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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Healthy Food Financ-
ing Initiative Reauthorization Act of 2018’’. 
SEC. 2. REAUTHORIZATION OF HEALTHY FOOD FINANCING 
INITIATIVE. 
Section 243 of the Department of Agriculture Reor-
ganization Act of 1994 (7 U.S.C. 6953) is amended to 
read as follows: 
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‘‘SEC. 243. HEALTHY FOOD FINANCING INITIATIVE. 
‘‘(a) PURPOSE.—The purpose of this section is to es-
tablish an initiative to provide financial and technical as-
sistance to healthy food producers and retailers, food 
hubs, and mid-tier value chains that serve healthy food 
retailers and other healthy food business enterprises— 
‘‘(1) to improve access to, and expand the sup-
ply of, healthy food in low-income, underserved com-
munities; 
‘‘(2) to create and preserve quality jobs and 
businesses; 
‘‘(3) to revitalize distressed rural, urban, and 
small town economies; 
‘‘(4) to support the development of local and re-
gional food systems; 
‘‘(5) to increase the distribution of locally pro-
duced agricultural products; and 
‘‘(6) to strengthen farm-to-consumer relation-
ships. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTION.—The term ‘community development fi-
nancial institution’ has the meaning given the term 
in section 103 of the Community Development 
Banking and Financial Institutions Act of 1994 (12 
U.S.C. 4702). 
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‘‘(2) 
DISADVANTAGED
BUSINESS
ENTER-
PRISE.—The term ‘disadvantaged business enter-
prise’ has the meaning given the term in section 
26.5 of title 49, Code of Federal Regulations (as in 
effect on the date of enactment of the Healthy Food 
Financing Initiative Reauthorization Act of 2018). 
‘‘(3) FARMERS
MARKET.—The term ‘farmers 
market’ means a common facility or area where sev-
eral agricultural producers gather on a regular, re-
curring basis to sell a variety of fresh fruits and 
vegetables and other locally grown farm products di-
rectly to consumers. 
‘‘(4) FOOD ACCESS ORGANIZATION.—The term 
‘food access organization’ means a nonprofit organi-
zation with expertise in improving access to healthy 
food in underserved communities. 
‘‘(5) FOOD HUB.—The term ‘food hub’ means 
a commercial, cooperatively owned, or nonprofit en-
terprise that actively manages the aggregation, dis-
tribution, and marketing of source-identified food 
products primarily from local and regional producers 
to strengthen the ability of the producers to satisfy 
wholesale, retail, and institutional demand. 
‘‘(6) HEALTHY FOOD.—The term ‘healthy food’ 
means a food or beverage that improves and main-
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tains overall human health and reduces the risk of 
chronic disease, as described in the 2015–2020 Die-
tary Guidelines for Americans of the Secretary of 
Health and Human Services and the Secretary. 
‘‘(7) HEALTHY FOOD BUSINESS ENTERPRISE.— 
The term ‘healthy food business enterprise’ means 
an entrepreneurial activity that improves access to 
healthy food in low-income and underserved commu-
nities, such as a commercial kitchen or food business 
incubator. 
‘‘(8) HEALTHY
FOOD
PRODUCER.—The term 
‘healthy food producer’ means a commercial, coop-
eratively owned, or nonprofit enterprise that pro-
duces agricultural commodities or adds value to ag-
ricultural commodity products to create healthy food 
products. 
‘‘(9) HEALTHY FOOD RETAILER.— 
‘‘(A) IN
GENERAL.—The term ‘healthy 
food retailer’ means a commercial, cooperatively 
owned, or nonprofit seller of a healthy food, in-
cluding— 
‘‘(i) a grocery store; 
‘‘(ii) a mobile food retailer; 
‘‘(iii) a farmers market; 
‘‘(iv) a cooperative; 
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‘‘(v) a corner store; 
‘‘(vi) a bodega; and 
‘‘(vii) any other store that sells a full 
range of fresh and healthy foods, including 
any such store that sells nonhealthy foods. 
