I 

115TH CONGRESS 

2D SESSION H. R. 5017 

To amend the Department of Agriculture Reorganization Act of 1994 to 

reauthorize the Healthy Food Financing Initiative, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 14, 2018 

Ms. FUDGE (for herself, Mr. EVANS, and Ms. LEE) introduced the following 

bill; which was referred to the Committee on Agriculture 

A BILL 

To amend the Department of Agriculture Reorganization 

Act of 1994 to reauthorize the Healthy Food Financing 

Initiative, 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 ‘‘Healthy Food Financ5 ing Initiative Reauthorization Act of 2018’’. 

6 SEC. 2. REAUTHORIZATION OF HEALTHY FOOD FINANCING 

7 INITIATIVE. 

8 Section 243 of the Department of Agriculture Reor9 ganization Act of 1994 (7 U.S.C. 6953) is amended to 

10 read as follows: 


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1 ‘‘SEC. 243. HEALTHY FOOD FINANCING INITIATIVE. 

2 ‘‘(a) PURPOSE.—The purpose of this section is to es3 tablish an initiative to provide financial and technical as4 sistance to healthy food producers and retailers, food 

5 hubs, and mid-tier value chains that serve healthy food 

6 retailers and other healthy food business enterprises— 

7 ‘‘(1) to improve access to, and expand the sup8 ply of, healthy food in low-income, underserved com9 munities; 

10 ‘‘(2) to create and preserve quality jobs and 

11 businesses; 

12 ‘‘(3) to revitalize distressed rural, urban, and 

13 small town economies; 

14 ‘‘(4) to support the development of local and re15 gional food systems; 

16 ‘‘(5) to increase the distribution of locally pro17 duced agricultural products; and 

18 ‘‘(6) to strengthen farm-to-consumer relation19 ships. 

20 ‘‘(b) DEFINITIONS.—In this section: 

21 ‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL IN22 STITUTION.—The term ‘community development fi23 nancial institution’ has the meaning given the term 

24 in section 103 of the Community Development 

25 Banking and Financial Institutions Act of 1994 (12 

26 U.S.C. 4702). 


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1 ‘‘(2) DISADVANTAGED BUSINESS ENTER2 PRISE.—The term ‘disadvantaged business enter3 prise’ has the meaning given the term in section 

4 26.5 of title 49, Code of Federal Regulations (as in 

5 effect on the date of enactment of the Healthy Food 

6 Financing Initiative Reauthorization Act of 2018). 

7 ‘‘(3) FARMERS MARKET.—The term ‘farmers 

8 market’ means a common facility or area where sev9 eral agricultural producers gather on a regular, re10 curring basis to sell a variety of fresh fruits and 

11 vegetables and other locally grown farm products di12 rectly to consumers. 

13 ‘‘(4) FOOD ACCESS ORGANIZATION.—The term 

14 ‘food access organization’ means a nonprofit organi15 zation with expertise in improving access to healthy 

16 food in underserved communities. 

17 ‘‘(5) FOOD HUB.—The term ‘food hub’ means 

18 a commercial, cooperatively owned, or nonprofit en19 terprise that actively manages the aggregation, dis20 tribution, and marketing of source-identified food 

21 products primarily from local and regional producers 

22 to strengthen the ability of the producers to satisfy 

23 wholesale, retail, and institutional demand. 

24 ‘‘(6) HEALTHY FOOD.—The term ‘healthy food’ 

25 means a food or beverage that improves and mainVerDate Sep 11 2014 22:48 Feb 20, 2018 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5017.IH H5017

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1 tains overall human health and reduces the risk of 

2 chronic disease, as described in the 2015–2020 Die3 tary Guidelines for Americans of the Secretary of 

4 Health and Human Services and the Secretary. 

5 ‘‘(7) HEALTHY FOOD BUSINESS ENTERPRISE.— 

6 The term ‘healthy food business enterprise’ means 

7 an entrepreneurial activity that improves access to 

8 healthy food in low-income and underserved commu9 nities, such as a commercial kitchen or food business 

10 incubator. 

