In committee
Food Deserts Act
This bill authorizes $150 million in federal funding for states to set up revolving loan funds that support opening and running grocery stores in underserved areas. Qualifying stores can receive low-interest or interest-free loans if they sell affordable fresh produce and staple goods, match at least 20 percent of the funding, and avoid using the funds for new building construction. As store operators repay their loans, states will reuse the money to finance future grocery projects in communities with limited food access.
People affected—not determinable from the text provided; the bill establishes loan eligibility criteria for grocery businesses in underserved communities without specifying the expected number of recipient businesses or consumers served.
Fiscal magnitude$150.0Mprovisional · pending reviewSec. 4 authorizes $150,000,000 to be appropriated for fiscal year 2026.
Reach35provisional · pending reviewrigor: heuristic llm
What this bill touches.
Spending vs. restraint+20Role of government+25Farm policy & subsidies+20SNAP & nutrition+30
Who it helps · who it burdens.
Who it helps
- Grocery store operators in underserved communitiesCan receive low-interest or interest-free loans with terms up to 30 years to open or support stores, as well as USDA technical assistance on food sourcing, storage, and retail operations (Sec. 2(c), Sec. 2(f), Sec. 2(h)).
- State governmentsReceive federal capitalization grants apportioned based on their share of underserved populations to establish and maintain state revolving loan funds (Sec. 2(a), Sec. 3(c)).
- Residents of underserved communitiesGain improved local access to retail stores offering raw produce, staple foods, and healthful foods at affordable prices, alongside prioritized local hiring and nutrition education (Sec. 2(c), Sec. 2(d)).
Who it burdens
- Grocery store loan recipientsMust contribute at least a 20 percent non-federal match, pay an administrative fee of up to 4 percent, begin loan repayments within one year from a dedicated revenue source, charge affordable prices, and refrain from using loan funds for new construction (Sec. 2(c)(1), Sec. 2(d)(1), Sec. 2(f)(5)-(6), Sec. 2(g)).
- State loan administering agenciesMust establish and manage revolving funds, create application processes, evaluate applicant qualifications and dietary standards, and collect repayments and administrative fees (Sec. 2(b), Sec. 2(g), Sec. 3(a)).
- Non-program creditors of loan recipientsFace subordinated repayment priority behind revolving fund loan debts if a participating grocery store operator declares bankruptcy (Sec. 2(i)).
Who backs it
- Federal taxpayersFinance the $150 million authorization of appropriations for fiscal year 2026 to capitalize the state revolving loan funds (Sec. 4).