119-hr4529

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4529 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4529

To increase market access for Black farmers and socially disadvantaged 
 farmers and ranchers, to ensure civil rights accountability, and for 
 other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 July 17, 2025

 Mr. David Scott of Georgia (for himself, Mr. Jackson of Illinois, Ms. 
Adams, Mr. Bishop, Ms. Brown, Mr. Carson, Mr. Carter of Louisiana, Mr. 
 Cohen, Mr. Fields, Mr. Figures, Mr. Johnson of Georgia, Ms. Kelly of 
 Illinois, Ms. McClellan, Ms. Sewell, Mr. Soto, Ms. Strickland, Mr. 
 Thanedar, Ms. Tokuda, Ms. Waters, Ms. Williams of Georgia, Ms. Wilson 
 of Florida, and Mrs. Watson Coleman) introduced the following bill; 
which was referred to the Committee on Agriculture, and in addition to 
 the Committee on Ways and Means, for a period to be subsequently 
 determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

 A BILL

To increase market access for Black farmers and socially disadvantaged 
 farmers and ranchers, to ensure civil rights accountability, and for 
 other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Black Farmers and Socially 
Disadvantaged Farmers Increased Market Share Act''.

SEC. 2. FOOD HUB GRANTS TO INCREASE MARKET ACCESS FOR SOCIALLY 
 DISADVANTAGED FARMERS AND RANCHERS.

    (a) 

=== Definitions. ===
-In this section:

    (1) Agricultural food product.--The term ``agricultural 
 food product'' means a raw, cooked, or a processed edible 
 substance, beverage, or ingredient produced and otherwise 
 prepared for sale in the United States (including any insular 
 area (as defined in 

section 1404 of the National Agricultural, 
 Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
 3103))), derived from one or more agricultural commodities of 
 United States origin, and used or intended for use or for sale 
 in whole or in part for human consumption.

    (2) Donated food.--The term ``donated food'' has the 
 meaning given the term in 

section 250.2 of title 7 of the Code 
 of Federal Regulations (or any successor regulation).

    (3) Eligible entity.--The term ``eligible entity'' means--
        (A) an entity formed by two or more agricultural 
 producers, not less than half of whom are members of a 
 socially disadvantaged group; or
        (B) a non-profit organization or Tribal 
 organization with demonstrated experience working with 
 socially disadvantaged farmers or ranchers.

    (4) Eligible partner.--The term ``eligible partner'' means 
 a non-profit organization, a State cooperative extension 
 service or a college or university (as such terms are defined 
 in 

section 1404 of the National Agricultural Research, 
 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)), 
 Tribal organization, or other State or local government 
 entities with demonstrated experience in providing assistance 
 such as grants management, technical assistance, and business 
 plan development, to agricultural producers.

    (5) Food hub.--The term ``food hub'' means a business or 
 organization that actively manages the aggregation, 
 distribution, and marketing of source-identified agricultural 
 food products from producers for wholesale, retail, or 
 institutional markets.

    (6) Secretary.--The term ``Secretary'' means the Secretary 
 of Agriculture.

    (7) Socially disadvantaged farmer or rancher.--The term 
 ``socially disadvantaged farmer or rancher'' has the meaning 
 given the term in 

section 2501

    (a) of the Food, Agriculture, 
 Conservation, and Trade Act of 1990 (7 U.S.C. 2279

    (a) ).

    (8) Socially disadvantaged group.--The term ``socially 
 disadvantaged group'' has the meaning given the term in 

section 2501

    (a) of the Food, Agriculture, Conservation, and Trade Act 
 of 1990 (7 U.S.C. 2279

    (a) ).

    (9) Tribal organization.--The term ``Tribal organization'' 
 has the meaning given the term in 

section 3 of the Food and 
 Nutrition Act of 2008 (7 U.S.C. 2012).