11 ‘‘(8) HEALTHY FOOD PRODUCER.—The term 

12 ‘healthy food producer’ means a commercial, coop13 eratively owned, or nonprofit enterprise that pro14 duces agricultural commodities or adds value to ag15 ricultural commodity products to create healthy food 

16 products. 

17 ‘‘(9) HEALTHY FOOD RETAILER.— 

18 ‘‘(A) IN GENERAL.—The term ‘healthy 

19 food retailer’ means a commercial, cooperatively 

20 owned, or nonprofit seller of a healthy food, in21 cluding— 

22 ‘‘(i) a grocery store; 

23 ‘‘(ii) a mobile food retailer; 

24 ‘‘(iii) a farmers market; 

25 ‘‘(iv) a cooperative; 


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1 ‘‘(v) a corner store; 

2 ‘‘(vi) a bodega; and 

3 ‘‘(vii) any other store that sells a full 

4 range of fresh and healthy foods, including 

5 any such store that sells nonhealthy foods. 

6 ‘‘(B) INCLUSION.—The term ‘healthy food 

7 retailer’ includes a retail store in existence on 

8 the date of enactment of the Healthy Food Fi9 nancing Initiative Reauthorization Act of 2018 

10 that upgrades to sell a full range of healthy 

11 foods after that date of enactment. 

12 ‘‘(10) HISTORICALLY UNDERSERVED PRO13 DUCER.—The term ‘historically underserved pro14 ducer’ means a beginning, limited resource, urban, 

15 or socially disadvantaged farmer or rancher, as de16 termined by the Secretary. 

17 ‘‘(11) INCUBATOR.—The term ‘incubator’ 

18 means a commercial, cooperatively owned, or non19 profit enterprise that assists start-up businesses by 

20 providing support, resources, and business services 

21 and advice, normally in 1 physical location. 

22 ‘‘(12) INITIATIVE.—The term ‘Initiative’ means 

23 the Healthy Food Financing Initiative established 

24 under subsection (c). 


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1 ‘‘(13) INITIATIVE FUNDS.—The term ‘Initiative 

2 funds’ means— 

3 ‘‘(A) any Federal amounts that are made 

4 available to carry out this section; and 

5 ‘‘(B) any other forms of financial assist6 ance (including grants, loans, and equity invest7 ments) that are raised by the National Fund 

8 Manager under this section. 

9 ‘‘(14) LOW-INCOME.—The term ‘low-income’ 

10 has the meaning given the term in section 103 of the 

11 Community Development Banking and Financial In12 stitutions Act of 1994 (12 U.S.C. 4702). 

13 ‘‘(15) MID-TIER VALUE CHAIN.— 

14 ‘‘(A) IN GENERAL.—The term ‘mid-tier 

15 value chain’ has the meaning given the term in 

16 section 231(a) of the Agricultural Risk Protec17 tion Act of 2000 (7 U.S.C. 1632a(a)). 

18 ‘‘(B) INCLUSIONS.—The term ‘mid-tier 

19 value chain’ includes strategic business relation20 ships with respect to production, aggregation, 

21 processing, storage, distribution, or marketing. 

22 ‘‘(16) MODERATE-INCOME.—The term ‘mod23 erate-income’ has the meaning given the term by the 

24 Bureau of the Census. 


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1 ‘‘(17) NATIONAL FUND MANAGER.—The term 

2 ‘National Fund Manager’ means a community devel3 opment financial institution that is— 

4 ‘‘(A) in existence on the date of enactment 

5 of the Healthy Food Financing Initiative Reau6 thorization Act of 2018; 

7 ‘‘(B) certified by the Community Develop8 ment Financial Institutions Fund of the De9 partment of the Treasury to manage the Initia10 tive; and 

11 ‘‘(C) designated by the Secretary under 

12 subsection (d)(1) to manage the Initiative. 

