Expanding Access To Healthy Foods from Local Farmers Act

“(d) Projects for States To purchase certain commodities from eligible entities

“(1) Definitions—In this subsection:

“(A) Project—The term “project” means the purchase of priority agricultural products from eligible entities, and the distribution of those products to needy persons through emergency feeding organizations under subsection (a).

“(B) Priority agricultural product—The term “priority agricultural product” means a fruit, vegetable, dairy, meat, seafood, grain, poultry, or other commodity food product, available for sale by eligible entities and that States determine to be appropriate for distribution through emergency feeding organizations and culturally or religiously relevant to the local communities that will distribute the products.

“(C) Eligible entity—The term “eligible entity” means any of the following small businesses that is a grower, packer, processor, distributor, food-hub, or a cooperative, and that—

“(i) is—

“(I) underserved, including women-owned or veteran-owned; or

“(II) composed of, or sources agricultural products from, beginning farmers, or small or mid-sized farms that are structured as family farms;

“(ii) can deliver the priority agricultural products to emergency feeding organizations selected by the State as being most in need of the products; and

“(iii) that is committed to serving communities in need and forging strong relationships with emergency feeding organizations, public agencies, and Tribal governments through a project, as determined by the State.

“(2) Federal funding for projects

“(A) In general—Subject to subparagraph (C) and paragraph (4), using funds made available under paragraph (5), the Secretary may provide funds to States to pay for the costs of carrying out a project.

“(B) Guidance—Not later than 180 days after the date of enactment of this Act, the Secretary shall issue guidance to States—

“(i) to carry out this section;

“(ii) to inform States of their allocations under paragraph (3);

“(iii) to encourage States to partner with a wide range of emergency feeding organizations to reach communities in need, including those disproportionately impacted by food insecurity; and

“(iv) to inform States of public reporting requirements and minimum project performance standards, as developed by the Secretary.

“(C) Allocation

“(i) Eligibility for allocation—The Secretary shall allocate funds made available under paragraph (5) based on the formula in effect under section 214(a), among States that submit a State plan of operation for a project that includes—

“(I) a list of eligible entities and emergency feeding organizations in the State that will operate the project in partnership with the State agency;

“(II) at the option of the State, a list of priority agricultural products located in the State that are available for purchase and transport to emergency feeding organizations to identify which foods may be included in the project;

“(III) a time line of when the project will begin operating; and

“(IV) a plan to comply with the standards set out in subparagraph (B)(iv).

“(ii) Reallocation—If the Secretary determines that a State will not expend all the funds allocated to the State under clause (i), the Secretary shall reallocate the unexpended funds to other eligible States.

“(iii) Report—Each State that receives funds allocated under this subparagraph shall submit to the Secretary financial reports on a regular basis describing the use of the funds.

“(3) Project purposes—A State may only use Federal funds received under paragraph (2) for a project the purposes of which are—

“(A) to maintain and improve food and agricultural supply chain resiliency;

“(B) to provide food to individuals in need; and

“(C) to build relationships between the State, eligible entities and emergency feeding organizations through the purchase of food.

“(4) Cooperative agreements

“(A) In general—A State agency that carries out a project using Federal funds received under this subsection may enter into cooperative agreements with State agencies of other States under section 203B(d) to maximize the use of commodities purchased under the project.

“(B) Submission—Not later than 15 days after entering into a cooperative agreement under clause (i), a State agency shall submit such agreement to the Secretary.

“(5) Funding—There is authorized to be appropriated to the Secretary to carry out this subsection $200,000,000 for each of fiscal years 2026 through 2030, to remain available until the end of the respective subsequent fiscal year.

“(6) Reporting—Not later than 4 years after the effective date of this subsection, the Secretary shall submit to the Committee of Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report containing—

“(A) an evaluation of the effectiveness of this subsection in providing nutritious food to individuals in need, improving agricultural supply chain resiliency, and expanding economic opportunity for eligible entities; and

“(B) recommendations for the implementation of this subsection to improve nutrition outcomes.”