Food Deserts Act

This bill establishes a grant program within the Department of Agriculture to reduce food deserts. Under the program, grants are provided to states for revolving funds that support the establishment and operation of grocery stores in underserved communities. Underserved communities are communities that have (1) limited access to affordable, healthy foods, including fresh fruits and vegetables, in grocery retail stores or farmer-to-consumer direct markets; and (2) a high rate of hunger, a high rate of food insecurity, or a high poverty rate.

The bill requires states to use such funds for loans that support grocery stores in underserved communities, including for opening a store (excluding new construction), or supporting an existing store.

In order to qualify for loans, grocery stores must meet criteria enumerated in the bill. For example, grocery stores must (1) emphasize unprocessed, healthful foods; (2) provide staple foods and a variety of raw fruits and vegetables; and (3) charge affordable prices at or below market values.

Further, states must prioritize loan applications from entities that meet criteria related to

• hiring workers from the underserved community,
• providing classes or educational information about a healthful diet,
• sourcing food from local urban farms and gardens, and
• demonstrating existing supply chain relationships in the grocery industry.