New Markets for Farmers and Families Act

Bill Number

H.R. 6775

Origin Chamber

House

Congress

119th Congress, Session 1

Status

Introduced

Latest Action

2026-05-20: Referred to the Subcommittee on Forestry and Horticulture.

Last Updated

2026-01-16T05:53:21Z

AI-Generated Summary

Purpose

The "New Markets for Farmers and Families Act" (H.R. 6775) aims to reauthorize and strengthen the Farmers' Markets and Local Food Promotion Program under the Agricultural Marketing Act of 1946. This program provides grants to support the development and expansion of farmers' markets, community-supported agriculture, and other local food initiatives, with a focus on increasing access to fresh, locally grown products for consumers while boosting opportunities for small-scale farmers.

Key Provisions

• Matching Funds Requirement: Grant recipients must provide matching funds equal to 25% of the federal grant amount, either in cash or in-kind contributions (non-cash support like donated goods or services). This requirement is waived for "priority grants," which target underserved areas or new market development.
• Funding Levels: Allocates $100 million annually for fiscal years 2019 through 2026, with $50 million per year starting in fiscal year 2027 and beyond; funds remain available until spent.
• Funding Reservations: Reserves 30% of annual funds for priority grants to organizations that have not received a grant in the past three years and plan to establish new farmers' markets. If there are not enough qualified applications, these reserved funds can be used for other eligible grants.
• Reporting Requirements:
• The Secretary of Agriculture must publish a report within three years of enactment detailing grant applications (including from new applicants and those qualifying for priority status) and awards over the prior two years.
• The Department of Agriculture's Inspector General must publish a report within three years assessing fraud or abuse in the program over the prior two years and evaluating how the new matching funds rule affects participation.

Significant Changes to Existing Law

• Reduces the matching funds obligation from a higher previous level (typically 50% or more in similar programs) to 25%, with an explicit exception for priority grants to encourage broader participation.
• Increases overall funding from $50 million to $100 million annually through 2026, then sets a lower sustained level of $50 million thereafter, providing more short-term support.
• Introduces a 30% funding reservation specifically for new entrants establishing markets, which did not exist before, to prioritize innovation and underserved groups.
• Adds mandatory public reports on program usage, applicant diversity, and oversight, enhancing transparency and accountability compared to prior versions without such requirements.

Potential Impacts

• On Government Agencies: The U.S. Department of Agriculture (USDA) will manage higher funding levels and new reporting duties, potentially increasing administrative workload but improving program oversight to prevent waste or fraud.
• On Citizens: Could expand access to local foods in communities, particularly in underserved or rural areas, by supporting more markets and reducing barriers for new participants; benefits consumers through fresher produce and supports food security.
• On International Relations: Minimal direct impact, as the bill focuses on domestic agriculture; indirect benefits may arise from stronger local farming resilience, reducing reliance on imported goods.
• Overall, the changes may lead to more farmers' markets nationwide, fostering economic growth in rural areas without significant new regulatory burdens.

Main Stakeholders Affected

• Farmers and Producers: Small-scale and beginning farmers gain from expanded grant access for market development and promotion.
• Eligible Entities: Non-profit organizations, local governments, tribal groups, and educational institutions that apply for grants to run or start farmers' markets or local food programs.
• Consumers and Communities: Urban and rural residents, especially in low-income or food-desert areas, who benefit from increased availability of affordable local foods.
• USDA and Oversight Bodies: The Department handles implementation and reporting; the Inspector General monitors for issues like fraud.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens the existing Agricultural Marketing Act by embedding accountability measures (e.g., reports on fraud), which could reduce legal challenges related to fund misuse; no new enforcement powers are created.
• Constitutional: Aligns with Congress's authority under the Commerce Clause to regulate agriculture and interstate markets; promotes equal access without infringing on individual rights.
• Political: Supports bipartisan agricultural priorities by aiding rural economies and food access, potentially influencing farm bill negotiations; the funding increase and reservations may appeal to advocates for small farmers but could face scrutiny over long-term costs after 2026. No major controversies are evident in the bill text.

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

Sponsor

Rep. Underwood, Lauren [D-IL-14]

Recent Actions

• 2026-05-20: Referred to the Subcommittee on Forestry and Horticulture.
• 2025-12-17: Referred to the House Committee on Agriculture.
• 2025-12-17: Introduced in House
• 2025-12-17: Introduced in House

Bill Versions

• New Markets for Farmers and Families Act — issued 2025-12-17 — PDF (4 pages)