Food Deserts Act

Bill Number

H.R. 484

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Agriculture and Food

Status

Introduced

Latest Action

2025-02-14: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.

Last Updated

2026-06-30T08:07:23Z

AI-Generated Summary

Purpose of the Legislation

The "Food Deserts Act" (H.R. 484) aims to improve access to healthy, affordable food in underserved communities—areas often called "food deserts" where residents lack nearby grocery stores offering fresh produce and staples. It directs the Secretary of Agriculture to provide grants to states, enabling them to create revolving loan funds that support new or existing grocery stores focused on nutritious foods.

Key Provisions

• Grant Program Establishment: The U.S. Department of Agriculture (USDA) will create a program offering "capitalization grants" to states. These grants fund state-level revolving loan funds, which states manage through a designated agency.
• Eligible Uses of Funds: Loans from state revolving funds can support:
• Opening a grocery store in an underserved community (but not for new building construction).
• Operating an existing grocery store in such areas.
• Improving access to healthy food.
• Supporting stores or programs in areas that would be underserved without them.
• Eligibility Criteria for Grocery Stores:
• Must (or will) sell primarily unprocessed, healthful foods (based on U.S. Dietary Guidelines), including a variety of raw fruits and vegetables, and staple foods like grains, dairy, and proteins.
• Foods must be kept in stock as much as possible and priced at or below market rates.
• Operators must be qualified to run a grocery store or have partnerships for business support, and provide at least 20% non-federal matching funds.
• Priority for Loans: States should favor applicants that:
• Hire local residents from the underserved community.
• Offer classes on healthy eating.
• Source food from local urban farms or gardens.
• Have established supply chain connections in the grocery sector.
• Loan Terms and Administration:
• Loans at or below market interest rates (possibly interest-free), with terms up to 30 years or the project's useful life.
• Maximum loan size: 10% of the fund's available amount per fiscal year.
• Repayment starts within one year of disbursement, with a dedicated revenue source required; all loans fully repaid by term end.
• States can charge up to 4% administrative fees to cover fund management.
• Loan repayments return to the revolving fund for reuse.
• Additional Supports:
• USDA provides technical assistance on food sourcing, storage, and operations.
• In bankruptcy, these loans take priority over other debts.
• If a community improves and no longer qualifies as underserved, existing loans continue unchanged, but no new loans are allowed.
• For nonprofit or city-owned stores, earnings from these loans must be reinvested in operations.
• State Eligibility and Fund Allocation:
• States must set up a compliant revolving fund and loan application process to qualify.
• Grants are divided among eligible states based on the proportion of their underserved population relative to the national total.
• Funding Authorization: $150 million appropriated for fiscal year 2026.
• Definitions (key terms explained):
• Healthful food: Foods aligning with the latest U.S. Dietary Guidelines (federal nutrition advice).
• Grocery store: A retail outlet mainly selling food for home cooking and eating.
• Staple food: Basic items like bread, rice, fruits, vegetables, meat, and dairy (as defined in existing USDA law).
• Underserved community: Areas with limited access to affordable, nutritious foods, often low-income rural or urban zones (per existing federal farm law).

Significant Changes to Existing Law

This bill introduces a new federal program without directly amending prior laws. It builds on existing USDA definitions (e.g., for "staple food" and "underserved community") from the Department of Agriculture Reorganization Act of 1994 and the Consolidated Farm and Rural Development Act. The main innovation is creating state revolving loan funds specifically for grocery operations in food deserts, which did not previously exist at this scale or structure.

Potential Impacts

• On Government Agencies: The USDA gains responsibilities for grant distribution, technical assistance, and oversight, potentially increasing administrative workload. States must create and manage revolving funds, adding state-level bureaucracy but allowing ongoing fund sustainability through loan repayments.
• On Citizens: Residents in underserved communities could gain better access to fresh, affordable produce, reducing "food desert" effects and supporting healthier diets. It may create local jobs, provide nutrition education, and boost community economies via local food sourcing, particularly benefiting low-income, rural, or urban populations.
• On International Relations: No direct impacts, as the bill focuses on domestic U.S. food access.

