CHILE Act of 2026
- Bill Number
- S. 4860
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2026-06-23: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- Last Updated
- 2026-07-06T17:38:55Z
AI-Generated Summary
Summary of S. 4860 (CHILE Act of 2026)
Purpose
This legislation amends the Federal Agriculture Improvement and Reform Act of 1996 to create a framework for providing direct financial assistance to producers of specialty crops affected by adverse events, such as economic crises or market disruptions. The goal is to support these producers through a structured payment system administered by the Secretary of Agriculture.
Key Provisions
- Definition: Specialty crops are defined as in the Specialty Crops Competitiveness Act of 2004, referring to fruits, vegetables, tree nuts, dried fruits, and horticulture and nursery crops.
- Framework Establishment: The Secretary must set up a system to deliver direct payments to affected producers based on prior sales data multiplied by a payment factor determined by the Secretary, subject to available funds.
- Special Considerations: Payments must account for the higher market value of specialty crops, their elevated production costs compared to other crops, and the variety of business structures used by producers.
- Payment Limits: Total payments per person or legal entity are capped at levels set in the Food Security Act of 1985, with an exception allowing higher limits (at least $900,000) for entities where at least 75% of income comes from farming, ranching, or forestry activities.
- Eligibility Rules: Certain provisions from the Food Security Act regarding notification of interests, eligibility, and denials apply to this assistance.
- Default Administration: This framework becomes the standard method for delivering any direct assistance to specialty crop producers, including under the Commodity Credit Corporation Charter Act.
- Funding: Appropriates $5,000,000,000 from the Treasury for fiscal year 2027, available until spent.
Significant Changes to Existing Law
- Adds a new Section 197 to the Federal Agriculture Improvement and Reform Act of 1996, creating a dedicated emergency assistance program for specialty crops that did not previously exist in this form.
- Establishes this program as the default structure for future direct assistance, overriding or standardizing other authorities like those under the Commodity Credit Corporation.
- Applies and adapts payment limitation and eligibility rules from the Food Security Act of 1985 to specialty crop producers.
Potential Impacts
- Government Agencies: Increases administrative responsibilities for the U.S. Department of Agriculture (USDA) in calculating payments, verifying eligibility, and distributing funds.
- Citizens: Provides financial support to specialty crop producers facing losses, potentially stabilizing local agricultural economies and supply chains for fruits, vegetables, and related products.
- International Relations: No direct provisions address trade or foreign policy, though assistance for market disruptions could indirectly influence domestic responses to global trade issues.
Main Stakeholders Affected
- Specialty crop producers and their business entities (e.g., farms, cooperatives).
- The Secretary of Agriculture and USDA staff responsible for program implementation.
- Taxpayers, through the appropriation of federal funds.
- Related agricultural businesses involved in processing or distribution of specialty crops.
Notable Legal, Constitutional, or Political Implications
- The bill integrates existing payment caps and eligibility rules from the Food Security Act, ensuring consistency with prior agricultural support programs while creating an exception for high-income farming entities.
- No explicit constitutional issues are raised in the text; the measure relies on Congress's authority to appropriate funds and regulate agriculture.
- Politically, it focuses resources on a specific sector (specialty crops) with a substantial one-time appropriation, which could affect future budget debates on farm assistance.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (9)
Sen. Slotkin, Elissa [D-MI], Sen. Warnock, Raphael G. [D-GA], Sen. Bennet, Michael F. [D-CO], Sen. Booker, Cory A. [D-NJ], Sen. Fetterman, John [D-PA], Sen. Wyden, Ron [D-OR], Sen. Hickenlooper, John W. [D-CO], Sen. Schiff, Adam B. [D-CA], Sen. King, Angus S., Jr. [I-ME]
Recent Actions
- 2026-06-23: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- 2026-06-23: Introduced in Senate
Bill Versions
- Cultivating Horticultural Innovation in Local Economies Act of 2026 — issued 2026-06-23 — PDF (5 pages)