The bill establishes the Farm to School Local Food Procurement Reimbursement Grant Program in New Jersey, aimed at reimbursing eligible school districts for costs associated with sourcing and procuring local foods for students. It allocates $6,500,000 for this initiative and sets specific eligibility criteria, requiring participating schools to provide subsidized meals. The Secretary of Agriculture will administer the grants on a competitive basis, with funding amounts varying based on district size—small, medium, or large. The bill emphasizes sourcing from small or mid-sized family farms and socially disadvantaged farmers, and it includes provisions for monitoring and reporting on grant fund usage.

Under the program, at least 80% of the grant funds must be used for local food procurement, while up to 20% can be allocated for equipment and staff training. The application process requires districts to provide detailed information about their schools and food procurement plans, with priority given to those serving a high percentage of subsidized students or located in food deserts. The funds will be disbursed on a rolling basis, and any unclaimed funds will be reclaimed for future grants. The bill designates $5,500,000 for grant awards and $1,000,000 for administrative costs from the General Fund.