meet Statewide interest in increasing the
amount of local food served in school meals by helping to
change school food procurement practices, provide technical
assistance and training for how to integrate local foods in
school meals and help Pennsylvania producers access the
school food market.
(3) Enacting the Keystone Fresh Farm to School Nutrition
Act will provide State-level investment to expand farm-to-
school efforts and provide economic, public health and
community benefits for Pennsylvanians.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Account." The Keystone Fresh Farm to School Account
established under section 8(a).
"Department." The Department of Education of the
Commonwealth.
"INSTITUTION OF HIGHER EDUCATION." ANY OF THE FOLLOWING:
(1) A COMMUNITY COLLEGE OPERATING UNDER ARTICLE XIX-A OF
THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS THE
PUBLIC SCHOOL CODE OF 1949.
(2) A UNIVERSITY WITHIN THE STATE SYSTEM OF HIGHER
EDUCATION.
(3) THE PENNSYLVANIA STATE UNIVERSITY.
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(4) THE UNIVERSITY OF PITTSBURGH.
(5) TEMPLE UNIVERSITY.
(6) LINCOLN UNIVERSITY.
(7) ANY OTHER INSTITUTION THAT IS DESIGNATED AS "STATE-
RELATED" BY THE COMMONWEALTH.
(8) ANY ACCREDITED PRIVATE OR INDEPENDENT COLLEGE OR
UNIVERSITY.
"Local food." Fruits, herbs, vegetables, grains, meats,
fish, beans, yogurt and cheese that are grown, harvested or
raised and minimally processed products in this Commonwealth.
"Minimally processed products."
(1) A food product processed in a manner that does not
fundamentally alter the product and that retains its inherent
character so that the primary product can still be
identified.
(2) The process under paragraph (1) includes freezing,
pasteurizing milk for use in yogurt or cheese, butchering
livestock and poultry, cleaning fish, forming ground food
products into patties, grinding meats, grinding grains,
drying grains or beans, dehydrating food products and washing
and cutting produce.
(3) For the purposes of this act, fully cooked items are
not considered minimally processed products.
"National School Lunch Program." As defined in 7 CFR 210.2
(relating to definitions).
"New and beginning farmer or rancher."
(1) A farmer or rancher who has operated a farm or ranch
for less than 10 years.
(2) The term includes a legal entity or joint operation
only if all individual owners thereof have operated farms or
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ranches for 10 years or more NO MORE THAN 10 YEARS.
"Program." The Local Food Purchasing Incentive Grant Program
established under section 4(a).
"School food authority." The governing body responsible for
the administration of one or more schools that has the legal
authority to operate the National School Lunch Program.
"Seamless Summer Option." A Federal program that allows
school districts to operate a modified version of the National
School Lunch Program under the National School Lunch Act (60
Stat. 230, 42 U.S.C. § 1751) to provide summer meals for
children.
"Veteran farmer or rancher."
(1) A producer who served in the United States Armed
Forces, including a reserve component or the National Guard,
and who was discharged or released from service under
conditions other than dishonorable.
(2) A legal entity or joint operation can be a veteran
farmer or rancher only if all individual members
independently qualify.
Section 4. Local Food Purchasing Incentive Grant Program.
(a) Establishment.--Not later than 18 months after the
effective date of this subsection, the department shall
establish the Local Food Purchasing Incentive Grant Program.
(b) Purpose.--The purpose of the program is to award grants
to school food authorities for the purchase of local food to be
used in school meals.
(c) Administration.--The department, in consultation with
the Department of Agriculture, shall implement and administer
the program, including the development of a process to review
and approve grants under the program.
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(d) Application generally.--The department shall:
(1) Develop a form for school food authorities to submit
an application to the department for a grant under the
program, including the school's local food purchasing plan.
(2) Prescribe the manner in which a completed
application form must be submitted to the department.
(3) Post the application form on the publicly accessible
Internet website of the department.
(e) Eligibility.--A school food authority may submit an
application to the department for a grant for a school,
including a public school, charter school and private school,
that operates the National School Lunch Program and has at least
100 enrolled students in a building at the school.
(f) Application review.--
(1) The department shall review the application of each
school food authority.
(2) In determining whether to approve an application,
the department shall:
(i) Evaluate the readiness level of the school food
authority to purchase and serve local food in school
meals by considering:
(A) The applicant's local food purchasing plan.
(B) The applicant's ability to demonstrate a
commitment to purchasing local food supplemented with
agricultural education.
(C) The applicant's access to a kitchen with the
ability to store, prepare and serve local food
products.
(ii) Give preference to applicants sourcing from
veteran farmers or ranchers or new and beginning farmers
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or ranchers.
(iii) Give preference to applicants who meet the
community eligibility provision under the Healthy,
Hunger-Free Kids Act of 2010 (Public Law 111-296, 124
Stat. 3183).
