II 

116TH CONGRESS 

2D SESSION S. 3840 

To protect the continuity of the food supply chain of the United States 

in response to COVID–19, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2020 

Ms. STABENOW (for herself, Mr. LEAHY, Mr. BROWN, Ms. KLOBUCHAR, Mr. 

BENNET, Mrs. GILLIBRAND, Mr. CASEY, Ms. SMITH, Mr. DURBIN, and 

Mr. SCHUMER) introduced the following bill; which was read twice and 

referred to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To protect the continuity of the food supply chain of the 

United States in response to COVID–19, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Food Supply Protec5 tion Act of 2020’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) COVID–19 EMERGENCY.—The term 

9 ‘‘COVID–19 emergency’’ means the public health 


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1 emergency declared by the Secretary of Health and 

2 Human Services under section 319 of the Public 

3 Health Service Act (42 U.S.C. 247d) on January 

4 31, 2020, with respect to COVID–19. 

5 (2) DONATION PERIOD.—The term ‘‘donation 

6 period’’ means the period— 

7 (A) beginning on January 31, 2020; and 

8 (B) ending on the later of— 

9 (i) December 31, 2020; and 

10 (ii) a date after December 31, 2020, 

11 if there are remaining food surpluses relat12 ing to the COVID–19 emergency, as deter13 mined by the Secretary. 

14 (3) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Agriculture. 

16 SEC. 3. INFRASTRUCTURE GRANTS TO NONPROFIT FEED17 ING ORGANIZATIONS. 

18 (a) PURPOSES.—The purposes of this section are— 

19 (1) to reduce food waste by supporting the dis20 tribution of perishable food that would otherwise go 

21 to waste or be left unharvested; 

22 (2) to provide food and meals to individuals in 

23 need during the COVID–19 emergency; 

24 (3) to improve the ability of food banks and 

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1 pack, store, or distribute perishable food in response 

2 to the COVID–19 emergency; and 

3 (4) to facilitate partnerships with local and re4 gional organizations to store, repackage, prepare, 

5 process, or distribute food and meals. 

6 (b) DEFINITIONS.—In this section: 

7 (1) ELIGIBLE ORGANIZATION.—The term ‘‘eligi8 ble organization’’ means an organization providing 

9 free food or meals during the donation period, in10 cluding— 

11 (A) a nonprofit organization, such as a 

12 food bank, a school, and an emergency feeding 

13 organization; 

14 (B) a faith-based organization that distrib15 utes food or meals, and any other similar pro16 gram, as determined by the Secretary; 

17 (C) a tribal organization that distributes 

18 food or meals; 

19 (D) a child or adult care center; and 

20 (E) any other similar feeding entity, as de21 termined by the Secretary. 

22 (2) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary, acting through the Administrator of 

24 the Food and Nutrition Service. 


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1 (3) TRIBAL ORGANIZATION.—The term ‘‘tribal 

2 organization’’ has the meaning given the term in 

3 section 4 of the Indian Self-Determination and Edu4 cation Assistance Act (25 U.S.C. 5304). 

5 (c) REIMBURSEMENT FOR STORAGE AND DISTRIBU6 TION OF PERISHABLE COMMODITIES.— 

7 (1) ESTABLISHMENT.—Not later than 15 days 

8 after the date of enactment of this Act, the Sec9 retary shall establish a program under which the 

10 Secretary shall reimburse costs incurred during the 

11 donation period by an eligible organization for the 

12 distribution and temporary storage of perishable 

13 commodities, without regard to the source of those 

14 commodities. 

15 (2) REIMBURSEMENT RATE.—Under the pro16 gram established under paragraph (1), the Secretary 

17 shall reimburse eligible organizations at a rate of 

18 $0.10 per pound of perishable food stored and dis19 tributed during the donation period. 

20 (3) ADVANCE REIMBURSEMENT.—The Sec21 retary shall provide an advance reimbursement to an 

22 eligible organization under paragraph (1) if the Sec23 retary approves a plan submitted by the eligible or24 ganization that— 


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1 (A) estimates the pounds of perishable 

2 food expected to be distributed during the sub3 sequent 30 days; and 

4 (B) demonstrates the ability of the eligible 

5 organization to accomplish that distribution. 

6 (4) FUNDING.—Of the funds of the Commodity 

7 Credit Corporation, the Secretary shall use not more 

8 than $500,000,000 to carry out this subsection, of 

9 which not more than 3 percent may be used for ad10 ministrative expenses. 

11 (d) GRANTS FOR INFRASTRUCTURE, EQUIPMENT, 

12 AND SUPPLIES.— 

13 (1) ESTABLISHMENT.—Not later than 30 days 

14 after the date of enactment of this Act, the Sec15 retary shall establish a program under which the 

16 Secretary shall award grants to eligible organiza17 tions to improve, construct, rent, lease, or purchase 

18 infrastructure, equipment, and supplies that support 

19 the distribution of surplus perishable food or meals 

20 prepared with that food and the purposes described 

21 in subsection (a). 

