[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4529 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4529
To increase market access for Black farmers and socially disadvantaged
farmers and ranchers, to ensure civil rights accountability, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 17, 2025
Mr. David Scott of Georgia (for himself, Mr. Jackson of Illinois, Ms.
Adams, Mr. Bishop, Ms. Brown, Mr. Carson, Mr. Carter of Louisiana, Mr.
Cohen, Mr. Fields, Mr. Figures, Mr. Johnson of Georgia, Ms. Kelly of
Illinois, Ms. McClellan, Ms. Sewell, Mr. Soto, Ms. Strickland, Mr.
Thanedar, Ms. Tokuda, Ms. Waters, Ms. Williams of Georgia, Ms. Wilson
of Florida, and Mrs. Watson Coleman) introduced the following bill;
which was referred to the Committee on Agriculture, and in addition to
the Committee on Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To increase market access for Black farmers and socially disadvantaged
farmers and ranchers, to ensure civil rights accountability, 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 ``Black Farmers and Socially
Disadvantaged Farmers Increased Market Share Act''.
SEC. 2. FOOD HUB GRANTS TO INCREASE MARKET ACCESS FOR SOCIALLY
DISADVANTAGED FARMERS AND RANCHERS.
(a) Definitions.--In this section:
(1) Agricultural food product.--The term ``agricultural
food product'' means a raw, cooked, or a processed edible
substance, beverage, or ingredient produced and otherwise
prepared for sale in the United States (including any insular
area (as defined in section 1404 of the National Agricultural,
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103))), derived from one or more agricultural commodities of
United States origin, and used or intended for use or for sale
in whole or in part for human consumption.
(2) Donated food.--The term ``donated food'' has the
meaning given the term in section 250.2 of title 7 of the Code
of Federal Regulations (or any successor regulation).
(3) Eligible entity.--The term ``eligible entity'' means--
(A) an entity formed by two or more agricultural
producers, not less than half of whom are members of a
socially disadvantaged group; or
(B) a non-profit organization or Tribal
organization with demonstrated experience working with
socially disadvantaged farmers or ranchers.
(4) Eligible partner.--The term ``eligible partner'' means
a non-profit organization, a State cooperative extension
service or a college or university (as such terms are defined
in section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)),
Tribal organization, or other State or local government
entities with demonstrated experience in providing assistance
such as grants management, technical assistance, and business
plan development, to agricultural producers.
(5) Food hub.--The term ``food hub'' means a business or
organization that actively manages the aggregation,
distribution, and marketing of source-identified agricultural
food products from producers for wholesale, retail, or
institutional markets.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(7) Socially disadvantaged farmer or rancher.--The term
``socially disadvantaged farmer or rancher'' has the meaning
given the term in section 2501(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)).
(8) Socially disadvantaged group.--The term ``socially
disadvantaged group'' has the meaning given the term in section
2501(a) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279(a)).
(9) Tribal organization.--The term ``Tribal organization''
has the meaning given the term in section 3 of the Food and
Nutrition Act of 2008 (7 U.S.C. 2012).
(b) Grants To Increase Market Access.--
(1) In general.--The Secretary shall establish a program to
make grants on a competitive basis to eligible entities to
support new or expanding food hubs designed to increase market
access for socially disadvantaged farmers and ranchers, but may
also increase market access for other farmers and ranchers.
(2) Use of funds.--An eligible entity selected to receive a
grants under this subsection may use grants funds--
(A) to purchase and develop land, buildings, and
associated infrastructure for commercial or industrial
properties, including expansion or modernization, for
use in processing, distributing, aggregating, storing,
transporting, or marketing agricultural food products;
(B) to construct or equip facilities for use in
processing, distributing, aggregating, storing,
transporting, or marketing agricultural food products;
(C) to purchase machinery and equipment for use in
processing, distributing, aggregating, storing,
transporting, or marketing agricultural food products;
(D) for general operating expenses directly related
to a food hub, including planning and development
related to the establishment or expansion of any food
hub;
(E) to provide marketing services for agricultural
food products, including providing platforms (such as
electronic or web-based platforms) for sales,
inventory, and aggregation; and
(F) to conduct other activities supporting the
development or expansion of a food hub, as determined
by the Secretary.
