The Food Deserts Act establishes a grant program providing funds to states to create revolving loan funds for grocery stores in underserved communities, aiming to increase access to healthy foods. It authorizes $150 million in appropriations for fiscal year 2026 to carry out the program.
André Carson
Representative
IN-7
The Food Deserts Act establishes a grant program providing funds to states to create revolving loan funds for grocery stores in underserved communities. These funds will offer loans to establish new grocery stores or support existing ones, emphasizing the availability of healthful foods at affordable prices. States will prioritize entities that hire locally, offer nutritional education, and source food from local farms. The Act allocates $150 million for fiscal year 2026 to carry out these provisions.
Food Deserts Act: $150M Boost for Grocery Stores in Underserved Areas Kicks Off in 2026
The Food Deserts Act sets up a $150 million grant program starting in fiscal year 2026 to help states fund grocery stores in areas with limited access to healthy food. It's all about getting fresh, affordable options into communities that need them, using a revolving loan system managed by each state.
Stocking Up on Health
This Act is designed to tackle the problem of "food deserts" by providing loans to grocery stores, both new and existing, in underserved communities. The catch? These stores need to focus on unprocessed, healthful foods, offering a wide range of fresh fruits and vegetables, and staple foods at fair prices (SEC. 2). Think less processed junk, more fresh produce. For example, a corner store could use this loan to expand its fresh produce section significantly, turning a snack stop into a real neighborhood resource. The Act prioritizes applicants who hire locally, offer nutrition education, and source from local urban farms (SEC. 2). A store partnering with a nearby urban garden to sell its produce could jump to the front of the line for funding.
Banking on Community
States get a chunk of the $150 million to set up their own revolving loan funds (SEC. 3 & 4). Each state will manage its fund, offering loans to eligible grocery stores. These aren't freebies – stores have to put up at least 20% of the loan amount themselves (SEC. 2) and have a solid plan to pay it back. Loan terms are flexible, potentially interest-free, and can stretch up to 30 years, but repayment starts within a year of getting the funds (SEC. 2). States can also charge a small fee (up to 4%) to cover their administrative costs. The Act specifically mentions that in case of bankruptcy, loan repayments from this fund get priority over other debts (SEC.2), which might make some lenders hesitant.
The Fine Print
It's worth noting that the definitions of "healthful food" and "underserved community" are tied to existing laws and guidelines (SEC. 5). "Healthful food" goes by the latest Dietary Guidelines for Americans, which can shift with new research or even political pressure. "Underserved community" is defined by another law (7 USC. 1932(g)(9)(A)), which might not perfectly capture every community that needs help. Also, while the bill emphasizes "unprocessed" foods, it doesn't clearly define that term, leaving room for interpretation. While the goal is clearly to improve access to nutritious food and boost local economies, the specific definitions and the loan repayment precedence could present some challenges down the road.