Regional food systems hubs

Subtitle A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) (as amended by section 3) is amended by adding at the end the following: 210C. Regional food systems hubs (a) Definitions In this section: (1) Beneficiary The term beneficiary means— (A) a farm, including a small and medium-sized farm; (B) an agribusiness; and (C) a food business. (2) Eligible entity The term eligible entity means— (A) a nonprofit organization; (B) an institution of higher education; and (C) a Tribal organization. (3) Hub The term Hub means a food systems hub established under subsection (b). (4) Secretary The term Secretary means the Secretary of Agriculture, acting through the Administrator of the Agricultural Marketing Service. (b) Establishment The Secretary shall enter into cooperative agreements with eligible entities, on a competitive basis, to establish— (1) not fewer than 10 regional food systems hubs, which shall collectively geographically cover all States, territories, and possessions of the United States; and (2) 1 intertribal food systems hub to provide assistance exclusively to Tribal producers and businesses nationally. (c) Purpose The purpose of a Hub is to provide localized assistance and market creation to beneficiaries to improve— (1) local and regional food supply chains and markets, including aggregation, distribution, and processing needs; and (2) local and regional food system economic development. (d) Activities (1) In general A Hub shall— (A) integrate the assistance and resources of the Department of Agriculture and other Federal agencies available to support beneficiaries; (B) provide direct business technical assistance to beneficiaries, including financial coaching, business planning, market development, succession planning, and accessing land and capital; (C) provide financial assistance to beneficiaries; (D) provide technical assistance to beneficiaries to create new, and expand or support existing, procurement opportunities from— (i) public agencies, including schools, child and senior centers, emergency food agencies participating in Department of Agriculture food programs, hospitals, correctional facilities, Department of Veterans Affairs hospitals, United States Armed Forces bases, food is medicine programs, and rural healthcare initiatives; and (ii) grocery retailers, aggregators, distributors, and other private institutions, such as institutions of higher education, prisons, and hospitals; and (E) carry out any other activities that facilitate the development of a resilient domestic food system, as determined by the Secretary. (2) Priorities A Hub shall prioritize providing services to— (A) beneficiaries that are owned or operated by, or partner with, underserved producers (as defined in section 210B(a)); and (B) recipients of assistance under other Department of Agriculture programs, including— (i) infrastructure grants (as defined in section 210B(a)) under the resilient food systems infrastructure program established under section 210B; and (ii) grants awarded directly to producers for the purpose of expanding markets. (3) Subawards (A) In general An eligible entity entering into a cooperative agreement under subsection (b) may provide subawards, including to contractors, to carry out the activities of the Hub established pursuant to the cooperative agreement. (B) Administrative costs An entity receiving a subaward under subparagraph (A) may use not more than 20 percent for administrative costs. (e) Limitation on administrative costs Of the amount that an eligible entity receives under a cooperative agreement under subsection (b) for a fiscal year, not more than 20 percent may be used for administrative costs. (f) Consultation In providing assistance, a Hub shall consult with— (1) the Small Business Administration; (2) the Department of Commerce; (3) the Economic Development Administration; (4) the Farm Credit Administration; and (5) relevant stakeholders in each State, territory, or other area in which the Hub provides assistance, including— (A) State departments of agriculture; (B) economic development commissions; (C) small business development centers; (D) private investment entities; (E) philanthropic entities; and (F) other relevant financial entities, such as independent bankers and community development financial institutions. (g) Reports Each Hub shall submit to the Secretary an annual report describing the activities of the Hub, including— (1) as a direct result of the activities of the Hub— (A) the amount of increased sales by beneficiaries; (B) the number of new markets accessed, including the number of new purchasing agreements with schools, food service companies, independent grocery wholesalers, hospital systems, and other entities; (C) the number of new on-farm activities initiated, such as value-added production, agritourism, new crops, or new practices of beneficiaries, as applicable; (D) the number of new customers of beneficiaries; and (E) the number of new jobs offered by beneficiaries; (2) the barriers to market participation faced by beneficiaries and potential remedies; and (3) such other matters as the Secretary determines to be appropriate. (h) Authorization of appropriations In addition to any other funds made available to carry out this section, there is authorized to be appropriated to the Secretary to carry out this section $75,000,000 for each of fiscal years 2027 through 2031, to remain available until expended..