Specialty Crop & Wine Producer Tariff Relief Act

Bill Number

H.R. 6496

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Agriculture and Food

Status

Introduced

Latest Action

2025-12-05: Referred to the House Committee on Agriculture.

Last Updated

2026-01-07T16:05:06Z

AI-Generated Summary

Summary of H.R. 6496: Specialty Crop & Wine Producer Tariff Relief Act

Purpose

This bill aims to provide financial relief to U.S. specialty crop growers (such as those producing fruits, vegetables, and nuts) and wine producers who face economic losses from tariffs imposed by other countries on U.S. agricultural products starting January 20, 2025. It directs the U.S. Department of Agriculture (USDA) to create support programs to offset these losses and manage surplus crops.

Key Provisions

• Direct Payment Program: Within 180 days of enactment, the USDA Secretary must establish and administer a program to make direct payments to specialty crop growers and wine producers for "covered losses." This program will operate similarly to the existing Marketing Assistance for Specialty Crops program under the Commodity Credit Corporation Charter Act.
• Covered losses include increased production costs (e.g., due to the perishable nature of crops requiring special handling, packaging, and quick transport), reduced exports, lost revenue from lower foreign demand, and canceled contracts—all linked to foreign tariffs.
• For wine producers or wine grape growers, losses also cover a portion of lost export revenue based on the percentage of U.S.-grown grapes used in the wine.
• Purchase of Surplus Crops: The USDA Secretary may buy surplus specialty crops (excluding wine grapes) to distribute through federal nutrition assistance programs, such as school meals or food stamps.
• Reporting Requirements: Starting 120 days after the first use of these authorities, the USDA must submit annual reports to Congress through 2030. These reports will detail payments and purchases, broken down by crop type and geographic region.
• Funding and Administration: Authorizes necessary appropriations for fiscal years 2026–2030. Up to 1% of funds can cover USDA administrative costs.
• Definitions:
• Specialty crop: Includes fruits, vegetables, tree nuts, and wine grapes, as defined in existing law.
• Wine producer: A licensed commercial entity that converts grapes or other fruits into wine.
• Increased tariff burden: Tariffs imposed by foreign countries on U.S. products on or after January 20, 2025.
• Nutrition programs: Includes school breakfast/lunch programs, Supplemental Nutrition Assistance Program (SNAP, commonly known as food stamps), and others designated by the USDA.

Significant Changes to Existing Law

This bill introduces a new USDA program modeled after the existing Marketing Assistance for Specialty Crops initiative but expands it specifically to address tariff-related losses for specialty crops and wine. It does not amend prior laws directly but adds new authorities for direct payments and surplus purchases tied to foreign trade barriers. It also extends support to wine producers, which were not explicitly covered in similar prior programs.

Potential Impacts

• On Government Agencies: The USDA will need to allocate resources for program setup, payments, crop purchases, and reporting, potentially straining administrative budgets but supported by dedicated appropriations. This could enhance USDA's role in trade-related agricultural support.
• On Citizens: Specialty crop growers and wine producers may receive financial aid to stabilize operations and maintain jobs in rural areas. Surplus crop purchases could increase food availability in nutrition programs, benefiting low-income families, students, and others reliant on federal food assistance.
• On International Relations: By compensating for foreign tariffs, the bill indirectly counters trade barriers, potentially pressuring other countries to reduce tariffs. It may signal U.S. commitment to protecting its agricultural sector amid global trade tensions, without directly imposing retaliatory measures.

Main Stakeholders Affected

• Specialty Crop Growers and Wine Producers: Primary beneficiaries, particularly small- and medium-sized operations in states like California (e.g., fruit, nut, and wine regions) that export heavily.
• USDA and Federal Agencies: Responsible for implementation, funding, and oversight of nutrition program distributions.
• Congress: Receives reports and authorizes funding, influencing future agricultural policy.
• Consumers and Nutrition Program Participants: Indirectly benefit from stabilized food supplies and surplus distributions.
• Foreign Trade Partners: Affected countries imposing tariffs may face U.S. economic responses through this relief mechanism.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on Congress's spending power under the U.S. Constitution (Article I, Section 8) to appropriate funds for agricultural support. The program's similarity to existing USDA authorities minimizes legal challenges, but definitions of "covered losses" could lead to disputes over eligibility if not clearly applied.
• Constitutional: No direct conflicts; it aligns with federal promotion of commerce and general welfare by aiding interstate and international trade in agriculture.
• Political: Introduced with bipartisan support (Democrats and Republicans from agricultural states), it highlights trade vulnerabilities post-2025. It could influence broader trade negotiations or farm bill debates, emphasizing protectionism for niche sectors without broad tariffs. Funding through 2030 commits future administrations to ongoing support, potentially sparking debates on fiscal priorities amid budget constraints.

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

Sponsor

Rep. Thompson, Mike [D-CA-4]

Cosponsors (4)

Rep. Newhouse, Dan [R-WA-4], Rep. LaMalfa, Doug [R-CA-1], Rep. Salinas, Andrea [D-OR-6], Rep. Panetta, Jimmy [D-CA-19]

Recent Actions

• 2025-12-05: Referred to the House Committee on Agriculture.
• 2025-12-05: Introduced in House
• 2025-12-05: Introduced in House

Bill Versions

• Specialty Crop & Wine Producer Tariff Relief Act — issued 2025-12-05 — PDF (7 pages)