Sponsors (67)
Introduced January 16, 2025 by André Carson · Last progress January 16, 2025
The bill increases access to nutritious grocery options in underserved areas by creating state revolving funds and below‑market loans and providing one‑year federal seed funding, but does so at measurable federal cost and with program design and administrative requirements that may limit participation, larger projects, and long‑term continuity.
Residents of low-income and underserved communities will gain expanded access to grocery stores selling nutritious foods through state-backed loans and state revolving funds that finance new or improved grocery operations.
Small businesses and nonprofits starting or operating grocery stores receive below-market or interest-free long-term loans (up to 30 years) plus technical assistance, lowering financing costs and improving project success rates.
States will retain loan repayments in dedicated revolving funds, creating sustainable, long-term financing that can be recycled to support future local food and water infrastructure investments.
All taxpayers could face increased federal spending because the bill authorizes capitalization grants for revolving funds and a $150 million FY2026 appropriation.
Requiring borrowers to provide a 20% non-Federal match will limit participation by small, community-based organizations and nonprofits with limited capital, reducing program reach where it may be most needed.
States must set up and administer compliant revolving funds and application systems and deposit grants into those funds, creating upfront administrative costs, staffing burdens, and reduced short-term budget flexibility.
Based on analysis of 5 sections of legislative text.
Creates USDA grants to capitalize state revolving loan funds that lend to establish and operate grocery stores in underserved communities, with a 20% state match and program rules.
Creates a USDA-run grant program that gives states money to seed state-level revolving loan funds. Those state funds will make loans to help open and operate grocery stores in federally defined "underserved communities" (food deserts), with rules on matching funds, eligible uses, loan terms, and fund management. Authorizes $150 million for fiscal year 2026 to capitalize the program, requires states to meet eligibility rules to receive grants, and sets definitions, loan limits, and oversight details intended to keep repayments in the fund so it can be reused for future store loans.