22 (2) APPLICATIONS.— 

23 (A) IN GENERAL.—To be eligible to receive 

24 a grant under paragraph (1), an eligible organi25 zation shall submit to the Secretary an applicaVerDate Sep 11 2014 03:41 Jun 14, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3840.IS S3840

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1 tion at such time, in such manner, and con2 taining such information as the Secretary may 

3 require, including the information described in 

4 subparagraph (C). 

5 (B) REVIEW AND SUBMISSION.—The Sec6 retary shall approve or deny an application re7 ceived under subparagraph (A)— 

8 (i) not later than 30 days after the 

9 date of receipt of the application; and 

10 (ii) in the case of an application for a 

11 grant amount of less than $80,000 or an 

12 application that may be reviewed quickly 

13 otherwise, as determined by the Secretary, 

14 in accordance with the timeline in a fast15 track review process established by the 

16 Secretary for such applications. 

17 (C) SELECTION CRITERIA.—In determining 

18 whether to approve or deny an application of an 

19 eligible organization under subparagraph (B), 

20 the Secretary shall consider whether the eligible 

21 organization— 

22 (i) to the extent practicable, will use 

23 local and regional food business and small 

24 and medium businesses to carry out activi25 ties under the grant; 


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1 (ii) will divert perishable food that 

2 would otherwise be wasted or unharvested; 

3 (iii) will develop innovative partner4 ships with institutions that have available, 

5 underutilized cold storage, food prepara6 tion, or other existing resources or facili7 ties; 

8 (iv) will make investments in infra9 structure or equipment that have short- or 

10 long-term value, have multiple uses, and 

11 would improve preparedness for future 

12 surges in donations of perishable foods; 

13 and 

14 (v) demonstrates an ability to use the 

15 grant for the purposes described in para16 graph (1). 

17 (3) USE OF FUNDS.—Activities carried out by 

18 eligible organizations using grant funds awarded 

19 under paragraph (1) may include the following: 

20 (A) Purchasing new or temporary pack21 aging materials and food labels. 

22 (B) Converting industrial-sized products to 

23 consumer-sized products. 


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1 (C) Purchasing, renting, or leasing storage 

2 or preparation space, cold storage, equipment, 

3 or vehicles, trailers, or transportation services. 

4 (D) Purchasing test kits, disinfectant, 

5 sanitation systems, or hand washing stations. 

6 (E) Training relating to— 

7 (i) equipment purchased, rented, or 

8 leased with the grant funds; and 

9 (ii) new procedures established by the 

10 eligible organization that are supported by 

11 the grant funds. 

12 (F) Purchasing and decontaminating per13 sonal protective equipment. 

14 (G) Purchasing equipment and supplies to 

15 facilitate food or meal distribution. 

16 (4) OWNERSHIP OF INFRASTRUCTURE, EQUIP17 MENT, AND SUPPLIES.—Any infrastructure, equip18 ment, or supplies purchased by an eligible organiza19 tion using a grant awarded under paragraph (1)— 

20 (A) shall be required to support the pur21 poses of the grant but need not be exclusively 

22 used for those purposes; 

23 (B) shall not have Federal property track24 ing and inventory requirements applied beyond 

25 the end of the grant term; and 


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1 (C) shall remain under the ownership of 

2 the eligible organization for future use or pan3 demic or food crisis preparedness. 

4 (5) PUBLIC GRANT ANNOUNCEMENTS.—Not 

5 later than 10 days after the date on which a grant 

6 is awarded under paragraph (1), the Secretary shall 

7 publicly announce the grant on the website of the 

8 Food and Nutrition Service, including a summary of 

9 the activities funded by the grant and the projected 

10 volume of food or meal distribution supported by the 

11 grant. 

12 (6) FUNDING.—Of the funds of the Commodity 

13 Credit Corporation, the Secretary shall use not more 

14 than $500,000,000 to carry out this subsection, of 

15 which not more than 3 percent may be used for ad16 ministrative expenses. 

17 (e) OUTREACH.—The Secretary shall conduct out18 reach to eligible organizations, including tribal organiza19 tions, that serve underserved communities or have mini20 mal or no participation in Federal programs to ensure that 

21 those organizations are informed of the programs estab22 lished under this section. 

23 (f) DUPLICATION AND RELATION TO OTHER PRO24 GRAMS.—An eligible organization may not receive reim25 bursements, payments, or grants from Federal sources for 


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1 activities carried out under this section in an amount that 

2 exceeds 100 percent of the costs incurred by the eligible 

3 organization in carrying out those activities. 

4 (g) ADDITIONAL FUNDING.—In addition to the funds 

5 used under subsections (c)(4) and (d)(6), of the funds of 

6 the Commodity Credit Corporation, the Secretary shall 

7 use such sums as are necessary to carry out this section. 

8 SEC. 4. FOOD PURCHASE PARTNERSHIPS. 

9 (a) DEFINITIONS.—In this section: 

10 (1) ELIGIBLE FEEDING ORGANIZATION.—The 

11 term ‘‘eligible feeding organization’’ means a public 

12 or private nonprofit organization (including a tribal 

13 organization (as defined in section 4 of the Indian 

14 Self-Determination and Education Assistance Act 

15 (25 U.S.C. 5304))), or a restaurant operating an 

16 emergency feeding or food relief program, that dis17 tributes donated eligible food or meals prepared, at 

18 least in part, from eligible food. 

