EFFECTIVE Food Procurement Act

(1) regional and resilient food economies;

(2) worker well-being;

(3) a safe and healthy environment;

(4) equity and inclusion;

(5) fairness for family farms, fishing businesses, and ranches; and

(6) animal welfare.

The term beginning farmer, fisherman, or rancher means a person that—

(i) has not operated a farm, fishing business, or ranch; or

(ii) has operated a farm, fishing business, or ranch for not more than 10 years; and

(B) meets such other criteria as the Secretary may establish.

The term covered authority means—

(A) section 32 of the Act of August 24, 1935 (7 U.S.C. 612c);

(B) the matter under the heading REMOVAL OF SURPLUS AGRICULTURAL COMMODITIES under the heading Agricultural Marketing Service in title I of Public Law 88–250 (7 U.S.C. 612c–1);

(C) section 10603 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 612c–4);

(D) section 4404 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 612c–5);

(E) section 14222 of that Act (7 U.S.C. 612c–6); and

(F) any other purchasing authority of the Department of Agriculture.

The term covered entity means a nonprofit organization or a for-profit organization that is a processor, distributor, or a food hub that sources at least 51 percent of its value from covered producers.

The term covered producer means—

(A) a beginning farmer, fisherman, or rancher;

(B) a veteran farmer, fisherman, or rancher;

(C) a socially disadvantaged farmer, fisherman, or rancher; or

(D) a producer on a small or medium-sized farm or ranch.

The term fishing business means a business engaged in commercial fishing (as defined in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802)).

The term Indian Tribe means an Indian tribe included on the list published by the Secretary of the Interior under section 104 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).

The term Native Alaskan has the meaning given the term Native in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602).

The term Native Hawaiian has the meaning given the term in section 801 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4221).

The term nonprofit organization means an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code.

The term policy to limit deforestation means a policy that includes, at a minimum, the following:

(A) Measures to identify the point of origin of forest-risk commodities and ensure compliance with the policy when supply chain risks are present.

(B) Data detailing the complete list of direct and indirect suppliers and supply chain traceability information for each forest-risk commodity found in products that may be furnished to the Federal Government, including—

(i) refineries, processing plants, farms, and plantations;

(ii) the respective owners, parent entities, and farmers of the entities described in clause (i);

(iii) maps; and

(iv) geolocations.

(C) Measures taken to ensure that each commodity described in subparagraph (B) does not contribute to deforestation.

(D) Measures taken to ensure the process of obtaining the free, prior, and informed consent of indigenous peoples and local communities directly affected by the production of commodities described in subparagraph (B).

(E) Measures taken to protect biodiversity and prevent the poaching of wildlife and trade in bushmeat in all operations and areas adjacent to the production of commodities described in subparagraph (B).

(F) Measures taken to ensure compliance with the laws of countries where forest-risk commodities in the supply chain of the contractor are produced.

The term Secretary means the Secretary of Agriculture.

The term small or medium-sized farm or ranch means a farm or ranch that—

(A) has an annual gross cash farm income of less than $999,999; or

(B) meets another acreage-based definition of small or medium, as determined by the Secretary, that takes into consideration—

(i) the State or region in which the farm or ranch is located;

(ii) the production system of the farm or ranch; or

(iii) both.

The term socially disadvantaged farmer, fisherman, or rancher means a farmer, operator of a fishing business, or rancher who is a member of a socially disadvantaged group (as defined in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a))).

The term tradeoff process means a tradeoff process described in part 15.101–1 of the Federal Acquisition Regulation (or a successor regulation).

The term veteran farmer, fisherman, or rancher means a farmer, operator of a fishing business, or rancher who has served in the Armed Forces (as defined in section 101 of title 38, United States Code) and who—

(A) has not operated a farm, fishing business, or ranch;

(B) has operated a farm, fishing business, or ranch for not more than 10 years; or

(C) is a veteran (as defined in that section) who has first obtained status as a veteran (as so defined) during the most recent 10-year period.

