A layer of black and white or NON-glossy color newspaper, followed by a layer of herbicide-free grass clippings (it cannot have been "weed n feeded") is a fantastic mulch which will break down into good nutrients for your plants. You might wish to Google "lasagna gardening" as you can add many layers to your soil such as a light dusting of spent coffee grounds, dried leaves chopped up with your lawnmower, etc.
Tomato and pepper plants should always be mulched with something like pecan shells, straw, non-dyed pine bark mulch, dried shredded leaves, grass clippings, etc. so that rain will be less likely to splash up onto the plants, spreading fungal diseases.
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