HB 1768 — An Act establishing the Local Food Purchasing Incentive Grant Program, the Keystone Producer Grant Program, the Keystone Assistance Grant Program and the Keystone Fresh Farm to School Account; and imposing duties on the Department of Education and the Department of Agriculture.

PRINTER'S NO.   2177

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       HOUSE BILL
                       No. 1768
                                               Session of
                                                 2025

     INTRODUCED BY BURGOS, FRITZ, KENYATTA, PASHINSKI, McNEILL,
        GIRAL, HOHENSTEIN, PIELLI, KHAN, CEPEDA-FREYTIZ, SANCHEZ,
        RABB, HADDOCK, BRENNAN, CIRESI, HILL-EVANS, HOWARD, MADDEN,
        MALAGARI, NEILSON, FREEMAN, DAVIDSON, DEASY, WARREN, CERRATO,
        CURRY, GUZMAN, SCHLOSSBERG AND GREEN, JULY 28, 2025

     REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
        AUGUST 4, 2025


                                   AN ACT
 1   Establishing the Keystone Fresh Program; providing for the Fresh
 2      Schools Grant Program, for the Keystone Producer Grant
 3      Program, for the Keystone Assistance Grant Program and for
 4      the administration of the Keystone Fresh Program by the
 5      Department of Education and the Department of Agriculture;
 6      and establishing the Keystone Fresh Fund.
 7      The General Assembly of the Commonwealth of Pennsylvania
 8   hereby enacts as follows:
 9   Section 1.   Short title.
10      This act shall be known and may be cited as the Keystone
11   Fresh Act.
12   Section 2.   Findings and declarations.
13      The General Assembly finds and declares as follows:
14          (1)   Schools across Pennsylvania serve more than 168
15      million lunches per year, providing critical nutrients to
16      children across this Commonwealth. Due to the large volume of
17      food purchased to support nutrition programs, schools have
18      the potential to be one of the largest markets for
 1      agricultural producers across this Commonwealth. Farm to
 2      School programs encourage schools to purchase, promote and
 3      serve local foods. Nationally, Farm to School programs have
 4      shown to be an innovative strategy to improve child
 5      nutrition, with research indicating students eat 37% more
 6      vegetables and 11% more fruit. Pennsylvania has a long
 7      history of interest in Farm to School programs, with 268
 8      districts (44%) currently participating in some level of
 9      farm-to-school activity. According to the United States
10      Department of Agriculture's 2023 Farm to School Census, more
11      than 71% of Pennsylvania's schools reported purchasing some
12      Pennsylvania products, yet those local food sales, excluding
13      liquid milk, were only 9% of their total lunch program
14      budget.
15          (2)   The purpose of this program is to meet Statewide
16      interest in increasing the amount of local food served in
17      school meals by helping to change school food procurement
18      practices, provide technical assistance and training for how
19      to integrate local foods in school meals and help
20      Pennsylvania producers access the school food market.
21          (3)   Enacting the Keystone Fresh Act will provide State-
22      level investment to expand farm-to-school efforts and provide
23      economic, public health and community benefits for
24      Pennsylvanians.
25   Section 3.   Definitions.
26      The following words and phrases when used in this act shall
27   have the meanings given to them in this section unless the
28   context clearly indicates otherwise:
29      "Department."   The Department of Education of the
30   Commonwealth.

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 1      "Eligible costs."   The actual, documented costs of local
 2   food, which are reimbursable with program grant funds as
 3   provided under sections 5, 6, 7 and 8.
 4      "Eligible school district."   A kindergarten through grade 12
 5   school district or school in this Commonwealth with at least 100
 6   students participating in the National School Lunch Program.
 7      "Fund."   The Keystone Fresh Fund established under section 9.
 8      "Ineligible costs."   Any costs that do not constitute
 9   eligible costs for the purposes of the program, including, but
10   not limited to, any costs incurred by a school or school
11   district in the sourcing or purchasing of fluid dairy milk or in
12   association with the school or school district's ordinary,
13   unexpanded sourcing and procurement of local food products at or
14   below the baseline levels identified in the school or school
15   district's grant application submitted under section 5.
16      "Local food."   Any fruits, vegetables, grains, meats, fish,
17   beans, yogurt and cheese that are grown, harvested or raised and
18   minimally processed products in this Commonwealth.
19      "Minimally processed products."    Food products processed in a
20   manner that does not fundamentally alter the product and where
21   the product retains its inherent character and the primary item
22   can still be identified. The term includes, but is not limited
23   to, freezing, pasteurizing milk for use in yogurt or cheese,
24   butchering livestock and poultry, cleaning fish, dicing and
25   slicing produce, forming ground food products into patties,
26   grinding meats, grinding grains, drying grains or beans or
27   dehydrating food products and washing and cutting produce. Fully
28   cooked or canned items are not considered minimally processed
29   products.
30      "National School Lunch Program."   The federally funded school