13 ‘‘(18) PARTNERSHIP.—The term ‘partnership’ 

14 means a regional, State, or local collaborative entity 

15 that is organized to improve access to healthy foods 

16 by providing financial and technical assistance to 

17 projects. 

18 ‘‘(19) PROJECT.—The term ‘project’ means a 

19 healthy food retailer, a food hub, a healthy food pro20 ducer, or a healthy food business enterprise under a 

21 commercial, cooperatively owned, or nonprofit enter22 prise that satisfies eligibility criteria for assistance 

23 under the Initiative established by the National 

24 Fund Manager in accordance with subsection (g)(1). 


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1 ‘‘(20) QUALITY JOB.—The term ‘quality job’ 

2 means a job that includes three or more of the fol3 lowing characteristics: 

4 ‘‘(A) A living wage that— 

5 ‘‘(i) is sufficient to support a decent 

6 standard of living; or 

7 ‘‘(ii) exceeds the median wage offered 

8 within the applicable industry. 

9 ‘‘(B) Basic benefits that increase economic 

10 security, improve health, and promote work-life 

11 balance for employees, including— 

12 ‘‘(i) paid leave; 

13 ‘‘(ii) health insurance; and 

14 ‘‘(iii) a retirement savings plan, in15 cluding the use of an employee stock own16 ership plan. 

17 ‘‘(C) Career-building opportunities that 

18 help employees develop the skills, networks, and 

19 experiences necessary to launch a career or ad20 vance along a career path, including— 

21 ‘‘(i) formal and informal training and 

22 mentorship; and 

23 ‘‘(ii) avenues for advancement within 

24 the company. 


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1 ‘‘(D) Wealth-building opportunities that 

2 enable and provide incentives for an employee 

3 to build the assets that the employee needs to 

4 manage financial emergencies and achieve long5 term financial security for the employee and the 

6 family of the employee, including through em7 ployee ownership, such as an employee stock 

8 ownership plan or a cooperative. 

9 ‘‘(E) A fair and engaging workplace that 

10 balances the priorities and well-being of employ11 ees with the needs of the business, including— 

12 ‘‘(i) flexible and predictable schedules; 

13 ‘‘(ii) treating employees with respect 

14 and dignity; 

15 ‘‘(iii) actively soliciting ideas from em16 ployees to improve the business; and 

17 ‘‘(iv) helping employees understand 

18 how their work contributes to the success 

19 of the business. 

20 ‘‘(21) RURAL; RURAL AREA.—The terms ‘rural’ 

21 and ‘rural area’ have the meanings given those 

22 terms in section 343(a) of the Consolidated Farm 

23 and Rural Development Act (7 U.S.C. 1991(a)). 

24 ‘‘(22) STAPLE FOOD.— 


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1 ‘‘(A) IN GENERAL.—The term ‘staple food’ 

2 means food that is a basic dietary item. 

3 ‘‘(B) INCLUSIONS.—The term ‘staple food’ 

4 includes— 

5 ‘‘(i) bread; 

6 ‘‘(ii) cereal; 

7 ‘‘(iii) flour; 

8 ‘‘(iv) fruit; 

9 ‘‘(v) vegetables; 

10 ‘‘(vi) meat; and 

11 ‘‘(vii) dairy products. 

12 ‘‘(23) UNDERSERVED COMMUNITY.— 

13 ‘‘(A) IN GENERAL.—The term ‘under14 served community’ means a food desert, as de15 fined by the Community Development Financial 

16 Institutions Fund of the Department of the 

17 Treasury, including a distressed geographical 

18 area described in subparagraph (B), that is— 

19 ‘‘(i) within a census tract that is de20 scribed as a food desert on the food access 

21 research atlas of the Secretary; 

22 ‘‘(ii) within a census tract that— 

23 ‘‘(I) is adjacent to a census tract 

24 described in clause (i); and 


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1 ‘‘(II) has a median family income 

