PolicyBrief
S. 2654
119th CongressAug 1st 2025
Biomanufacturing and Jobs Act of 2025
IN COMMITTEE

This Act strengthens federal procurement of biobased products, clarifies related definitions, and establishes a USDA task force to promote domestic biomanufacturing and rural economic growth.

Elissa Slotkin
D

Elissa Slotkin

Senator

MI

LEGISLATION

New Biomanufacturing Act Boosts Farm Demand, Cracks Down on Fake ‘Biobased’ Labels

If you’ve ever wondered where your corn and soybeans go besides your dinner plate, this bill is for you. The Biomanufacturing and Jobs Act of 2025 is essentially a massive federal push to turn more American crops into industrial products—think paints, plastics, building materials, and clothing—made right here in the U.S. The goal is straightforward: create new markets for farmers, boost rural economies, and swap out petroleum-based products for stuff grown on a farm. The bill aims to make the federal government buy more of these biobased products every year, starting now, while also tightening up the rules to make sure those labels on the shelf are telling the truth.

The Government’s New Shopping List: What It Means for Farmers

This Act is designed to be a demand driver. The existing USDA BioPreferred Program, which encourages the purchase of these products, is getting a serious upgrade. Federal agencies will now have to increase the volume or number of contracts for biobased products annually. This means a guaranteed, growing customer base for manufacturers who turn agricultural materials into commercial goods. For the farmer, this translates into more market stability and demand for crops like corn, soybeans, and forestry materials that can be used in manufacturing, not just food. To make sure agencies actually follow through, the bill mandates detailed annual reporting on their purchasing, requiring them to explain why they missed their targets if they fall short. Furthermore, within two years, every federal contracting officer and purchase card manager must be trained on how to buy these items, which should cut down on the excuses for not prioritizing biobased goods.

Wait, What’s a ‘Bio-Attributed Plastic’ Now?

One of the biggest changes involves clarifying the language around green products, which is necessary to prevent greenwashing. The bill adds several new definitions to the books, including “Bio-attributed Plastic” and “Bioproduct.” Essentially, the USDA is drawing a clearer line between products made directly from renewable farm materials (the traditional “biobased” product) and those where biological materials were used somewhere earlier in the complex manufacturing chain (the “bio-attributed” product). This might sound like policy wonk talk, but it’s crucial for accountability. If a company slaps a “plant-based” label on their packaging, they now have to meet the specific legal definitions laid out in this law. Section 6 makes it explicitly illegal to sell or label a product using terms like “Renewable biomass” or “Biobased product” if it doesn't meet the required standards, meaning companies that cheat the system will face stricter enforcement. This is great news for consumers who want to trust the labels they see.

Putting the USDA’s House in Order

The bill also sets up a Biobased Task Force within the USDA for a four-year run. This isn't just another committee; its job is to coordinate all the USDA's efforts—from research to marketing—to make sure they are maximized. The Task Force, led by the rural development mission area, will study existing USDA programs to see how they can be better utilized to promote these products. While this task force is exempt from standard federal advisory committee rules, its findings and recommendations must be reported to Congress within three years. This focus on coordination suggests the USDA is serious about making biobased manufacturing a central part of its economic strategy, potentially unlocking new funding and research opportunities for rural businesses.

The Fine Print: Regulatory Power and Oversight

While the bill is overwhelmingly aimed at boosting domestic manufacturing and agriculture, there are a few provisions that grant significant regulatory discretion. Section 3 and Section 6 give the Secretary the power to determine if a product qualifies as “Bio-attributed” and even allows them to create “alternate definitions” for labeling enforcement. This means the Secretary has a lot of control over who gets to use the coveted biobased labels. As long as this power is used transparently, it’s a necessary tool for enforcement, but it’s a lot of authority concentrated in one place. Finally, to help fund outreach, Section 4 allows the USDA to accept non-Federal donations and use them immediately without needing further Congressional approval. This could be a fast way to fund promotional campaigns, but it also warrants careful oversight to ensure transparency in who is donating and how the funds are spent.