Main Stakeholders Affected

• States and Local Governments: Receive and administer grants; must establish funds and prioritize loans.
• Grocery Store Operators and Businesses: Eligible for low-interest loans, especially those emphasizing healthy, local foods; nonprofits and municipal entities can reinvest earnings.
• Residents of Underserved Communities: Primary beneficiaries through improved food access, jobs, and education.
• USDA and Federal Government: Oversees the program and provides support.
• Local Farmers and Gardens: Indirectly supported via priority for local sourcing, potentially increasing demand for their products.

Notable Legal, Constitutional, or Political Implications

• Legal: The program emphasizes loan repayment and fund sustainability, reducing default risks with bankruptcy priority and dedicated revenue requirements. It avoids new construction funding to focus on operations, potentially limiting legal challenges over federal spending. Compliance with existing definitions ensures alignment with broader USDA goals.
• Constitutional: No apparent issues; it involves standard federal grants to states under Congress's spending power (Article I, Section 8), promoting general welfare through food security without infringing on state rights.
• Political: Addresses food inequality and public health disparities, which could appeal across party lines by supporting rural and urban areas. The $150 million authorization is modest, signaling targeted investment rather than broad entitlement expansion, but may spark debates on federal involvement in local retail.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Carson, André [D-IN-7]

Cosponsors (67)

Rep. Carter, Troy A. [D-LA-2], Rep. Casten, Sean [D-IL-6], Rep. Cherfilus-McCormick, Sheila [D-FL-20], Rep. Cohen, Steve [D-TN-9], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Dingell, Debbie [D-MI-6], Rep. Garamendi, John [D-CA-8], Rep. Goldman, Daniel S. [D-NY-10], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Horsford, Steven [D-NV-4], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Larson, John B. [D-CT-1], Rep. Lynch, Stephen F. [D-MA-8], Rep. McIver, LaMonica [D-NJ-10], Rep. Moulton, Seth [D-MA-6], Rep. Mrvan, Frank J. [D-IN-1], Rep. Mullin, Kevin [D-CA-15], Rep. Ross, Deborah K. [D-NC-2], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Scholten, Hillary J. [D-MI-3], Rep. Soto, Darren [D-FL-9], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Stevens, Haley M. [D-MI-11], Rep. Tlaib, Rashida [D-MI-12], Rep. Takano, Mark [D-CA-39], Rep. Tonko, Paul [D-NY-20], Rep. Tokuda, Jill N. [D-HI-2], Rep. Velázquez, Nydia M. [D-NY-7], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. Titus, Dina [D-NV-1], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Davis, Danny K. [D-IL-7], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Thanedar, Shri [D-MI-13], Rep. Mfume, Kweisi [D-MD-7], Rep. Beatty, Joyce [D-OH-3], Rep. Connolly, Gerald E. [D-VA-11], Rep. Keating, William R. [D-MA-9], Rep. Ramirez, Delia C. [D-IL-3], Rep. Landsman, Greg [D-OH-1], Rep. Budzinski, Nikki [D-IL-13], Rep. Green, Al [D-TX-9], Rep. Thompson, Bennie G. [D-MS-2], Rep. Vargas, Juan [D-CA-52], Rep. Torres, Ritchie [D-NY-15], Rep. Khanna, Ro [D-CA-17], Rep. Jackson, Jonathan L. [D-IL-1], Rep. Latimer, George [D-NY-16], Rep. Pettersen, Brittany [D-CO-7] and 17 more

Recent Actions

• 2025-02-14: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
• 2025-02-14: Referred to the Subcommittee on Nutrition and Foreign Agriculture.
• 2025-01-16: Referred to the House Committee on Agriculture.
• 2025-01-16: Introduced in House
• 2025-01-16: Sponsor introductory remarks on measure. (CR E41)
• 2025-01-16: Introduced in House

Bill Versions

• Food Deserts Act — issued 2025-01-16 — PDF (9 pages)