(3) Application.--
(A) In general.--An eligible entity seeking a grant
under this subsection shall submit to the Secretary an
application that contains--
(i) a description of the activities the
eligible entity will carry out to support one
or more new or existing food hubs, including a
plan for each such food hub to process,
distribute, store, or market agricultural food
products for wholesale, retail, or
institutional markets;
(ii) a description of the ways in which
each such food hub that the eligible entity is
proposing to establish or expand is designed to
increase market access for socially
disadvantaged farmers or ranchers;
(iii) except as provided in subparagraph
(B), a description of the eligible entity's
demonstrated competency to develop and manage
each such food hub, provide fiscal
accountability, collect data, and prepare
reports and other necessary documentation; and
(iv) any other information, as determined
by the Secretary.
(B) Requirement to include eligible partners.--An
eligible entity that does not have one or more of the
demonstrated competencies described in clause (iii) of
subparagraph (A) shall submit to the Secretary in its
application--
(i) a list of one or more eligible partners
such eligible entity is partnering with;
(ii) the responsibilities of each eligible
partner in supporting such eligible entity; and
(iii) a description of the demonstrated
competencies of the eligible partner or
partners in performing such responsibilities.
(C) Eligible entities serving as eligible
partners.--An eligible entity specified in subparagraph
(B) of subsection (a)(3) seeking a grant under this
section may serve as an eligible partner for other
eligible entities in one or more grant applications
under this subsection.
(4) Priority.--In making grants under this subsection, the
Secretary may give priority to grant applications for food hubs
that--
(A) benefit underserved communities, as defined in
section 310B(g)(9)(A)(ii) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1932(g)(9)(A)(ii));
(B) aggregate, distribute, and market agricultural
food products that meet the standards for donated
foods, as determined by the Secretary; or
(C) have not been awarded a Department of
Agriculture grant, including a grant under section 210A
of the Agricultural Marketing Act of 1946 (7 U.S.C.
1627c), in the preceding or current fiscal year.
(5) Maximum grant term.--The term of a grant under this
subsection may not exceed 5 years.
(6) No matching funds.--An eligible entity receiving a
grant under this section shall not be required to provide non-
Federal matching funds with respect to such grant.
(c) Prioritizing Purchases for USDA Domestic Food Assistance
Programs.--
(1) In general.--The Secretary shall establish a process--
(A) to prioritize the purchase of agricultural food
products from socially disadvantaged farmers and
ranchers, including from food hubs developed or
expanded under this section, for use in Department of
Agriculture programs that distribute agricultural food
products within the United States (including any
insular area (as defined in section 1404 of the
National Agricultural, Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103))); and
(B) that is designed to account for barriers to
market entry faced by socially disadvantaged farmers
and ranchers while maintaining the integrity of the
purchasing process established under this subsection,
including ensuring that any entity that is suspended or
debarred from participation in any Federal program is
not eligible to participate in the purchasing process
established under this subsection.
(2) Waivers.--
(A) In general.--In establishing the process
described in paragraph (1), the Secretary may provide
for the waiver of the full and open competition
procedures for the award of Federal contracts, section
3324 of title 31, United States Code, and section 725
of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations
Act, 2001 (7 U.S.C. 2209f), if the Secretary identifies
requirements under such sections and procedures as
presenting barriers to market entry for socially
disadvantaged farmers and ranchers.
(B) Notification.--Not later than 10 days after
providing for any waiver under subparagraph (A), the
Secretary shall notify the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate of
such waivers and provide a description of how such
waivers would address barriers to market entry for
socially disadvantaged farmers and ranchers for a
particular agricultural food product.