(g) Grant amounts.--The department shall, to the extent that
money is available, award a grant under the program to a school
food authority based on student enrollment, as identified in the
application of the school food authority, in the following
amounts on an annual basis:
(1) An applicant with a student enrollment from 100 to
1,000 is eligible for an award from $16,500 to $45,000.
(2) An applicant with a student enrollment from 1,001 to
5,000 is eligible for an award from $35,000 to $120,000.
(3) An applicant with a student enrollment from 5,001 to
10,000 is eligible for an award from $85,000 to $200,000.
(4) An applicant with a student enrollment from 10,001
to 32,000 is eligible for an award from $100,000 to $275,000.
(5) An applicant with a student enrollment exceeding
32,000 is eligible for an award from $200,000 to $650,000.
(h) Extension.--The department may allow a school food
authority to apply for an extension to spend unused funds in the
following school year.
(i) Eligible use of grants.--A school food authority may use
a grant under the program for any of the following purposes:
(1) To purchase local food.
(2) To purchase local food that has been processed in a
neighboring state into minimally processed products.
(j) Restrictions.--
(1) No more than 20% of the total amounts awarded under
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the program to a school food authority may be used to support
equipment upgrades, materials, training and staff time
directly related to supporting the increased amount of local
food served in school meals.
(2) A grant under the program may only be used for
school lunch, breakfast or Seamless Summer Option program
meals in school settings and purchased in accordance with
Federal, State and local procurement requirements.
(k) Ineligible use of grant.--A school food authority may
not use a grant under the program for costs that do not
constitute eligible costs for the purposes of the program,
including costs incurred by a school or school food authority in
the sourcing or purchasing of fluid dairy milk or in association
with the school or school food authority's ordinary, unexpanded
sourcing and procurement of local food products at or below the
baseline levels identified in the school or school food
authority's grant application submitted under this section.
(l) Reporting on use of grant.--
(1) The department shall monitor the program to ensure
program integrity.
(2) A school food authority that receives a grant under
the program shall submit the following information to the
department:
(i) An itemization of local food purchased,
including quantity and itemized dollar amount.
(ii) The name, location and total amount spent per
farm, food hub or local food aggregator.
(iii) Other information deemed necessary by the
department to validate the purchase of local food.
Section 5. Keystone Producer Grant Program and Keystone
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Assistance Grant Program.
(a) Establishment.--Not later than 18 months after the
effective date of this subsection, the Department of
Agriculture, in consultation with the department, shall
establish the Keystone Producer Grant Program and the Keystone
Assistance Grant Program.
(b) Administration.--The Department of Agriculture shall
work in consultation with the department to implement and
administer the Keystone Producer Grant Program and the Keystone
Assistance Grant Program, including the process to review and
approve grants under this section.
(c) Purposes.--
(1) The purpose of the Keystone Producer Grant Program
is to award grants for the purposes of providing funding to
participating farms, food hubs and local food aggregators for
equipment and marketing needed to participate in the program.
Eligible entities include individual producers, food hubs and
local food aggregators participating in the program.
(2) The purpose of the Keystone Assistance Grant Program
is to award technical assistance or small equipment grants to
assist school food authorities who receive a grant under the
program with procuring local food or incorporating additional
minimally processed products into their lunch programs,
including scratch cooking. Eligible entities include
nonprofit organizations and institutions of higher education
located in this Commonwealth approved by the department and
able to demonstrate their partnership with the school food
authority or authorities that they intend to assist.
(d) Grants.--The Department of Agriculture, in consultation
with the department, shall:
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(1) Develop a form to apply for a grant under this
section.
(2) Prescribe the manner in which a completed
application form must be submitted to the Department of
Agriculture.
(3) Post the application form on the publicly accessible
Internet website of the Department of Agriculture.
(e) Application review.--The Department of Agriculture shall
review the application of each applicant and, in determining
whether to approve the application, shall give preference to
applicants sourcing from or working with veteran farmers or
ranchers or new and beginning farmers or ranchers.
(f) Eligibility.--An applicant shall be eligible to apply
for one of the grants outlined in this section per grant cycle.
(g) Grant amounts.--Subject to the availability of money,
the Department of Agriculture shall determine the amount of each
grant in this section, with the maximum award amount not to
exceed $150,000 per grantee.
Section 6. Administration.
(a) Administration by department.--For the purposes of
carrying out this act and subject to the availability of money,
the department may use up to 3.5% of appropriated money that it
receives to cover administrative costs incurred in establishing
the program and commencing initial program operations under this
act, including the costs associated with:
(1) Hiring and employing at least one full-time staff
person and other personnel necessary for the administration
and management of the program and providing relevant program-
related information and assistance to school food
authorities.
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(2) Developing requests for proposals, reviewing
applications and administering disbursements to grant
recipients.
(3) Acquiring, maintaining and repairing relevant
technology, equipment and computer programs needed to
implement and administer this act and facilitate the annual
pro rata allocation, awarding and periodic disbursement of
program grant funding available.
