I 

115TH CONGRESS 

2D SESSION H. R. 5563 

To amend the Food, Conservation, and Energy Act of 2008 to revise the 

food insecurity nutrition incentive. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 18, 2018 

Mr. KILDEE (for himself, Mr. MCGOVERN, Ms. PINGREE, Ms. ADAMS, Ms. 

FUDGE, Mr. SEAN PATRICK MALONEY of New York, Ms. KAPTUR, Ms. 

LEE, and Ms. BLUNT ROCHESTER) introduced the following bill; which 

was referred to the Committee on Agriculture 

A BILL 

To amend the Food, Conservation, and Energy Act of 2008 

to revise the food insecurity nutrition incentive. 

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 ‘‘Gus Schumacher Food 

5 Insecurity Nutrition Incentive Reauthorization Act of 

6 2018’’. 


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1 SEC. 2. FOOD INSECURITY NUTRITION INCENTIVE. 

2 Section 4405 of the Food, Conservation, and Energy 

3 Act of 2008 (7 U.S.C. 7517) is amended to read as fol4 lows: 

5 ‘‘SEC. 4405. GUS SCHUMACHER FOOD INSECURITY NUTRI6 TION INCENTIVE. 

7 ‘‘(a) DEFINITIONS.—In this section: 

8 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en9 tity’ means— 

10 ‘‘(A) a nonprofit organization (including 

11 an emergency feeding organization); 

12 ‘‘(B) an agricultural cooperative; 

13 ‘‘(C) a producer network or association; 

14 ‘‘(D) a community health organization; 

15 ‘‘(E) a public benefit corporation; 

16 ‘‘(F) an economic development corporation; 

17 ‘‘(G) a farmers’ market; 

18 ‘‘(H) a community-supported agriculture 

19 program; 

20 ‘‘(I) a buying club; 

21 ‘‘(J) a retail food store participating in the 

22 supplemental nutrition assistance program; 

23 ‘‘(K) a State, local, or Tribal agency; and 

24 ‘‘(L) any other entity the Secretary des25 ignates. 


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1 ‘‘(2) EMERGENCY FEEDING ORGANIZATION.— 

2 The term ‘emergency feeding organization’ has the 

3 meaning given the term in section 201A of the 

4 Emergency Food Assistance Act of 1983 (7 U.S.C. 

5 7501). 

6 ‘‘(3) SUPPLEMENTAL NUTRITION ASSISTANCE

7 PROGRAM.—The terms ‘supplemental nutrition as8 sistance program’ and ‘SNAP’ refer to the supple9 mental nutrition assistance program established 

10 under the Food and Nutrition Act of 2008 (7 U.S.C. 

11 2011 et seq.). 

12 ‘‘(b) FOOD INSECURITY NUTRITION INCENTIVE

13 GRANTS.— 

14 ‘‘(1) AUTHORIZATION.— 

15 ‘‘(A) IN GENERAL.—Each fiscal year, the 

16 Secretary shall make grants to eligible entities 

17 in accordance with paragraph (2). 

18 ‘‘(B) FEDERAL SHARE.—The Federal 

19 share of the cost of carrying out an activity 

20 under this subsection shall not exceed 50 per21 cent of the total cost of the activity. 

22 ‘‘(C) NON-FEDERAL SHARE.— 

23 ‘‘(i) IN GENERAL.—The non-Federal 

24 share of the cost of an activity under this 

25 subsection may— 


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1 ‘‘(I) be provided by a State, local, 

2 or tribal agency, other eligible entity, 

3 or any other entity, including a for4 profit entity; and 

5 ‘‘(II) consist of in cash or in-kind 

6 contributions acceptable to the Sec7 retary, including facilities, equipment, 

8 or services. 

9 ‘‘(ii) LIMITATION.—If any part of the 

10 non-Federal share described in clause (i) is 

11 provided by a for-profit entity, employee 

12 services, including salaries paid or ex13 penses covered by the for-profit entity, 

14 may not be counted toward satisfying the 

15 non-Federal share. 

