Title: Healthy Food Financing Initiative Reauthorization Act of 2018
Policy area: Agriculture and Food

Summary:
Healthy Food Financing Initiative Reauthorization Act of 2018
This bill amends the Department of Agriculture Reorganization Act of 1994 to reauthorize and modify the Healthy Food Financing Initiative. The initiative authorizes the Department of Agriculture to provide financial and technical assistance to food retailers, farmers markets, cooperatives, and other entities for projects to improve access to healthy food in underserved communities.
The purposes of the initiative include:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5017 Introduced in House (IH)]

<DOC>






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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Healthy Food Financing Initiative 
Reauthorization Act of 2018''.

SEC. 2. REAUTHORIZATION OF HEALTHY FOOD FINANCING INITIATIVE.

    Section 243 of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 6953) is amended to read as follows:

``SEC. 243. HEALTHY FOOD FINANCING INITIATIVE.

    ``(a) Purpose.--The purpose of this section is to establish an 
initiative to provide financial and technical assistance 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 supply of, 
        healthy food in low-income, underserved communities;
            ``(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 regional food 
        systems;
            ``(5) to increase the distribution of locally produced 
        agricultural products; and
            ``(6) to strengthen farm-to-consumer relationships.
    ``(b) Definitions.--In this section:
            ``(1) Community development financial institution.--The 
        term `community development financial 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).
            ``(2) Disadvantaged business enterprise.--The term 
        `disadvantaged business enterprise' 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 several agricultural producers 
        gather on a regular, recurring basis to sell a variety of fresh 
        fruits and vegetables and other locally grown farm products 
        directly to consumers.
            ``(4) Food access organization.--The term `food access 
        organization' means a nonprofit organization 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 enterprise that actively 
        manages the aggregation, distribution, 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 maintains overall human health 
        and reduces the risk of chronic disease, as described in the 
        2015-2020 Dietary 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 communities, such as a commercial kitchen or food 
        business incubator.
            ``(8) Healthy food producer.--The term `healthy food 
        producer' means a commercial, cooperatively owned, or nonprofit 
        enterprise that produces agricultural commodities or adds value 
        to agricultural 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, including--
                            ``(i) a grocery store;
                            ``(ii) a mobile food retailer;
                            ``(iii) a farmers market;
                            ``(iv) a cooperative;
                            ``(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 Financing Initiative 
                Reauthorization Act of 2018 that upgrades to sell a 
                full range of healthy foods after that date of 
                enactment.
            ``(10) Historically underserved producer.--The term 
        `historically underserved producer' means a beginning, limited 
        resource, urban, or socially disadvantaged farmer or rancher, 
        as determined by the Secretary.
            ``(11) Incubator.--The term `incubator' means a commercial, 
        cooperatively owned, or nonprofit 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).
            ``(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 assistance 
                (including grants, loans, and equity investments) 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 Institutions 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 Protection Act of 2000 (7 U.S.C. 
                1632a(a)).
                    ``(B) Inclusions.--The term `mid-tier value chain' 
                includes strategic business relationships with respect 
                to production, aggregation, processing, storage, 
                distribution, or marketing.
            ``(16) Moderate-income.--The term `moderate-income' has the 
        meaning given the term by the Bureau of the Census.
            ``(17) National fund manager.--The term `National Fund 
        Manager' means a community development financial institution 
        that is--
                    ``(A) in existence on the date of enactment of the 
                Healthy Food Financing Initiative Reauthorization Act 
                of 2018;
                    ``(B) certified by the Community Development 
                Financial Institutions Fund of the Department of the 
                Treasury to manage the Initiative; 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 producer, or a healthy 
        food business enterprise under a commercial, cooperatively 
        owned, or nonprofit enterprise that satisfies eligibility 
        criteria for assistance under the Initiative established by the 
        National Fund Manager in accordance with subsection (g)(1).
            ``(20) Quality job.--The term `quality job' means a job 
        that includes three or more of the following 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, 
                        including the use of an employee stock 
                        ownership plan.
                    ``(C) Career-building opportunities that help 
                employees develop the skills, networks, and experiences 
                necessary to launch a career or advance along a career 
                path, including--
                            ``(i) formal and informal training and 
                        mentorship; and
                            ``(ii) avenues for advancement within the 
                        company.
                    ``(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 employee 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 employees with the 
                needs of the business, including--
                            ``(i) flexible and predictable schedules;
                            ``(ii) treating employees with respect and 
                        dignity;
                            ``(iii) actively soliciting ideas from 
                        employees 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.--
                    ``(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 `underserved community' 
                means a food desert, as defined 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 
                        described 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
                                    ``(II) has a median family income 
                                that is less than or equal to 120 