    (b) Grants To Increase Market Access.--

    (1) In general.--The Secretary shall establish a program to 
 make grants on a competitive basis to eligible entities to 
 support new or expanding food hubs designed to increase market 
 access for socially disadvantaged farmers and ranchers, but may 
 also increase market access for other farmers and ranchers.

    (2) Use of funds.--An eligible entity selected to receive a 
 grants under this subsection may use grants funds--
        (A) to purchase and develop land, buildings, and 
 associated infrastructure for commercial or industrial 
 properties, including expansion or modernization, for 
 use in processing, distributing, aggregating, storing, 
 transporting, or marketing agricultural food products;
        (B) to construct or equip facilities for use in 
 processing, distributing, aggregating, storing, 
 transporting, or marketing agricultural food products;
            (C) to purchase machinery and equipment for use in 
 processing, distributing, aggregating, storing, 
 transporting, or marketing agricultural food products;
            (D) for general operating expenses directly related 
 to a food hub, including planning and development 
 related to the establishment or expansion of any food 
 hub;
        (E) to provide marketing services for agricultural 
 food products, including providing platforms (such as 
 electronic or web-based platforms) for sales, 
 inventory, and aggregation; and
        (F) to conduct other activities supporting the 
 development or expansion of a food hub, as determined 
 by the Secretary.

    (3) Application.--
        (A) In general.--An eligible entity seeking a grant 
 under this subsection shall submit to the Secretary an 
 application that contains--
            (i) a description of the activities the 
 eligible entity will carry out to support one 
 or more new or existing food hubs, including a 
 plan for each such food hub to process, 
 distribute, store, or market agricultural food 
 products for wholesale, retail, or 
 institutional markets;
            (ii) a description of the ways in which 
 each such food hub that the eligible entity is 
 proposing to establish or expand is designed to 
 increase market access for socially 
 disadvantaged farmers or ranchers;
            (iii) except as provided in subparagraph
        (B) , a description of the eligible entity's 
 demonstrated competency to develop and manage 
 each such food hub, provide fiscal 
 accountability, collect data, and prepare 
 reports and other necessary documentation; and
            (iv) any other information, as determined 
 by the Secretary.
        (B) Requirement to include eligible partners.--An 
 eligible entity that does not have one or more of the 
 demonstrated competencies described in clause
            (iii) of 
 subparagraph
        (A) shall submit to the Secretary in its 
 application--
            (i) a list of one or more eligible partners 
 such eligible entity is partnering with;
            (ii) the responsibilities of each eligible 
 partner in supporting such eligible entity; and
            (iii) a description of the demonstrated 
 competencies of the eligible partner or 
 partners in performing such responsibilities.
            (C) Eligible entities serving as eligible 
 partners.--An eligible entity specified in subparagraph
        (B) of subsection

    (a)

    (3) seeking a grant under this 
 section may serve as an eligible partner for other 
 eligible entities in one or more grant applications 
 under this subsection.

    (4) Priority.--In making grants under this subsection, the 
 Secretary may give priority to grant applications for food hubs 
 that--
        (A) benefit underserved communities, as defined in 
 

section 310B

    (g)

    (9)
        (A)
            (ii) of the Consolidated Farm and 
 Rural Development Act (7 U.S.C. 1932

    (g)

    (9)
        (A)
            (ii) );
        (B) aggregate, distribute, and market agricultural 
 food products that meet the standards for donated 
 foods, as determined by the Secretary; or
            (C) have not been awarded a Department of 
 Agriculture grant, including a grant under 

section 210A 
 of the Agricultural Marketing Act of 1946 (7 U.S.C. 
 1627c), in the preceding or current fiscal year.

    (5) Maximum grant term.--The term of a grant under this 
 subsection may not exceed 5 years.