(d) Reports.--Not later than December 31, 2026, and each December
thereafter until the completion of the grants awarded under subsection
(b), the Secretary shall make publicly available on the Department of
Agriculture's website and submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate, a report that includes--
(1) a description of the status of each grant awarded under
subsection (b);
(2) the number of socially disadvantaged farmers and
ranchers participating in the food hub supported by such grant
in the previous fiscal year;
(3) to the maximum extent practicable, the amount of
agricultural food products produced by socially disadvantaged
farmers and ranchers processed, distributed, aggregated,
stored, or marketed by the food hub supported by such grant in
the previous fiscal year; and
(4) the total amount of donated food purchased by the
Secretary from food hubs supported with grants awarded under
this section in the previous fiscal year.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out subsection (b) $100,000,000 for fiscal year
2026, to remain available until expended.
SEC. 3. AGRICULTURE HUB CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45U. AGRICULTURE HUB CREDIT.
``(a) In General.--For purposes of section 38, the agriculture hub
credit determined under this section for any taxable year is an amount
equal to 25 percent of the qualified food hub expenses for the taxable
year.
``(b) Qualified Food Hub Expenses.--For purposes of this section,
the term `qualified food hub expenses' means amounts paid or incurred
by the taxpayer during the taxable year--
``(1) for agricultural food products from a food hub
developed or expanded under section 2 of the Black Farmers and
Socially Disadvantaged Farmers Increased Market Share Act, and
``(2) in accordance with a contract certified by the
Secretary of Agriculture under section 3(c) of the Black
Farmers and Socially Disadvantaged Farmers Increased Market
Share Act.
``(c) Food Hub.--The term `food hub' has the meaning given such
term in section 2 of the Black Farmers and Socially Disadvantaged
Farmers Increased Market Share Act.
``(d) Termination.--This section shall not apply to taxable years
beginning after the Secretary determines the grant program under
section 2 of the Black Farmers and Socially Disadvantaged Farmers
Increased Market Share Act has ended.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986 is
amended--
(A) in paragraph (32), by striking ``plus'' at the
end,
(B) in paragraph (33), by striking the period at
the end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(34) the agriculture hub credit determined under section
45U(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by adding at
the end the following new item:
``Sec. 45U. Agriculture hub credit.''.
(3) Section 280C of such Code is amended by adding at the
end the following new subsection:
``(i) Agriculture Hub Credit.--Any deduction or other credit
otherwise allowable with respect to an expense for which a credit is
allowed under section 45U(a) shall be reduced by the amount of the
credit under section 45U(a) with respect to such expense. If a credit
is allowed under section 45U(a) with respect to property of a kind
which would properly be included in the inventory of the taxpayer if on
hand at the close of the taxable year or property held by the taxpayer
primarily for sale to customers in the ordinary course of the trade or
business of such taxpayer, opening inventory or purchases shall be
reduced by the amount of the credit so allowed.''.
(c) Certification Process.--Not later than 1 year after the date of
enactment of this section, the Secretary of Agriculture shall issue
regulations to establish a process to certify, at the request of
entities seeking an agriculture hub credit section 45U of the Internal
Revenue Code of 1986, as added by subsection (b), that a contract under
which expenditures referred to in such section 45U are made--
(1) is not between related parties;
(2) is the result of arm's length negotiations; and
(3) meets any other requirements, as determined by the
Secretary of Agriculture, in consultation with the Secretary of
Treasury.
(d) Effective Date.--The amendments made by this section shall
apply to expenses paid or incurred in taxable years beginning after
December 31, 2025.
SEC. 4. CIVIL RIGHTS ACCOUNTABILITY FOR USDA EMPLOYEES.
(a) In General.--The Secretary of Agriculture shall ensure that
officials and employees of the Department of Agriculture are held
accountable in accordance with subsection (b) if, while in the course
of their employment or in administering a Department of Agriculture
program, such officials and employees are found to have engaged in any
discriminatory actions, retaliatory actions, harassment, civil rights
violations, or related misconduct, including any such actions or
misconduct involving any of the following:
(1) Failure to provide a receipt for service in accordance
with section 2501A(e) of the Food, Agriculture, Conservation or
Trade Act of 1990 (7 U.S.C. 2279-1(e)) to any current or
prospective applicants of or participants in Department of
Agriculture programs.