19 (2) ELIGIBLE FOOD.—The term ‘‘eligible food’’ 

20 means meat, poultry, eggs, fluid milk, dairy prod21 ucts, fruit, vegetables, seafood, and other unproc22 essed or minimally processed food that— 

23 (A) is produced and processed in the 

24 United States; and 


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1 (B) would otherwise be unharvested or sur2 plus if not donated. 

3 (3) FOOD VALUE.—The term ‘‘food value’’— 

4 (A) means the typical wholesale value of 

5 food being donated in a nonsurplus situation; 

6 and 

7 (B) may be adjusted to reflect the typical 

8 premium associated with local food, organic 

9 food, or other premiums. 

10 (4) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

11 has the meaning given the term ‘‘Indian tribe’’ in 

12 section 4 of the Indian Self-Determination and Edu13 cation Assistance Act (25 U.S.C. 5304). 

14 (5) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary, acting through the Administrator of 

16 the Agricultural Marketing Service. 

17 (6) STATE.—The term ‘‘State’’ means— 

18 (A) each of the several States of the 

19 United States; 

20 (B) the District of Columbia; 

21 (C) the Commonwealth of Puerto Rico; 

22 (D) the United States Virgin Islands; 

23 (E) Guam; 

24 (F) American Samoa; and 


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1 (G) the Commonwealth of the Northern 

2 Mariana Islands. 

3 (b) ESTABLISHMENT; PURPOSES.— 

4 (1) ESTABLISHMENT.—Not later than 15 days 

5 after the date of enactment of this Act, the Sec6 retary shall establish— 

7 (A) the State and Tribal surplus food pur8 chase program in accordance with subsection 

9 (c); and 

10 (B) the Federal surplus food reimburse11 ment program in accordance with subsection 

12 (d). 

13 (2) PURPOSES.—The purposes of the programs 

14 established under paragraph (1) shall be— 

15 (A) to facilitate the purchase and donation 

16 of eligible food; 

17 (B) to provide nutrition assistance to indi18 viduals facing food insecurity; 

19 (C) to encourage the use of available infra20 structure and resources to respond to COVID– 

21 19-related food supply chain disruptions; and 

22 (D) to reduce food waste. 

23 (c) STATE AND TRIBAL SURPLUS FOOD PURCHASE

24 PROGRAM.— 


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1 (1) IN GENERAL.—To advance the purposes de2 scribed in subsection (b)(2), the Secretary shall 

3 carry out a State and Tribal surplus food purchase 

4 program, under which the Secretary shall provide 

5 funding to States and Indian Tribes to administer a 

6 grant or other reimbursement program to purchase 

7 surplus eligible food and distribute the food to eligi8 ble feeding organizations. 

9 (2) INSTRUCTIONS.—Not later than 15 days 

10 after the date of enactment of this Act, the Sec11 retary shall provide instructions for States and In12 dian Tribes seeking funding under this subsection. 

13 (3) INITIAL APPLICATION.— 

14 (A) IN GENERAL.—A State or Indian 

15 Tribe seeking funding under this subsection 

16 shall submit to the Secretary an initial applica17 tion that— 

18 (i) designates the one or more lead 

19 agencies of the State or Indian Tribe for 

20 administering the grant or other reim21 bursement program; and 

22 (ii) includes a plan for administering 

23 the grant or other reimbursement program 

24 in accordance with paragraph (4). 


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1 (B) JOINT APPLICATIONS.—Two or more 

2 States, Indian Tribes, or combinations of States 

3 and Indian Tribes— 

4 (i) may jointly submit an initial appli5 cation under subparagraph (A); and 

6 (ii) shall be eligible to receive a com7 bination of the amounts provided under 

8 the initial allocation under paragraph (5). 

9 (4) STATE OR TRIBAL PLAN.—The State or 

10 Tribal plan described in paragraph (3)(A)(ii) shall 

11 include descriptions of— 

12 (A) how the lead agencies of a State or In13 dian Tribe, or a joint applicant under para14 graph (3)(B), will— 

15 (i) facilitate connecting producers of 

16 surplus eligible food with eligible feeding 

17 organizations; and 

18 (ii) make available to individuals in19 formation relating to how to access food or 

20 meals provided through the program under 

21 this subsection; 

22 (B) mechanisms that eligible feeding orga23 nizations will use to distribute food and meals 

24 under the program under this subsection; 


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1 (C) how the plan advances the purposes 

2 described in subsection (b)(2); and 

3 (D) how innovative partnerships with orga4 nizations serving at-risk populations or facilities 

5 that have unused capacity due to the COVID– 

6 19 emergency (including restaurants, hospi7 tality companies, schools, senior centers, after8 school programs, sports franchises or other en9 terprises, distributors, and other public or pri10 vate organizations) will be encouraged and sup11 ported under the plan. 

