Cutting COSTS Act of 2025

Bill Number

H.R. 6369

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Agriculture and Food

Status

Introduced

Latest Action

2026-01-13: Referred to the Subcommittee on Nutrition and Foreign Agriculture.

Last Updated

2026-05-16T08:07:57Z

AI-Generated Summary

Purpose

The Cutting Cumbersome Overhead for Small-farm Testing Savings Act of 2025 (or "Cutting COSTS Act of 2025") aims to help small and beginning farmers afford Good Agricultural Practices (GAP) audits. These audits verify that farms follow safe food production standards to prevent contamination, as required by some retail buyers. The law creates a temporary program to reimburse the full cost of these audits, reducing financial barriers for eligible producers to access larger markets.

Key Provisions

• Program Establishment: The Secretary of Agriculture must create a payment program reimbursing "covered producers" for 100% of the costs of conducting a GAP audit. GAP audits are inspections under U.S. Department of Agriculture (USDA) programs that align with federal food safety guidelines.
• Eligibility (Covered Producers):
• Operators of small farms with an average adjusted gross income (AGI, a measure of farm profitability after deductions) under $350,000 per year; or
• Beginning farmers or ranchers (those with less than 10 years of experience, per federal definitions).
• Additional criteria may be set by the Secretary.
• Reporting Requirements: The Secretary must submit annual reports to the House and Senate Agriculture Committees for five years, detailing:
• The number and types of covered producers receiving payments.
• How payments improved producers' access to retail food stores (e.g., supermarkets) that require GAP audits for suppliers.
• Funding: Payments come from the Commodity Credit Corporation (a USDA entity that provides financial support for farm programs without needing new appropriations).
• Duration: The program ends five years after enactment (sunset clause).

Significant Changes to Existing Law

This bill introduces a new, targeted reimbursement program within USDA's agricultural support framework. It does not amend prior laws directly but builds on existing audit programs under the Agricultural Marketing Service and food safety rules from the Federal Food, Drug, and Cosmetic Act. Previously, small producers bore the full cost of GAP audits (often $500–$2,000 each), with no dedicated federal reimbursement; this adds financial relief without altering audit standards or eligibility for other farm aid.

Potential Impacts

• On Citizens (Farmers and Consumers): Small and beginning farmers gain easier access to retail markets, potentially increasing their income and farm viability. Consumers may benefit indirectly from wider availability of safely produced local foods, though costs to taxpayers are minimal via existing USDA funds.
• On Government Agencies: The USDA must administer the program, process payments, and produce reports, adding administrative workload but using pre-allocated funds from the Commodity Credit Corporation. No major budget increases are required.
• On International Relations: No direct impacts, as the bill focuses on domestic U.S. agriculture and food safety standards.

Main Stakeholders Affected

• Covered Producers: Small-farm operators and beginning farmers/ranchers, who receive direct financial relief to meet market entry requirements.
• USDA (Secretary of Agriculture): Responsible for program implementation, eligibility decisions, payments, and reporting.
• Retail Food Stores: Supermarkets and grocers that mandate GAP audits for suppliers; they may see more small-farm products available without changing their standards.
• Congressional Committees: House and Senate Agriculture Committees, which oversee the program through required reports.
• Commodity Credit Corporation: Provides funding, indirectly affecting its resources for other farm supports.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on established federal definitions (e.g., AGI from the Food Security Act and beginning farmer status from USDA regulations) for clarity and consistency. The use of Commodity Credit Corporation funds avoids new spending authorizations, streamlining implementation under the Administrative Procedure Act.
• Constitutional: Falls within Congress's enumerated powers to regulate commerce and provide for the general welfare (Article I, Section 8), as it supports interstate food supply chains without raising federalism concerns.
• Political: Promotes equity for small-scale agriculture, potentially appealing to rural constituencies, but the five-year limit suggests a pilot approach to assess effectiveness before broader expansion. No partisan divides are evident in the bill text, introduced bipartisanship by Reps. Vindman and Lawler.

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

Sponsor

Rep. Vindman, Eugene Simon [D-VA-7]

Cosponsors (1)

Rep. Lawler, Michael [R-NY-17]

Recent Actions

• 2026-01-13: Referred to the Subcommittee on Nutrition and Foreign Agriculture.
• 2026-01-13: Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
• 2025-12-02: Referred to the House Committee on Agriculture.
• 2025-12-02: Introduced in House
• 2025-12-02: Introduced in House

Bill Versions

• Cutting Cumbersome Overhead for Small-farm Testing Savings Act of 2025 — issued 2025-12-02 — PDF (4 pages)