Sponsors (4)
The bill improves and stabilizes food access in underserved communities and gives planners better data, but it introduces tax and fiscal risks plus administrative burdens that could shift costs onto recipients, taxpayers, and agency priorities.
Low-income residents in rural and urban food deserts gain greater access to grocery stores, food banks, and permanent distribution centers through grants, credits, and capital support that lower startup costs and encourage new retail openings.
Local economies benefit because tax incentives and grants encourage grocery investment and renovation in underserved tracts, potentially creating local jobs and increasing economic activity.
Temporary and mobile food access programs receive up to 10 years of grant support, giving sustained funding that helps keep pop-up and mobile distribution operating in underserved areas.
Recipients (taxpayers, nonprofits, and small-business owners) face material tax risks: credits/grants can be recaptured if certification requirements aren't met for five years, and basis reduction increases future taxable gains or reduces depreciation deductions.
Using public funds for credits and grants increases fiscal costs and could crowd out other spending priorities, potentially raising costs for taxpayers or displacing other programs.
Applicants and recipients face new administrative burdens from certification, reporting, and coordination requirements with Treasury, USDA, and regional entities, increasing compliance costs and complexity for nonprofits and small businesses.
Based on analysis of 3 sections of legislative text.
Introduced March 27, 2025 by Mark R. Warner · Last progress March 27, 2025
Creates a new federal program that provides refundable tax credits and direct grants to help open or renovate grocery stores, build permanent food banks, and support temporary food access merchants located in qualifying "food deserts." The Treasury Department (working with USDA) would certify applicants, allocate annual credits and grants, require recapture if certification conditions are not met, and reduce property basis by the amount of credit or grant. Also requires USDA to update its Food Access Research Atlas at least once per year to reflect newly placed food retailers. Grants are excluded from gross income and must be paid within 60 days of certain certification or service dates; credits and grants are effective for taxable years beginning after enactment.