    (6) No matching funds.--An eligible entity receiving a 
 grant under this section shall not be required to provide non-
 Federal matching funds with respect to such grant.
            (c) Prioritizing Purchases for USDA Domestic Food Assistance 
Programs.--

    (1) In general.--The Secretary shall establish a process--
        (A) to prioritize the purchase of agricultural food 
 products from socially disadvantaged farmers and 
 ranchers, including from food hubs developed or 
 expanded under this section, for use in Department of 
 Agriculture programs that distribute agricultural food 
 products within the United States (including any 
 insular area (as defined in 

section 1404 of the 
 National Agricultural, Research, Extension, and 
 Teaching Policy Act of 1977 (7 U.S.C. 3103))); and
        (B) that is designed to account for barriers to 
 market entry faced by socially disadvantaged farmers 
 and ranchers while maintaining the integrity of the 
 purchasing process established under this subsection, 
 including ensuring that any entity that is suspended or 
 debarred from participation in any Federal program is 
 not eligible to participate in the purchasing process 
 established under this subsection.

    (2) Waivers.--
        (A) In general.--In establishing the process 
 described in paragraph

    (1) , the Secretary may provide 
 for the waiver of the full and open competition 
 procedures for the award of Federal contracts, 

section 3324 of title 31, United States Code, and 

section 725 
 of the Agriculture, Rural Development, Food and Drug 
 Administration, and Related Agencies Appropriations 
 Act, 2001 (7 U.S.C. 2209f), if the Secretary identifies 
 requirements under such sections and procedures as 
 presenting barriers to market entry for socially 
 disadvantaged farmers and ranchers.
        (B) Notification.--Not later than 10 days after 
 providing for any waiver under subparagraph
        (A) , the 
 Secretary shall notify the Committee on Agriculture of 
 the House of Representatives and the Committee on 
 Agriculture, Nutrition, and Forestry of the Senate of 
 such waivers and provide a description of how such 
 waivers would address barriers to market entry for 
 socially disadvantaged farmers and ranchers for a 
 particular agricultural food product.
            (d) Reports.--Not later than December 31, 2026, and each December 
thereafter until the completion of the grants awarded under subsection

    (b) , the Secretary shall make publicly available on the Department of 
Agriculture's website and submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate, a report that includes--

    (1) a description of the status of each grant awarded under 
 subsection

    (b) ;

    (2) the number of socially disadvantaged farmers and 
 ranchers participating in the food hub supported by such grant 
 in the previous fiscal year;

    (3) to the maximum extent practicable, the amount of 
 agricultural food products produced by socially disadvantaged 
 farmers and ranchers processed, distributed, aggregated, 
 stored, or marketed by the food hub supported by such grant in 
 the previous fiscal year; and

    (4) the total amount of donated food purchased by the 
 Secretary from food hubs supported with grants awarded under 
 this section in the previous fiscal year.

    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out subsection

    (b) $100,000,000 for fiscal year 
2026, to remain available until expended.

SEC. 3. AGRICULTURE HUB CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``

SEC. 45U. AGRICULTURE HUB CREDIT.

 ``

    (a) In General.--For purposes of 

section 38, the agriculture hub 
credit determined under this section for any taxable year is an amount 
equal to 25 percent of the qualified food hub expenses for the taxable 
year.
 ``

    (b) Qualified Food Hub Expenses.--For purposes of this section, 
the term `qualified food hub expenses' means amounts paid or incurred 
by the taxpayer during the taxable year--
 ``

    (1) for agricultural food products from a food hub 
 developed or expanded under 

section 2 of the Black Farmers and 
 Socially Disadvantaged Farmers Increased Market Share Act, and
 ``

    (2) in accordance with a contract certified by the 
 Secretary of Agriculture under 

section 3
            (c) of the Black 
 Farmers and Socially Disadvantaged Farmers Increased Market 
 Share Act.
 ``
            (c) Food Hub.--The term `food hub' has the meaning given such 
term in 

section 2 of the Black Farmers and Socially Disadvantaged 
Farmers Increased Market Share Act.
 ``
            (d) Termination.--This section shall not apply to taxable years 
beginning after the Secretary determines the grant program under 

section 2 of the Black Farmers and Socially Disadvantaged Farmers 
Increased Market Share Act has ended.''.

