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September 15, 2022

The USDA Healthy Food Financing Initiative

According to the U.S. Department of Agriculture (USDA)
Economic Research Service (ERS), approximately 13.8
million households in the United States were food-insecure
in 2020. ERS defines food-insecure households as
households that had difficulty at some time during the year
providing food for all of their members because of a lack of
resources. One component of food insecurity is food
access, or the ability of people to find grocery stores or
other food retail outlets that provide healthy and affordable
food in their community. Studies have found that low-
income communities tend to have fewer supermarkets than
high-income communities. Similarly, communities of color
(particularly predominantly Black and Hispanic
communities) tend to have fewer supermarkets than
predominantly White communities.
In 2010, the Obama Administration introduced a plan for
the Healthy Food Financing Initiative (HFFI), which would
increase access to healthy food retail outlets in underserved
communities. An underserved community is an urban, rural,
or Indian tribal community with limited access to
affordable, healthy foods, including fresh fruits and
vegetables, in grocery retail stores or farmer-to-consumer
direct markets; and a high rate of hunger or food insecurity
or a high poverty rate. (7 U.S.C. §1932(g)(9)).
HFFI was created to be a partnership between USDA, the
Department of the Treasury (Treasury), and the Department
of Health and Human Services (HHS). This In Focus
provides an overview of the USDA Healthy Food Financing
Initiative, compares the USDA program to the Treasury and
HHS programs, and provides some potential considerations
for Congress.
The USDA HFFI Program
Background
The Obama Administration's plan for HFFI was to utilize
diverse strategies across multiple federal departments to
help increase food access in underserved communities.
HFFI would be a partnership among USDA, Treasury, and
HHS. Each federal department would take a different
approach to increasing food access. USDA would expand
demand for farm products and locally produced foods at
retail outlets in underserved communities. Treasury would
support private sector financing for healthy food projects.
HHS would finance community-based projects. In FY2011,
the Administration requested $20 million for HHS, $25
million for Treasury, and $50 million for USDA to carry
out HFFI activities.
Comparing HHS, Treasury, and USDA Funding
The concept of HFFI as a partnership across three
departments working simultaneously on increasing food

access was not fully funded by Congress. Over the past 10
years, Congress has funded two out of the three
departments to work on HFFI activities but has not funded
all three departments at the same time. See Table 1.
From FY2011 to FY2016, Congress appropriated annual
funding to HHS and Treasury for their HFFI activities.
During this time, Congress did not appropriate funding to
USDA for HFFI activities.
Congress provided funding to HHS to create an HFFI track
within its Community Economic Development Program.
The HFFI track provided competitive grants to community
development corporations for projects that financed grocery
stores and other retail outlets that provide healthy foods in
low-income communities. Congress also provided funding
to Treasury to create an HFFI track within its Community
Development Financial Institutions (CDFI) Program. The
HFFI track provides grants, training, and technical
assistance to community development financial institutions
so they can provide loans for local projects that increase
access to healthy foods in underserved communities.
From FY2017 to FY2022, Congress provided annual
appropriations for Treasury and USDA to conduct HFFI
activities. See Program Overview, below, for more
information on the USDA HFFI program. During that time,
Congress did not appropriate funding to HHS for its HFFI
activities.
Table I. Healthy Food Financing Initiative Funding by
Federal Department: FY20 I I to FY2022
Fiscal     USDA          HHS        Treasury
Year       Funding     Funding       Funding

FY2011    $0
FY2012    $0
FY2013    $0
FY2014    $0
FY2015    $0
FY2016    $0

$10 million  $22 million
$10 million  $22 million
$10 million  $22 million
$10 million  $22 million
$10 million  $22 million
$10 million  $22 million

FY2017     $1 million    $0
FY2018     $1 million    $0
FY2019     $2 million    $0
FY2020     $5 million    $0
FY2021     $5 million    $0
FY2022     $160 million  $0

$22 million
$22 million
$22 million
$22 million
$23 million
$23 million

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