Biden administration announce $2.1 billion funding to address food supply system

The administration of US President Joe Biden this week announced over $2.1 billion of funding that would be used for addressing the weaknesses in the country’s food supply system. The move comes as the COVID-19 pandemic and the war in Ukraine exposed such weaknesses in the country paired with inflation.

Reuters reports Agriculture Secretary Tom Vilsack announced the move by the administration during his remarks at Georgetown University. Over $2.1 billion in funding would be used to enhance competition in food processing and distribution, increase access to healthy food, and expand markets for farmers.

The investments would be coming from the American Rescue Plan and other relief legislation.

“In order for us to be able to deal with future disruptions, whether future pandemics or something else, we need a more resilient system,” said Vilsack. “A more resilient system is a system that has options.”

From the $2.1 billion, $900 million will be used for food processing workforce training and supply chain infrastructure. $550 million will be for small food businesses and reducing food waste, $375 million for organic and urban agriculture projects, and $370 million to increase accessibility to healthy food.

$400 million will be used by the USDA to set up regional food business centers that will provide small and midsize farm and food businesses with technical assistance. Vilsack also told Reuters that the agency will coordinate with Congress to secure longer-term funding for new and expanded programs through new farm legislation and the upcoming appropriations process.

The move comes amidst a time when many governments, including the US, are struggling to respond to the ongoing problem of inflation.

Speaking at an event at the White House Wednesday, Biden acknowledged that there is nothing much he can do to lower the cost of gasoline and food in the near term, even as he looks to lower the costs for those struggling financially.

“There’s a lot going on right now but the idea we’re going to be able to click a switch, bring down the cost of gasoline, is not likely in the near term. Nor is it with regard to food,” said the US leader.