                                percent 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 
                                effect on the date of enactment of the 
                                Healthy Food Financing Initiative 
                                Reauthorization Act of 2018); and
                                    ``(II) meets the criteria for 
                                having 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 referred to in 
                subparagraph (A) is a geographical area where a 
                substantial number or share of residents has low access 
                to a supermarket or large grocery store.
    ``(c) Establishment.--The Secretary shall establish 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 programs that 
                provide grants, loans, and tax credits to improve 
                access to, and the supply of, healthy foods in low-
                income, underserved communities;
                    ``(B) developing and managing programs that provide 
                financial and technical assistance to healthy food 
                retailers, healthy food producers, food hubs, farmers 
                markets, and other healthy food business enterprises 
                that serve low-income, underserved communities;
                    ``(C) partnering with food access organizations or 
                other nonprofit organizations with expertise in 
                improving food access in low-income, underserved 
                communities in the implementation of healthy food 
                financing programs;
                    ``(D) investing in rural communities directly or in 
                partnership with other rural economic development 
                organizations;
                    ``(E) building the capacities of other community 
                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;
                    ``(H) making and servicing grants, loans, loan loss 
                reserves, tax credits, and other financing tools that 
                are needed to effectively implement the Initiative;
                    ``(I) financing and investing public and private 
                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 provision 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 annual progress 
        reports and financial audits of the Initiative to determine the 
        effectiveness and impact of the Initiative; and
            ``(4) ensure that Initiative funds are used appropriately 
        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 Manager 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 
                        (including regulations) and best industry 
                        practices; and
                            ``(ii) be approved by the Secretary before 
                        the financial assistance is provided;
                    ``(E) submit to the Secretary a program strategy 
                and budget for the Initiative for approval under 
                subsection (d)(2)(B); and
                    ``(F) provide appropriate technical assistance to 
                partnerships and projects that are seeking or have 
                received funding under the Initiative, 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 
                        assistance under the Initiative;
                            ``(ii) review each partnership application 
                        to ensure that the application is complete and 
                        the partnership is eligible to be considered 
                        for an award;
                            ``(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 
                                partnership to match or leverage 
                                Initiative funds;
                                    ``(III) the degree of State, local, 
                                or Tribal government support of the 
                                partnership;
                                    ``(IV) the capacity of the 
                                partnership to successfully develop and 
                                manage loan and grant programs;
                                    ``(V) the capacity of the 
                                partnership 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 
                                partnership--
                                            ``(aa) to market and 
                                        promote the Initiative; and
                                            ``(bb) to support 
                                        disadvantaged business 
                                        enterprises or historically 
                                        underserved producers;
                                    ``(VII) the capacity of the 
                                partnership 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 committed 
                                to improving access to healthy foods; 
                                and
                                    ``(III) a community development 
                                financial institution or other 
                                organization that can administer a loan 
                                and grant program in accordance with 
                                this section; and
                            ``(v) enter into a loan or grant agreement, 
                        as applicable, with each partnership to which 
                        the National Fund Manager provides an award; 
                        and
                    ``(B) with respect to projects--
                            ``(i) establish eligibility criteria for 
                        assistance 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 
                                section; 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 
                        (3)(C)(v)(II), ensure that a reasonable amount 
                        of Initiative funds are used to support 
                        nonretail projects.
            ``(3) Post-award activities.--The National Fund Manager 
        shall--
                    ``(A) recommend to the Secretary for approval under 
                subsection (d)(2)(C) outcome metrics for evaluating the 
                effectiveness and impact of the Initiative, including--
                            ``(i) the location, type, and number of--
                                    ``(I) businesses assisted by the 
                                Initiative;
                                    ``(II) businesses created or 
                                expanded 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;
                            ``(iii) jobs created and retained by very 
                        low- and low-income persons as a result 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 
                                programs;
                            ``(vii) project participation in, and 
                        offering of, job training programs targeting 
                        low-income populations;