2 that is less than or equal to 120 per3 cent of the applicable area median 

4 family income; or 

5 ‘‘(iii) a geographic unit (as described 

6 in section 1805.201(b)(3)(ii)(B) of title 12, 

7 Code of Federal Regulations (as in effect 

8 on the date of enactment of the Healthy 

9 Food Financing Initiative Reauthorization 

10 Act of 2018)) that— 

11 ‘‘(I) individually meets at least 

12 one of the criteria described in section 

13 1805.201(b)(3)(ii)(D) of title 12, 

14 Code of Federal Regulations (as in ef15 fect on the date of enactment of the 

16 Healthy Food Financing Initiative Re17 authorization Act of 2018); and 

18 ‘‘(II) meets the criteria for hav19 ing low access to a supermarket or 

20 grocery store through a methodology 

21 that has been adopted for use by a 

22 State or unit of local government or 

23 philanthropic healthy food initiative. 

24 ‘‘(B) DISTRESSED GEOGRAPHICAL AREA

25 DESCRIBED.—A distressed geographical area 


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1 referred to in subparagraph (A) is a geo2 graphical area where a substantial number or 

3 share of residents has low access to a super4 market or large grocery store. 

5 ‘‘(c) ESTABLISHMENT.—The Secretary shall estab6 lish within the Department an initiative, to be known as 

7 the ‘Healthy Food Financing Initiative’, to achieve the 

8 purpose described in subsection (a) in accordance with this 

9 section. 

10 ‘‘(d) DUTIES OF THE SECRETARY.—The Secretary 

11 shall— 

12 ‘‘(1) once every 5 years, designate a National 

13 Fund Manager through a competitive process from 

14 among community development financial institutions 

15 that have qualifications and a demonstrated record 

16 of success and effectiveness in— 

17 ‘‘(A) raising significant amounts of private 

18 funds and managing healthy food financing pro19 grams that provide grants, loans, and tax cred20 its to improve access to, and the supply of, 

21 healthy foods in low-income, underserved com22 munities; 

23 ‘‘(B) developing and managing programs 

24 that provide financial and technical assistance 

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1 ducers, food hubs, farmers markets, and other 

2 healthy food business enterprises that serve 

3 low-income, underserved communities; 

4 ‘‘(C) partnering with food access organiza5 tions or other nonprofit organizations with ex6 pertise in improving food access in low-income, 

7 underserved communities in the implementation 

8 of healthy food financing programs; 

9 ‘‘(D) investing in rural communities di10 rectly or in partnership with other rural eco11 nomic development organizations; 

12 ‘‘(E) building the capacities of other com13 munity development financial institutions and 

14 building a network of collaboration across food 

15 access programs and food systems programs; 

16 ‘‘(F) engaging— 

17 ‘‘(i) rural, Tribal, and disadvantaged 

18 business enterprises; and 

19 ‘‘(ii) businesses that serve low-income 

20 populations and support local or regional 

21 food systems and supply chains; 

22 ‘‘(G) developing performance goals and 

23 metrics to track and report the impact of 

24 healthy food financing programs; 


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1 ‘‘(H) making and servicing grants, loans, 

2 loan loss reserves, tax credits, and other financ3 ing tools that are needed to effectively imple4 ment the Initiative; 

5 ‘‘(I) financing and investing public and pri6 vate funds in projects to improve access in low7 income urban and rural communities; 

8 ‘‘(J) administering multiple contracts and 

9 subcontractors; 

10 ‘‘(K) providing or contracting for the pro11 vision of technical assistance; and 

12 ‘‘(L) managing large capital pools; 

13 ‘‘(2) determine whether to approve— 

14 ‘‘(A) the eligibility criteria developed by 

15 the National Fund Manager under subsection 

16 (e)(2)(A); 

17 ‘‘(B) the program strategy and budget for 

18 the Initiative submitted by the National Fund 

19 Manager under subsection (e)(1)(E); and 

20 ‘‘(C) the outcome metrics developed by the 

21 National Fund Manager under subsection 

22 (e)(3)(A); 

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1 tiative to determine the effectiveness and impact of 

2 the Initiative; and 

3 ‘‘(4) ensure that Initiative funds are used ap4 propriately and efficiently. 

