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HB 1057

Affordable Food Act.

2025-2026 Session Introduced by Eric Ager and 42 co-sponsors

North Carolina households gain expanded SNAP nutrition incentives, state-funded incentives, and targeted programs to improve food access and support local farmers and farmland pres

Passed 1st Reading
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WeVote Research Nonpartisan
Bill Summary · HB 1057

Summary of HB 1057 (Affordable Food Act) – North Carolina, Session 2025

Note: This summary captures the bill’s main purpose, key provisions, who/what is affected, and timeline/procedural aspects as written.

1) Purpose and Intent

  • The bill aims to strengthen food security, support North Carolina farmers, protect agricultural land, expand food access in urban and rural communities, and prohibit dynamic pricing practices in retail grocery stores that use electronic shelf labels.
  • It emphasizes reducing food insecurity caused by rising costs and supply chain disruptions, sustaining farmland, and expanding state investment in food procurement, distribution, and nutrition programs.

2) Key Provisions

A. SNAP Nutrition Incentives and Funding (Parts II)

  • 2.1(a): By Jan 1, 2027, the Department of Health and Human Services (DHHS), Division of Social Services, must seek a USDA waiver to operate a nutrition incentive program that increases SNAP purchasing power for fruits, vegetables, and healthy foods. A report to the Joint Legislative Oversight Committee is due within 30 days of USDA decision.
  • 2.2: Enacts new state law establishing nutrition incentive programs (e.g., Double-Up Food Bucks, Market Match, Healthy Incentives Program) to match SNAP benefits for healthy foods at participating locations (retailers, farmers markets, etc.).
    • Administered by DHHS per federal law; can contract with nonprofits, local governments, farmers, markets, grocers, and other entities.
    • Matching and redemption: Incentives match SNAP purchases at an amount determined by the Department, redeemable at point of purchase or via approved tokens/credits.
    • Annual reporting: By Dec 1 of each year, the Department must report on number of participating households, total matched benefits, number and type of vendors, geographic distribution, and outcomes related to access to healthy food.
  • 2.3: Appropriations for 2026-2027:
    • $11 million (recurring) to support SNAP matching funds, program administration, and outreach, contingent on USDA waiver approval; if waiver denied, funds revert to the General Fund.
  • 2.4: SNAP funding adjustments in response to H.R. 1:
    • 2026-2027 recurring funding:
    • $16 million to DHHS (Central Management and Support) to cover loss in federal SNAP administrative receipts due to Public Law 119-21; funds may be distributed to divisions in proportion to lost receipts and limited to actual losses.

B. State Food Procurement, Farmer Stabilization, and Farmland Preservation (Part III)

  • 3.1: Establishes the State Food Procurement and Farmer Stabilization Program within the Dept. of Agriculture and Consumer Services (DACs) to purchase NC-grown/processed foods for public/nonprofit programs.
    • Prioritizes small/mid-sized farms, beginning farmers, historically underserved producers, and producers in distressed rural areas.
    • Funds may cover purchasing, aggregation, storage, transportation, coordination, and admin costs; contracts and partnerships authorized.
    • Annual report by Feb 15 detailing expenditures, geographic distribution, product types/quantities, and farmer names/localities.
  • 3.1(b): Appropriations – $9 million (recurring) for 2026-2027 to administer the program.
  • 3.2: Farmland Preservation and Land Use
    • Creates the North Carolina Agricultural Development and Farmland Preservation Trust Fund (within DAC). Fund can be used for:
    • Purchase of conservation easements and related costs.
    • Programs supporting sustainable family farms (production plans, agritourism, marketing, etc.).
    • Farmland preservation grants to local governments/nonprofits.
    • Technical assistance for preservation planning and implementation.
    • Conservation agreements to keep farmland in active production.
    • Administrative costs of the program.
    • 47 million dollars (recurring) for 2026-2027 to the Trust Fund.

C. Targeted Military and Veteran Food Assistance (Part IV)

  • 4.1(a)-(e): Creates a Targeted Military and Veteran Food Assistance Program within DACs to provide food assistance to military members, veterans, and NC National Guard households at risk of food insecurity.
    • Purchases and distributions prioritize NC-grown/processed nutritious foods where practicable.
    • Eligibility criteria to be set by the Department; prioritization for demonstrable hardship.
    • Administration coordination with food banks, veterans’ services, etc.; contracts/agreements allowed.
    • Annual reporting due by Feb 15 (total funds expended, people served, food types/quantities, geographic distribution).
  • 4.1(b): $140 million (recurring) for 2026-2027 to administer the program.
  • 4.2: Strengthening Food Distribution
    • $20 million (nonrecurring) for 2026-2027 to fund grants to nonprofit/local government-run food assistance programs to expand storage, transportation, and distribution capacity.

