Our institutions must require stronger enforcement of Buy American standards. We need policymakers who will stand up for and fully support American growers, processors, and workers.

Apply the 5% Ceiling by Specific Food Categories
To improve Buy American enforcement, we recommend that Congress direct USDA to apply the existing 5% ceiling on imported food product purchases by specific food categories, as defined by the Agricultural Marketing Service (AMS). These categories include:

• Fruits and Vegetables

• Poultry

• Livestock

• Dairy

• Group Materials (cereals, flour, pasta, rice, etc.)

By focusing on individual categories rather than total food expenditures, this approach prevents foreign imports from disproportionately impacting specific sectors, such as fruit and vegetable growers, which are currently the most affected.

Eliminate the "Significant Cost Differential" Exception
The vague and inconsistently applied “significant cost differential” exception undermines the integrity of Buy American policies. This loophole allows foreign food products to infiltrate the domestic market under ambiguous standards, creating instability for American producers.

Instead, USDA should remove this exception altogether, providing clear and enforceable standards that ensure American agricultural products are prioritized in school food programs. Attempts to define acceptable cost differentials could lead to exploitation by distributors through tactics like off-invoice allowances or discounts, further disadvantaging domestic producers.

Justification

The USDA’s Child Nutrition Program Operations Study II for School Year 2017-2018 highlights that nearly all SFAs using the Buy American exception purchased foreign fruits (93%) and vegetables (53%). Without reform, applying a 5% non-domestic ceiling to total food purchases would still permit significant volumes of foreign fruits and vegetables to flood the market.

By categorizing ceilings and eliminating vague exceptions, these reforms will:

• Provide critical support to U.S. agricultural producers and processors.

• Increase demand for high-quality, locally sourced food in school nutrition programs.

• Ensure greater transparency and fairness in procurement practices.

Strengthening Buy American provisions ensures that taxpayer dollars support American farmers, bolster rural economies, and reinforce national food security. Congress must take decisive action to refine these policies, safeguarding the future of domestic agriculture and maintaining the integrity of school nutrition programs.