Domestic Organic Investment Act of 2025
- Bill Number
- H.R. 6593
- 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
- 2026-06-19T08:06:39Z
AI-Generated Summary
Purpose of the Legislation
The Domestic Organic Investment Act of 2025 aims to strengthen the U.S. organic agriculture sector by creating a federal program that invests in the domestic supply chain for organic products. This includes boosting production, processing, and distribution to reduce reliance on imported organics and improve market access for U.S. farmers and businesses.
Key Provisions
- Program Establishment: Creates the "Domestic Organic Investment Program" under the U.S. Department of Agriculture (USDA), administered through the Agricultural Marketing Service. The program focuses on expanding the capacity of the organic supply chain, modernizing technology for tracking and manufacturing, ensuring compliance with food safety and certification standards, improving storage and distribution, and addressing supply chain barriers.
- Eligibility: Grants go to "eligible entities," such as U.S.-based organic producers, cooperatives, handlers, processors, Tribal governments, or other designated groups. Entities must be certified organic (or transitioning to certification) and cannot have suspended or revoked operations. Certification refers to meeting USDA organic standards under federal regulations.
- Grants and Applications:
- Competitive grants awarded annually based on public criteria, with priorities for areas with high organic import reliance, recommendations from the National Organic Standards Board (an advisory group), or supply chain bottlenecks.
- Simplified application process for "equipment-only" projects (e.g., buying machinery).
- Projects include expanding storage (like cold storage), aggregation, processing, and distribution, or standalone equipment purchases.
- Grant Details:
- Duration: Up to 3 years.
- Maximum funding: $2 million for full projects; $100,000 for equipment-only.
- Matching requirement: Recipients must cover at least 50% of costs for full projects or 25% for equipment; this can be reduced or waived for beginning farmers/ranchers and military veterans.
- Support Services: USDA can offer technical assistance (e.g., guidance on implementation) directly or via partnerships.
- Funding: Authorizes whatever funds are needed for fiscal years 2026 through 2030, in addition to existing USDA budgets; funds remain available until spent.
Significant Changes to Existing Law
This bill amends the Agricultural Marketing Act of 1946 by adding a new section (210B) specifically for the organic investment program. Previously, the Act supported general agricultural marketing but lacked a dedicated program for organic supply chain investments. It introduces new grant mechanisms, eligibility rules tied to organic certification, and funding authorizations not previously specified for this purpose, building on the Organic Foods Production Act of 1990 without altering its core certification standards.
Potential Impacts
- Government Agencies: USDA will gain new responsibilities for administering grants, evaluating applications, and providing technical support, potentially increasing workload and requiring additional staff or resources in the Agricultural Marketing Service.
- Citizens and Economy: U.S. consumers may benefit from increased domestic organic supply, potentially leading to more affordable or accessible organic foods. Farmers and businesses could see improved efficiency and market opportunities, fostering rural economic growth.
- International Relations: By targeting import-dependent markets, the program could reduce U.S. reliance on foreign organic products, subtly shifting trade dynamics without imposing tariffs or restrictions—promoting self-sufficiency in agriculture.
Main Stakeholders Affected
- Organic Producers and Businesses: Farmers, cooperatives, handlers, processors, and suppliers who produce or manage certified organic products; they can apply for grants to upgrade operations.
- Tribal Governments and Communities: Indian Tribes (as defined under federal law for self-determination) qualify as eligible entities, enabling investments in tribal organic agriculture.
- USDA and Federal Agencies: Primarily the Secretary of Agriculture and Agricultural Marketing Service, responsible for program oversight.
- Beginning Farmers/Ranchers and Veterans: Receive priority through reduced matching fund requirements, aiding new entrants to the organic sector.
- Consumers and Importers: Indirectly affected through enhanced domestic supply, which may influence organic food prices and availability.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill aligns with existing federal organic standards (e.g., under 7 CFR Part 205) and does not create new regulatory burdens but adds voluntary grant opportunities. It ensures competitive, transparent processes to avoid favoritism, complying with federal grant laws.
- Constitutional: No major issues; it supports the Constitution's commerce clause by promoting interstate agricultural trade and falls under Congress's spending power for agricultural programs. Inclusion of Tribal governments respects federal-tribal relations under self-determination laws.
- Political: Reinforces U.S. agricultural policy priorities like food security and domestic production, potentially appealing across party lines in farm states. It addresses trade imbalances without protectionist measures, focusing on investment rather than restrictions, which could influence future farm bills or trade negotiations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Van Orden, Derrick [R-WI-3], Rep. Hayes, Jahana [D-CT-5], Rep. Lofgren, Zoe [D-CA-18]
Recent Actions
- 2026-01-13: Referred to the Subcommittee on Nutrition and Foreign Agriculture.
- 2026-01-13: Referred to the Subcommittee on Conservation, Research, and Biotechnology.
- 2025-12-10: Referred to the House Committee on Agriculture.
- 2025-12-10: Introduced in House
- 2025-12-10: Introduced in House
Bill Versions
- Domestic Organic Investment Act of 2025 — issued 2025-12-10 — PDF (8 pages)