New Markets for Farmers and Families Act
- Sponsor
- Rep. Underwood, Lauren [D-IL-14]
- Committees
- Agriculture Committee (primary)
- Last action
- May 20, 2026
Bottom line
The bill doubles the authorized funding for local food promotion programs for several years, prioritizes new farmers' markets, and reduces financial barriers for certain grant recipients.
What it actually does
This bill reauthorizes and significantly increases funding for the Farmers' Markets and Local Food Promotion Program. It raises the annual authorization from $50 million to $100 million through fiscal year 2026, and then sets it at $50 million for fiscal year 2027 and beyond. The bill also waives matching fund requirements for certain priority grants and reserves 30% of funding for new farmers' markets, while adding new reporting requirements for program oversight.
Proponents argue
Supporters argue this bill will significantly boost local food systems, making fresh, healthy food more accessible, especially in underserved communities. The increased funding and reduced matching requirements will empower more communities and new farmers' markets to participate, fostering economic growth for local producers and improving public health.
Opponents contend
Critics might contend that the substantial increase in authorized spending contributes to federal budget expansion without sufficient justification, especially given the potential for funds to be reallocated if priority grants are undersubscribed. Concerns could also be raised about the long-term sustainability of projects that do not require local matching funds.
The bill is short and clear, allowing for a quick and thorough understanding of its provisions.
Section 2(a)
Matching Funds Exception for Priority Grants
This provision amends the Agricultural Marketing Act of 1946 to modify the matching funds requirement for entities receiving grants under the Farmers' Markets and Local Food Promotion Program. While a general 25% matching fund (cash or in-kind) is still required, this bill creates an exception, waiving the matching fund requirement for eligible entities carrying out specific priority grants. These priority grants typically target underserved communities or address particular food access challenges.
Supporters argue
Supporters argue that waiving matching funds for priority grants removes a significant barrier for smaller, community-based organizations, particularly those in underserved areas, to access federal funding. This ensures that critical local food initiatives can proceed without being hindered by fundraising challenges.
Critics contend
Some might argue that matching funds ensure local commitment and investment in projects, and waiving them could lead to less sustainable initiatives or a perception of reduced local ownership. However, no specific organized opposition is typically raised against this provision, as it targets equity.
Tradeoffs
The provision balances the goal of increasing access to funding for underserved communities against the principle of local financial commitment and shared responsibility for project success.
Section 2(b)
Program Reauthorization and Funding Increase
This section significantly reauthorizes and increases the funding for the Farmers' Markets and Local Food Promotion Program. It raises the annual authorization from $50,000,000 to $100,000,000 for fiscal years 2019 through 2026. For fiscal year 2027 and each year thereafter, the authorization is set at $50,000,000, to remain available until expended. Additionally, 30% of the annual funding is reserved for priority grants aimed at entities establishing new farmers' markets, especially those that have not received a grant in the preceding three years.
Section 2(c)
Program Reporting Requirements
This section mandates two new reports related to the Farmers' Markets and Local Food Promotion Program. Within three years of enactment, the Secretary of Agriculture must publicly report on the number of grant applications received, how many were from new applicants, and how many met priority grant requirements. Concurrently, the Inspector General of the Department of Agriculture must publicly report on any fraud or abuse in the program and assess the effects of the matching funds amendment on program participation.
This clause allows the Secretary of Agriculture to use funds reserved for priority grants (specifically for new farmers' markets by new applicants) for other general grants if applications for these priority grants are insufficient in number or merit in a given fiscal year.
Section 2(b)(3)
Why it matters:This is a common legislative practice to provide administrative flexibility, ensuring that authorized funds can still be utilized even if specific, highly targeted program goals are not fully met in a given year, rather than letting funds go unspent.
Case for: Proponents argue this flexibility is crucial for efficient program management, preventing funds from being wasted or unspent if the demand for specific priority grants doesn't materialize. It ensures that the overall program can still benefit from the authorized funding.
Case against: Critics might argue that this clause could undermine the explicit intent to prioritize new farmers' markets in underserved areas. If frequently invoked, it could lead to a diversion of funds from the bill's stated equity goals towards more general program activities, potentially diluting the impact on new market development.
Estimated impact: Could potentially shift up to 30% of the program's annual funding (up to $30 million in some years) away from new farmers' market initiatives if the Secretary determines applications are insufficient.