12 (5) INITIAL ALLOCATION.— 

13 (A) IN GENERAL.—Of the funds of the 

14 Commodity Credit Corporation, the Secretary 

15 shall distribute $1,000,000,000 to States and 

16 Indian Tribes under this subsection. 

17 (B) MINIMUM ALLOCATION.—In distrib18 uting amounts under subparagraph (A), the 

19 Secretary shall allocate not less than— 

20 (i) $5,000,000 for each State; and 

21 (ii) $200,000 for each Indian Tribe. 

22 (C) FORMULA.—In allocating amounts 

23 under subparagraph (B), subject to the limita24 tions described in that subparagraph, the Sec25 retary shall allocate— 


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1 (i) 50 percent based on— 

2 (I) in the case of States, the for3 mula used to allocate among States 

4 the commodities and funding available 

5 under the emergency food assistance 

6 program established under the Emer7 gency Food Assistance Act of 1983 (7 

8 U.S.C. 7501 et seq.), using the most 

9 current data available as of the date 

10 of enactment of this Act; and 

11 (II) in the case of Indian Tribes, 

12 a formula determined by the Sec13 retary, in consultation with Indian 

14 Tribes, that is based on poverty rates, 

15 unemployment rates, and rates of par16 ticipation in Federal feeding pro17 grams; and 

18 (ii) 50 percent based on the market 

19 value of agricultural products sold within 

20 each State or Tribal area, including agri21 cultural products produced by the members 

22 of each Indian Tribe or Tribal businesses 

or enterprises, weighted such that 1 23 ⁄4 of 

24 the amount under this clause is based on 

25 each of— 


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1 (I) dairy and eggs; 

2 (II) meat and poultry; 

3 (III) vegetables; and 

4 (IV) fruit. 

5 (6) REALLOCATION AND ADDITIONAL FUND6 ING.— 

7 (A) IN GENERAL.—The Secretary may— 

8 (i) reallocate to States or Indian 

9 Tribes described in subparagraph (B) 

10 amounts initially allocated under this sub11 section to a State or Indian Tribe that— 

12 (I) did not submit an application 

13 under paragraph (3); or 

14 (II) did not use the full amount 

15 allocated to the State or Indian Tribe; 

16 and 

17 (ii) distribute such sums as are nec18 essary of the funds of the Commodity 

19 Credit Corporation in addition to the 

20 amount made available under paragraph 

21 (5)(A) to States or Indian Tribes described 

22 in subparagraph (B). 

23 (B) ADDITIONAL FUNDING.—The Sec24 retary shall distribute amounts reallocated or 


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1 distributed under subparagraph (A) to States 

2 or Indian Tribes that— 

3 (i) demonstrate additional need; or 

4 (ii) have leveraged the amounts ini5 tially allocated to the State or Indian Tribe 

6 to form innovative partnerships described 

7 in paragraph (4)(D). 

8 (7) ADMINISTRATION.— 

9 (A) ADMINISTRATIVE EXPENSES.—A State 

10 or Indian Tribe receiving funding under this 

11 subsection may not use more than 8 percent for 

12 administrative expenses. 

13 (B) NO DUPLICATION.—The combination 

14 of all purchases of eligible food or other reim15 bursements provided by a State or Indian Tribe 

16 for eligible food through a program under this 

17 subsection shall not exceed 100 percent of the 

18 food value of the eligible food. 

19 (d) FEDERAL SURPLUS FOOD REIMBURSEMENT

20 PROGRAM.— 

21 (1) DEFINITIONS.—In this subsection: 

22 (A) ELIGIBLE EXPENSES.—The term ‘‘eli23 gible expenses’’ means harvesting, processing, 

24 packaging, cold storage prior to delivery to the 

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1 ty requirements, repacking, meal preparation, 

2 transportation, and related costs, as determined 

3 by the Secretary. 

4 (B) ELIGIBLE FOOD ORGANIZATION.—The 

5 term ‘‘eligible food organization’’ means— 

6 (i) a farming cooperative; 

7 (ii) a farmers organization, food hub, 

8 food distributor, majority-controlled pro9 ducer-based business venture (as defined in 

10 section 210A(a) of the Agricultural Mar11 keting Act of 1946 (7 U.S.C. 1627c(a))), 

12 or other food aggregator; and 

13 (iii) a food processor. 

14 (C) ELIGIBLE PARTNERSHIP.—The term 

15 ‘‘eligible partnership’’ means a partnership be16 tween an eligible food organization and an eligi17 ble feeding organization (including any other 

18 entity that provides necessary services for the 

19 partnership that incurs eligible expenses) in 

20 order to prevent food waste and distribute food 

21 to individuals experiencing food insecurity. 

22 (D) PARTICIPATING PARTNERSHIP.—The 

23 term ‘‘participating partnership’’ means an eli24 gible partnership for which the Secretary has 


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1 approved a reimbursement and distribution plan 

2 under paragraph (3)(B). 

3 (2) PROGRAM.—The Secretary shall carry out a 

4 Federal surplus food reimbursement program, under 

5 which the Secretary shall reimburse participating 

6 partnerships to facilitate the donation of surplus eli7 gible food in accordance with this subsection. 