(2) Providing an inaccurate receipt for service under such
section 2501A(e) to any current or prospective applicants of or
participants in Department of Agriculture programs.
(3) Failure to provide appropriate information regarding
relevant programs and services at the Department of
Agriculture, when requested by any current or prospective
applicants of or participants in Department of Agriculture
programs.
(4) Failure to timely process applications or otherwise
delaying program services to any current or prospective
applicants of or participants in, Department of Agriculture
programs.
(b) Taking Corrective Action.--The Secretary shall ensure that
appropriate corrective action is taken with respect to any official or
employee of the Department of Agriculture who has been found to have
engaged in any of the actions, violations, or misconduct referred to in
subsection (a) while in the course of such official's or employee's
employment or in administering a Department of Agriculture program--
(1) in any administrative finding by the Department of
Agriculture, including any final agency decision issued by the
Assistant Secretary of Agriculture for Civil Rights and any
civil rights compliance review or misconduct investigation
conducted by the Department of Agriculture;
(2) in any administrative or judicial proceeding;
(3) in any civil rights settlement;
(4) in any audit or investigation conducted by the Office
of the Inspector General of the Department of Agriculture; or
(5) in any investigation conducted by the Office of the
Special Counsel.
(c) Corrective Action Defined.--In this section, the term
``corrective action'' means any action taken to respond to any of the
actions, violations, or misconduct referred to in subsection (a) that--
(1) would enhance civil rights at the Department of
Agriculture, including any policy or programmatic changes to
prevent similar misconduct from occurring in the future; and
(2) may include disciplinary actions, including--
(A) removal from Federal service;
(B) suspension without pay;
(C) any reduction in grade or pay; and
(D) letter of reprimand.
SEC. 5. EQUITABLE RELIEF.
(a) Equitable Relief From Ineligibility for Loans, Payments, or
Other Benefits.--Section 1613 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7996) is amended--
(1) by redesignating subsections (f) through (j) as
subsections (g) through (k), respectively;
(2) by inserting after subsection (e) the following:
``(f) Equitable Relief by the Assistant Secretary of Agriculture
for Civil Rights.--
``(1) In general.--The Assistant Secretary of Agriculture
for Civil Rights (or a designee of the Secretary in the Office
of the Assistant Secretary for Civil Rights, if no Assistant
Secretary of Agriculture for Civil Rights is confirmed in
accordance with section 218(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6918(b))) may grant relief
in accordance with subsections (b) through (d) to a participant
who files a civil rights program complaint.
``(2) Decisions.--The decision by the Assistant Secretary
of Agriculture for Civil Rights (or the designee of the
Secretary) to grant relief under this subsection shall not
require prior approval by any officer or employee of the
Department of Agriculture.
``(3) Other authority.--The authority provided to the
Assistant Secretary of Agriculture for Civil Rights (or the
designee of the Secretary) under this subsection is in addition
to any other applicable authority and does not limit other
authority provided by law or the Secretary.'';
(3) in subsection (g), as so redesignated, by striking ``or
the State Conservationist'' and inserting ``the State
Conservationist, or the Assistant Secretary of Agriculture for
Civil Rights (or the designee of the Secretary)''; and
(4) in paragraph (1) of subsection (h), as so redesignated,
by striking ``and (e)'' and inserting ``(e), and (f)''.
