(1)

in subsection (a)(2)—

(2)

by redesignating subsection (d) as subsection (e); and

(3)

by inserting after subsection (c) the following:

(d) Grants for climate mitigation and climate adaptation

(1) Definitions

In this subsection:

(A) Climate adaptation

The term climate adaptation means, with respect to an agricultural management system, management changes to such agricultural management system to reduce vulnerability to and recover from climate and other related disturbances, such that the system thrives in the face of severe weather impacts and other associated challenges, including management changes that builds agricultural resilience through actions such as improved nutrient management and enhancing soil health.

(B) Climate mitigation

The term climate mitigation means, with respect to an agricultural management system, management changes to such agricultural management system to reduce greenhouse gas emissions and sequester carbon in soil and plant biomass on agricultural land.

(C) Covered entity

The term covered entity means—

(i)

the department of agriculture of a State;

(ii)

an applicable Tribal Government authority;

(iii)

an agricultural or silvicultural producer association or other group of producers;

(iv)

a farmer cooperative;

(v)

an institution of higher education;

(vi)

a conservation commission or district; or

(vii)

an organization or entity with an established history of working cooperatively with producers on agricultural land, as determined by the Secretary, to address local conservation priorities related to agricultural production or nonindustrial private forestland management in connection to climate mitigation or adaptation.

(D) Eligible proposal

The term eligible proposal means a proposal for climate mitigation and climate adaptation activities on agricultural land, which—

(i)

is broadly consistent with part III of the Action Plan for Climate Adaptation and Resilience, titled USDA’s Adaptation Actions, published by the Department of Agriculture (August 2021);

(ii)

is broadly consistent with conservation practices identified by the Natural Resources Conservation Service to reduce greenhouse gas emissions or to sequester carbon;

(iii)

is broadly consistent with the latest available scientific research on regionally-relevant climate mitigation and adaptation strategies for agricultural land; and

(iv)

identifies effective strategies, including strategies developed from traditional ecological knowledge such as indigenous agricultural knowledge practices, for increasing adoption of regionally appropriate management practices and systems implemented on privately owned agricultural land under the jurisdiction of the applicable State government or Tribal Government that achieve at least two of the following outcomes:

(I)

Increase in carbon sequestration.

(II)

Reduction of greenhouse gas emissions.

(III)

Increased resilience against extreme weather.

(E) Indigenous agricultural knowledge

The term indigenous agricultural knowledge means the applied knowledge for raising or producing food and other agricultural products grounded in indigenous belief systems and practices that have been time-tested over millennia.

(F) Traditional ecological knowledge

The term traditional ecological knowledge means a cumulative body of knowledge, practice, and belief, developed by Native American, Alaska Native, Native Hawaiian, and other Indigenous communities, evolving by adaptive processes and handed down through generations by cultural transmissions, about the relationship of living beings (including humans) with one another and their environments, including indigenous agricultural knowledge.

(G) Tribal Government

The term Tribal Government means—

(i)

the governing body of an Indian tribe;

(ii)

the governing body of a State-recognized Tribal organization; and

(iii)

the governing body of a Native Hawaiian community or organization.

(2) In general

The Secretary shall provide grants to covered entities to—

(A)

develop or modify an eligible proposal; or

(B)

implement an eligible proposal.

(3) Application

(A) In general

A covered entity applying for a grant under this subsection shall prepare and submit an application at such time, in such a manner, and containing such information as the Secretary shall require, including an assurance that grant funds received under this subsection shall supplement, not supplant, the expenditure of funds of such covered entity in developing, modifying, or implementing eligible proposals.

(B) Option for Tribal Governments

At the sole discretion of a Tribal Government, such Tribal Government may, in lieu of submitting an applications under subparagraph (A), opt to join an application submitted by any other covered entity for an eligible proposal relating to agricultural lands under the jurisdiction of such Tribal Government and that are located within, at least in part, the geographic boundary of such covered entity.

(C) Solicitation of applications

(i) In general

Not later than 180 days after the date of enactment of the Partnerships for Agricultural Climate Action Act, the Secretary shall solicit applications for grants under this subsection.

(ii) Additional solicitations

The Secretary shall solicit applications for funding for eligible proposals on a recurring basis after the first round of applications until all amounts appropriated to carry out this subsection are expended.

(D) Performance measures

Each application submitted under this paragraph shall include performance measures to be used to evaluate an eligible proposal that was developed, modified, or implemented using a grant received under this subsection.

(4) Selection

(A) In general

Not later than two years after the date of enactment of the Partnerships for Agricultural Climate Action Act, the Secretary shall select applications submitted under paragraph (3) to receive a grant under this subsection in accordance with this paragraph.

(B) Criteria

In selecting applications to receive a grant under this subsection—

(i)

in the case of an application for developing or modifying an eligible proposal, the Secretary shall select applications for eligible proposals that will, if implemented—

(I)

have a high potential for carbon sequestration and greenhouse gas emissions reductions; and

(II)

increase the resilience of agricultural management systems to extreme weather and climate conditions;

(ii)

in the case of an application for implementing an eligible proposal, the Secretary shall select applications for eligible proposals that—

(I)

have a high potential for carbon sequestration or greenhouse gas emissions reductions;

(II)

increase the resilience of agricultural management systems to extreme weather and climate conditions; and

(iii)

the Secretary shall select applications for eligible proposals that are based on any other criteria that the Secretary determines necessary or appropriate to carry out this subsection.

(C) Geographical diversity

In providing grants under this subsection, the Secretary shall, to the maximum extent practicable, ensure geographic diversity.