‘‘(B) INCLUSION.—The term ‘healthy food 
retailer’ includes a retail store in existence on 
the date of enactment of the Healthy Food Fi-
nancing Initiative Reauthorization Act of 2018 
that upgrades to sell a full range of healthy 
foods after that date of enactment. 
‘‘(10) 
HISTORICALLY
UNDERSERVED
PRO-
DUCER.—The term ‘historically underserved pro-
ducer’ means a beginning, limited resource, urban, 
or socially disadvantaged farmer or rancher, as de-
termined by the Secretary. 
‘‘(11) 
INCUBATOR.—The 
term 
‘incubator’ 
means a commercial, cooperatively owned, or non-
profit enterprise that assists start-up businesses by 
providing support, resources, and business services 
and advice, normally in 1 physical location. 
‘‘(12) INITIATIVE.—The term ‘Initiative’ means 
the Healthy Food Financing Initiative established 
under subsection (c). 
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‘‘(13) INITIATIVE FUNDS.—The term ‘Initiative 
funds’ means— 
‘‘(A) any Federal amounts that are made 
available to carry out this section; and 
‘‘(B) any other forms of financial assist-
ance (including grants, loans, and equity invest-
ments) that are raised by the National Fund 
Manager under this section. 
‘‘(14) LOW-INCOME.—The term ‘low-income’ 
has the meaning given the term in section 103 of the 
Community Development Banking and Financial In-
stitutions Act of 1994 (12 U.S.C. 4702). 
‘‘(15) MID-TIER VALUE CHAIN.— 
‘‘(A) IN
GENERAL.—The term ‘mid-tier 
value chain’ has the meaning given the term in 
section 231(a) of the Agricultural Risk Protec-
tion Act of 2000 (7 U.S.C. 1632a(a)). 
‘‘(B) INCLUSIONS.—The term ‘mid-tier 
value chain’ includes strategic business relation-
ships with respect to production, aggregation, 
processing, storage, distribution, or marketing. 
‘‘(16) MODERATE-INCOME.—The term ‘mod-
erate-income’ has the meaning given the term by the 
Bureau of the Census. 
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‘‘(17) NATIONAL FUND MANAGER.—The term 
‘National Fund Manager’ means a community devel-
opment financial institution that is— 
‘‘(A) in existence on the date of enactment 
of the Healthy Food Financing Initiative Reau-
thorization Act of 2018; 
‘‘(B) certified by the Community Develop-
ment Financial Institutions Fund of the De-
partment of the Treasury to manage the Initia-
tive; and 
‘‘(C) designated by the Secretary under 
subsection (d)(1) to manage the Initiative. 
‘‘(18) PARTNERSHIP.—The term ‘partnership’ 
means a regional, State, or local collaborative entity 
that is organized to improve access to healthy foods 
by providing financial and technical assistance to 
projects. 
‘‘(19) PROJECT.—The term ‘project’ means a 
healthy food retailer, a food hub, a healthy food pro-
ducer, or a healthy food business enterprise under a 
commercial, cooperatively owned, or nonprofit enter-
prise that satisfies eligibility criteria for assistance 
under the Initiative established by the National 
Fund Manager in accordance with subsection (g)(1). 
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‘‘(20) QUALITY
JOB.—The term ‘quality job’ 
means a job that includes three or more of the fol-
lowing characteristics: 
‘‘(A) A living wage that— 
‘‘(i) is sufficient to support a decent 
standard of living; or 
‘‘(ii) exceeds the median wage offered 
within the applicable industry. 
‘‘(B) Basic benefits that increase economic 
security, improve health, and promote work-life 
balance for employees, including— 
‘‘(i) paid leave; 
‘‘(ii) health insurance; and 
‘‘(iii) a retirement savings plan, in-
cluding the use of an employee stock own-
ership plan. 
‘‘(C) Career-building opportunities that 
help employees develop the skills, networks, and 
experiences necessary to launch a career or ad-
vance along a career path, including— 
‘‘(i) formal and informal training and 
mentorship; and 
‘‘(ii) avenues for advancement within 
the company. 