8 (3) REIMBURSEMENT AND DISTRIBUTION

9 PLANS.— 

10 (A) IN GENERAL.—To be eligible to receive 

11 a reimbursement under this subsection, an eligi12 ble partnership shall submit to the Secretary a 

13 reimbursement and distribution plan that— 

14 (i) describes the process that the eligi15 ble partnership will use to identify, obtain, 

16 harvest, process, transport, temporarily 

17 store, and distribute eligible food; 

18 (ii) includes an estimate of the quan19 tity and types of eligible food that the eli20 gible partnership will purchase and donate; 

21 (iii) describes the eligible expenses for 

22 which the eligible partnership seeks to be 

23 reimbursed; and 


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1 (iv) demonstrates experience to com2 ply with the requirements of this sub3 section. 

4 (B) REVIEW AND APPROVAL.—On a rolling 

5 basis, the Secretary shall— 

6 (i) review reimbursement and distribu7 tion plans submitted under subparagraph 

8 (A); and 

9 (ii) determine whether to approve or 

10 disapprove each of those reimbursement 

11 and distribution plans. 

12 (4) REIMBURSEMENT.— 

13 (A) IN GENERAL.—On receipt of appro14 priate documentation under subparagraph (B), 

15 the Secretary shall reimburse a participating 

16 partnership or a member of a participating 

17 partnership that has incurred eligible expenses 

18 or donated eligible food on a regular basis for 

19 qualified expenses described in paragraph (5). 

20 (B) DOCUMENTATION.— 

21 (i) IN GENERAL.—A participating 

22 partnership shall submit to the Secretary 

23 such documentation as the Secretary may 

24 require to demonstrate the qualified ex25 penses described in paragraph (5). 


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1 (ii) VERIFICATION.—The Secretary 

2 may verify the accuracy of documentation 

3 submitted under clause (i) by spot checks 

4 and audits. 

5 (C) RETROACTIVE REIMBURSEMENT.—In 

6 providing reimbursements under subparagraph 

7 (A), the Secretary may provide reimbursements 

8 for qualified expenses described in paragraph 

9 (5)— 

10 (i) incurred before the date on which 

11 the reimbursement and distribution plan 

12 for the applicable participating partnership 

13 was approved by the Secretary; and 

14 (ii) relating to purchases and dona15 tions made during the donation period. 

16 (D) ADVANCE PAYMENT FOR ELIGIBLE EX17 PENSES.—The Secretary shall provide an ad18 vance payment on request of an eligible part19 nership in an amount equal to the lesser of— 

20 (i) 30 percent of the estimated eligible 

21 expenses of the eligible partnership during 

22 the donation period; and 

23 (ii) $1,000,000. 

24 (5) QUALIFIED EXPENSES.— 

25 (A) IN GENERAL.— 


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1 (i) AMOUNT.—Subject to subpara2 graphs (B) and (C), the amount of a reim3 bursement under paragraph (4) shall be an 

4 amount equal to the sum obtained by add5 ing— 

6 (I) subject to clause (ii), the eli7 gible expenses of the eligible partner8 ship during the donation period; and 

9 (II) the food value of eligible food 

10 donated by the eligible partnership 

11 during the donation period. 

12 (ii) LIMITATION.—The amount of eli13 gible expenses described in clause (i)(I) 

14 shall not exceed 25 percent of the food 

15 value described in clause (i)(II). 

16 (B) LIMITATION.—The amount of a reim17 bursement under paragraph (4)— 

18 (i) shall not exceed the amount of eli19 gible expenses that an eligible partnership 

20 incurred during the donation period; and 

21 (ii) may be limited by the Secretary 

22 based on prevailing or typical costs for 

23 each type of eligible expense. 

24 (C) NO DUPLICATION.—The combination 

25 of all payments or grants provided from all 


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1 Federal sources to eligible partnership or mem2 bers of an eligible partnership to reimburse for 

3 eligible expenses or food value shall not exceed 

4 100 percent of the eligible expenses or food 

5 value. 

6 (6) CLEARINGHOUSE FOR AVAILABLE FOOD.— 

7 To support the program under this subsection, the 

8 Secretary shall establish a clearinghouse to collect 

9 information from— 

10 (A) eligible food organizations that have el11 igible food to donate; and 

12 (B) local and regional eligible feeding orga13 nizations that have capacity to receive or dis14 tribute additional eligible food. 

15 (e) RELATIONSHIP TO OTHER PROGRAM.—Notwith16 standing any other provision of law, funding provided 

17 under this section may be used to meet matching funds 

18 or cost share requirements for any other Federal program. 

19 (f) PROHIBITION ON RESALE OF PRODUCTS.— 

20 (1) IN GENERAL.—An eligible feeding organiza21 tion that receives eligible food donated under this 

22 section may not sell the eligible food back into a 

23 commercial market. 

24 (2) PROHIBITION ON FUTURE PARTICIPA25 TION.—An eligible feeding organization that the SecVerDate Sep 11 2014 03:41 Jun 14, 2020 Jkt 099200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S3840.IS S3840

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1 retary determines has violated paragraph (1) shall 

2 not be eligible for any future participation in the 

3 programs established under this section. 

