Sponsors (68)
The bill directs federal grants and state-managed revolving loan funds to expand access to nutritious groceries in underserved areas and support local grocers, trading increased federal spending and new administrative and program constraints (match requirements, construction limits, eligibility rules, and statutory ties) that could limit reach and flexibility.
Low-income and underserved communities (urban and rural) gain expanded access to fresh, healthful groceries because states receive capitalization grants deposited into revolving loan funds that finance grocery openings and operations in underserved areas.
Local small businesses and nonprofits operating or starting grocery stores can obtain long-term, below-market or interest-free loans plus technical assistance, reducing financing costs and improving business viability, local hiring, and healthier food supply chains.
States receive dedicated capitalization grants that must be deposited into revolving funds, creating a sustainable, long-term financing mechanism to recycle loan repayments into future projects and to target resources to places with greater need.
Federal taxpayers shoulder increased cost because the program requires capitalization grants and an authorized $150 million in FY2026, raising federal spending and potential taxpayer exposure.
A required 20% non‑Federal match for borrowers may block small, community-based organizations and nascent grocers with limited capital from accessing loans, limiting the program's reach to the most resource-constrained applicants.
Restrictions that prohibit using funds for new construction and cap individual loans (10% of annual distributions) constrain financing for larger or purpose-built stores and multi-site projects, leaving communities without existing retail space still underserved.
Based on analysis of 5 sections of legislative text.
Creates USDA grants to capitalize state revolving loan funds that make low-cost loans to grocery stores in underserved communities; authorizes $150M for FY2026.
Official title: 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.
Introduced January 16, 2025 by André Carson · Last progress January 16, 2025
Creates a federal grant program at USDA that gives $150 million (FY2026) to capitalize state-run revolving loan funds that make low-cost loans to grocery stores in designated underserved communities. States must match 20% of loans, operate funds through a state entity, follow loan limits and terms (no new construction; loans at or below market rates, up to 30 years), and repay loan proceeds back into the fund for reuse.