D. Urban and Rural Food Access – Mobile Markets and Grants; Grocery Store Pilot (Part V)

  • 5.1: Mobile Markets and Food Bank Grant Program
    • Establishes a program to expand access in rural/underserved areas via mobile pantries/markets and similar models.
    • Administered by DACs with interagency coordination with DHHS; eligible recipients include food banks/pantries, nonprofits, local governments, and tribal governments.
    • Eligible uses: vehicles, refrigeration/storage, temporary sites, procurement, outreach/coordination, admin costs.
    • Reporting due Feb 15 annually; criteria prioritized for rural areas and high-need communities.
    • 8 million dollars (recurring) for 2026-2027 to administer the program.
  • 5.2: Grocery Store and Food Retail Pilot Program
    • Provides loans/grants to support capital costs for establishing/expanding grocery stores, cooperatives, mobile markets, etc., in underserved areas.
    • Administered by DHHS in coordination with Commerce and DACs; may include public-private partnerships with financial institutions and others.
    • Grants/loans: eligibility criteria, application procedures, geographic targeting (especially underserved areas/food deserts); may include caps, match requirements, repayment terms, and performance requirements.
    • Reporting due by Feb 15, 2028, including amounts awarded/expenditures, types of outlets, geographic distribution, population served, and program effectiveness.
    • 10 million dollars (nonrecurring) for 2026-2027 to administer the pilot.

E. Prohibition on Dynamic Pricing with Electronic Shelf Labels (Part VI)

  • 6.1–6.3: Adds Article 9 (Dynamic Pricing) to Chapter 75.
    • Definitions: Dynamic pricing (price changes more than once per day), electronic shelf label, and household essential goods.
    • Prohibition: Unlawful to use electronic shelf labels to implement dynamic pricing for food, beverages, or household essentials in retail grocery stores.
    • Permitted uses of electronic shelf labels: display price that changes no more than once in 24 hours, correct pricing errors, comply with law, apply uniform markdowns.
    • Temporary/promo prices allowed if nondiscriminatory and not changed more than once in 24 hours.
    • Enforcement: Violation is an unfair or deceptive trade practice; civil penalties up to $5,000 per violation.
    • Effective date: October 1, 2026 (applies to acts/omissions on/after that date).

3) Affected Parties and Impacts

  • State agencies: Department of Health and Human Services (DHHS), Division of Social Services; Department of Agriculture and Consumer Services (DACs); Department of Commerce (for pilot coordination).
  • Beneficiaries: SNAP participants, farmers and small/mid-sized NC producers, rural and urban low-income residents, military/veteran households and their families, and residents of food deserts.
  • Local governments, nonprofits, farmers markets, food banks, retail grocers, and cooperatives: potential beneficiaries and program implementers.
  • Land and farming: farmland preservation and development, with appropriations to fund conservation easements and related programs.

4) Timelines and Funding Highlights

  • Waiver process: 2027 deadline to pursue USDA waiver for SNAP incentives; reporting due after decision.
  • Annual reports: Required for SNAP incentives, military veteran program, mobile markets/grants, and state procurement program—by February 15 each year (or as specified).
  • Major funding:
    • SNAP incentives: $11 million recurring (2026-27) contingent on waiver; separate $16 million for SNAP admin receipts loss (Public Law 119-21).
    • State Food Procurement/Farmland: $9 million recurring (2026-27) for administration.
    • Farmland Preservation Trust Fund: $47 million recurring (2026-27).
    • Targeted Military/Veteran Program: $140 million recurring (2026-27).
    • Mobile Markets Grant Program: $8 million recurring (2026-27).
    • Grocery Store Pilot: $10 million nonrecurring (2026-27).
    • Urban/rural distribution enhancements and rural access initiatives are funded via nonrecurring/recurring appropriations as described.

5) Effective Date

  • General effective date: July 1, 2026.
  • Prohibition on dynamic pricing: effective October 1, 2026 (for acts/omissions occurring on/after that date).

This Act, if enacted, would expand nutrition incentives, boost state procurement of NC-grown foods, support farmers and farmland preservation, enhance food access for military/veteran and rural populations, fund mobile and storefront food access initiatives, and curb dynamic pricing practices in grocery stores.

Compiled from official sources — confirm details with the bill’s official record.

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