(4) Monitoring and developing reports related to the
program, including program implementation and operations,
program funding and program-related activities and outcomes.
(b) Administration by Department of Agriculture.--For the
purposes of carrying out this act and subject to the
availability of money, the Department of Agriculture may use up
to 3.5% of appropriated money that it receives to cover
administrative costs incurred in establishing the programs under
section 5 and commencing their initial operations under this
act, including the costs associated with:
(1) Hiring and employing at least one full-time staff
person and other personnel necessary for the administration
and management of the programs under section 5 and provide
relevant program-related information to producers, farmers
and entities providing technical assistance.
(2) Developing requests for proposals, reviewing
applications and administering disbursements to grant
recipients.
(3) Conducting outreach and providing appropriate
training to farmers who are engaged or who plan to engage in
the sale or donation of local food products to schools and
school food authorities.
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(4) Monitoring and developing reports related to the
programs under section 5, including implementation and
operations, funding and related activities and outcomes.
(c) Internet website.--The department, in consultation with
the Department of Agriculture, shall develop a farm-to-school
Internet website that includes, at a minimum, the following
information:
(1) A list of farms that have served a school food
authority.
(2) The following materials, divided into sections:
(i) School meal operators, which must include the
following information:
(A) Buying local foods.
(B) Preparing local foods.
(C) Promoting local school meals using local
food.
(ii) Agricultural producers, which must include the
following information:
(A) Understanding school market channels.
(B) Best practices for selling to school food
authorities.
(C) Promoting local foods to school food
authorities.
(iii) School and community members, which must
include the following information:
(A) Insights into school meal programs.
(B) Engaging with school meal programs.
(iv) Sample menus incorporating local products.
(v) Recipes using local products.
(vi) Marketing materials for local food in
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cafeterias.
Section 7. External evaluations.
(a) External review.--The department, in consultation with
the Department of Agriculture, shall:
(1) Determine qualified entities, including nonprofit
organizations and academic institutions, that can conduct, on
a biennial basis, an external review to evaluate the efficacy
of the components of this act.
(2) Contract with a qualified entity for the purpose
described in paragraph (1).
(b) Contents.--Each biennial external evaluation under this
section shall include, at a minimum:
(1) Outcomes of the overall grant programs under this
act, including the dollar amount spent on local food, the
purchasing impact on various agricultural sectors as
determined by the Department of Agriculture and changes in
values-based purchasing behavior.
(2) Guidance to the department and the Department of
Agriculture on areas of success and areas in need of
improvement to increase local food procurement.
(c) Reports.--
(1) Not later that two years after the programs under
sections 4 and 5 are established, and every two years
thereafter, the department, in consultation with the
Department of Agriculture, shall issue a report based on the
biennial external evaluation under this section.
(2) Each report under this subsection shall be
transmitted to:
(i) The chairperson and minority chairperson of the
Agriculture and Rural Affairs Committee of the Senate.
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(ii) The chairperson and minority chairperson of the
Agriculture and Rural Affairs Committee of the House of
Representatives.
(iii) The chairperson and minority chairperson of
the Education Committee of the Senate.
(iv) The chairperson and minority chairperson of the
Education Committee of the House of Representatives.
(3) Each report under this subsection shall be posted on
the publicly accessible Internet websites of the department
and the Department of Agriculture.
Section 8. Keystone Fresh Farm to School Account.
(a) Establishment.--The Keystone Fresh Farm to School
Account is established as a restricted revenue account within
the General Fund. Money in the account, including interest
earned on the money in the account, is appropriated to the
department and the Department of Agriculture on a continuing
basis to carry out the purposes of this act.
(b) Deposits.--Money appropriated, given, granted or donated
to the programs or activities specified under this act by the
Federal Government, the Commonwealth or any other governmental
or private agency or person shall be deposited into the account.
(c) Use of money.--Every two years, $250,000 of the money
deposited into the account shall be reserved for the purposes of
carrying out the biennial external evaluations under section 7.
(C) USE OF MONEY.--
(1) THE DEPARTMENT AND THE DEPARTMENT OF AGRICULTURE
SHALL ENTER INTO A MEMORANDUM OF UNDERSTANDING REGARDING THE
ALLOCATION OF MONEY IN THE ACCOUNT TO CARRY OUT THE PURPOSES
OF THIS ACT.
(2) EVERY TWO YEARS, $250,000 OF THE MONEY DEPOSITED
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INTO THE ACCOUNT SHALL BE RESERVED FOR THE PURPOSES OF
CARRYING OUT THE BIENNIAL EXTERNAL EVALUATIONS UNDER SECTION
7.
Section 9. Effective date.
This act shall take effect as follows:
(1) The following shall take effect immediately:
Section 4.
Section 5.
This section.
(2) The remainder of this act shall take effect in 180
days.
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