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‘‘(D) Wealth-building opportunities that 
enable and provide incentives for an employee 
to build the assets that the employee needs to 
manage financial emergencies and achieve long- 
term financial security for the employee and the 
family of the employee, including through em-
ployee ownership, such as an employee stock 
ownership plan or a cooperative. 
‘‘(E) A fair and engaging workplace that 
balances the priorities and well-being of employ-
ees with the needs of the business, including— 
‘‘(i) flexible and predictable schedules; 
‘‘(ii) treating employees with respect 
and dignity; 
‘‘(iii) actively soliciting ideas from em-
ployees to improve the business; and 
‘‘(iv) helping employees understand 
how their work contributes to the success 
of the business. 
‘‘(21) RURAL; RURAL AREA.—The terms ‘rural’ 
and ‘rural area’ have the meanings given those 
terms in section 343(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1991(a)). 
‘‘(22) STAPLE FOOD.— 
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‘‘(A) IN GENERAL.—The term ‘staple food’ 
means food that is a basic dietary item. 
‘‘(B) INCLUSIONS.—The term ‘staple food’ 
includes— 
‘‘(i) bread; 
‘‘(ii) cereal; 
‘‘(iii) flour; 
‘‘(iv) fruit; 
‘‘(v) vegetables; 
‘‘(vi) meat; and 
‘‘(vii) dairy products. 
‘‘(23) UNDERSERVED COMMUNITY.— 
‘‘(A) IN
GENERAL.—The term ‘under-
served community’ means a food desert, as de-
fined by the Community Development Financial 
Institutions Fund of the Department of the 
Treasury, including a distressed geographical 
area described in subparagraph (B), that is— 
‘‘(i) within a census tract that is de-
scribed as a food desert on the food access 
research atlas of the Secretary; 
‘‘(ii) within a census tract that— 
‘‘(I) is adjacent to a census tract 
described in clause (i); and 
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‘‘(II) has a median family income 
that is less than or equal to 120 per-
cent of the applicable area median 
family income; or 
‘‘(iii) a geographic unit (as described 
in section 1805.201(b)(3)(ii)(B) of title 12, 
Code of Federal Regulations (as in effect 
on the date of enactment of the Healthy 
Food Financing Initiative Reauthorization 
Act of 2018)) that— 
‘‘(I) individually meets at least 
one of the criteria described in section 
1805.201(b)(3)(ii)(D) 
of 
title 
12, 
Code of Federal Regulations (as in ef-
fect on the date of enactment of the 
Healthy Food Financing Initiative Re-
authorization Act of 2018); and 
‘‘(II) meets the criteria for hav-
ing low access to a supermarket or 
grocery store through a methodology 
that has been adopted for use by a 
State or unit of local government or 
philanthropic healthy food initiative. 
‘‘(B) DISTRESSED
GEOGRAPHICAL
AREA 
DESCRIBED.—A distressed geographical area 
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referred to in subparagraph (A) is a geo-
graphical area where a substantial number or 
share of residents has low access to a super-
market or large grocery store. 
‘‘(c) ESTABLISHMENT.—The Secretary shall estab-
lish within the Department an initiative, to be known as 
the ‘Healthy Food Financing Initiative’, to achieve the 
purpose described in subsection (a) in accordance with this 
section. 
