New, mobile, and expanded meat and poultry processing and rendering grants

(a) Definitions In this section: (1) Eligible entity The term eligible entity means— (A) a public, private, or cooperative organization organized on a for-profit or nonprofit basis, including a small establishment and very small establishment; (B) an Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)); (C) a land-grant college or university (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); (D) a non-land-grant college of agriculture (as defined in that section); and (E) a State department of agriculture or other applicable State office with authority over meat and poultry processing and rendering. (2) Small establishment; very small establishment The terms small establishment and very small establishment have the meanings given the terms small establishment and very small establishment, respectively, in the final rule entitled Pathogen Reduction; Hazard Analysis and Critical Control Point (HACCP) Systems (61 Fed. Reg. 38806 (July 25, 1996)) (or successor regulations). (b) Purposes The purposes of this section are— (1) to create more resilient local and regional food systems; (2) to expand, diversify, and increase resilience in meat and poultry processing and rendering activities; (3) to increase farmer and rancher access to animal slaughter options; (4) to improve compliance of processors with livestock and poultry processing statutes (including regulations), including the Federal Meat Inspection Act (21 U.S.C. 601 et seq.) and the Poultry Products Inspection Act (21 U.S.C. 451 et seq.); (5) to reduce barriers to entry for new meat and poultry processors and renderers; (6) to establish new, or update, expand, or otherwise improve existing, meat and poultry processing and rendering facilities; and (7) to support the processing and slaughtering of niche production methods such as halal, kosher, and other specific cultural methods. (c) Grants (1) In general The Secretary shall award grants to eligible entities to use in accordance with subsection (e). (2) Maximum amount The maximum amount of a grant awarded under paragraph (1) shall not exceed $500,000. (3) Duration The term of a grant awarded under paragraph (1) shall not exceed 3 years. (4) Priority In awarding grants under paragraph (1), the Secretary shall give priority to small establishments and very small establishments. (d) Applicant requirements (1) Small and very small establishments In awarding grants under this section to a small establishment or very small establishment that has been in operation for less than 2 years, the Secretary shall ensure the establishment has the financial viability and managerial capacity necessary to carry out the activities described in subsection (e). (2) Eligible entities In awarding grants under this section to any eligible entity, the Secretary shall ensure the eligible entity demonstrates experience in carrying out activities in support of the purposes described in subsection (b), including activities described in subsection (e). (e) Use of funds An eligible entity receiving a grant under this section shall use the grant to carry out activities in support of the purposes described in subsection (b), including activities— (1) to identify and analyze business opportunities, including feasibility studies required for credit worthiness; (2) to achieve compliance with applicable Federal, State, or local regulations; (3) to conduct regional, community, and local economic development planning and coordination and leadership development; (4) to incentivize new, innovative, or mobile enterprises for increasing or improving local and regional meat or poultry processing and rendering; (5) to implement humane handling infrastructure, including holding space for livestock and poultry prior to slaughter, shade structures, and structures and equipment for humane slaughter; (6) to develop a feasibility study or business plan for, or carry out any other activity associated with, establishing or expanding a meat or poultry slaughter, processing, or rendering facility; (7) to purchase equipment that enables the further use or value-added sale of coproducts or byproducts; and (8) to purchase cold storage and related equipment. (f) Federal share The Federal share of the activities carried out using a grant awarded under this section shall not exceed— (1) 90 percent in the case of a grant in the amount of $100,000 or less; or (2) 75 percent in the case of a grant in an amount greater than $100,000. (g) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this section $25,000,000 for each of fiscal years 2027 through 2031.