H.R. 6706 — EFFECTIVE Food Procurement Act

This section provides a short title for the Act as the “Enabling Farmer, Food worker, Environmental, and Climate Targets through Innovative, Values-aligned, and Equitable Food Procurement Act” or the “EFFECTIVE Food Procurement Act”.

This section states congressional findings that the Department of Agriculture, as one of the world's largest food purchasers, has the responsibility and opportunity to promote a more just, healthy, and sustainable food system by purchasing foods that support (1) regional and resilient food economies, (2) worker well-being, (3) a safe and healthy environment, (4) equity and inclusion, (5) fairness for family farms, fishing businesses, and ranches, and (6) animal welfare.

This section establishes definitions for 16 terms used in the Act. Among them are "(1) beginning farmer, fisherman, or rancher," as a person who has not operated (or has operated for not more than 10 years) a farm, fishing business, or ranch and meets other Secretary of Agriculture criteria; "(2) covered authority," meaning specified USDA purchasing authorities (e.g., section 32 of the Act of August 24, 1935 (7 U.S.C. 612c)); "(3) covered entity," as a nonprofit or for-profit processor, distributor, or food hub sourcing at least 51% of its value from covered producers; "(4) covered producer," including a beginning, veteran, socially disadvantaged, or small- or medium-sized farmer, fisherman, or rancher; "(5) fishing business," as a business engaged in commercial fishing (as defined in 16 U.S.C. 1802); "(12) small or medium-sized farm or ranch," as one with annual gross cash farm income of less than $999,999 or meeting Secretary-determined acreage criteria; "(13) socially disadvantaged farmer, fisherman, or rancher," as defined in 7 U.S.C. 2279(a); "(15) veteran farmer, fisherman, or rancher," generally as one who has served in the Armed Forces and has not operated (or has operated for not more than 10 years) a farm, fishing business, or ranch; and "(16) certification program," as one using independent auditors for on-farm assessments exceeding conventional standards.

This section requires the Secretary of Agriculture, in procuring foods under covered authorities (i.e., commodity procurement programs of the Department of Agriculture), to make available and purchase a sufficient variety of foods that support (1) equity and inclusion (e.g., from covered producers or entities, or accommodating religious or restricted diets); (2) diversified and resilient supply chains (e.g., from covered producers or entities, agricultural cooperatives, certified organic farms, or farms in independent animal welfare certification programs); (3) worker well-being (e.g., from vendors with unionized employees, worker justice certification, or labor peace agreements); and (4) climate change mitigation (e.g., using low-greenhouse gas (GHG) practices, anti-deforestation policies, lower lifecycle GHG emissions, or providing environmental co-benefits such as improved soil health). (Thus, these requirements aim to strengthen domestic food system resilience, expand opportunities for certain producers, increase choices for school food authorities and food banks, and enhance federal supply chain labor protections.) This section further directs the Secretary to submit a baseline report to the House and Senate Agriculture Committees within one year of enactment—including current spending percentages by food category, purchase details, GHG emissions estimates (developed with the Environmental Protection Agency), 2032 spending increase targets for each category and GHG reduction target relative to 2024 (per Executive Order 14057 on federal sustainability), and supply chain recommendations—and annual reports thereafter (beginning two years after enactment) with updated spending percentages, supplier details, and GHG estimates. This section authorizes $2 million to carry out these requirements, to remain available until expended.

This section requires the Secretary of Agriculture to use not less than $2 million annually, for FY2026 through FY2031, from funds available under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c)—a permanent appropriation equal to 30% of annual customs duties receipts used principally for perishable nonbasic agricultural commodities (e.g., to promote exports, divert supplies for low-income consumption, or restore farmers' purchasing power)—to enter into competitive procurement contracts with covered producers and covered entities.

This section establishes a five-year pilot program requiring the Department of Agriculture (USDA) to use a tradeoff process and specified evaluation criteria—developed after public comment and stakeholder engagement—to select bids for at least 20% of its annual food spending under covered authorities on foods listed in section 4(b)(1)-(4); requires annual reports to Congress on the program's progress starting January 1, 2026; and terminates the pilot on the date five years after enactment. This section also directs USDA to provide technical assistance to covered producers and covered entities, including for food safety training or certification, to support equitable participation in USDA procurement programs. Additionally, this section establishes a competitive grant program to help eligible applicants—covered producers and certain cooperatives or associations composed of them—participate in USDA procurement by funding food safety upgrades, accreditations, audits, liability insurance, or food safety plans, with grants up to three years, not more than $100,000 per applicant, and required geographic diversity; requires reports from grant recipients and USDA to Congress starting January 1, 2026; and authorizes $25 million for FY2026, to remain available through FY2031.