5 ‘‘(e) DUTIES OF THE NATIONAL FUND MANAGER.— 

6 The National Fund Manager shall carry out the following 

7 duties under the Initiative: 

8 ‘‘(1) ASSISTANCE.—The National Fund Man9 ager shall— 

10 ‘‘(A) raise private funds to be used under 

11 the Initiative; 

12 ‘‘(B) leverage and encourage the use of 

13 other Federal funds from the Department and 

14 other Federal agencies; 

15 ‘‘(C) provide loan and grant awards to 

16 partnerships and projects in accordance with 

17 paragraph (2); 

18 ‘‘(D) consider providing to partnerships 

19 and projects financial assistance other than 

20 awards described in subparagraph (C), subject 

21 to the conditions that the financial assistance 

22 shall— 

23 ‘‘(i) conform to all applicable laws (in24 cluding regulations) and best industry 

25 practices; and 


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1 ‘‘(ii) be approved by the Secretary be2 fore the financial assistance is provided; 

3 ‘‘(E) submit to the Secretary a program 

4 strategy and budget for the Initiative for ap5 proval under subsection (d)(2)(B); and 

6 ‘‘(F) provide appropriate technical assist7 ance to partnerships and projects that are seek8 ing or have received funding under the Initia9 tive, such as— 

10 ‘‘(i) business planning; 

11 ‘‘(ii) project feasibility analysis; 

12 ‘‘(iii) market studies; 

13 ‘‘(iv) pipeline development; 

14 ‘‘(v) community engagement; and 

15 ‘‘(vi) local hiring practices. 

16 ‘‘(2) AWARDS PROCESS.—The National Fund 

17 Manager shall— 

18 ‘‘(A) with respect to partnerships— 

19 ‘‘(i) establish eligibility criteria for as20 sistance under the Initiative; 

21 ‘‘(ii) review each partnership applica22 tion to ensure that the application is com23 plete and the partnership is eligible to be 

24 considered for an award; 


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1 ‘‘(iii) establish a competitive award 

2 process that considers— 

3 ‘‘(I) the lack of access to healthy 

4 food items in the community of a 

5 partnership; 

6 ‘‘(II) the amount of local funds 

7 and other resources pledged by a part8 nership to match or leverage Initiative 

9 funds; 

10 ‘‘(III) the degree of State, local, 

11 or Tribal government support of the 

12 partnership; 

13 ‘‘(IV) the capacity of the partner14 ship to successfully develop and man15 age loan and grant programs; 

16 ‘‘(V) the capacity of the partner17 ship to successfully develop, provide, 

18 or contract for technical assistance 

19 and business development services for 

20 healthy food retailers, healthy food 

21 producers, food hubs, or other healthy 

22 food business enterprises; 

23 ‘‘(VI) the capacity of the partner24 ship— 


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1 ‘‘(aa) to market and pro2 mote the Initiative; and 

3 ‘‘(bb) to support disadvan4 taged business enterprises or his5 torically underserved producers; 

6 ‘‘(VII) the capacity of the part7 nership to collect data and monitor 

8 and track program outcomes; 

9 ‘‘(VIII) the degree of community 

10 engagement and participation in, or 

11 benefits from, projects to be financed 

12 by the partnership; and 

13 ‘‘(IX) the contribution of the 

14 partnership to the overall geographical 

15 diversity of the Initiative; 

16 ‘‘(iv) provide awards to each of— 

17 ‘‘(I) a State, Tribal, or unit of 

18 local government or a quasi-public 

19 State or local government agency; 

20 ‘‘(II) a food access organization 

21 or an organization similarly com22 mitted to improving access to healthy 

23 foods; and 

24 ‘‘(III) a community development 

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1 tion that can administer a loan and 

2 grant program in accordance with this 

3 section; and 

4 ‘‘(v) enter into a loan or grant agree5 ment, as applicable, with each partnership 

