Governor Josh Shapiro, et al. v. U.S. Department of Agriculture, et al.

CourtDistrict Court, M.D. Pennsylvania
DecidedDecember 3, 2025
Docket1:25-cv-00998
StatusUnknown

This text of Governor Josh Shapiro, et al. v. U.S. Department of Agriculture, et al. (Governor Josh Shapiro, et al. v. U.S. Department of Agriculture, et al.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Governor Josh Shapiro, et al. v. U.S. Department of Agriculture, et al., (M.D. Pa. 2025).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF PENNSYLVANIA

GOVERNOR JOSH SHAPIRO, et al.,

Plaintiffs, CIVIL ACTION NO. 1:25-cv-00998

v. (SAPORITO, J.)

U.S. DEPARTMENT OF AGRICULTURE, et al.,

Defendants.

MEMORANDUM In this action, the plaintiffs—Josh Shapiro, Governor of Pennsylvania; the Pennsylvania Department of Agriculture (“PDA”); and Russell Redding, Secretary of PDA—challenge the decision by the defendants—the United States Department of Agriculture (“USDA”); Brooke Rollins, Secretary of USDA; and the Agricultural Marketing Service (“AMS”), a federal agency within USDA—in which the defendants terminated the Local Food Purchase Assistance 2025 Cooperative Agreement (the “LFPA25 Agreement”) entered into between AMS and PDA in December 2024. The plaintiffs contend that the federal agency’s termination of the LFPA25 Agreement was in violation of a provision of the Administrative Procedures Act (“APA”), 5 U.S.C. § 706(2)(A), which permits a federal

district court to set aside an agency action that is arbitrary, capricious, or otherwise not in accordance with law. The plaintiffs further contend that the federal agency’s termination of the LFPA25 Agreement was

unlawful because it violated their Fifth Amendment rights to procedural due process. The plaintiffs have filed a motion for a preliminary injunction,

seeking an order enjoining the defendants from implementing the agency’s May 7, 2025, termination decision pending judicial review of the challenged agency action. Doc. 5. The plaintiffs’ motion is fully briefed

and ripe for decision. Doc. 7; Doc. 10; Doc. 15; Doc. 18; Doc. 22. The defendants have filed a motion to dismiss the plaintiffs’ APA claims for lack of subject matter jurisdiction, and to dismiss the plaintiffs’

due process claim for failure to state a claim upon which relief can be granted. Doc. 11. The defendants’ motion is fully briefed and ripe for decision. Doc. 14; Doc. 16; Doc. 17; Doc. 18; Doc. 22.

I. BACKGROUND The LFPA25 Agreement did not create a new program. Instead, it supplied a third round of funding to Pennsylvania under USDA’s Local Food Purchase Assistance (“LFPA”) program. Through the LFPA, USDA

awards funding to states and other government entities to purchase foods produced either within the state or within 400 miles of the delivery destination to help support local, regional, and underserved producers.

The purpose of the program is to maintain and improve food and agricultural supply chain resiliency by helping states to procure and distribute local and regional foods and beverages that are healthy,

nutritious, or unique to their geographic areas and that meet the needs of the population. Food purchased under the LFPA serves feeding programs, including food banks and organizations that reach

underserved communities. Funding for LFPA initially came from the America Rescue Plan Act of 2021, Pub. L. No. 117-2, § 1001, 135 Stat. 4, 10 (2021), which

appropriated $4 billion to purchase and distribute food and agricultural commodities to individuals in need. Pennsylvania was awarded $15,200,000 in this initial round of funding for LFPA programs.

Pennsylvania subcontracted with Feeding Pennsylvania, a statewide organization of approximately one dozen regional food banks that purchase food from local farmers, which is then distributed to a network of thousands of local food pantries and soup kitchens across

Pennsylvania, which in turn serve individuals and communities with limited access to food. In November 2022, USDA announced that it was expanding the

LFPA program with an additional $464 million in funding from the Commodity Credit Corporation (“CCC”), a government-owned corporation under the supervision and direction of the U.S. Secretary of

Agriculture. The CCC has been authorized by Congress to procure agricultural commodities for sale to other government agencies, foreign governments, and domestic, foreign, or international relief or

rehabilitation agencies, and to meet domestic requirements. 15 U.S.C. § 714c(c). This second round of funding for the LFPA program was called “LFPA Plus.” Pennsylvania was awarded an additional

$14,724,610 in this second round of funding for LFPA programs. In October 2024, USDA announced its commitment to a third round of funding for the LFPA program, referred to as “LFPA25,” with an

additional $500 million in funding from the CCC. Pennsylvania was awarded an additional $13,003,131 in this third round of funding for LFPA programs. On or about December 19, 2024, a designated representative of USDA signed the LFPA25 Agreement for Pennsylvania.

Compl. Ex. 1, at 3, Doc. 1-2. On December 27, 2024, Secretary Redding countersigned the LFPA Agreement on behalf of PDA. at 2. The LFPA25 Agreement was intended to provide funding for Pennsylvania’s

LFPA program after the LFPA Plus funds were exhausted. At the time, Pennsylvania had exhausted its initial, congressionally appropriated round of funding under the LFPA, but a balance of funds remained

available under LFPA Plus, which was not exhausted until after May 2025.1 The LFPA25 Agreement expressly provided that it was to be executed “according to all applicable parts of Title 2 of the Code of Federal

Regulations (CFR), Parts 25, 170, 200, and 400 or as they may be later revised, and successive published regulations as appropriate.” at 4. It further provided that the agreement would continue in force until

January 14, 2028, unless “amended or terminated by mutual consent of the parties in writing or .” at 5 (emphasis added).

1 The complaint alleges that PDA had less than $30,000 in LFPA Plus funds remaining by the end of May 2025. Compl. ¶ 28. It is our understanding that the remaining balance was exhausted shortly thereafter. Russell C. Redding Decl. ¶ 12, Doc. 7-2; Jack David Tuckwiller Decl. ¶¶ 12–13, Doc. 10-1. On March 7, 2025, the deputy administrator of AMS, Jack

Tuckwiller, sent a letter to PDA notifying the state agency that the LFPA25 Agreement would be terminated in 60 days “in accordance with 2 CFR § 200.340(a)(4) and the terms and conditions of the award.” Compl.

Ex. 2, Doc. 1-3. Echoing the text of § 200.340, the letter stated that the agency had determined that the LFPA25 Agreement “no longer effectuates agency priorities” and, thus, “termination of the award is

appropriate.” The notice further indicated that it was being sent “[p]ursuant to 2 CFR § 200.341.” The letter did not provide any further explanation of why or how the LFPA25 Agreement no longer

effectuated USDA priorities.2 On March 25, 2025, Secretary Redding wrote Deputy Administrator

2 The Office of Management and Budget has promulgated a set of regulations, the Uniform Grant Guidance, 2 C.F.R. part 200. These regulations “appl[y] to federal agencies that make federal awards to non- federal and other entities. These regulations lay out a host of requirements for federal [awards], including the procedural steps an agency must take before it can suspend or terminate [an award].” , 778 F. Supp. 3d 90, 101 (D.D.C. 2025); 2 C.F.R. § 200.1

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Governor Josh Shapiro, et al. v. U.S. Department of Agriculture, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/governor-josh-shapiro-et-al-v-us-department-of-agriculture-et-al-pamd-2025.