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H.R. 484: Food Deserts Act

The Food Deserts Act aims to address the issue of food deserts in the United States, which are areas where residents have limited access to affordable and nutritious food. Here’s a breakdown of the main elements of what the bill proposes:

1. Grant Program for States

The bill directs the Secretary of Agriculture to create a grant program through which States can obtain funds. These funds are meant to support the establishment and operation of grocery stores in underserved communities. Specifically, the program will provide:

Capitalization grants for states to create revolving funds.
Revolving funds that states can use to make loans for grocery store projects.

2. Purpose of Revolving Fund

The funds from the revolving fund can be used for various purposes, including:

Opening new grocery stores in underserved areas (note: funds cannot be used for new construction).
Supporting the operations of existing grocery stores.
Improving access to healthy food within these communities.

3. Eligibility Criteria for Loans

States can only provide loans to entities that meet specific criteria, such as:

Being a grocery store or planning to become one.
Emphasizing healthful, unprocessed foods and providing staple foods such as fruits and vegetables.
Maintaining affordable prices that are at or below market value.
Demonstrating qualifications to operate a grocery store or having partnerships for technical assistance.

4. Prioritization of Applications

States are encouraged to prioritize loan applications from entities that:

Hire local residents from the underserved community.
Offer classes on healthful diets.
Source food from local farms.
Have established connections with the grocery supply chain.

5. Loan Administration and Repayment

The bill also outlines how loans should be managed:

States will administer the revolving fund and ensure the loans are made at or below market interest rates, with the potential for interest-free loans.
Loans must be repaid with established sources of revenue within specified time frames.
States may charge a small administrative fee (up to 4% of the loan amount).

6. Technical Assistance

The Secretary of Agriculture is responsible for providing technical assistance to those receiving loans to help with food sourcing and operational needs.

7. Bankruptcy Provisions

In case a loan recipient files for bankruptcy, amounts owed from loans will take precedence over other debts.

8. Funding and Authorization

The bill authorizes the appropriation of $150 million for the fiscal year 2026 to support the program and its activities.

9. Definitions

The bill includes definitions for various key terms, such as:

Capitalization grant: A grant made to a State to fund the program.
Underserved community: Areas defined by limited access to healthy food options.
Revolving fund: A fund established by States specifically to support this initiative.

Relevant Companies

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This is an AI-generated summary of the bill text. There may be mistakes.

Actions

5 actions

Date	Action
Feb. 14, 2025	Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
Feb. 14, 2025	Referred to the Subcommittee on Nutrition and Foreign Agriculture.
Jan. 16, 2025	Introduced in House
Jan. 16, 2025	Referred to the House Committee on Agriculture.
Jan. 16, 2025	Sponsor introductory remarks on measure. (CR E41)

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