6 to which the National Fund Manager pro7 vides an award; and 

8 ‘‘(B) with respect to projects— 

9 ‘‘(i) establish eligibility criteria for as10 sistance under the Initiative in accordance 

11 with subsection (g)(1); 

12 ‘‘(ii) review each application to ensure 

13 that the application is complete and the 

14 project is eligible to be considered for an 

15 award; 

16 ‘‘(iii) evaluate each application and 

17 provide awards to projects in accordance 

18 with the priorities described in subsection 

19 (g)(2), on a rolling basis, that— 

20 ‘‘(I) are consistent with this sec21 tion; and 

22 ‘‘(II) demonstrate the need for 

23 assistance under the Initiative; and 

24 ‘‘(iv) based on a review of the use of 

25 Initiative funds described in paragraph 


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1 (3)(C)(v)(II), ensure that a reasonable 

2 amount of Initiative funds are used to sup3 port nonretail projects. 

4 ‘‘(3) POST-AWARD ACTIVITIES.—The National 

5 Fund Manager shall— 

6 ‘‘(A) recommend to the Secretary for ap7 proval under subsection (d)(2)(C) outcome 

8 metrics for evaluating the effectiveness and im9 pact of the Initiative, including— 

10 ‘‘(i) the location, type, and number 

11 of— 

12 ‘‘(I) businesses assisted by the 

13 Initiative; 

14 ‘‘(II) businesses created or ex15 panded by the Initiative; 

16 ‘‘(III) rural businesses assisted 

17 by the Initiative; and 

18 ‘‘(IV) disadvantaged businesses 

19 assisted by the Initiative; 

20 ‘‘(ii) demographic characteristics of 

21 the populations and communities served by 

22 the Initiative, such as income, race, and 

23 ethnicity; 


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1 ‘‘(iii) jobs created and retained by 

2 very low- and low-income persons as a re3 sult of the Initiative; 

4 ‘‘(iv) the job quality of jobs created by 

5 the Initiative; 

6 ‘‘(v) funds leveraged by the Initiative; 

7 ‘‘(vi) project participation in— 

8 ‘‘(I) the supplemental nutrition 

9 assistance program established under 

10 the Food and Nutrition Act of 2008 

11 (7 U.S.C. 2011 et seq.); 

12 ‘‘(II) the special supplemental 

13 nutrition program for women, infants, 

14 and children established by section 17 

15 of the Child Nutrition Act of 1966 

16 (42 U.S.C. 1786); and 

17 ‘‘(III) other nutrition benefit pro18 grams; 

19 ‘‘(vii) project participation in, and of20 fering of, job training programs targeting 

21 low-income populations; 

22 ‘‘(viii) project participation in pro23 grams to promote healthy food choices and 

24 increase the affordability of healthy food 

25 by low-income populations, such as— 


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1 ‘‘(I) nutrition education under 

2 the Food and Nutrition Act of 2008 

3 (7 U.S.C. 2011 et seq.); and 

4 ‘‘(II) the food insecurity nutrition 

5 incentive program under section 4405 

6 of the Food, Conservation, and En7 ergy Act of 2008 (7 U.S.C. 7517); 

8 and 

9 ‘‘(ix) the degree of collaboration 

10 among local partners; 

11 ‘‘(B)(i) collect data from partnerships and 

12 projects awarded funding under the Initiative; 

13 and 

14 ‘‘(ii) compile the data for the approved 

15 outcome metrics described in subparagraph (A); 

16 and 

17 ‘‘(C) submit to the Secretary— 

18 ‘‘(i) with respect to partnerships and 

19 projects awarded funding under the Initia20 tive, periodic reports on approved outcome 

21 metrics described in subparagraph (A) 

22 using data collected and compiled under 

23 subparagraph (B); 


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1 ‘‘(ii) the percentage of the number of 

2 partnerships and projects funded for each 

3 fiscal year that are located in a rural area; 

4 ‘‘(iii) the percentage of the number of 

5 partnerships and projects funded for each 

6 fiscal year that are located in— 

7 ‘‘(I) low-income communities; 

