H.R. 6706: EFFECTIVE Food Procurement Act

Introduced Dec 15, 20259 cosponsors

Sponsor

Alma Adams

Democrat · NC

USDA food contracts shouldn't just reward the cheapest bid

4 min readLast updated July 29, 2026

Why it matters

At least $2 million a year would be carved out for smaller and priority producers, and USDA would have to test best-value bidding on at least 20% of covered food spending. **If H.R. 6706 passes, your government would use food contracts to buy not just calories, but a different kind of food system.**

H.R. 6706 would change how the Department of Agriculture buys food for federal programs. Instead of focusing mainly on the lowest bid, the bill tells USDA to give more weight to where food comes from, who produced it, how workers are treated, and whether the supply chain is more resilient.

The bill creates a set-aside of at least $2 million a year from 2026 through 2031 for contracts with "covered producers" and "covered entities." That group includes beginning, veteran, and socially disadvantaged farmers, fishermen, and ranchers, plus producers on small or medium-sized farms and food hubs or processors that source at least 51% of their value from those producers.

It also launches a pilot requiring USDA to use a best-value tradeoff process for at least 20% of annual covered food spending. That means a supplier could win even without being the absolute cheapest if USDA decides the bid delivers better sourcing, labor, environmental, or supply-chain outcomes.

The bill goes beyond farming. It says USDA procurement should support worker well-being, more diverse food options for schools and food banks, and environmental goals including deforestation-related supply-chain rules for certain commodities.

There is also a grant program to help eligible producers, cooperatives, and covered entities compete for these contracts. Grants could be worth up to $100,000 per applicant for up to 3 years, which could help smaller operations handle the paperwork, distribution, and compliance demands that often favor larger vendors.

The core fight in H.R. 6706 is whether federal food buying should stay mostly price-driven or become a tool for steering money toward smaller, regional, and values-based suppliers.

Bill Progress

IntroducedDec 15

Committee

Pass House

Pass Senate

Signed

Law

Latest Action · Dec 15, 2025

1/2

Referred to the House Committee on Agriculture.

H.R. 6706 Bill Summary

What H.R. 6706 actually does.

A yearly set-aside for smaller and priority producers

USDA would have to direct at least $2 million per year from 2026 through 2031 to competitive contracts with covered producers and covered entities, including beginning, veteran, and socially disadvantaged producers.

USDA must test buying on more than price alone

The bill requires a pilot using best-value bidding for at least 20% of annual food spending under covered USDA authorities, allowing the department to weigh non-price factors when choosing suppliers.

Food hubs and processors can qualify too

Processors, distributors, and food hubs could count as covered entities if they source at least 51% of their value from eligible producers, potentially widening the path into federal contracts.

Smaller producers get help competing for contracts

Eligible applicants could receive grants of up to $100,000 for terms of up to 3 years to build the capacity needed to bid on and fulfill USDA food contracts.

Worker and environmental standards become part of procurement

USDA purchasing would be tied to goals around worker well-being, resilient supply chains, equity, and environmental practices, including supply-chain rules tied to deforestation risk.

USDA would have to show its work

The department would have to issue a baseline report and annual updates with supplier information, spending shares, and greenhouse gas estimates tied to these procurement efforts.

Who benefits from H.R. 6706?

Beginning farmers, fishermen, and ranchers

If you've been operating for 10 years or less, H.R. 6706 could give you a better shot at USDA contracts that often favor larger, established suppliers.

Veteran and socially disadvantaged producers

The bill explicitly includes these producers in the covered group, potentially opening more direct sales or supplier partnerships backed by federal purchasing.

Small and medium-sized farms and ranches

Producers with annual gross cash farm income under $999,999 could benefit from the set-aside, best-value contracting, and grant support to compete for federal business.

Regional food hubs, processors, and distributors

If your business sources at least 51% of its value from covered producers, you could qualify for contracts or grants instead of being shut out by scale-heavy national suppliers.

Schools and food banks using USDA commodities

The bill says procurement should expand food choices and diversify supply chains, which could mean more regional sourcing and products that fit religious or restricted diets.

