Back to Bills

Domestic Organic Investment Grants

Full Title:
Domestic Organic Investment Act of 2025

Summary#

This bill would create a new Domestic Organic Investment Program at the U.S. Department of Agriculture. The program would give competitive grants to certified organic producers, handlers, processors, Tribal governments, and similar entities to expand storage, processing, distribution, and related equipment and systems. The stated policy goal is to increase U.S. capacity for organic products, modernize the supply chain, and help domestic organic producers compete with imports.

  • Establishes grant program to expand organic storage, aggregation, processing, distribution, and related IT or tracking systems.
  • Grants are for up to 3 years, with maximums of $2,000,000 for larger projects and $100,000 for equipment-only projects.
  • Eligible recipients must be certified organic or in transition and be based in the U.S., its territories, DC, or Tribal jurisdictions; units of Tribal government are explicitly eligible.
  • Requires non-Federal matching funds of at least 50% for larger projects and 25% for equipment-only projects (with possible waivers or reductions for beginning farmers and veterans).
  • The Secretary of Agriculture would run a competitive process, may set annual priorities (e.g., trade imbalance, advisory board recommendations, supply bottlenecks), and publish evaluation criteria.
  • Authorizes “such sums as are necessary” to be appropriated for fiscal years 2026–2030 (no dollar estimate in the bill).

What it means for you#

  • Organic producers (farms, co-ops): You could apply for grants to build or expand storage, processing, or distribution capacity, or to buy equipment. You must be certified organic or in transition. Larger projects require substantial matching funds.
  • Processors and handlers: Grants could fund facility upgrades, cold storage, tracking systems, or processing lines to handle more domestic organic products. Projects over $2M would not be eligible; equipment-only grants top out at $100K.
  • Beginning farmers and veterans: You are eligible and may get a lowered or waived matching requirement if the Secretary decides to do so.
  • Tribal governments/units: Eligible to receive grants for projects in Tribal jurisdictions.
  • Businesses selling inputs or equipment: There may be new demand for processing equipment, storage systems, and IT/traceability systems from grant-funded projects.
  • Consumers: The bill aims to expand domestic supply and market options; any price or availability effects are not specified in the bill.
  • Taxpayers: The bill authorizes funding but does not specify total cost; Congress would need to appropriate money.
  • USDA/administration: The Secretary (through AMS) must design the program, run competitive award rounds, publish criteria, provide technical assistance, and manage grants.

Expenses#

No publicly available information on total cost estimates or a fiscal note is included in the bill text.

  • The bill authorizes the appropriation of “such sums as are necessary” for FY2026–FY2030, which does not set a fixed spending limit.
  • Grants are capped at $2,000,000 per larger project and $100,000 per equipment-only award.
  • Recipients must provide non-Federal matching funds (typically 50% or 25%), shifting part of project cost to private or local government sources.
  • Administrative and management costs would fall to USDA (the Secretary must run the program and may provide technical assistance). The bill does not estimate those costs.
  • No fee or penalty changes are included.

Proponents' View#

  • The bill appears intended to grow domestic capacity for organic food so more demand can be met by U.S. producers rather than imports.
  • It could modernize supply chains by funding storage, processing, and IT systems (for example, cold storage or ingredient tracking).
  • The program would help eligible entities meet regulatory or quality requirements needed to access markets (food safety and organic certification).
  • Targeted grants, including a streamlined process for small equipment purchases, may lower barriers for smaller operations to upgrade infrastructure.
  • Inclusion of Tribal governments and potential match waivers for beginning farmers and veterans aims to expand access to historically underserved groups.

Opponents' View#

  • One concern is that the bill does not include a dollar estimate; “such sums as are necessary” gives broad funding discretion and makes the program’s long-term cost unclear.
  • The required matching shares (50% for larger projects) may exclude smaller or low-capital producers who cannot raise matching funds, even with some waiver flexibility.
  • The bill gives the Secretary broad discretion to set priorities, select “other” eligible entities, and waive matches; details and safeguards for fairness are not specified.
  • Competitive grants can favor well-prepared applicants or larger operations with grant-writing capacity rather than the smallest farms.
  • It is unclear how the program will measure success (for example, how much domestic supply must increase) or how projects will be monitored and evaluated.
  • Grant caps ($2M and $100K) may be insufficient for some large infrastructure needs, while administrative costs for USDA and applicants are not detailed.