    (b) Conforming Amendments.--

    (1) Section 38

    (b) of the Internal Revenue Code of 1986 is 
 amended--
        (A) in paragraph

    (32) , by striking ``plus'' at the 
 end,
        (B) in paragraph

    (33) , by striking the period at 
 the end and inserting ``, plus'', and
            (C) by adding at the end the following new 
 paragraph:
 ``

    (34) the agriculture hub credit determined under 

section 45U

    (a) .''.

    (2) The table of sections for subpart D of part IV of 
 subchapter A of chapter 1 of such Code is amended by adding at 
 the end the following new item:

``

Sec. 45U. Agriculture hub credit.''.

    (3) Section 280C of such Code is amended by adding at the 
 end the following new subsection:
 ``
            (i) Agriculture Hub Credit.--Any deduction or other credit 
otherwise allowable with respect to an expense for which a credit is 
allowed under 

section 45U

    (a) shall be reduced by the amount of the 
credit under 

section 45U

    (a) with respect to such expense. If a credit 
is allowed under 

section 45U

    (a) with respect to property of a kind 
which would properly be included in the inventory of the taxpayer if on 
hand at the close of the taxable year or property held by the taxpayer 
primarily for sale to customers in the ordinary course of the trade or 
business of such taxpayer, opening inventory or purchases shall be 
reduced by the amount of the credit so allowed.''.
            (c) Certification Process.--Not later than 1 year after the date of 
enactment of this section, the Secretary of Agriculture shall issue 
regulations to establish a process to certify, at the request of 
entities seeking an agriculture hub credit 

section 45U of the Internal 
Revenue Code of 1986, as added by subsection

    (b) , that a contract under 
which expenditures referred to in such 

section 45U are made--

    (1) is not between related parties;

    (2) is the result of arm's length negotiations; and

    (3) meets any other requirements, as determined by the 
 Secretary of Agriculture, in consultation with the Secretary of 
 Treasury.
            (d) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred in taxable years beginning after 
December 31, 2025.

SEC. 4. CIVIL RIGHTS ACCOUNTABILITY FOR USDA EMPLOYEES.

    (a) In General.--The Secretary of Agriculture shall ensure that 
officials and employees of the Department of Agriculture are held 
accountable in accordance with subsection

    (b) if, while in the course 
of their employment or in administering a Department of Agriculture 
program, such officials and employees are found to have engaged in any 
discriminatory actions, retaliatory actions, harassment, civil rights 
violations, or related misconduct, including any such actions or 
misconduct involving any of the following:

    (1) Failure to provide a receipt for service in accordance 
 with 

section 2501A

    (e) of the Food, Agriculture, Conservation or 
 Trade Act of 1990 (7 U.S.C. 2279-1

    (e) ) to any current or 
 prospective applicants of or participants in Department of 
 Agriculture programs.

    (2) Providing an inaccurate receipt for service under such 
 

section 2501A

    (e) to any current or prospective applicants of or 
 participants in Department of Agriculture programs.

    (3) Failure to provide appropriate information regarding 
 relevant programs and services at the Department of 
 Agriculture, when requested by any current or prospective 
 applicants of or participants in Department of Agriculture 
 programs.

    (4) Failure to timely process applications or otherwise 
 delaying program services to any current or prospective 
 applicants of or participants in, Department of Agriculture 
 programs.

    (b) Taking Corrective Action.--The Secretary shall ensure that 
appropriate corrective action is taken with respect to any official or 
employee of the Department of Agriculture who has been found to have 
engaged in any of the actions, violations, or misconduct referred to in 
subsection

    (a) while in the course of such official's or employee's 
employment or in administering a Department of Agriculture program--

    (1) in any administrative finding by the Department of 
 Agriculture, including any final agency decision issued by the 
 Assistant Secretary of Agriculture for Civil Rights and any 
 civil rights compliance review or misconduct investigation 
 conducted by the Department of Agriculture;

    (2) in any administrative or judicial proceeding;