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 1   lunch meal program operating in this Commonwealth's public and
 2   nonprofit private schools.
 3      "New and beginning farmer or rancher."    A farmer or rancher
 4   who has operated a farm or ranch for 10 years or less either as
 5   a sole operator or with others who have operated a farm or ranch
 6   for 10 years or less.
 7      "Program."   The Keystone Fresh Program established under
 8   section 4.
 9      "School food authority."   The governing body responsible for
10   the administration of one or more schools that has the legal
11   authority to operate the National School Lunch Program.
12      "Socially disadvantaged group."    A population group whose
13   members have been subjected to prejudice or discrimination on
14   the basis of race, color, national origin, age, disability or,
15   where applicable, sex, marital status, familial status, parental
16   status, religion, sexual orientation, genetic information,
17   political beliefs or participation in any public assistance
18   program, because of their membership in the group or the shared
19   characteristics of the group and without regard to their
20   individual qualities.
21      "Sustainable agriculture techniques."    Agriculture practices
22   that include no-till and/or use of a cover crop system,
23   certified organic, regenerative organic practices, pastured
24   poultry or grass-fed meat.
25      "Veteran farmer or rancher."
26          (1)   A producer who served in the United States Armed
27      Forces, including a reserve component or the National Guard,
28      and who was discharged or released from service under
29      conditions other than dishonorable.
30          (2)   A legal entity or joint operation can be a veteran

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 1      farmer or rancher only if all individual members
 2      independently qualify.
 3   Section 4.     Establishment.
 4      The Keystone Fresh Program is established within the
 5   department in consultation with the Department of Agriculture.
 6   Section 5.     Fresh Schools Grant Program.
 7      (a)   Authorization.--The department, in consultation with the
 8   Department of Agriculture, shall establish the Fresh Schools
 9   Grant Program to award grants for the purpose of reimbursing
10   school food authorities for the purchase of local food to be
11   used in school meals.
12      (b)   Eligibility.--An eligible school district may submit an
13   application to the department for grant funding.
14      (c)   Evaluation of applicants.--The department shall develop
15   an application and evaluate applicants based on the readiness
16   level of a school food authority to purchase and serve local
17   food in school meals by considering:
18            (1)   The applicant's local foods purchasing plan in the
19      grant application.
20            (2)   The applicant's ability to demonstrate a commitment
21      to local purchasing of food and agricultural education.
22            (3)   The applicant's access to a kitchen with the ability
23      to store, prepare and serve local food products.
24            (4)   That preference shall be given to applicants
25      sourcing from veteran farmers or ranchers, farmers or
26      ranchers who are from socially disadvantaged groups, new and
27      beginning farmers or ranchers or farmers or ranchers that use
28      sustainable agriculture techniques.
29      (d)   Grant amounts.--The department shall award grants based
30   on student enrollment, as identified by the applicant in the

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 1   following amounts on an annual basis:
 2            (1)   Applicants with a student enrollment from 100 to
 3      1,000 are eligible for an award from $16,500 to $45,000.
 4            (2)   Applicants with a student enrollment from 1,001 to
 5      5,000 are eligible for an award from $35,000 to $120,000.
 6            (3)   Applicants with a student enrollment from 5,001 to
 7      10,000 are eligible for an award from $85,000 to $200,000.
 8            (4)   Applicants with a student enrollment from 10,001 to
 9      32,000 are eligible for an award from $100,000 to $275,000.
10            (5)   Applicants with a student enrollment above 32,000
11      are eligible for an award from $200,000 to $650,000.
12      (e)   Eligible use of grants.--A school district may use grant
13   awards for the following purposes:
14            (1)   To purchase whole and minimally processed fruits,
15      vegetables, herbs, meat, seafood, yogurt, cheese, legumes and
16      grains that are 100% grown, raised or caught and processed in
17      this Commonwealth.
18            (2)   To purchase products that are 100% Pennsylvania
19      grown but processed in a neighboring state.
20            (3)   No more than 20% of the total amounts awarded to the
21      school district may be used to support equipment upgrades,
22      materials, training and staff time directly related to
23      supporting the increased amount of local Pennsylvania
24      products served in school meals.
25            (4)   Grant awards may only be used for school lunch,
26      breakfast or Seamless Summer Option program meals in school
27      settings.
28      (f)   Ineligible use of grant awards.--School districts may
29   not use grant awards to purchase fluid dairy milk for the
30   purposes of this program or any other ineligible costs.