4 (g) ADMINISTRATION.— 

5 (1) IN GENERAL.—The Secretary shall publicize 

6 opportunities to participate in the programs estab7 lished under this section. 

8 (2) ADMINISTRATIVE EXPENSES.—The Sec9 retary may use for administrative expenses not more 

10 than 3 percent of the funds made available to carry 

11 out this section. 

12 (3) OUTREACH.—The Secretary shall ensure 

13 that farmers and ranchers who are minorities, 

14 women, young, or veterans, and any eligible feeding 

15 organizations that serve those farmers and ranchers 

16 or food insecure populations, are informed of oppor17 tunities through the programs under this section. 

18 (h) REVIEWS.—The Secretary shall conduct appro19 priate reviews or audits to ensure the integrity of the pro20 grams established under this section. 

21 (i) REPORTS.— 

22 (1) STATE AND TRIBAL SURPLUS FOOD PUR23 CHASE PROGRAM.—Every 30 days, the Secretary 

24 shall submit to the Committee on Agriculture, Nutri25 tion, and Forestry of the Senate and the Committee 


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1 on Agriculture of the House of Representatives a re2 port describing, with respect to the State and Tribal 

3 surplus food purchase program under subsection 

4 (c)— 

5 (A) the funding made available to States 

6 and Indian Tribes; and 

7 (B) a summary of the reviews or audits 

8 conducted by the Secretary under subsection 

9 (h), including a description of— 

10 (i) each review or audit conducted; 

11 and 

12 (ii) the findings of each review or 

13 audit conducted. 

14 (2) FEDERAL SURPLUS FOOD REIMBURSEMENT

15 PROGRAM.—Every 30 days, the Secretary shall sub16 mit to the Committee on Agriculture, Nutrition, and 

17 Forestry of the Senate and the Committee on Agri18 culture of the House of Representatives a report de19 scribing, with respect to the Federal surplus food re20 imbursement program under subsection (d)— 

21 (A) payments made under that program— 

22 (i) by participating partnership (as 

23 defined in subsection (d)(1)); and 

24 (ii) by State; and 


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1 (B) a summary of the reviews or audits 

2 conducted by the Secretary under subsection 

3 (h), including a description of— 

4 (i) each review or audit conducted; 

5 and 

6 (ii) the findings of each review or 

7 audit conducted. 

8 (j) FUNDING.—In addition to the funds made avail9 able under paragraphs (5)(A) and (6)(A)(ii) of subsection 

10 (c), of the funds of the Commodity Credit Corporation, 

11 the Secretary shall use such sums as are necessary to 

12 carry out this section. 

13 SEC. 5. FOOD SUPPLY CHAIN GRANTS AND LOANS. 

14 (a) DEFINITIONS.—In this section: 

15 (1) CUSTOM ESTABLISHMENT.—The term ‘‘cus16 tom establishment’’ means a very small or custom 

17 establishment that is exempt from inspection re18 quirements under the Federal Meat Inspection Act 

19 (21 U.S.C. 601 et seq.) pursuant to section 23 of 

20 that Act (21 U.S.C. 623). 

21 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti22 ty’’ means— 

23 (A) a small or midsized food processor or 

24 distributor (including a manufacturer, food hub, 

25 custom establishment, business cooperative, and 


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1 food service provider) with fewer than 1,500 

2 employees; 

3 (B) a sole proprietor food business; 

4 (C) a producer, an agricultural producer 

5 group, a producer cooperative, or a majority6 controlled producer-based business venture (as 

7 defined in section 210A(a) of the Agricultural 

8 Marketing Act of 1946 (7 U.S.C. 1627c(a))); 

9 (D) a farmers market; 

10 (E) a farm labor contractor or farm work11 er organization; and 

12 (F) such other similar entities, as deter13 mined by the Secretary. 

14 (b) ESTABLISHMENT.— 

15 (1) IN GENERAL.—The Secretary shall establish 

16 a program to provide temporary assistance to eligi17 ble entities to address and respond to the COVID– 

18 19 emergency within the food supply chain through 

19 the provision of grants under subsection (d), direct 

20 loans under subsection (e), and guaranteed loans in 

21 accordance with subsection (f) to eligible entities in 

22 accordance with this section. 

23 (2) MULTIPLE FINANCING TOOLS.—An eligible 

24 entity may receive not more than 1 grant, 1 direct 

25 loan, and 1 guaranteed loan under this section. 


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1 (c) PURPOSE AND USES OF ASSISTANCE.—An eligi2 ble entity that receives a grant, direct loan, or guaranteed 

3 loan under this section shall use the amounts received 

4 under the grant, direct loan, or guaranteed loan for the 

5 purpose of responding to the COVID–19 emergency by 

6 building flexibility into the food supply chain and 

7 incentivizing creative economic solutions to strengthen the 

8 farm economy and agricultural communities, protect work9 ers, and minimize food waste through any of the following 

10 uses: 

11 (1) Retooling processing lines. 

12 (2) Purchasing packaging materials and food 

13 labels. 

14 (3) Developing new food products to meet a 

15 change in demand. 