    (3) in any civil rights settlement;

    (4) in any audit or investigation conducted by the Office 
 of the Inspector General of the Department of Agriculture; or

    (5) in any investigation conducted by the Office of the 
 Special Counsel.
            (c) Corrective Action Defined.--In this section, the term 
``corrective action'' means any action taken to respond to any of the 
actions, violations, or misconduct referred to in subsection

    (a) that--

    (1) would enhance civil rights at the Department of 
 Agriculture, including any policy or programmatic changes to 
 prevent similar misconduct from occurring in the future; and

    (2) may include disciplinary actions, including--
        (A) removal from Federal service;
        (B) suspension without pay;
            (C) any reduction in grade or pay; and
            (D) letter of reprimand.

SEC. 5. EQUITABLE RELIEF.

    (a) Equitable Relief From Ineligibility for Loans, Payments, or 
Other Benefits.--

Section 1613 of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 7996) is amended--

    (1) by redesignating subsections

    (f) through

    (j) as 
 subsections

    (g) through

    (k) , respectively;

    (2) by inserting after subsection

    (e) the following:
 ``

    (f) Equitable Relief by the Assistant Secretary of Agriculture 
for Civil Rights.--
 ``

    (1) In general.--The Assistant Secretary of Agriculture 
 for Civil Rights (or a designee of the Secretary in the Office 
 of the Assistant Secretary for Civil Rights, if no Assistant 
 Secretary of Agriculture for Civil Rights is confirmed in 
 accordance with 

section 218

    (b) of the Department of Agriculture 
 Reorganization Act of 1994 (7 U.S.C. 6918

    (b) )) may grant relief 
 in accordance with subsections

    (b) through
            (d) to a participant 
 who files a civil rights program complaint.
 ``

    (2) Decisions.--The decision by the Assistant Secretary 
 of Agriculture for Civil Rights (or the designee of the 
 Secretary) to grant relief under this subsection shall not 
 require prior approval by any officer or employee of the 
 Department of Agriculture.
 ``

    (3) Other authority.--The authority provided to the 
 Assistant Secretary of Agriculture for Civil Rights (or the 
 designee of the Secretary) under this subsection is in addition 
 to any other applicable authority and does not limit other 
 authority provided by law or the Secretary.'';

    (3) in subsection

    (g) , as so redesignated, by striking ``or 
 the State Conservationist'' and inserting ``the State 
 Conservationist, or the Assistant Secretary of Agriculture for 
 Civil Rights (or the designee of the Secretary)''; and

    (4) in paragraph

    (1) of subsection

    (h) , as so redesignated, 
 by striking ``and

    (e) '' and inserting ``

    (e) , and

    (f) ''.

    (b) Equitable Relief for Actions Taken in Good Faith.--

Section 366 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008a) is 
amended--

    (1) by amending subsection

    (b) to read as follows:
 ``

    (b) Limitation.--The Secretary may only provide relief to a 
farmer or rancher under subsection

    (a) if the Secretary determines that 
the farmer or rancher--
 ``

    (1) acting in good faith, relied on an action of, or the 
 advice of, the Secretary (including any authorized 
 representative of the Secretary) to the detriment of the 
 farming or ranching operation of the farmer or rancher; or
 ``

    (2) failed to comply fully with the requirements of a 
 program described in subsection

    (a)

    (1) , but made a good faith 
 effort to comply with the requirements.'';

    (2) by inserting after subsection
            (d) the following:
 ``

    (e) Equitable Relief by the Assistant Secretary of Agriculture 
for Civil Rights.--
 ``

    (1) In general.--The Assistant Secretary of Agriculture 
 for Civil Rights (or a designee of the Secretary in the Office 
 of the Assistant Secretary for Civil Rights, if no Assistant 
 Secretary of Agriculture for Civil Rights is confirmed in 
 accordance with 

section 218

    (b) of the Department of Agriculture 
 Reorganization Act of 1994 (7 U.S.C. 6918

    (b) )) may grant relief 
 in accordance with subsections

    (a) through
            (d) to an individual 
 who files a civil rights program complaint.
 ``