Who is affected by H.R. 6706?

Large incumbent food contractors

Companies that dominate on price and scale could face more competition from smaller or regional suppliers when USDA uses best-value scoring instead of purely lowest-cost awards.

USDA procurement staff

The department would have to redesign parts of its contracting process, run the pilot, track sourcing and emissions data, and produce recurring public reports.

Suppliers with opaque sourcing chains

Businesses selling forest-risk commodities could face stricter traceability and verification expectations if they want to stay eligible under the bill's procurement framework.

Taxpayers and program managers watching costs

If best-value awards come in above the lowest bid, the tradeoff will be whether the added cost brings the supply-chain, labor, or resilience outcomes Congress is seeking.

Cost & Funding

Authorization

The bill sets a floor of at least $2 million per year in USDA procurement funding for covered contracts from 2026 through 2031, plus a grant program with awards of up to $100,000 for up to 3 years. The provided text excerpt does not include a full Congressional Budget Office cost estimate.

The guaranteed procurement set-aside totals at least $12 million over 6 years before any additional contracting above that floor.
The pilot must cover at least 20% of annual food spending under the covered USDA authorities, so the practical impact could be much larger than the $2 million minimum.
A single producer or cooperative could receive up to $100,000, which is enough to matter for compliance, distribution, cold storage, or bid preparation—but not enough to transform the entire USDA supply chain on its own.

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Tracking floor activity — no debate on H.R. 6706 yet. Updates when a legislator speaks on the record.

HR6706 Legislative Journey

1 actions

Committee Action

Dec 15, 2025

Referred to the House Committee on Agriculture.

About the Sponsor

Alma Adams

Democrat, North Carolina's 12th congressional district · 12 years in Congress

Committees: Agriculture, Education and Workforce

View full profile →

Cosponsors (9)

No new cosponsors in 207 days — momentum stalled

All 9 cosponsors are Democrats. Cosponsors represent 8 states: California, District of Columbia, Hawaii, and 5 more.

9Democrats·8 states

Zoe Lofgren

Democrat · CA

Rashida Tlaib

Democrat · MI

Cleo Fields

Democrat · LA

James McGovern

Democrat · MA

Eleanor Norton

Democrat · DC

Nydia Velázquez

Democrat · NY

Jill Tokuda

Democrat · HI

André Carson

Democrat · IN

Judy Chu

Democrat · CA

H.R. 6706 Quick Facts

Cosponsors

+4 more

Chamber: House
Policy: Agriculture and Food
Introduced: Dec 15, 2025

Referred to the House Committee on Agriculture.

Dec 15, 2025

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H.R. 6706 Common Questions

What does H.R. 6706 actually change?

It changes how USDA buys food. Instead of focusing mostly on the lowest price, H.R. 6706 would push contracts toward smaller producers, regional supply chains, worker protections, and other non-price factors.

How much money is set aside for smaller producers?

At least $2 million a year from 2026 through 2031 would go to competitive USDA contracts with covered producers and covered entities.

Who counts as a covered producer under H.R. 6706?

Beginning, veteran, and socially disadvantaged farmers, fishermen, and ranchers qualify, along with producers on small or medium-sized farms or ranches.

What counts as a small or medium-sized farm?

Usually a farm or ranch with annual gross cash farm income under $999,999. USDA could also use acreage-based definitions depending on region or production system.

Can food hubs and processors qualify too?

Yes. A processor, distributor, or food hub can qualify as a covered entity if it sources at least 51% of its value from covered producers.

What is the 20% best-value pilot?

USDA would have to use best-value bidding for at least 20% of annual covered food spending. That means contracts would not always go to the absolute cheapest bid.

Are there grants to help producers compete for contracts?

Yes. Eligible producers, cooperatives, and covered entities could receive grants of up to $100,000 per applicant for terms of up to 3 years.

Does H.R. 6706 include labor or environmental rules?

Yes. The bill says USDA procurement should support worker well-being and includes supply-chain rules for deforestation-risk commodities, along with reporting on suppliers and greenhouse gas estimates.

Based on H.R. 6706 bill text