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Final Rule: Simplified Geographic Preference Procurement

September 9, 2026

Final Rule Simplified Geographic Preference Procurement

USDA has released a final rule on Simplified Geographic Preference Procurement in Child Nutrition Programs. The rule does not create new requirements or change existing policy, Instead, the rule makes some terminology changes and provides clarification on existing requirements.

This rule will be in effect on November 8, 2026. USDA is also accepting comments on the rule through October 9, 2026.

Why It Matters

For CACFP operators looking to purchase locally grown, raised, or caught foods, this rule provides clearer guidance on the tools already available under federal procurement regulations. Through the rule, USDA aims to encourage more operators to take advantage of geographic preference options and increase access to unprocessed foods in child nutrition programs. Importantly, the rule does not require programs to change their procurement practices.

Final Rule Summary

USDA emphasizes that this direct final rule does not alter the meaning or implementation of existing regulations. Instead, it formally incorporates clarifications that USDA previously provided through policy memos and guidance following the 2024 Child Nutrition Programs meal pattern rule. Through the rule, USDA aims to provide clearer regulations that will reduce confusion, improve consistency and help operators better understand their procurement options.

This direct final rule: 

  1. Replaces “procurement specification” with “product specification” to align with industry terminology.
  2. Replaces “selection criteria” with “defined scoring advantage” to align with policy guidance.
  3. Affirms that CNP operators have the flexibility to prescribe the way that a defined scoring advantage is applied and the amount of preference given to a product that meets their definition of local.
  4. Reformats the regulatory text to clearly describe how geographic preference strategies may be applied during the procurement process as a product specification, a defined scoring advantage during bid evaluation, or a mix of both strategies.
  5. Clarifies that CNP operators may use, but are not limited to, the phrases “local,” “locally grown,” “locally raised,” and “locally caught” in their solicitations.
  6. Removes the undefined term “minimally processed” since all allowable food handling and preservation techniques are specified in the definition of “unprocessed agricultural products.”
  7. For SBP, SMP, CACFP, and SFSP, revises regulations to refer back to NSLP geographic preference option regulations for consistency.

Geographic Preference

The 2024 rule expanded how Child Nutrition Program operators can prioritize local foods. This new direct final rule clarifies that operators may use geographic preference in two distinct ways:

Local Product Specifications

Operators may identify a geographic area and require that an unprocessed agricultural product originate from that area for a bid to be considered responsive. In other words, "local" can be included directly in the product specifications within a solicitation.

Defined Scoring Advantage

Operators may award additional points or credits during the bid evaluation process to vendors offering products that meet the program's definition of local. USDA now refers to this approach as a "defined scoring advantage," replacing the previous term "selection criteria."

Programs may use either method individually or combine both strategies within the same procurement process.

Defining Local

A key clarification in the rule is that CACFP institutions and other Child Nutrition Program operators continue to have the flexibility to:

  • Define what qualifies as "local."
  • Determine the geographic area that will be used for local sourcing.
  • Decide how a defined scoring advantage will be applied.
  • Establish how many additional points or credits local products will receive during evaluation.

USDA does not establish a federal definition of "local." Instead, operators may create definitions that fit their community and marketplace, provided there are enough qualified vendors available to ensure competition.

Unprocessed Agricultural Products

The rule reiterates that unprocessed agricultural products retain their inherent character, even when subjected to common handling and preservation techniques.

The following food handling and preservation techniques are not considered to change the inherent character of an agricultural product:

  1. Cooling;
  2. Refrigerating;
  3. Freezing;
  4. Size adjustment made by peeling, slicing, dicing, cutting, chopping, shucking, and grinding;
  5. Forming ground products into patties without any additives or fillers;
  6. Drying/dehydration;
  7. Washing;
  8. Packaging (such as placing eggs in cartons), vacuum packing and bagging (such as placing vegetables in bags or combining two or more types of vegetables or fruits in a single package);
  9. Adding ascorbic acid or other preservatives to prevent oxidation of produce;
  10. Butchering livestock and poultry;
  11. Cleaning fish; and
  12. Pasteurizing milk.

 

Read the full rule: Simplified Geographic Preference Procurement in Child Nutrition Programs.