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. Funded by an appropriation of $6,500,000, the program seeks to enhance local food procurement policies and practices within participating schools. Eligible costs include documented expenses related to local food initiatives, while expenses for fluid dairy milk and ordinary local food procurement at baseline levels are excluded. The Secretary of Agriculture will administer the program, awarding grants based on the size of the school district, with specific funding limits for small, medium, and large districts.

The application process requires school districts to submit detailed plans for increasing local food procurement, including the number of participating schools and students. Priority will be given to districts with high percentages of subsidized students and those in food desert areas, while also encouraging sourcing from small or mid-sized family farms and socially disadvantaged farmers. The bill mandates that at least 80% of awarded funds be used for reimbursing local food sourcing costs, with up to 20% allocated for equipment and staff training. It also prohibits the roll-over of unspent grant funds, except in cases of unforeseen hardship, and designates $5,500,000 for grant awards and $1,000,000 for administrative costs.