16 ‘‘(2) CRITERIA.— 

17 ‘‘(A) IN GENERAL.—To apply for a grant 

18 under this section, a non-profit organization, 

19 State, local, or Tribal agency, or grocer shall 

20 submit an application that meets such applica21 tion criteria as the Secretary may require and 

22 specifically satisfies the following requirements: 

23 ‘‘(i) The application proposes a 

24 project that has the support of the State 

25 agency that administers SNAP in the 


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1 State in which the project is proposed to 

2 be carried out. 

3 ‘‘(ii) The proposed project, at a min4 imum, would increase the purchase of 

5 fruits and vegetables by low-income con6 sumers participating in SNAP by pro7 viding monetary incentives at the point of 

8 purchase. 

9 ‘‘(iii) The non-profit organization, 

10 State, local, or Tribal agency, or grocer 

11 will ensure that the same terms and condi12 tions apply to purchases made by individ13 uals with incentives provided for in this 

14 subsection as apply to purchases made by 

15 individuals who are not members of house16 holds receiving SNAP benefits, such as 

17 provided for in section 278.2(b) of title 7, 

18 Code of Federal Regulations (or a suc19 cessor regulation). 

20 ‘‘(iv) The non-profit organization, 

21 State, local, or Tribal agency, or grocer 

22 has adequate plans to collect data for re23 porting and agrees to participate in a pro24 gram evaluation conducted pursuant to 

25 paragraph (4). 


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1 ‘‘(B) PRIORITY.—In awarding grants 

2 under this section, the Secretary shall give pri3 ority to projects that— 

4 ‘‘(i) maximize the share of funds used 

5 for direct incentives to participants; 

6 ‘‘(ii) use direct-to-consumer sales mar7 keting; 

8 ‘‘(iii) demonstrate a track record of 

9 designing successful nutrition incentive 

10 programs that connect low-income con11 sumers with agricultural producers; 

12 ‘‘(iv) provide locally or regionally pro13 duced fruits and vegetables; 

14 ‘‘(v) are located in underserved com15 munities; 

16 ‘‘(vi) include coordination with mul17 tiple stakeholders, such as farm organiza18 tions, nutrition education programs, coop19 erative extension, public health depart20 ments, health providers, private and public 

21 health insurance agencies, cooperative gro22 cers, grocery associations, community23 based and nongovernmental organizations; 

24 ‘‘(vii) offer supplemental services in 

25 high-need communities, including online 


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1 ordering, transportation between home and 

2 store, and delivery services; 

3 ‘‘(viii) will provide high quality data 

4 and analysis demonstrating effectiveness of 

5 food insecurity nutrition incentive grants; 

6 ‘‘(ix) maximize access to fruits and 

7 vegetable by low-income consumers partici8 pating in SNAP by providing year-round 

9 access to fruits and vegetables with max10 imum hours of operation during each day 

11 of the week; or 

12 ‘‘(x) address other criteria as estab13 lished by the Secretary. 

14 ‘‘(3) APPLICABILITY.— 

15 ‘‘(A) IN GENERAL.—The value of any ben16 efit provided to a participant in any activity 

17 funded under this subsection shall be treated as 

18 supplemental nutrition assistance benefits 

19 under section 8(b) of the Food and Nutrition 

20 Act of 2008 (7 U.S.C. 2017(b)). 

21 ‘‘(B) PROHIBITION ON COLLECTION OF

22 SALES TAXES.—Each State shall ensure that no 

23 State or local tax is collected on a purchase of 

24 food under this subsection. 


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1 ‘‘(C) NO LIMITATION ON BENEFITS.—A 

2 grant made available under this subsection shall 

3 not be used to carry out any project that limits 

4 the use of benefits under the Food and Nutri5 tion Act of 2008 (7 U.S.C. 2011 et seq.) or any 

6 other Federal nutrition law. 

7 ‘‘(D) HOUSEHOLD ALLOTMENT.—Assist8 ance provided under this subsection to house9 holds receiving benefits under the supplemental 

10 nutrition assistance program shall not— 

11 ‘‘(i) be considered part of the supple12 mental nutrition assistance program bene13 fits of the household; or 

14 ‘‘(ii) be used in the collection or dis15 position of claims under section 13 of the 

16 Food and Nutrition Act of 2008 (7 U.S.C. 

17 2022). 