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 1      (g)   Reimbursement of eligible costs.--The department shall
 2   reimburse school food authorities for eligible costs on an
 3   annual basis with the following conditions:
 4            (1)   School food authorities shall submit invoices on a
 5      timeline set by the department in order to be reimbursed for
 6      their eligible costs under this section.
 7            (2)   The department may allow the school food authority
 8      to apply for an extension to spend down unused money in the
 9      following year.
10      (h)   Reporting on use of grant awards.--The department shall
11   monitor the Fresh Schools Grant Program to ensure program
12   integrity. Grantees shall be required to include the following
13   information to request reimbursement:
14            (1)   Products purchased.
15            (2)   The name, location and total amount spent per farm,
16      either through receipts or uploading procurement details.
17   Section 6.     Keystone Producer Grant Program and Keystone
18                  Assistance Grant Program.
19      (a)   Authorization.--The Department of Agriculture, in
20   consultation with the department, shall establish the following
21   grant programs:
22            (1)   The Keystone Producer Grant Program to award grants
23      for the purposes of providing funding to participating farms,
24      food hubs and local food aggregators for equipment and
25      marketing needed to participate in the program. Eligible
26      entities shall include individual farms, food hubs and local
27      food aggregators participating in the program.
28            (2)   The Keystone Assistance Grant Program to award
29      technical assistance grants to assist school food authorities
30      with incorporating additional minimally processed products

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 1      into their lunch programs, including scratch cooking.
 2      Eligible entities shall include nonprofits and institutions
 3      of higher education located in this Commonwealth
 4      participating in the program.
 5      (b)   Eligible use of money.--The Department of Agriculture
 6   shall allow grant awards outlined in this section for the
 7   following purposes:
 8            (1)   Keystone Producer Grant Program awards may be used
 9      for equipment or marketing needed by producers to meet the
10      school food institutional standards.
11            (2)   Keystone Assistance Grant Program awards may be used
12      by awardees to assist school food authorities to incorporate
13      additional minimally processed products into their lunch
14      programs, including scratch cooking.
15      (c)   Grant awards.--The Department of Agriculture, in
16   consultation with the department, shall develop an application
17   and process for awarding grants outlined in this section that
18   includes the following requirements and considerations:
19            (1)   Preference shall be given to applicants sourcing
20      from or working with veteran farmers or ranchers, farmers or
21      ranchers who are from socially disadvantaged groups, new and
22      beginning farmers or ranchers or farmers or ranchers that use
23      sustainable agriculture techniques.
24            (2)   Grantees shall be eligible to apply for one of the
25      grants outlined in this section per grant cycle.
26      (d)   Grant amounts.--Subject to the availability of money
27   under section 9, the Department of Agriculture shall determine
28   the amount of each grant in this section with the maximum award
29   amount not to exceed $150,000 per grantee.
30   Section 7.     Administration.

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 1      (a)   Department administration.--For the purposes of carrying
 2   out this act and subject to the availability of money under
 3   section 9, the department shall receive necessary money from the
 4   fund to cover administrative costs incurred in establishing the
 5   program and commencing initial program operations under this
 6   act, including, but not limited to, the costs associated with:
 7            (1)   Hiring and employing of at least one full-time staff
 8      person and other personnel necessary for the administration
 9      and management of the programs established in this act and
10      providing relevant program-related information and assistance
11      to eligible school districts.
12            (2)   Developing requests for proposals, reviewing
13      applications and administering disbursements to grant
14      recipients.
15            (3)   Acquiring, maintaining and repairing relevant
16      technology, equipment and computer programs needed to
17      establish, implement and successfully operate this act and
18      facilitate the annual pro rata allocation, awarding and
19      periodic disbursement of program grant funding available.
20            (4)   Monitoring and developing reports related to the
21      Fresh Schools Grant Program, including, but not limited to,
22      program implementation and operations, program funding and
23      program-related activities and outcomes.
24      (b)   Department of Agriculture administration.--For the
25   purposes of carrying out this act and subject to the
26   availability of money under section 9, the Department of
27   Agriculture shall receive necessary money from the fund to cover
28   administrative costs incurred in establishing the program and
29   commencing initial program operations under this act, including,
30   but not limited to, the costs associated with:

