HR 5030119th CongressIn Committee

Specialty Crop Domestic Market Promotion and Development Program Act of 2025

Introduced: Aug 22, 2025

Sponsor: Rep. Valadao, David G. [R-CA-22] (R-California)

Agriculture & Food

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill revamps the Specialty Crops Competitiveness Act of 2004 by creating a new program—the Specialty Crop Domestic Market Promotion and Development Program. Under this program, the Secretary of Agriculture (through the Agricultural Marketing Service) would award grants to eligible organizations to carry out domestic market development activities that promote commercially produced U.S. specialty crops within the United States. Eligible organizations must submit a grant application, a marketing plan, and demonstrate that non-Federal funds will supplement (not replace) Federal support. Grants require a minimum 25% non-Federal matching share (which can include in-kind contributions), can be awarded for multiple years, and are subject to annual reviews, termination provisions for poor performance, and ongoing evaluations of effectiveness. Funds cannot be used to promote foreign-produced products or to support certain for-profit entities, with carve-outs for cooperatives, certain associations, and nonprofit trade groups. The bill authorizes $75 million per year starting in FY2026 for program operations and administration.

Key Points

1New program: Adds Section 204 to authorize grants to eligible organizations to develop and expand the domestic market for U.S. specialty crops.
2Eligible organizations: Includes US agricultural trade organizations or regional/state groups, cooperatives or state agencies, qualified private organizations, and specialty crop organizations operating under Federal marketing orders.
3Matching and in-kind funds: Grants require non-Federal matching funds of at least 25% of the grant; in-kind contributions may count toward the match.
4Marketing plan requirements: Applicants must submit a marketing plan describing demand-oriented, generic domestic promotion activities, how funds will be used with non-Federal resources, market goals, and allowable amendments with Secretary approval.
5Oversight and accountability: Multiyear grants may be subject to annual reviews; there are termination provisions for noncompliance or failure to meet goals; annual evaluations and possibly independent audits if warranted.
6Limitations on use of funds: Prohibits using funds to directly promote foreign-produced products or to support for-profit corporations that are not small businesses (with exceptions for cooperatives, certain associations, or nonprofit trade groups).
7Funding and administration: Authorized appropriations of $75,000,000 for FY2026 and each subsequent fiscal year; funds may also cover program administration costs.

Impact Areas

Primary group/area affected: Eligible organizations receiving grants (e.g., U.S. agricultural trade organizations, regional/state-related organizations, cooperatives, state agencies, qualified private organizations, and specialty crop organizations under marketing orders) and, by extension, the U.S. specialty crop producers who benefit from expanded domestic demand.Secondary group/area affected: Domestic consumers and markets for specialty crops, as well as non-Federal partners contributing matching funds (including private entities and state resources).Additional impacts: Increased federal emphasis on domestic market development for U.S.-grown specialty crops; heightened coordination with the Agricultural Marketing Service; enhanced oversight and accountability through required reporting, annual reviews, and potential independent audits; potential shifts in how funds are allocated between different types of organizations due to eligibility criteria and match requirements.

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