‘‘(d) DUTIES OF THE SECRETARY.—The Secretary 
shall— 
‘‘(1) once every 5 years, designate a National 
Fund Manager through a competitive process from 
among community development financial institutions 
that have qualifications and a demonstrated record 
of success and effectiveness in— 
‘‘(A) raising significant amounts of private 
funds and managing healthy food financing pro-
grams that provide grants, loans, and tax cred-
its to improve access to, and the supply of, 
healthy foods in low-income, underserved com-
munities; 
‘‘(B) developing and managing programs 
that provide financial and technical assistance 
to healthy food retailers, healthy food pro-
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ducers, food hubs, farmers markets, and other 
healthy food business enterprises that serve 
low-income, underserved communities; 
‘‘(C) partnering with food access organiza-
tions or other nonprofit organizations with ex-
pertise in improving food access in low-income, 
underserved communities in the implementation 
of healthy food financing programs; 
‘‘(D) investing in rural communities di-
rectly or in partnership with other rural eco-
nomic development organizations; 
‘‘(E) building the capacities of other com-
munity development financial institutions and 
building a network of collaboration across food 
access programs and food systems programs; 
‘‘(F) engaging— 
‘‘(i) rural, Tribal, and disadvantaged 
business enterprises; and 
‘‘(ii) businesses that serve low-income 
populations and support local or regional 
food systems and supply chains; 
‘‘(G) developing performance goals and 
metrics to track and report the impact of 
healthy food financing programs; 
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‘‘(H) making and servicing grants, loans, 
loan loss reserves, tax credits, and other financ-
ing tools that are needed to effectively imple-
ment the Initiative; 
‘‘(I) financing and investing public and pri-
vate funds in projects to improve access in low- 
income urban and rural communities; 
‘‘(J) administering multiple contracts and 
subcontractors; 
‘‘(K) providing or contracting for the pro-
vision of technical assistance; and 
‘‘(L) managing large capital pools; 
‘‘(2) determine whether to approve— 
‘‘(A) the eligibility criteria developed by 
the National Fund Manager under subsection 
(e)(2)(A); 
‘‘(B) the program strategy and budget for 
the Initiative submitted by the National Fund 
Manager under subsection (e)(1)(E); and 
‘‘(C) the outcome metrics developed by the 
National Fund Manager under subsection 
(e)(3)(A); 
‘‘(3) develop and make publically available an-
nual progress reports and financial audits of the Ini-
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tiative to determine the effectiveness and impact of 
the Initiative; and 
‘‘(4) ensure that Initiative funds are used ap-
propriately and efficiently. 
‘‘(e) DUTIES OF THE NATIONAL FUND MANAGER.— 
The National Fund Manager shall carry out the following 
duties under the Initiative: 
‘‘(1) ASSISTANCE.—The National Fund Man-
ager shall— 
‘‘(A) raise private funds to be used under 
the Initiative; 
‘‘(B) leverage and encourage the use of 
other Federal funds from the Department and 
other Federal agencies; 
‘‘(C) provide loan and grant awards to 
partnerships and projects in accordance with 
paragraph (2); 
‘‘(D) consider providing to partnerships 
and projects financial assistance other than 
awards described in subparagraph (C), subject 
to the conditions that the financial assistance 
shall— 
‘‘(i) conform to all applicable laws (in-
cluding regulations) and best industry 
practices; and 
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‘‘(ii) be approved by the Secretary be-
fore the financial assistance is provided; 
‘‘(E) submit to the Secretary a program 
strategy and budget for the Initiative for ap-
proval under subsection (d)(2)(B); and 
‘‘(F) provide appropriate technical assist-
ance to partnerships and projects that are seek-
ing or have received funding under the Initia-
tive, such as— 
‘‘(i) business planning; 
‘‘(ii) project feasibility analysis; 
‘‘(iii) market studies; 
‘‘(iv) pipeline development; 
‘‘(v) community engagement; and 
‘‘(vi) local hiring practices. 