18 ‘‘(4) TRAINING, EVALUATION, AND INFORMA19 TION CENTER.— 

20 ‘‘(A) IN GENERAL.—The Secretary shall 

21 establish a Food Insecurity Nutrition Incentive 

22 Program Training, Evaluation, and Information 

23 Center capable of providing services to grant re24 cipients under this section, including the fol25 lowing services: 


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1 ‘‘(i) Providing incentive program 

2 training and technical assistance to grant 

3 applicants and recipients. 

4 ‘‘(ii) Collecting, evaluating, and deliv5 ering information on best practices on 

6 common incentive activities. 

7 ‘‘(iii) Assisting with collaboration be8 tween grant projects, State agencies, and 

9 SNAP Education programs. 

10 ‘‘(iv) Facilitating communication be11 tween grantees and national and regional 

12 offices of the Department of Agriculture. 

13 ‘‘(v) Compiling program data from 

14 grant recipients and generating an annual 

15 report to Congress on grant outcomes be16 ginning with fiscal year 2020. 

17 ‘‘(vi) Supporting efforts for SNAP in18 centive transactions at the point of sale. 

19 ‘‘(B) COOPERATIVE AGREEMENT.—To 

20 carry out subparagraph (A), the Secretary may 

21 enter into a cooperative agreement with one or 

22 more organizations with expertise in supple23 mental nutrition assistance program incentive 

24 programs, including— 

25 ‘‘(i) nongovernmental organizations; 


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1 ‘‘(ii) State or regional Cooperative Ex2 tension Services; 

3 ‘‘(iii) regional food system centers; 

4 ‘‘(iv) Federal and State agencies; 

5 ‘‘(v) public, private, and land-grant 

6 colleges and universities; and 

7 ‘‘(vi) other appropriate partners as 

8 determined by the Secretary. 

9 ‘‘(C) PRIORITY.—The Secretary shall give 

10 priority to cooperative agreement applicants 

11 that— 

12 ‘‘(i) demonstrate the capacity to effec13 tively implement outreach, training, and 

14 coordination functions; 

15 ‘‘(ii) can produce instructional mate16 rials that can easily be replicated and dis17 tributed to grantees through multiple for18 mats; 

19 ‘‘(iii) have working partnerships with 

20 non-profit and private sectors organiza21 tions and local, State, and tribal govern22 ments; 

23 ‘‘(iv) have the ability to work in un24 derserved or rural communities; and 


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1 ‘‘(v) have an organizational mission 

2 aligned with needs of the program under 

3 this section. 

4 ‘‘(D) FUNDING LIMITATIONS.—Of the 

5 funds made available under subsection (c), the 

6 Secretary may use— 

7 ‘‘(i) $2,000,000 in each of fiscal years 

8 2019 and 2020 to establish the Food Inse9 curity Nutrition Incentive Program Train10 ing, Evaluation, and Information Center; 

11 and 

12 ‘‘(ii) $1,000,000 each fiscal year 

13 thereafter to support the operations of the 

14 Center. 

15 ‘‘(c) FUNDING.— 

16 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

17 There is authorized to be appropriated to carry out 

18 subsection (b), $5,000,000 for each of fiscal years 

19 2019 through 2023. 

20 ‘‘(2) MANDATORY FUNDING.—Subject to para21 graph (3), of the funds of the Commodity Credit 

22 Corporation, the Secretary shall use to carry out 

23 subsection (b)— 

24 ‘‘(A) $45,000,000 for fiscal year 2019; 

25 ‘‘(B) $50,000,000 for fiscal year 2020; 


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1 ‘‘(C) $55,000,000 for fiscal year 2021; 

2 ‘‘(D) $60,000,000 for fiscal year 2022; 

3 and 

4 ‘‘(E) $65,000,000 for fiscal year 2023 and 

5 each fiscal year thereafter.’’. 

Æ 


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