The U.S. Department of Agriculture (USDA) has announced that it will provide almost $1.3 billion to states in order to purchase domestic foods for school meal programs.

This funding aims to address ongoing challenges related to food and labor costs in the upcoming 2023-24 school year. The funds come as the Keep Kids Fed Act’s increased federal reimbursement rates for school lunches and breakfasts are set to expire on June 30. The Act had temporarily raised reimbursement rates for lunch and breakfast.

The USDA has provided almost $4 Billion in additional support for school meals since 2021.