(b) Equitable Relief for Actions Taken in Good Faith.--Section 366
of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008a) is
amended--
(1) by amending subsection (b) to read as follows:
``(b) Limitation.--The Secretary may only provide relief to a
farmer or rancher under subsection (a) if the Secretary determines that
the farmer or rancher--
``(1) acting in good faith, relied on an action of, or the
advice of, the Secretary (including any authorized
representative of the Secretary) to the detriment of the
farming or ranching operation of the farmer or rancher; or
``(2) failed to comply fully with the requirements of a
program described in subsection (a)(1), but made a good faith
effort to comply with the requirements.'';
(2) by inserting after subsection (d) the following:
``(e) Equitable Relief by the Assistant Secretary of Agriculture
for Civil Rights.--
``(1) In general.--The Assistant Secretary of Agriculture
for Civil Rights (or a designee of the Secretary in the Office
of the Assistant Secretary for Civil Rights, if no Assistant
Secretary of Agriculture for Civil Rights is confirmed in
accordance with section 218(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6918(b))) may grant relief
in accordance with subsections (a) through (d) to an individual
who files a civil rights program complaint.
``(2) Decisions.--The decision by the Assistant Secretary
of Agriculture for Civil Rights (or the designee of the
Secretary) to grant relief under this subsection shall not
require prior approval by any officer or employee of the
Department of Agriculture.
``(3) Other authority.--The authority provided to the
Assistant Secretary of Agriculture for Civil Rights (or the
designee of the Secretary) under this subsection is in addition
to any other applicable authority and does not limit other
authority provided by law or the Secretary.'';
(3) by redesignating subsection (e) as subsection (f); and
(4) in subsection (f), as so redesignated, by striking
``Secretary'' and inserting ``Secretary, or the Assistant
Secretary of Agriculture for Civil Rights (or the designee of
the Secretary)''.
SEC. 6. BURDEN OF PROOF FOR NATIONAL APPEALS DIVISION HEARINGS.
Section 277(c)(4) of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6997(c)(4)) is amended to read as follows:
``(4) Burden of proof.--The agency shall bear the burden of
proving by substantial evidence that the adverse decision of
the agency was valid.''.
SEC. 7. OFFICE OF THE CIVIL RIGHTS OMBUDSPERSON.
Title III of the Federal Crop Insurance Reform and Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 2231b et seq.) is
amended by adding at the end the following:
``SEC. 310. OFFICE OF THE CIVIL RIGHTS OMBUDSPERSON.
``(a) In General.--Not later than 120 days after the date of
enactment of this section, the Secretary shall establish an Office of
the Civil Rights Ombudsperson (in this section referred to as the
`Office') within the Department. The Office shall be independent of
Department agencies and offices.
``(b) Ombudsperson Designation.--The Secretary shall designate a
Civil Rights Ombudsperson (in this section referred to as the
`Ombudsperson') for the Office. The Ombudsperson shall be considered a
senior official of the Department and have a background in civil rights
enforcement.
``(c) Office Personnel.--The Ombudsperson shall appoint such
employees as are necessary to perform the functions of the Office and
for the administration of the Office.
``(d) Functions.--The functions of the Office shall be--
``(1) to assist producers and other customers of Department
programs in navigating the civil rights review process;
``(2) to ensure that participants (as defined in section
271) are aware of the appeals process under subtitle H of title
II, including informal hearings under section 275;
``(3) to promote awareness of the Office and its
responsibilities among producers and other customers of
Department programs; and
``(4) to raise issues and concerns with respect to, and
make recommendations to the Secretary about, equitable access
or implementation of Department programs.
``(e) Access to Information.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall establish procedures to provide the Office access to all
departmental records necessary to execute the functions of the
Office under subsection (d).
``(2) Timelines.--The procedures described in paragraph (1)
shall include a requirement that requests from the Office for
departmental records shall be fulfilled not later than 60 days
after the request is made.
``(f) Annual Report.--Beginning not later than 1 year after the
date of the enactment of this section, and annually thereafter, the
Ombudsperson shall prepare and submit to the House Committee on
Agriculture and the Senate Committee on Agriculture, Nutrition, and
Forestry a report on--
``(1) the activities carried out by the Office; and
``(2) the findings and recommendations of the Office with
respect to equitable access or implementation of Department
programs.
``(g) Authorization of Appropriations.--There is authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2026 through 2028.''.
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