Inserts a new section 18 after section 17 of the Child Nutrition Act (42 U.S.C. 1786) establishing rules to allow cash-value benefits and coupons to be used to purchase certain local foods from covered agricultural entities, require State agencies to deliver cash-value benefits and coupon funds via EBT access devices, require covered agricultural entities to use qualified payment devices, and direct the Secretary to issue and regularly update regulations establishing qualified payment devices and related criteria.

Modifies the list of places where foods may be provided under section 17(m)(1) by replacing language that limited authority to "foods at farmers' markets and (at the option of a State) roadside stands" with an explicit list that includes farmers' markets, roadside stands, and covered agricultural entities (the latter in accordance with section 18(a) and as defined in section 18(c)).

Adds a new subparagraph requiring that each farmer (as defined in 7 C.F.R. §249.2 or successor regulations) be automatically authorized as a covered agricultural entity (as defined in section 18(c)) for purposes of subsection 17(m).