What does Preamble of Food Deserts Act do?

This bill, formally titled 'To direct the Secretary of Agriculture to make grants to States to support the establishment and operation of grocery stores in underserved communities, and for other purposes,' aims to support grocery stores in underserved communities. The bill directs the Secretary of Agriculture to provide grants to states for this purpose.

What does SHORT TITLE. of Food Deserts Act do?

This bill is formally titled the Food Deserts Act.

What does GRANT PROGRAM TO ESTABLISH GROCERY STORES IN UNDERSERVED of Food Deserts Act do?

This section establishes a grant program for States to create revolving funds aimed at supporting the establishment and operation of grocery stores in underserved communities. States receiving funds must administer the revolving fund through a state instrumentality. Loans from the revolving fund can be used to open new grocery stores (excluding new construction), support existing stores, provide access to healthy food, or support programs in underserved areas. Grocery stores eligible for assistance must emphasize healthy foods, provide a variety of fruits and vegetables and staple foods, and charge affordable prices. States are required to prioritize applications from entities that hire local workers, provide nutritional education, source food locally, and have existing industry relationships. Loans can be structured as lump sums or multiple distributions and have interest rates at or below market rates, potentially interest-free for up to 30 years. Loan amounts are capped at 10% of the fund's available distribution amount per fiscal year. Program participants must establish dedicated revenue sources for loan repayment and administrative fees, not exceeding 4% of the loan amount, are charged to the participant. The Secretary will provide technical assistance to program participants. In the event of bankruptcy, loan repayments from the revolving fund take precedence over other debts. If a community no longer qualifies as underserved, recipients of loans in that community are ineligible for further loans and loan agreements cannot be altered.

What does CAPITALIZATION GRANTS TO FUND STATE REVOLVING FUNDS. of Food Deserts Act do?

States are eligible for capitalization grants if they establish a revolving fund that complies with the Act's requirements. Eligible states must also establish a process for loan applications and criteria, adhering to section 2(d). Upon receiving a capitalization grant, states must deposit the funds into their revolving fund. The Secretary will apportion capitalization grant amounts among eligible states based on the ratio of underserved communities in each state to the total underserved communities in all eligible states.

What does AUTHORIZATION OF APPROPRIATIONS. of Food Deserts Act do?

This section authorizes appropriations to carry out the Act. A total of $150,000,000 is authorized for fiscal year 2026.

What does DEFINITIONS. of Food Deserts Act do?

This section defines terms used throughout the Act. A 'capitalization grant' is a grant made to a State under the program. 'Healthful food' is defined as food reflecting the most recent Dietary Guidelines for Americans. A 'grocery store' is a retail store primarily selling food for home preparation. The 'program' refers to the program described in section 2(a). A 'program participant' is an entity that has received a loan under the program. A 'revolving fund' is a fund established by a State to hold a capitalization grant. The 'Secretary' refers to the Secretary of Agriculture. The meaning of 'staple food' is found in section 243(b) of the Department of Agriculture Reorganization Act of 1994. 'State' includes States of the Union, the District of Columbia, and various territories. The meaning of 'underserved community' is defined in section 310B(g)(9)(A) of the Consolidated Farm and Rural Development Act.

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Food Deserts Act

Last updated: 2/14/2025 · Introduced: 1/16/2025

Author: André Carson (D-IN)

TL;DR (AI)

This bill establishes a grant program to provide states with revolving funds that can offer loans to support the establishment and operation of grocery stores in underserved communities.
States will receive capitalization grants based on the proportion of underserved communities within their state relative to all eligible states.
The bill authorizes $150 million in fiscal year 2026 to fund these grants and support initiatives promoting access to healthy and affordable food.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 4 more.

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