8 and 

9 ‘‘(II) moderate-income commu10 nities; 

11 ‘‘(iv) a copy of— 

12 ‘‘(I) the Community Development 

13 Financial Institutions Fund annual 

14 certification for the National Fund 

15 Manager; and 

16 ‘‘(II) the data collection report 

17 form submitted to the Department of 

18 the Treasury by the National Fund 

19 Manager; and 

20 ‘‘(v) an annual report that includes— 

21 ‘‘(I) a synopsis of each partner22 ship and project receiving funding 

23 under the Initiative; and 


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1 ‘‘(II) a description of the use of 

2 Initiative funds for the applicable 

3 year. 

4 ‘‘(4) OUTREACH.—The National Fund Manager 

5 shall contract with a national food access organiza6 tion (and may contract with regional or local food 

7 access organizations)— 

8 ‘‘(A) to publicize the Initiative to target 

9 communities and priority populations; and 

10 ‘‘(B) to organize and build the capacities 

11 of partnerships, potential applicants for funding 

12 under the Initiative, and peer organizations to 

13 ensure that resources are directed to commu14 nities most in need of funding under the Initia15 tive. 

16 ‘‘(5) ALIGNMENT.—To maximize the impact of 

17 the Initiative, the National Fund Manager shall seek 

18 to align the Initiative with— 

19 ‘‘(A) other programs of the Department, 

20 such as— 

21 ‘‘(i) the food insecurity nutrition in22 centive program under section 4405 of the 

23 Food, Conservation, and Energy Act of 

24 2008 (7 U.S.C. 7517); and 


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1 ‘‘(ii) the Farmers’ Market and Local 

2 Food Promotion Program under section 6 

3 of the Farmer-to-Consumer Direct Mar4 keting Act of 1976 (7 U.S.C. 3005); and 

5 ‘‘(B) other Federal nutrition programs. 

6 ‘‘(f) DUTIES OF PARTNERSHIPS.—A partnership that 

7 receives an award from the National Fund Manager shall 

8 carry out financing and other activities to implement and 

9 maximize the effectiveness of the Initiative, as described 

10 in the grant or loan agreement, as applicable, with the 

11 National Fund Manager under subsection (e)(2)(A)(v), in12 cluding— 

13 ‘‘(1) conducting marketing and outreach to 

14 communities, the grocery industry, and others— 

15 ‘‘(A) to solicit applications from projects in 

16 underserved communities; 

17 ‘‘(B) to build an understanding of the eco18 nomics of the local food retail market; and 

19 ‘‘(C) to identify opportunities in the target 

20 area; 

21 ‘‘(2) reviewing applications from projects for 

22 funding under the Initiative; 

23 ‘‘(3) underwriting and disbursing Initiative 

24 funds to projects; 


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1 ‘‘(4) providing technical assistance and business 

2 development services to projects; 

3 ‘‘(5) submitting an annual financial and pro4 gram report to the National Fund Manager that de5 scribes— 

6 ‘‘(A) the activities of the partnership; 

7 ‘‘(B) the expenditure of Initiative funds; 

8 and 

9 ‘‘(C) any success in meeting approved out10 come metrics described in subsection (e)(3)(A) 

11 and satisfying such other terms and conditions 

12 as are specified in the grant or loan agreement; 

13 and 

14 ‘‘(6) expending reasonable administrative costs, 

15 which shall not exceed 10 percent of the amounts 

16 provided to the partnership under the Initiative. 