    (2) Decisions.--The decision by the Assistant Secretary 
 of Agriculture for Civil Rights (or the designee of the 
 Secretary) to grant relief under this subsection shall not 
 require prior approval by any officer or employee of the 
 Department of Agriculture.
 ``

    (3) Other authority.--The authority provided to the 
 Assistant Secretary of Agriculture for Civil Rights (or the 
 designee of the Secretary) under this subsection is in addition 
 to any other applicable authority and does not limit other 
 authority provided by law or the Secretary.'';

    (3) by redesignating subsection

    (e) as subsection

    (f) ; and

    (4) in subsection

    (f) , as so redesignated, by striking 
 ``Secretary'' and inserting ``Secretary, or the Assistant 
 Secretary of Agriculture for Civil Rights (or the designee of 
 the Secretary)''.

SEC. 6. BURDEN OF PROOF FOR NATIONAL APPEALS DIVISION HEARINGS.

 

Section 277
            (c) (4) of the Department of Agriculture Reorganization 
Act of 1994 (7 U.S.C. 6997
            (c) (4) ) is amended to read as follows:
 ``

    (4) Burden of proof.--The agency shall bear the burden of 
 proving by substantial evidence that the adverse decision of 
 the agency was valid.''.

SEC. 7. OFFICE OF THE CIVIL RIGHTS OMBUDSPERSON.

 Title III of the Federal Crop Insurance Reform and Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 2231b et seq.) is 
amended by adding at the end the following:

``

SEC. 310. OFFICE OF THE CIVIL RIGHTS OMBUDSPERSON.

 ``

    (a) In General.--Not later than 120 days after the date of 
enactment of this section, the Secretary shall establish an Office of 
the Civil Rights Ombudsperson (in this section referred to as the 
`Office') within the Department. The Office shall be independent of 
Department agencies and offices.
 ``

    (b) Ombudsperson Designation.--The Secretary shall designate a 
Civil Rights Ombudsperson (in this section referred to as the 
`Ombudsperson') for the Office. The Ombudsperson shall be considered a 
senior official of the Department and have a background in civil rights 
enforcement.
 ``
            (c) Office Personnel.--The Ombudsperson shall appoint such 
employees as are necessary to perform the functions of the Office and 
for the administration of the Office.
 ``
            (d) Functions.--The functions of the Office shall be--
 ``

    (1) to assist producers and other customers of Department 
 programs in navigating the civil rights review process;
 ``

    (2) to ensure that participants (as defined in 

section 271) are aware of the appeals process under subtitle H of title 
 II, including informal hearings under 

section 275;
 ``

    (3) to promote awareness of the Office and its 
 responsibilities among producers and other customers of 
 Department programs; and
 ``

    (4) to raise issues and concerns with respect to, and 
 make recommendations to the Secretary about, equitable access 
 or implementation of Department programs.
 ``

    (e) Access to Information.--
 ``

    (1) In general.--Subject to paragraph

    (2) , the Secretary 
 shall establish procedures to provide the Office access to all 
 departmental records necessary to execute the functions of the 
 Office under subsection
            (d) .
 ``

    (2) Timelines.--The procedures described in paragraph

    (1) shall include a requirement that requests from the Office for 
 departmental records shall be fulfilled not later than 60 days 
 after the request is made.
 ``

    (f) Annual Report.--Beginning not later than 1 year after the 
date of the enactment of this section, and annually thereafter, the 
Ombudsperson shall prepare and submit to the House Committee on 
Agriculture and the Senate Committee on Agriculture, Nutrition, and 
Forestry a report on--
 ``

    (1) the activities carried out by the Office; and
 ``

    (2) the findings and recommendations of the Office with 
 respect to equitable access or implementation of Department 
 programs.
 ``

    (g) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2026 through 2028.''.
 <all>