Michigan food banks heading for critical shortages due to funding uncertainty

Originally posted on The Detroit News by Max Reinhart and Julia Cardi

An estimated 1.1 million food insecure Michiganians may be more at risk if federal programs that keep the state’s food pantries stocked aren’t quickly reinstated, a statewide food resource network warned this week.

The Food Bank Council of Michigan said food banks plan their budgets based on expected funding and are now facing “major gaps in supply,” which will have a significant impact on the organizations’ ability to serve families in need. Issues with one program are keeping nearly $3.7 million worth of meat and other products from making it to outreach shelves. The funding gap comes amid the Trump administration’s federal downsizing and funding freeze.

The council, which works with more than 2,800 hunger relief agencies, private companies, farmers and government agencies, offered a series of advisements to agencies that paint a concerning picture.

Kristin Sokul, a spokesperson for the nonprofit Gleaners Community Food Bank serving Wayne, Oakland, Macomb Monroe and Livingston Counties, said the funding cuts to USDA food programs could mean Gleaners has to distribute 2 million fewer pounds of food in the current fiscal year than the 50.7 million total pounds the organization budgeted for. Gleaners originally planned for about 10 million pounds to come from the USDA this fiscal year, which runs from October through September.

Sokul said if the 2-million-pound shortage were to happen, the impact would ripple across everyone Gleaners serves in terms of the volume and variety of food they receive. But putting a finer point on the impact, such a shortage would boil down to 36,000 fewer families served by Gleaners.

“If we weren’t able to fill that gap, or we wait and the 2-million-pound shortfall actualized, that would have an impact on all of the households that we serve in terms of volume and variety, but we would estimate that would mean 36,000 fewer households they would be able to serve this year,” she said.

The organization served more than one million households in the last fiscal year, according to Sokul.

Gleaners mainly stores and distributes food for the hundreds of soup kitchens, pantries, schools and other organizations it partners with. It also does provide some direct services to people facing food insecurity, such as mobile food pantries.

Stop spending

The Michigan Department of Education, which administers USDA food programs, disbursing funds to organizations that fight hunger, has advised the Food Bank Council to temporarily stop spending funds related to the federal Commodity Supplemental Food Program, which helps low-income, older adults obtain nutritious foods.

According to the USDA website, the program helps about 731,993 individuals each month and received about $389 million annually from the federal budget.

“This recommendation is based on the lack of clarity regarding future reimbursements, which poses a financial risk to food banks if they continue spending without a guaranteed source of funding,” the council said in a press release detailing the situation, though the council clarified Friday that any outstanding invoices for the program will be paid.

In turn, the council is advising Michigan food banks to stop spending Local Food Purchase Assistance Cooperative Agreement Program funds, which total about $900 million annually to help organizations across the U.S. obtain foods produced in-state, pending further guidance from the USDA and MDE.

The USDA has confirmed to the council that any LFPA purchases made after Jan. 19 are not currently eligible for reimbursement and it’s unclear when or if they will be.

The recommendation aims to prevent additional financial strain on food banks that may not be reimbursed for purchases from local farms and to help ensure that available funds are “used efficiently and sustainably,” the council said.

Canceled orders

The Food Bank Council of Michigan said nearly $3.7 million worth of food bank orders through an arm of the USDA’s Emergency Food Assistance Program are at high risk of being canceled due to “pricing issues” or “lack of vendor bids.”

Of the 209 total current orders through the program, 118 are labeled “return to AMS,” or the Agricultural Marketing Service, an agency that administered several USDA programs.

“Historically, items marked ‘return to AMS’ are rarely reinstated and, if they are, it is typically too late for food banks to plan around them,” the council said.

The orders are for food items like chicken breast and legs, turkey breast, pulled pork, eggs and shredded cheese. The council said without these shipments, Michigan food banks will lose three to four truckloads of food per month.

The council is calling on the USDA to provide immediate clarification regarding reimbursement and funding for food order programs.

“Delays in resolution will only compound the challenges food banks are already facing,” the council said.

The USDA has not responded to an email seeking comment.