‘‘(2) AWARDS
PROCESS.—The National Fund 
Manager shall— 
‘‘(A) with respect to partnerships— 
‘‘(i) establish eligibility criteria for as-
sistance under the Initiative; 
‘‘(ii) review each partnership applica-
tion to ensure that the application is com-
plete and the partnership is eligible to be 
considered for an award; 
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‘‘(iii) establish a competitive award 
process that considers— 
‘‘(I) the lack of access to healthy 
food items in the community of a 
partnership; 
‘‘(II) the amount of local funds 
and other resources pledged by a part-
nership to match or leverage Initiative 
funds; 
‘‘(III) the degree of State, local, 
or Tribal government support of the 
partnership; 
‘‘(IV) the capacity of the partner-
ship to successfully develop and man-
age loan and grant programs; 
‘‘(V) the capacity of the partner-
ship to successfully develop, provide, 
or contract for technical assistance 
and business development services for 
healthy food retailers, healthy food 
producers, food hubs, or other healthy 
food business enterprises; 
‘‘(VI) the capacity of the partner-
ship— 
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‘‘(aa) to market and pro-
mote the Initiative; and 
‘‘(bb) to support disadvan-
taged business enterprises or his-
torically underserved producers; 
‘‘(VII) the capacity of the part-
nership to collect data and monitor 
and track program outcomes; 
‘‘(VIII) the degree of community 
engagement and participation in, or 
benefits from, projects to be financed 
by the partnership; and 
‘‘(IX) the contribution of the 
partnership to the overall geographical 
diversity of the Initiative; 
‘‘(iv) provide awards to each of— 
‘‘(I) a State, Tribal, or unit of 
local government or a quasi-public 
State or local government agency; 
‘‘(II) a food access organization 
or an organization similarly com-
mitted to improving access to healthy 
foods; and 
‘‘(III) a community development 
financial institution or other organiza-
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tion that can administer a loan and 
grant program in accordance with this 
section; and 
‘‘(v) enter into a loan or grant agree-
ment, as applicable, with each partnership 
to which the National Fund Manager pro-
vides an award; and 
‘‘(B) with respect to projects— 
‘‘(i) establish eligibility criteria for as-
sistance under the Initiative in accordance 
with subsection (g)(1); 
‘‘(ii) review each application to ensure 
that the application is complete and the 
project is eligible to be considered for an 
award; 
‘‘(iii) evaluate each application and 
provide awards to projects in accordance 
with the priorities described in subsection 
(g)(2), on a rolling basis, that— 
‘‘(I) are consistent with this sec-
tion; and 
‘‘(II) demonstrate the need for 
assistance under the Initiative; and 
‘‘(iv) based on a review of the use of 
Initiative funds described in paragraph 
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(3)(C)(v)(II), ensure that a reasonable 
amount of Initiative funds are used to sup-
port nonretail projects. 
‘‘(3) POST-AWARD
ACTIVITIES.—The National 
Fund Manager shall— 
‘‘(A) recommend to the Secretary for ap-
proval under subsection (d)(2)(C) outcome 
metrics for evaluating the effectiveness and im-
pact of the Initiative, including— 
‘‘(i) the location, type, and number 
of— 
‘‘(I) businesses assisted by the 
Initiative; 
‘‘(II) businesses created or ex-
panded by the Initiative; 
‘‘(III) rural businesses assisted 
by the Initiative; and 
‘‘(IV) disadvantaged businesses 
assisted by the Initiative; 
‘‘(ii) demographic characteristics of 
the populations and communities served by 
the Initiative, such as income, race, and 
ethnicity; 
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‘‘(iii) jobs created and retained by 
very low- and low-income persons as a re-
sult of the Initiative; 
‘‘(iv) the job quality of jobs created by 
the Initiative; 
‘‘(v) funds leveraged by the Initiative; 
‘‘(vi) project participation in— 
‘‘(I) the supplemental nutrition 
assistance program established under 
the Food and Nutrition Act of 2008 
(7 U.S.C. 2011 et seq.); 
‘‘(II) the special supplemental 
nutrition program for women, infants, 
and children established by section 17 
of the Child Nutrition Act of 1966 
(42 U.S.C. 1786); and 
‘‘(III) other nutrition benefit pro-
grams; 
‘‘(vii) project participation in, and of-
fering of, job training programs targeting 
low-income populations; 
‘‘(viii) project participation in pro-
grams to promote healthy food choices and 
increase the affordability of healthy food 
by low-income populations, such as— 
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‘‘(ii) the percentage of the number of 
partnerships and projects funded for each 
fiscal year that are located in a rural area; 
‘‘(iii) the percentage of the number of 
partnerships and projects funded for each 
fiscal year that are located in— 
‘‘(I) 
low-income 
communities; 
and 
‘‘(II) moderate-income commu-
nities; 
‘‘(iv) a copy of— 
‘‘(I) the Community Development 
Financial Institutions Fund annual 
certification for the National Fund 
Manager; and 
‘‘(II) the data collection report 
form submitted to the Department of 
the Treasury by the National Fund 
Manager; and 
‘‘(v) an annual report that includes— 
‘‘(I) a synopsis of each partner-
ship and project receiving funding 
under the Initiative; and 
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‘‘(II) a description of the use of 
Initiative funds for the applicable 
year. 