The term certification program means a program that uses qualified, independent auditors to carry out routine, in-person or on-farm assessments of a producer or business’s compliance with publicly available standards that are developed with input from key stakeholders and subject matter experts and exceed conventional industry standards and applicable Federal or State legal requirements.

The purposes of the requirements described in subsection (b) are—

(1) to strengthen the resilience of the domestic food system;

(2) to create more opportunities for covered producers;

(3) to expand the choices available to school food authorities and food banks participating in the commodity procurement programs of the Department of Agriculture; and

(4) to expand workplace protections in the food supply chains of the Federal Government.

In the procurement of foods under a covered authority, the Secretary shall make available and purchase a sufficient variety of—

(1) foods that support equity and inclusion, including—

(A) foods that are produced by, covered producers, or sourced from, covered entities; and

(B) foods that accommodate people with religious or restricted diets;

(2) foods that support diversified and resilient supply chains, including—

(A) foods that are produced by, covered producers, or sourced from, covered entities;

(B) foods that are produced by, or sourced from, agricultural cooperatives, producer associations, or food hubs that principally work with covered producers;

(C) foods that are produced by a certified organic farm (as defined in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502)); and

(D) foods that are produced by a farm participating in an independent animal welfare certification program;

(3) foods that support worker well-being, including—

(A) foods that are sourced from vendors with employees who are represented by a collective bargaining agreement or memorandum of understanding;

(B) foods that are sourced from vendors participating in a worker justice certification program; and

(C) foods that are sourced from vendors that have signed a labor peace agreement with a bona fide labor union; and

(4) foods that mitigate the impacts on climate change, including—

(A) foods that are produced using agricultural practices that measurably reduce greenhouse gas emissions and increase on-farm diversification and resilience to climate impacts, including perennial-based systems, crop rotations, and ecologically managed pasture-based livestock;

(B) foods that are sourced from suppliers with a policy to limit deforestation;

(C) foods that emit less greenhouse gas emissions throughout the lifecycle of the product, relative to nutritionally similar foods; and

(D) foods that provide environmental co-benefits that increase climate resilience, such as—

(i) improving soil health and water quality;

(ii) increasing biodiversity and water conservation;

(iii) reducing the spread of invasive species; and

(iv) preserve native ecosystems.

Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that includes—

(1) the percentage of the total annual spending of the Department of Agriculture spent on purchasing foods in each category of foods listed in paragraphs (1) through (4) of subsection (b), including a record of each purchase the Department made under each category that lists—

(A) the name of each supplier, distributor, processor, and producer involved in the provision of the food product;

(B) the total contract obligation; and

(C) a description of the food purchased;

(2) an estimate, developed in consultation with the Administrator of the Environmental Protection Agency, of the greenhouse gas emissions associated with the production of food purchased or procured by the Department of Agriculture;

(3) targets to increase by calendar year 2032, to the maximum extent practicable, the percentage of the annual food spending by the Department of Agriculture in each category of food listed in paragraphs (1) through (4) of subsection (b);

(4) a target to reduce by calendar year 2032, to the maximum extent practicable, the greenhouse gas emissions associated with the annual food purchasing by the Department of Agriculture relative to calendar year 2024, in accordance with the procurement-related targets established by Executive Order 14057 (42 U.S.C. 4321 note; relating to catalyzing clean energy industries and jobs through Federal sustainability); and

(5) any recommendations—

(A) to enhance supply chain transparency, particularly for school food authorities that participate in any Department of Agriculture foods program;

(B) to restructure the commodity food procurement programs of the Department of Agriculture to support a regional model with increased local food purchasing, including recommendations for continuing and improving on the Local Food Purchase Assistance Cooperative Agreement Program; or

(C) to increase procurement of foods listed in paragraphs (1) through (4) of subsection (b), including any recommendations that would require new authority from Congress.