17 ‘‘(g) PROJECTS.— 

18 ‘‘(1) ELIGIBILITY.—To be eligible to receive an 

19 award under the Initiative, a project shall— 

20 ‘‘(A) be located in a low-income area or a 

21 moderate-income area; 

22 ‘‘(B) be located in or serve an underserved 

23 community; 

24 ‘‘(C) expand or preserve the availability of 

25 staple food; 


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1 ‘‘(D) demonstrate the need for funding 

2 under the Initiative; 

3 ‘‘(E) in the case of a healthy food re4 tailer— 

5 ‘‘(i) accept benefits under the supple6 mental nutrition assistance program estab7 lished under the Food and Nutrition Act of 

8 2008 (7 U.S.C. 2011 et seq.); or 

9 ‘‘(ii) develop mid-tier value chains 

10 that expand the availability of healthy food 

11 in underserved communities; 

12 ‘‘(F) in the case of a food hub or healthy 

13 food producer— 

14 ‘‘(i)(I) sell healthy food items to food 

15 retailers that serve an underserved area; 

16 and 

17 ‘‘(II) accept benefits under the supple18 mental nutrition assistance program estab19 lished under the Food and Nutrition Act of 

20 2008 (7 U.S.C. 2011 et seq.); or 

21 ‘‘(ii) sell or donate healthy food items 

22 to an institution, such as a hospital, 

23 school, food bank or pantry, social service 

24 agency, community center, or religious orVerDate Sep 11 2014 22:48 Feb 20, 2018 Jkt 079200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H5017.IH H5017

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1 ganization, that serves low-income, under2 served communities; and 

3 ‘‘(G) in the case of a healthy food business 

4 enterprise, train or employ individuals from 

5 low-income, underserved communities. 

6 ‘‘(2) PRIORITIES.—In making awards to 

7 projects under the Initiative, priority shall be given 

8 to a project that— 

9 ‘‘(A) is located in an area that meets at 

10 least one of the criteria described in section 

11 1805.201(b)(3)(ii)(D) of title 12, Code of Fed12 eral Regulations (as in effect on the date of en13 actment of the Healthy Food Financing Initia14 tive Reauthorization Act of 2018); and 

15 ‘‘(B)(i) is located in or serves a rural area; 

16 ‘‘(ii) supports rural economic development; 

17 ‘‘(iii) includes mid-tier value chains that 

18 use agricultural producer business and coopera19 tive ownership models; 

20 ‘‘(iv) involves a disadvantaged business en21 terprise or historically underserved producer; 

22 ‘‘(v) participates in a job training or work23 force development program that targets low-in24 come individuals and underserved communities; 


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1 ‘‘(vi) commits to hiring low-income resi2 dents from the community that the project 

3 serves; 

4 ‘‘(vii) will create or retain quality jobs in 

5 the community that the project serves; 

6 ‘‘(viii) is supported by the community 

7 served by the project, based on the factors of 

8 store quality, affordability, site location, and co9 ordination with local community plans or other 

10 programs promoting community and economic 

11 development; 

12 ‘‘(ix) supports regional food systems and 

13 locally grown foods; 

14 ‘‘(x) is associated with a transit-oriented 

15 development project; 

16 ‘‘(xi) is accessible by public transit, if pub17 lic transit is available in the area; 

18 ‘‘(xii) receives funding from other Federal 

19 agencies or is part of another Federal program 

20 or initiative; 

21 ‘‘(xiii) involves veteran-owned businesses or 

22 veteran farmers and ranchers (as defined in 

23 section 2501(e) of the Food, Agriculture, Con24 servation and Trade Act of 1990 (7 U.S.C. 

25 2279(e))); or 


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1 ‘‘(xiv) participates in other food assistance 

2 and nutrition education programs of the De3 partment. 

4 ‘‘(h) FUNDING.— 

5 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

6 There is authorized to be appropriated to the Sec7 retary to carry out this section $125,000,000, to re8 main available until expended. 

9 ‘‘(2) ALLOCATION.—Of amounts appropriated 

10 under paragraph (1)— 

11 ‘‘(A) not less than 75 percent shall be used 

12 to fund projects of healthy food retailers; and 

13 ‘‘(B) not more than 25 percent shall be 

14 used to fund projects of food hubs, healthy food 

15 producers, and healthy food business enter16 prises. 

17 ‘‘(3) ADMINISTRATIVE COSTS.—Not more than 

18 10 percent of amounts appropriated under para19 graph (1) shall be used for administrative costs.’’. 

Æ 


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