16 (4) Converting industrial-sized products to con17 sumer-sized products. 

18 (5) Upgrading technology, software, and com19 puters. 

20 (6) Purchasing temporary space or holding 

21 pens, dry or cold storage, equipment, or transpor22 tation services or equipment. 

23 (7) Developing and disseminating educational 

24 materials relating to COVID–19 protective meas25 ures. 


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1 (8) Purchasing test kits or equipment to screen 

2 the body temperature of employees for the presence 

3 of COVID–19, disinfectant, sanitation systems, or 

4 hand washing stations. 

5 (9) Purchasing and decontaminating personal 

6 protective equipment. 

7 (10) Providing other measures to protect work8 ers against, or aid in preventing the spread of, 

9 COVID–19. 

10 (11) In the case of a grant under subsection 

11 (d), repaying— 

12 (A) a direct loan made under subsection 

13 (e); or 

14 (B) a loan guaranteed in accordance with 

15 subsection (f). 

16 (d) GRANTS.— 

17 (1) APPLICATIONS.— 

18 (A) IN GENERAL.—An eligible entity desir19 ing to receive a grant under this subsection 

20 shall submit to the Secretary an application in 

21 accordance with an application process estab22 lished by the Secretary. 

23 (B) SIMPLIFIED APPLICATION PROCESS.— 

24 In establishing the application process under 

25 subparagraph (A), the Secretary shall establish 


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1 a simplified, separate application process for eli2 gible entities requesting less than $100,000 in 

3 grants. 

4 (2) REQUIREMENT.—Subject to paragraphs (3) 

5 and (4), the Secretary shall provide grants under 

6 this subsection in the order in which the Secretary 

7 receives applications submitted in accordance with 

8 paragraph (1). 

9 (3) PRIORITY.—The Secretary shall give pri10 ority to applications submitted under paragraph (1) 

11 that include, at least in part, the use of the grant 

12 amount for purchases described in paragraphs (8) 

13 and (9) of subsection (c). 

14 (4) RESERVATION.—Of the amount made avail15 able for grants under this section, 10 percent shall 

16 be reserved for grants provided to beginning, vet17 eran, or socially disadvantaged farmers, ranchers, or 

18 businesses. 

19 (5) MAXIMUM AMOUNT.—The amount of a 

20 grant under this subsection shall be not more than 

21 $1,000,000. 

22 (e) RAPID RESPONSE DIRECT LOANS.— 

23 (1) APPLICATIONS.—An eligible entity desiring 

24 to receive a direct loan under this subsection shall 

25 submit to the Secretary an application in accordance 


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1 with an application process established by the Sec2 retary in accordance with this subsection. 

3 (2) PROVISION OF AMOUNTS.—Subject to para4 graph (3), not later than 3 business days after the 

5 date on which the Secretary receives an application 

6 in accordance with paragraph (1), the Secretary 

7 shall provide the amount under the applicable direct 

8 loan to the applicable eligible entity. 

9 (3) VERIFICATION; REQUIREMENTS.— 

10 (A) VERIFICATION.—Before providing 

11 amounts under paragraph (2), the Secretary 

12 shall verify that the applicant is an eligible enti13 ty by accepting a self-certification from the ap14 plicant under penalty of perjury pursuant to 

15 section 1746 of title 28, United States Code. 

16 (B) BASIS OF APPROVAL.—The Secretary 

17 may approve an applicant for a direct loan 

18 under this subsection based solely on— 

19 (i) the credit score of the applicant; or 

20 (ii) the verification under subpara21 graph (A). 

22 (C) UNDERWRITING REQUIREMENTS.—The 

23 Secretary shall not require an applicant for a 

24 direct loan under this subsection— 


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1 (i) to submit a tax return or a tax re2 turn transcript for approval; or 

3 (ii) to provide collateral or a personal 

4 guarantee. 

5 (D) INTEREST RATE.—The interest rate 

6 for a direct loan under this subsection shall be 

7 2.375 percent. 

8 (E) FEE WAIVER.—Any otherwise applica9 ble fees shall not be required for a direct loan 

10 under this subsection. 

11 (4) CERTAIN APPLICANTS.—To the extent prac12 ticable, notwithstanding paragraph (3)(B)(i), the 

13 Secretary shall accept applicants with lower credit 

14 scores, as necessary to ensure that eligible entities 

15 that are socially disadvantaged, small businesses, or 

16 located in underserved communities that have a high 

17 poverty rate have an opportunity to receive a direct 

18 loan under this subsection. 

19 (5) MAXIMUM AMOUNT.—The amount of a di20 rect loan under this subsection shall be not more 

21 than $50,000. 

22 (f) GUARANTEED LOANS.— 

23 (1) IN GENERAL.—The Secretary may guar24 antee a loan under subsections (a)(2)(A) and (g) of 

25 section 310B of the Consolidated Farm and Rural 


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1 Development Act (7 U.S.C. 1932) to an eligible enti2 ty that verifies that the amounts under the loan will 

3 be used for— 

4 (A) the purpose described in subsection 

5 (c); and 

6 (B) any of the uses described in para7 graphs (1) through (10) of that subsection. 