Not later than 2 years after the date of enactment of this Act, and each year thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that includes—

(1) the percentage of the total annual spending of the Department of Agriculture spent on purchasing foods in each category of foods listed in paragraphs (1) through (4) of subsection (b) during the previous fiscal year;

(2) the names of all suppliers, distributors, processors, and producers involved in the provision of all foods purchased under a covered authority during the previous fiscal year; and

(3) an estimate of the greenhouse gas emissions associated with food purchasing by the Department of Agriculture during the previous fiscal year.

There are authorized to be appropriated to carry out this section, $2,000,000, to remain available until expended.

The Secretary, on a competitive basis, shall seek to enter into procurement contracts with contracts with covered producers and covered entities.

For each of fiscal years 2026 through 2031, of the funds made available to the Secretary under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), for a fiscal year, the Secretary shall use not less than $2,000,000 to carry out subsection (a).

The Secretary shall establish and carry out a pilot program that uses a tradeoff process to select bids for food procurement contracts that deliver the overall best value and target purchases under covered authorities of foods listed in paragraphs (1) through (4) of section 4(b), using evaluation criteria established under paragraph (2).

The Secretary shall establish the evaluation criteria described in paragraph (1)—

(A) after providing notice and an opportunity for public comment; and

(B) by providing opportunities for engagement with—

(i) covered producers;

(ii) covered entities;

(iii) individuals who follow religious or restricted diets;

(iv) Indian Tribes;

(v) Native Hawaiians;

(vi) Native Alaskans;

(vii) workers in the food system, including workers employed on farms, in food processing facilities and warehouses, and in food transportation; and

(viii) entities that use commodity programs of the Department of Agriculture, including child nutrition providers and food banks.

The Secretary shall annually select bids under the pilot program established under this subsection in an amount that is not less than 20 percent of the annual food spending of the Department of Agriculture under the covered authorities.

Not later than January 1, 2026, and each year thereafter throughout the duration of the pilot program under this subsection, the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report describing the progress of the Secretary in implementing the pilot program, including—

(A) the number of bid solicitations selected under the pilot program;

(B) the total amount spent by the Department of Agriculture on purchases made through the pilot program;

(C) a description of the evaluation criteria established under paragraph (2); and

(D) an evaluation of the solicitation process used for the pilot program that includes input from vendors.

The pilot program established under this subsection shall terminate on the date that is 5 years after the date of enactment of this Act.

The Secretary shall provide technical assistance to covered producers and covered entities to support equitable participation in the procurement programs of the Department of Agriculture, including technical assistance in obtaining necessary food safety training or certification.

The Secretary shall establish a competitive grant program to assist eligible applicants described in paragraph (5) in participating in the procurement programs of the Department of Agriculture.

The term of a grant awarded under this subsection shall be not more than 3 years.

A grant awarded under this subsection may be used for any of the following activities:

(A) To make upgrades necessary to obtain food safety accreditations and audits required to become a vendor for the Department of Agriculture.

(B) To pay for the cost of a food safety accreditation and audit.

(C) To purchase liability insurance.

(D) To develop and execute a food safety plan.

The Secretary shall ensure geographic diversity in grants awarded under this subsection.

Applicants eligible for grants under this subsection are—

(A) covered producers; and

(B) agricultural cooperatives, fishing cooperatives, and producer associations composed of covered producers.

No eligible applicant described in paragraph (5) may receive more than $100,000 in grants under this subsection.

Not later than 1 year after receiving a grant under this subsection, and annually thereafter for the period of the grant term, a recipient of a grant under this subsection shall submit to the Secretary a report describing—

(i) how the recipient used the funds; and

(ii) the progress of the recipient toward becoming a vendor, as described in paragraph (3)(A), if applicable.

Not later than January 1, 2026, and each year thereafter in which the term of a grant under this subsection is ongoing, the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report containing a list of the recipients of the grants, including a summary of—

(i) how the recipients used the funds; and

(ii) the recipients that have become vendors, as described in paragraph (3)(A), if applicable.

There is authorized to be appropriated to carry out this section $25,000,000 for fiscal year 2026, to remain available through fiscal year 2031.