‘‘(4) OUTREACH.—The National Fund Manager 
shall contract with a national food access organiza-
tion (and may contract with regional or local food 
access organizations)— 
‘‘(A) to publicize the Initiative to target 
communities and priority populations; and 
‘‘(B) to organize and build the capacities 
of partnerships, potential applicants for funding 
under the Initiative, and peer organizations to 
ensure that resources are directed to commu-
nities most in need of funding under the Initia-
tive. 
‘‘(5) ALIGNMENT.—To maximize the impact of 
the Initiative, the National Fund Manager shall seek 
to align the Initiative with— 
‘‘(A) other programs of the Department, 
such as— 
‘‘(i) the food insecurity nutrition in-
centive program under section 4405 of the 
Food, Conservation, and Energy Act of 
2008 (7 U.S.C. 7517); and 
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‘‘(ii) the Farmers’ Market and Local 
Food Promotion Program under section 6 
of the Farmer-to-Consumer Direct Mar-
keting Act of 1976 (7 U.S.C. 3005); and 
‘‘(B) other Federal nutrition programs. 
‘‘(f) DUTIES OF PARTNERSHIPS.—A partnership that 
receives an award from the National Fund Manager shall 
carry out financing and other activities to implement and 
maximize the effectiveness of the Initiative, as described 
in the grant or loan agreement, as applicable, with the 
National Fund Manager under subsection (e)(2)(A)(v), in-
cluding— 
‘‘(1) conducting marketing and outreach to 
communities, the grocery industry, and others— 
‘‘(A) to solicit applications from projects in 
underserved communities; 
‘‘(B) to build an understanding of the eco-
nomics of the local food retail market; and 
‘‘(C) to identify opportunities in the target 
area; 
‘‘(2) reviewing applications from projects for 
funding under the Initiative; 
‘‘(3) underwriting and disbursing Initiative 
funds to projects; 
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‘‘(4) providing technical assistance and business 
development services to projects; 
‘‘(5) submitting an annual financial and pro-
gram report to the National Fund Manager that de-
scribes— 
‘‘(A) the activities of the partnership; 
‘‘(B) the expenditure of Initiative funds; 
and 
‘‘(C) any success in meeting approved out-
come metrics described in subsection (e)(3)(A) 
and satisfying such other terms and conditions 
as are specified in the grant or loan agreement; 
and 
‘‘(6) expending reasonable administrative costs, 
which shall not exceed 10 percent of the amounts 
provided to the partnership under the Initiative. 
‘‘(g) PROJECTS.— 
‘‘(1) ELIGIBILITY.—To be eligible to receive an 
award under the Initiative, a project shall— 
‘‘(A) be located in a low-income area or a 
moderate-income area; 
‘‘(B) be located in or serve an underserved 
community; 
‘‘(C) expand or preserve the availability of 
staple food; 
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‘‘(D) demonstrate the need for funding 
under the Initiative; 
‘‘(E) in the case of a healthy food re-
tailer— 
‘‘(i) accept benefits under the supple-
mental nutrition assistance program estab-
lished under the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.); or 
‘‘(ii) develop mid-tier value chains 
that expand the availability of healthy food 
in underserved communities; 
‘‘(F) in the case of a food hub or healthy 
food producer— 
‘‘(i)(I) sell healthy food items to food 
retailers that serve an underserved area; 
and 
‘‘(II) accept benefits under the supple-
mental nutrition assistance program estab-
lished under the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.); or 
‘‘(ii) sell or donate healthy food items 
to an institution, such as a hospital, 
school, food bank or pantry, social service 
agency, community center, or religious or-
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