This bill establishes a grant program through the USDA to fund domestic market development projects for U.S.-grown specialty crops, requiring a minimum 25% non-federal match.
David Valadao
Representative
CA-22
The Specialty Crop Domestic Market Promotion and Development Program Act of 2025 establishes a new federal grant program to boost the domestic market for U.S.-grown specialty crops. The Secretary of Agriculture will award funds to eligible organizations to execute approved marketing and development projects. Recipients must provide non-Federal matching funds and adhere to strict spending guidelines monitored through annual reviews and audits.
This bill, officially called the Specialty Crop Domestic Market Promotion and Development Program Act of 2025, sets up a new grant program designed to boost the market for specialty crops—think fruits, vegetables, tree nuts, and nursery crops—grown right here in the U.S. Starting in fiscal year 2026, the Secretary of Agriculture is authorized to spend $75 million annually to fund domestic marketing projects run by eligible organizations like agricultural trade groups, cooperatives, or state agencies.
The core idea is to get more people buying more American-grown produce. Organizations applying for these funds must submit a detailed marketing plan showing exactly how they plan to advertise and boost demand. They also have to promise that this federal money will be used to add to their existing promotional efforts, not just replace the money they’re already spending. This is a crucial check to ensure the grants actually expand market reach, rather than just subsidizing current operations.
One of the biggest practical takeaways for organizations is the matching fund requirement. To secure a grant, the recipient generally has to put up non-Federal funds equal to at least 25% of the grant amount. This money doesn't have to be cold hard cash; it can be ‘in-kind support,’ like donated time, resources, or services. This requirement encourages public-private partnership and ensures the organizations have a financial stake in the project’s success. While the Secretary can adjust this 25% requirement, they must provide a written explanation for doing so, which adds a layer of accountability but also gives the Secretary some flexibility.
The bill is very specific about who can and cannot benefit directly from these grants. Eligible organizations include U.S. trade groups, cooperatives, and state agencies focused on specialty crop promotion. The bill also allows the Secretary to approve private groups if they are deemed capable of significantly boosting domestic purchases. For example, a regional association of apple growers could use the funds to run a local campaign promoting ‘Buy Local’ apples in grocery stores and schools.
However, the bill draws a hard line against using federal dollars to subsidize large, for-profit corporations. Grant money cannot be used to give direct aid to most for-profit companies. The main exceptions are small businesses, cooperatives, and non-profit trade groups. This means the program is structured to help the growers and the organizations that represent them, rather than giving a direct promotional boost to a massive national supermarket chain or food distributor. Furthermore, none of the funds can be used to promote products grown outside the U.S., keeping the focus strictly domestic.
This isn't a simple handshake deal. If an organization gets multi-year funding, the Secretary must review their progress annually. Plus, starting 15 months after the first grant is awarded, the Secretary is required to monitor expenditures and evaluate whether the marketing plans are actually working to grow the market. If things look fishy, the Secretary has the power to demand an independent audit. This oversight mechanism is key: it ensures that the $75 million authorized annually is actually moving the needle for U.S. specialty crop producers, not just funding glossy brochures that end up in the recycling bin.