(D) Priority

In providing grants under this subsection, the Secretary shall give priority to—

(i)

a covered entity for an eligible proposal that—

(I)

includes dedicated resources to historically underserved producers or farming operations, including—

(aa)

beginning farmers or ranchers;

(bb)

socially disadvantaged farmers or ranchers;

(cc)

veteran farmers and ranchers, as defined in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)); and

(dd)

small or mid-sized farms that are structured as family farms, as defined in section 761.2 of title 7, Code of Federal Regulations;

(II)

includes plans to transition whole farm systems to ecologically sound production systems that—

(aa)

increase carbon sequestration;

(bb)

reduce greenhouse gas emissions; or

(cc)

build resilience to extreme weather; or

(III)

supports additional conservation goals, including—

(aa)

improving soil health;

(bb)

erosion control;

(cc)

improving nutrient management;

(dd)

improving water quality;

(ee)

enhancing pollinator forage; and

(ff)

habitat restoration; and

(ii)

the applicable Tribal Government authority for an eligible proposal that includes use of traditional ecological knowledge or indigenous agricultural knowledge practices.

(5) Partnerships option

A covered entity may enter into partnership agreements for the development, modification, or implementation of an eligible proposal with one or more other covered entities.

(6) Use of implementation grants

A covered entity may use a grant provided under paragraph (2)(B) for activities to implement an eligible proposal, including—

(A)

provision of technical assistance to producers;

(B)

provision of financial assistance to producers;

(C)

on-farm research and demonstration;

(D)

extension, education, outreach, and training;

(E)

monitoring and evaluating soil carbon sequestration, greenhouse gas emissions reductions, and other conservation outcomes;

(F)

local producer-to-producer networking and mentoring activities; and

(G)

other activities as the Secretary determines appropriate.

(7) Grant term

(A) Development and modification grants

With respect to a grant under paragraph (2)(A), the Secretary—

(i)

shall provide such grant for a term of not less than one year and not more than two years; and

(ii)

may renew such grant once at the end of a term under clause (i), under which renewal the Secretary may provide additional grant funds after the initial grant funds have been expended.

(B) Implementation grants

With respect to a grant under paragraph (2)(B), the Secretary—

(i)

shall provide such grant for a term of not less than one year and not more than five years; and

(ii)

may renew such grant at the end of a term under clause (i), under which renewal the Secretary may provide additional grant funds after the initial grant funds have been expended.

(8) Grant amount

(A) Maximum amount

The Secretary may provide a grant to a covered entity—

(i)

in the case of a grant under paragraph (2)(A), in an amount not to exceed $7,500,000 per fiscal year; and

(ii)

in the case of a grant under paragraph (2)(B), in an amount not to exceed $15,000,000 per fiscal year.

(B) Federal share

(i) Grants to certain covered entities

The Secretary shall not provide a grant under this subsection to a covered entity that is not an applicable Tribal Government authority in an amount that exceeds—

(I)

75 percent of the cost of developing or modifying an eligible proposal under paragraph (2)(A); or

(II)

50 percent of the cost of implementing an eligible proposal under paragraph (2)(B).

(ii) Grants to Tribal Governments

The Secretary shall not provide a grant under this subsection to an applicable Tribal Government authority in an amount that exceeds—

(I)

100 percent of the cost of developing or modifying an eligible proposal under paragraph (2)(A); or

(II)

85 percent of the cost of implementing an eligible proposal under paragraph (2)(B).

(iii) Restriction

Clause (ii) does not apply to Tribal Governments that opt to join an application submitted by another covered entity under paragraph (3)(B).

(C) Non-federal funds

The Secretary shall provide a grant under this subsection on the condition that any non-Federal share of expenditures be provided from non-Federal sources.

(9) Performance measures review and evaluation

Each covered entity that receives a grant under this subsection shall submit to the Secretary a review and evaluation of the progress of such covered entity, using the performance measures included in the application under paragraph (3)(D), at such intervals as the Secretary shall establish.

(10) Effect of noncompliance

If the Secretary, after reasonable notice to a covered entity, determines that there has been a failure by such covered entity to comply with the terms of a grant made under this subsection, the Secretary may disqualify, for one or more years, such covered entity from receipt of future grants under this subsection.

(11) Audit requirement

For each year that a covered entity receives funds from a grant provided under this subsection, such covered entity shall—

(A)

conduct an audit of any expenditures by such covered entity that were paid for using such funds; and

(B)

not later than 30 days after the completion of the audit under subparagraph (A), submit to the Secretary a copy of such audit.

(12) Administrative expenses

(A) Secretary

The Secretary may not use more than 3 percent of the funds made available to carry out this subsection for a fiscal year for administrative expenses.

(B) Certain covered entities

A covered entity, that is not an applicable Tribal Government authority, receiving a grant under this section may not use more than 10 percent of the granted funds for administrative expenses.

(C) Tribal Governments

An applicable Tribal Government authority receiving a grant under this section may not use more than 15 percent of the granted funds for administrative expenses.

(13) Funding

(A) In general

Of the funds made available to carry out this subchapter, the Secretary shall carry out this subsection using $150,000,000 for each of fiscal years 2026 through 2034.

(B) Allocation of funds

The Secretary shall distribute funds made available to carry out this subsection as follows:

(i)

At least 33 percent of funds to support the development and modification of eligible proposals under paragraph (2)(A).

(ii)

At least 33 percent of funds to support the implementation of eligible proposals under paragraph (2)(B).

(C) Reservation of funds

Of the funds made available for grants under this subsection, 33 percent shall be reserved for grants provided to the applicable Tribal Government authorities.