New ‘EAT Healthy’ Bill Authorizes $200M Annually to Buy Local Farm Produce for Food Banks

The “Expanding Access To Healthy Foods from Local Farmers Act”—or the “EAT Healthy Foods from Local Farmers Act”—is looking to tackle two problems at once: getting better food to people who need it and creating a reliable market for small-scale local farms. This bill sets up a new grant program allowing states to use federal money to buy food directly from specific small businesses and then distribute it through local food banks and pantries.

The Double-Duty Dollar: Feeding Families and Farmers

This isn't just another food assistance program; it’s a targeted procurement strategy. The bill authorizes $200 million annually, starting in 2026 and running through 2030, for states to run these projects. The money isn't just for any food; it’s for “priority agricultural products,” which means fruits, vegetables, meat, dairy, and other foods that states decide are appropriate, including those that are "culturally or religiously relevant" to the local community (SEC. 2).

Crucially, states can only buy from an “eligible entity.” This definition is the bill’s engine, requiring the seller to be a small business that is either underserved (like women-owned or veteran-owned) or sources from beginning farmers and small-to-mid-sized family farms. This means the federal dollars are deliberately bypassing the massive industrial agriculture supply chains and going straight to the smaller players who often struggle to find consistent buyers. For a small family farm, this represents a major opportunity to stabilize their business with a reliable, government-backed contract, moving their produce directly into the local community instead of relying solely on volatile wholesale markets.

How It Works on the Ground

For a state to get this funding, they have to submit a plan to the USDA detailing which small businesses they’ll buy from and which food banks will handle the distribution. The funds can only be used for three specific goals: improving supply chain resiliency, providing food to those in need, and building stronger relationships between the state, the small businesses, and the food banks (SEC. 2).

This means if you rely on a food pantry, you could start seeing more fresh, local produce, meat, and dairy that reflects your community’s needs—think specialty grains or specific cuts of meat that might be common in a local immigrant community but absent from standard food bank fare. For the food bank, this means better quality and more variety. For the local farmer, it means a guaranteed sale, which is the difference between surviving and thriving.

The USDA’s Internal Overhaul

Beyond the grant program, the bill mandates a significant internal shake-up at the USDA. It requires the Secretary of Agriculture to create a cross-agency working group dedicated to reviewing all USDA procurement of agricultural products (SEC. 3). The goal is clear: to shift departmental purchasing to support a wider range of producers, boost rural job creation, and—get this—work to “reversal of the concentration of ownership of resources for producing and distributing agricultural products.”

In plain English, the USDA is being told to rethink who they buy from and why. If successful, this could mean that federal dollars used for everything from school lunches to military bases could start flowing more consistently toward smaller, diverse producers. This is a subtle but powerful provision that aims to chip away at the dominance of a few massive agricultural corporations, which is a major factor in food price volatility and supply chain fragility. The working group must report annually on its progress, keeping the pressure on the department to actually follow through on these goals.