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 1        (1)   Hiring and employing at least one full-time staff
 2    person and other personnel as may be necessary to administer
 3    and manage the grants in section 6 and provide relevant
 4    program-related information to producers, farmers and
 5    entities providing technical assistance.
 6        (2)   Developing requests for proposals, reviewing
 7    applications and administering disbursements to grant
 8    recipients.
 9        (3)   Conducting outreach and providing appropriate
10    training to farmers who are engaged or who plan to engage in
11    the sale or donation of local food products to schools and
12    school districts for program purposes.
13        (4)   Developing a farm-to-school Internet website that
14    includes, at a minimum, the following information:
15              (i)    A list of farms that have served an eligible
16        school district.
17              (ii)    Materials listed below, divided into sections:
18                     (A)   School meal operators. The following
19              information shall be included:
20                           (I)    Buying local foods.
21                           (II)    Preparing local foods.
22                           (III)    Promoting local school meals.
23                     (B)   Agricultural producers. The following
24              information shall be included:
25                           (I)    Understanding school market channels.
26                           (II)    Best practices for selling to eligible
27                     school districts.
28                           (III)    Promoting local foods to eligible
29                     school districts.
30                     (C)   School and community members. The following

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 1                  information shall be included:
 2                            (I)    Insights into school meal programs.
 3                            (II)    Engaging with school meal programs.
 4                      (D)   Sample menus incorporating local products.
 5                      (E)   Recipes using local products.
 6                      (F)   Marketing materials for local food in
 7                  cafeterias.
 8            (5)   Monitoring and developing reports related to the
 9      grants established in section 6, including, but not limited
10      to, program implementation and operations, program funding
11      and program-related activities and outcomes.
12   Section 8.     External evaluations.
13      (a)     External review.--The department, in consultation with
14   the Department of Agriculture, shall biennially contract with an
15   eligible entity to conduct an external review to evaluate the
16   efficacy of the components of this act.
17      (b)     Reviewers.--Eligible entities to conduct external
18   reviews shall include nonprofit organizations and academic
19   institutions as determined by the department.
20      (c)     Report.--External evaluations shall include, at a
21   minimum:
22            (1)   Outcomes of the overall grant program, including the
23      dollar amount spent on local products, the purchasing impact
24      on various agricultural sectors as determined by the
25      Department of Agriculture and changes in values-based
26      purchasing behavior.
27            (2)   Guidance to the department and the Department of
28      Agriculture on areas of success and areas in need of
29      improvement to increase local food procurement.
30            (3)   A report to be transmitted to the members of the

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 1      General Assembly and made available to the public on a
 2      publicly accessible Internet website.
 3   Section 9.     Establishment of Keystone Fresh Fund.
 4      (a)   Fund established.--The Keystone Fresh Fund is
 5   established as an interest-bearing restricted revenue account,
 6   into which shall be deposited money as it is appropriated,
 7   given, granted or donated to the Fresh Schools Grant Program,
 8   the Keystone Producer Grant Program and the Keystone Assistance
 9   Grant Program, by the Federal Government, the Commonwealth or
10   any other governmental or private agency or person.
11      (b)   Use of fund.--Money deposited into the fund and interest
12   earned on the money deposited into the fund shall be used solely
13   for the purpose of carrying out the provisions of this act, with
14   the following requirements:
15            (1)   No less than 60% of money deposited into the fund
16      shall be appropriated for the grants established in section
17      5.
18            (2)   No less than 25% of money deposited into the fund
19      shall be appropriated to cover the costs incurred by the
20      department and the Department of Agriculture in carrying out
21      the provisions of sections 6 and 7.
22            (3)   No less than $250,000 of money deposited into the
23      fund shall be reserved every two years for the purpose of
24      carrying out the biennial external evaluations provided for
25      in section 8.
26   Section 10.    Effective date.
27      This act shall take effect as follows:
28            (1)   Sections 5, 6 and 8 shall take effect in 245 days.
29            (2)   This section shall take effect immediately.
30            (3)   The remainder of this act shall take effect in 180

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1     days.




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