Domestic Organic Investment Act of 2025
- Bill Number
- S. 3427
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2025-12-10: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- Last Updated
- 2026-06-24T11:03:29Z
AI-Generated Summary
Purpose
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 capabilities to reduce reliance on imported organics and support local farmers and businesses.
Key Provisions
- Program Establishment: Adds a new section (210B) to the Agricultural Marketing Act of 1946, creating the Domestic Organic Investment Program. Administered by the Secretary of Agriculture (through the Agricultural Marketing Service), the program focuses on:
- Expanding capacity in the supply chain for producers, handlers, suppliers, and processors of certified organic products (agricultural goods produced without synthetic pesticides, fertilizers, or GMOs, as defined under federal organic standards).
- Modernizing equipment and systems for manufacturing, tracking, storage, and information technology related to organic production.
- Helping entities meet food safety and certification rules to enter markets.
- Increasing storage, processing, aggregation (grouping products), and distribution to create better markets.
- Developing markets for U.S.-grown organics that currently compete with imports.
- Addressing other supply chain challenges, as identified by the Secretary.
- Eligibility and Grants:
- Eligible entities include U.S.-based (including states, D.C., territories, or Indian Tribes) producers, cooperatives, commercial handlers, Tribal governments, or others designated by the Secretary. They must be certified organic or in transition to certification; suspended or revoked operations are excluded.
- Grants are awarded competitively each fiscal year funds are available, with a simplified application for "equipment-only" projects (e.g., buying machinery without broader infrastructure changes).
- Priorities may consider trade imbalances (e.g., high import reliance), recommendations from the National Organic Standards Board, and supply chain bottlenecks.
- Public criteria for evaluating applications must be shared before awards.
- Project Types and Limits:
- Projects can expand storage (including cold storage), aggregation, processing, and distribution of organic products.
- "Equipment-only" projects are also allowed.
- Grants last up to 3 years (unless adjusted by the Secretary).
- Maximum grant: $2,000,000 for infrastructure projects; $100,000 for equipment-only.
- Matching funds required: At least 50% non-federal for infrastructure projects and 25% for equipment-only; waivers or reductions possible for beginning farmers/ranchers or veterans.
- Support and Funding:
- The Secretary can provide technical assistance (e.g., guidance on implementation) directly or via partnerships.
- Authorizes appropriations (federal funding) as needed for fiscal years 2026 through 2030, in addition to existing budgets; funds remain available until spent.
Significant Changes to Existing Law
- Introduces an entirely new program (Section 210B) to the Agricultural Marketing Act of 1946, which previously focused on general agricultural marketing without specific organic supply chain investments.
- Builds on the Organic Foods Production Act of 1990 by tying eligibility to its certification standards but adds grant-based incentives for infrastructure and market development not previously mandated.
- No direct repeals or amendments to other laws; it expands federal support without altering core organic certification rules.
Potential Impacts
- Government Agencies: The U.S. Department of Agriculture (USDA) will administer the program, requiring additional staff, evaluation processes, and budget oversight. This could strain resources if appropriations are insufficient but enhance USDA's role in sustainable agriculture.
- Citizens: Organic farmers, ranchers, and small businesses (especially beginners and veterans) gain access to funding for growth, potentially lowering costs and creating jobs in rural areas. Consumers may see more affordable, domestically sourced organic products, reducing import dependency and supporting food security.
- International Relations: By targeting markets displaced by organic imports, the program could shift trade dynamics, potentially reducing U.S. imports from countries like those in Europe or Latin America, which might prompt trade negotiations or tariffs discussions.
Main Stakeholders Affected
- Organic Producers and Businesses: Farmers, cooperatives, handlers, processors, and suppliers who produce or manage certified organic products; they benefit most from grants and technical help.
- Tribal Governments and Communities: Explicitly included as eligible entities, supporting Indigenous agriculture and self-determination in organic farming.
- USDA and Federal Agencies: Responsible for program implementation, grant awards, and compliance monitoring.
- Consumers and Retailers: Indirectly affected through improved supply and market access for U.S. organics.
- Importers and International Suppliers: Potentially disadvantaged as domestic capacity grows, facing reduced market share.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces federal organic standards by linking grants to certification compliance, potentially increasing enforcement needs under existing regulations (e.g., 7 CFR Part 205). Establishes clear, competitive grant processes to ensure fairness and reduce legal challenges over favoritism.
- Constitutional: Relies on Congress's spending power (Article I, Section 8) to authorize appropriations, promoting general welfare through agriculture support. Includes Tribal provisions aligning with federal trust responsibilities to Native nations under treaties and statutes like the Indian Self-Determination Act.
- Political: Bipartisan sponsorship (by Senators Baldwin and Collins) signals broad support for rural economies and sustainability. Could influence farm bill debates by prioritizing organics amid climate and food system goals, though funding levels may spark partisan divides over agricultural spending.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Collins, Susan M. [R-ME], Sen. Welch, Peter [D-VT], Sen. Merkley, Jeff [D-OR]
Recent Actions
- 2025-12-10: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- 2025-12-10: Introduced in Senate
Bill Versions
- Domestic Organic Investment Act of 2025 — issued 2025-12-10 — PDF (8 pages)