The bipartisan push to strengthen the nation’s food supply chain gained momentum Thursday as lawmakers introduced legislation that would permanently authorize a U.S. Department of Agriculture program supporting food processing and distribution infrastructure while creating a nationwide network of regional food system hubs. Backed by the National Association of State Departments of Agriculture (NASDA), supporters say the proposal would help farmers and ranchers reach more markets, reduce supply chain bottlenecks and improve the long-term profitability of agricultural operations.
Introduced by Sens. Cindy Hyde-Smith, R-Miss., Adam Schiff, D-Calif., Jim Justice, R-W.Va., and Amy Klobuchar, D-Minn., the American Food Supply Chain Resiliency Act would permanently authorize USDA’s Resilient Food Systems Infrastructure Program, which was initially launched using pandemic-era funding. The legislation would also establish Regional Food Systems Hubs to provide technical assistance, market development services and coordination among states, food businesses and agricultural producers.
The proposal reflects growing concern among policymakers that weaknesses in the nation’s food supply chain extend far beyond production on the farm. While American farmers continue to produce abundant supplies of food, supporters argue that shortages of regional processing plants, cold storage facilities, transportation networks and distribution centers often limit producers’ ability to access new markets or receive higher prices for their products.
The legislation declares that “a secure domestic food supply is a national security imperative” and argues that expanded investments in the middle of the supply chain—from aggregation and processing to storage, transportation and wholesale distribution—are necessary to improve resilience while creating additional market opportunities for producers.
NASDA, which represents the agriculture departments in all 50 states and U.S. territories, helped develop the legislation and has made food supply chain resilience one of its federal policy priorities.
“Federal investments play a key role in strengthening our nation’s food systems by connecting farmers, businesses and communities with the resources they need to succeed,” NASDA Chief Executive Officer Ted McKinney said in a statement. “The American Food Supply Chain Resiliency Act addresses critical gaps and provides the long-term investments needed to strengthen our domestic supply chains, support farm viability and ensure there is a stronger link between our farms and our communities.”
If approved by Congress, the bill would authorize $200 million annually between fiscal years 2027 and 2031 for the Resilient Food Systems Infrastructure Program. States would receive funding through cooperative agreements with USDA and, in turn, award competitive grants ranging from $100,000 to $3 million to eligible entities.
Those grants could finance projects such as constructing new food processing facilities, expanding existing plants, modernizing manufacturing equipment, improving food safety systems, investing in energy-efficient technologies, building wastewater infrastructure or expanding storage and distribution capacity. Smaller equipment-only grants between $10,000 and $100,000 would also be available through a simplified application process.
Eligible applicants would include agricultural producers, processors, local governments, tribal governments, nonprofit organizations, small businesses and institutions such as universities and hospitals working in partnership with farmers.
The legislation directs states to prioritize projects benefiting beginning farmers, veteran producers, socially disadvantaged farmers and ranchers, food hubs, wholesalers, distributors and other businesses that serve as critical links between farms and consumers.
Supporters say strengthening that “middle” of the supply chain could help smaller and mid-sized farms capture more value by expanding local and regional marketing opportunities rather than relying solely on national commodity markets.
The bill also would establish at least 10 Regional Food Systems Hubs, along with one national intertribal hub, to provide business planning, financial coaching, market development assistance and technical support to farms, agribusinesses and food companies.
Those hubs would help connect producers with institutional buyers such as schools, hospitals, military bases, senior nutrition programs and grocery retailers while assisting businesses in securing financing, expanding processing capacity and accessing new procurement opportunities.
An additional $75 million annually from fiscal years 2027 through 2031 would be authorized to support the regional hub program.
The legislation requires participating states and regional hubs to measure outcomes such as increased producer sales, new market opportunities, additional jobs and expanded purchasing agreements, reflecting lawmakers’ emphasis on demonstrating measurable returns from federal investments.
For farmers, the measure represents an effort to address one of agriculture’s longstanding challenges: producing abundant crops and livestock while lacking sufficient regional infrastructure to process, transport and market those products efficiently. Supporters contend that strengthening those links in the supply chain would not only improve resilience during future disruptions but also create new revenue opportunities for producers and stimulate economic growth in rural communities.
The legislation has been referred to the Senate committee with jurisdiction over agricultural policy for further consideration.
