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USDA Funding Cuts and their impacts on Alaska’s Economy
EEconomy

USDA Funding Cuts and their impacts on Alaska’s Economy

  • 12.04.2025

ANCHORAGE, Alaska (KTUU) – The Department of Government Efficiency (DOGE) federal funding cuts are impacting allocations to programs meant to help provide increased access to locally grown food.

The two programs include the Local Food Purchase Assistance (LFPA) and Local Food for Schools (LFS), which are run through the United States Department of Agriculture (USDA). LFPA also deals with tribal funding for local produce.

The total cuts are impacting Alaska across the board.

Numbers from USASpending.gov show that in Alaska, canceled funding to the LFS is $1,383,131. The canceled funding to LFPA is $6,064,325. That number breaks down to LFPA $765,450 and LFPA Tribal $5,298,875.

The funding is a multiplier, meaning that every dollar of federal funding generates additional economic activity as it moves through the state’s economy.

The number of economic losses to the state can be estimated, according to the USDA, using the local foods economics calculator. Through the loss of funding to LFS, the state of Alaska could lose out on $2,390,054 of economic growth. The cancellation of funds through LFPA could result in an economic loss of $1,307,107, and the loss of LFPA Tribal funding specifically could result in an economic loss of $9,048,529.

USDA funding cutsLocal Food for Schools (LFS)Local Food Purchase Assistance (LFPA)Local Food Purchase Assistance (LFPA Tribal)$1,383,131 Funding cut to Alaska$765,450 Funding cut to Alaska$5,298,875 Funding cut to Alaska$2,390,054 in potential economic loss to Alaska$1,307,107 in potential economic loss to Alaska$9,048,529 in potential economic loss to Alaska

Because Alaska isn’t a large-scale food producer, the food that is grown by farmers stays in the state’s economy, and the produce purchased through LFPA and LFS goes to Alaskan food banks, Alaskan Schools, and Alaskan community-based organizations.

Without the program’s funding, farmers will have to sell their products to consumers through more traditional means and will have to anticipate the market, which could mean growing less produce.

“I know this fluctuation of having programs start and then going away. You know it’s really hard to kind of plan you’re planting or growing around not knowing what’s going to be there for purchasing,” said policy director for the Alaska Farm Bureau Amy Seitz.

Seitz says that a tough budget year means the support for Alaskan farmers could be less than in years past and that she hopes consumers continue to buy and support local.

“Support buying local, you know, as much as possible; whether it’s in the grocery store, or you know, supporting restaurants that provide Alaska-grown ingredients, going to farmers’ markets, so there’s a lot even that just our residents can do,” Seitz explained.

The federal funding cuts have been a core message from the White House as President Donald Trump and billionaire Elon Musk work to reshape the federal government.

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  • Alaska
  • Alaska Farm Bureau
  • doge
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  • LFPA Tribal
  • lfs
  • Local Food for Schools
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