                            ``(viii) project participation in programs 
                        to promote healthy food choices and increase 
                        the affordability of healthy food by low-income 
                        populations, such as--
                                    ``(I) nutrition education under the 
                                Food and Nutrition Act of 2008 (7 
                                U.S.C. 2011 et seq.); and
                                    ``(II) the food insecurity 
                                nutrition incentive program under 
                                section 4405 of the Food, Conservation, 
                                and Energy Act of 2008 (7 U.S.C. 7517); 
                                and
                            ``(ix) the degree of collaboration among 
                        local partners;
                    ``(B)(i) collect data from partnerships and 
                projects awarded funding under the Initiative; and
                    ``(ii) compile the data for the approved outcome 
                metrics described in subparagraph (A); and
                    ``(C) submit to the Secretary--
                            ``(i) with respect to partnerships and 
                        projects awarded funding under the Initiative, 
                        periodic reports on approved outcome metrics 
                        described in subparagraph (A) using data 
                        collected and compiled under subparagraph (B);
                            ``(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 communities;
                            ``(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 
                                partnership and project receiving 
                                funding under the Initiative; and
                                    ``(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 organization (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 communities most in need of 
                funding under the Initiative.
            ``(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 
                        incentive program under section 4405 of the 
                        Food, Conservation, and Energy Act of 2008 (7 
                        U.S.C. 7517); and
                            ``(ii) the Farmers' Market and Local Food 
                        Promotion Program under section 6 of the 
                        Farmer-to-Consumer Direct Marketing 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), 
including--
            ``(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 economics 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;
            ``(4) providing technical assistance and business 
        development services to projects;
            ``(5) submitting an annual financial and program report to 
        the National Fund Manager that describes--
                    ``(A) the activities of the partnership;
                    ``(B) the expenditure of Initiative funds; and
                    ``(C) any success in meeting approved outcome 
                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;
                    ``(D) demonstrate the need for funding under the 
                Initiative;
                    ``(E) in the case of a healthy food retailer--
                            ``(i) accept benefits under the 
                        supplemental nutrition assistance program 
                        established 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 
                        supplemental nutrition assistance program 
                        established 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 organization, 
                        that serves low-income, underserved 
                        communities; and
                    ``(G) in the case of a healthy food business 
                enterprise, train or employ individuals from low-
                income, underserved communities.
            ``(2) Priorities.--In making awards to projects under the 
        Initiative, priority shall be given to a project that--
                    ``(A) is located in an area that 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 effect on the date of enactment of 
                the Healthy Food Financing Initiative Reauthorization 
                Act of 2018); and
                    ``(B)(i) is located in or serves a rural area;
                    ``(ii) supports rural economic development;
                    ``(iii) includes mid-tier value chains that use 
                agricultural producer business and cooperative 
                ownership models;
                    ``(iv) involves a disadvantaged business enterprise 
                or historically underserved producer;
                    ``(v) participates in a job training or workforce 
                development program that targets low-income individuals 
                and underserved communities;
                    ``(vi) commits to hiring low-income residents from 
                the community that the project serves;
                    ``(vii) will create or retain quality jobs in the 
                community that the project serves;
                    ``(viii) is supported by the community served by 
                the project, based on the factors of store quality, 
                affordability, site location, and coordination with 
                local community plans or other programs promoting 
                community and economic development;
                    ``(ix) supports regional food systems and locally 
                grown foods;
                    ``(x) is associated with a transit-oriented 
                development project;
                    ``(xi) is accessible by public transit, if public 
                transit is available in the area;
                    ``(xii) receives funding from other Federal 
                agencies or is part of another Federal program or 
                initiative;
                    ``(xiii) involves veteran-owned businesses or 
                veteran farmers and ranchers (as defined in section 
                2501(e) of the Food, Agriculture, Conservation and 
                Trade Act of 1990 (7 U.S.C. 2279(e))); or
                    ``(xiv) participates in other food assistance and 
                nutrition education programs of the Department.
    ``(h) Funding.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this section 
        $125,000,000, to remain available until expended.
            ``(2) Allocation.--Of amounts appropriated under paragraph 
        (1)--
                    ``(A) not less than 75 percent shall be used to 
                fund projects of healthy food retailers; and
                    ``(B) not more than 25 percent shall be used to 
                fund projects of food hubs, healthy food producers, and 
                healthy food business enterprises.
            ``(3) Administrative costs.--Not more than 10 percent of 
        amounts appropriated under paragraph (1) shall be used for 
        administrative costs.''.
                                 <all>