Audit: “30% NY School Lunch” Initiative Making Progress but Hampered by Red Tape

A new audit from New York State Comptroller Thomas P. DiNapoli finds that the state’s 30% New York School Lunch Initiative — designed to boost the use of New York–grown and processed foods in school meals — is growing, but still faces challenges that limit its reach.

The program, launched in 2018 by the Department of Agriculture and Markets (Ag & Markets), provides higher reimbursements to schools that spend at least 30% of their lunch food costs on New York State products. Schools meeting that threshold receive 25 cents per meal, up from the standard 5.9 cents, with $10 million allocated annually to support the initiative.

According to DiNapoli’s audit, just 73 of the 762 eligible School Food Authorities outside New York City — about 10% — qualified for the increased reimbursement in the 2024–25 school year, totaling $2.9 million in funding. That’s an improvement from 51 districts in 2022–23 but still leaves more than $7 million unused.

“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,” DiNapoli said. “But there’s room to do better… by reducing the red tape that discourages school districts from participating.”

The audit found that the administrative burden of separating lunch costs from other food programs, such as breakfast and snacks, was the top reason districts cited for not participating. Other hurdles include difficulties in sourcing qualifying local products and concerns over their cost.

Auditors recommended that Ag & Markets streamline the process by connecting schools with local suppliers and simplifying documentation requirements. The report also suggests improving the application process by requiring full documentation of annual food costs to make eligibility verification easier.

Despite the challenges, the audit notes that participation continues to grow — and with fewer barriers, more schools could take advantage of the initiative’s benefits for students and New York’s agricultural economy.