8 (2) REQUIREMENTS.—Notwithstanding any 

9 otherwise applicable requirements under subsections 

10 (a)(2)(A) and (g) of section 310B of the Consoli11 dated Farm and Rural Development Act (7 U.S.C. 

12 1932), the following provisions shall apply to guar13 anteed loans under this subsection: 

14 (A) NONAPPLICABILITY OF RURAL RE15 QUIREMENTS.—The Secretary shall guarantee 

16 loans under this subsection without regard to 

17 any requirement under any other provision of 

18 law that an eligible entity be located in, or 

19 serve, a rural area. 

20 (B) 1-TIME FEE.—Notwithstanding section 

21 310B(g)(5) of the Consolidated Farm and 

22 Rural Development Act (7 U.S.C. 1932(g)(5)), 

23 the Secretary may assess a 1-time fee for a 

24 guaranteed loan under this subsection in an 


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1 amount that does not exceed 1 percent of the 

2 guaranteed principal portion of the loan. 

3 (C) MAXIMUM AMOUNT.—The amount of a 

4 loan guarantee under this subsection shall be 

5 not more than— 

6 (i) 100 percent of the amount of a 

7 loan that is not more than $5,000,000; 

8 and 

9 (ii) 90 percent of the amount of a 

10 loan that is more than $5,000,000 and not 

11 more than $25,000,000. 

12 (D) LIMITATION.—The Secretary shall not 

13 guarantee a loan under this subsection that is 

14 more than $25,000,000. 

15 (E) INTEREST RATE.—The interest rate 

16 for a loan guaranteed under this subsection 

17 shall be not more than 4 percent. 

18 (F) OTHER FEES.—Except as provided in 

19 subparagraph (B), the Secretary shall waive 

20 any otherwise applicable fees for a loan guaran21 teed under this subsection, including— 

22 (i) an initial guarantee fee (other than 

23 the fee described in subparagraph (B)) 

24 that is paid at the time the loan note guar25 antee is issued; 


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1 (ii) an annual renewal fee on the out2 standing balance of a loan guarantee; and 

3 (iii) any customary borrower or lender 

4 fees. 

5 (G) WORKING CAPITAL LOANS.—In the 

6 case of a guaranteed loan under this subsection 

7 for the financing of working capital— 

8 (i) the Secretary shall waive any oth9 erwise applicable collateral requirements; 

10 and 

11 (ii) the maximum term of the loan 

12 shall be 10 years. 

13 (H) UNDERWRITING REQUIREMENTS.— 

14 The Secretary shall waive the following under15 writing requirements for loans guaranteed 

16 under this subsection: 

17 (i) Any required feasibility studies by 

18 independent consultants. 

19 (ii) Any requirements for applicants 

20 to provide a tangible balance sheet equity 

21 position of 10 percent or more for existing 

22 businesses at loan closing or project com23 pletion. 

24 (g) TECHNICAL ASSISTANCE GRANTS.—The Sec25 retary shall award competitive grants to land-grant colVerDate Sep 11 2014 03:41 Jun 14, 2020 Jkt 099200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S3840.IS S3840

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1 leges and universities, local offices of the Cooperative Ex2 tension System, State departments of agriculture, and 

3 other technical service providers to provide to eligible enti4 ties technical assistance, rapid training, and outreach to 

5 develop new food products or adjust business models to 

6 respond to the COVID–19 emergency. 

7 (h) EXPIRATION OF AUTHORITY.—The authority of 

8 the Secretary to provide a grant, direct loan, or guaran9 teed loan under this section shall remain available until 

10 the date on which the COVID–19 emergency is lifted. 

11 (i) FUNDING.— 

12 (1) IN GENERAL.—Of the funds of the Com13 modity Credit Corporation, the Secretary shall use 

14 $5,500,000,000 to carry out this section. 

15 (2) GRANTS.—Of the amount made available 

16 under paragraph (1), the Secretary shall use 

17 $2,000,000,000 to provide grants under subsection 

18 (d). 

19 (3) RAPID RESPONSE DIRECT LOANS.—Of the 

20 amount made available under paragraph (1), the 

21 Secretary shall use $1,000,000,000 to provide direct 

22 loans under subsection (e). 

23 (4) GUARANTEED LOANS.—Of the amount 

24 made available under paragraph (1), the Secretary 


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1 shall use $2,500,000,000 to guarantee loans under 

2 subsection (f). 

3 (5) TECHNICAL ASSISTANCE GRANTS.—Of the 

4 amount made available under paragraph (2), the 

5 Secretary shall use 5 percent to carry out subsection 

6 (g). 

7 SEC. 6. ADMINISTRATION. 

8 (a) IN GENERAL.—The administration of this Act, 

9 including the promulgation of regulations to carry out this 

10 Act, shall be without regard to— 

11 (1) the notice and comment provisions of sec12 tion 553 of title 5, United States Code; and 

13 (2) chapter 35 of title 44, United States Code. 

14 (b) AUTHORITIES.—The authorities in this Act are 

15 in addition to other authorities of, and amounts adminis16 tered by, the Secretary. 

Æ 


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