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Introduced July 17, 2025 by David Scott · Last progress July 17, 2025
Creates a USDA grant program and related tax credit to build and expand food hubs that increase market access for socially disadvantaged farmers and ranchers, funds the program, and directs USDA to prioritize purchases from those hubs for domestic food assistance. Strengthens USDA civil‑rights enforcement by requiring accountability and corrective action for discriminatory conduct, expands who can grant equitable relief in certain farm programs, shifts the burden of proof to agencies in certain appeals, and establishes an Office of the Civil Rights Ombudsperson to help producers navigate civil‑rights reviews and appeals.
The bill substantially boosts market access, support, and civil‑rights remedies for disadvantaged producers while increasing federal spending and imposing new compliance, administrative, and procurement risks that could slow implementation and shift program outcomes.
Socially disadvantaged farmers, ranchers, and producer-led food hubs gain expanded market access and revenue opportunities through grant funding (no non‑Federal match required), infrastructure support, and USDA prioritization of purchases for domestic food programs.
Businesses and other taxpayers who buy qualifying products from certified food hubs receive a 25% nonrefundable tax credit, lowering net costs for buyers and creating a market incentive that can increase demand for hub‑sourced products.
USDA program participants who experience discrimination—particularly racial/ethnic minorities, low‑income producers, and small farmers—gain faster and more direct remedies (including equitable relief from the Assistant Secretary and mandated corrective actions) reducing delays and discriminatory denials.
Taxpayers may face higher federal costs from the $100 million authorization for food hub support, open‑ended appropriations to staff the new Office/Ombudsperson, and lost revenue from the purchaser tax credit.
Businesses and USDA will face increased administrative burden and compliance costs—due to certification and arm's‑length rules for the credit, additional tax recordkeeping adjustments, agency obligations to meet a substantial‑evidence standard in appeals, and expedited reporting requests—which could slow program delivery and raise overhead.
Waiving full‑and‑open procurement competition and prioritizing purchases from certain producers risks reduced competition, perceptions (or realities) of favoritism, and displacement of non‑prioritized suppliers from USDA contracts.