(1)

in paragraph (1), by amending subparagraph (C) to read as follows:

(C) Federal share

(i) In general

Except as provided in clause (ii) and subparagraph (D)(iii), the Federal share of the cost of carrying out an activity under this subsection shall not exceed 50 percent of the total cost of the activity.

(ii) Waiver for persistent poverty areas

The Secretary may waive the application of clause (i) in the case of an activity carried out—

(I)

in a county that, during the preceding 30-year period has had a population of which greater than or equal to 20 percent of such population are living in poverty (as measured by the most recent decennial censuses and most recent Small Area Income and Poverty Estimates of the Bureau of the Census); or

(II)

in a census tract with poverty rate of at least 20 percent during the preceding 30-year period as measured by the most recent 5-year data series available from The American Community Survey of the Bureau of the Census.; and

(2)

by adding at the end the following:

(3) Cooperative agreements to scale statewide incentive programs

(A) In general

For the purposes of scaling existing incentive programs under paragraphs (1) and (2), the Secretary shall establish cooperative agreements between—

(i)

eligible entities and Food and Nutrition Service or the National Institute of Food and Agriculture (or both); and

(ii)

either—

(I)

a State SNAP agency; or

(II)

a non-profit or local government in partnership with a State SNAP agency.

(B) Criteria

Each agreement entered into pursuant to this paragraph—

(i)

shall—

(I)

be for a duration of at least 4 years;

(II)

include a requirement that any project carried out pursuant to the agreement be subject to the criteria and priorities under paragraphs (1) and (2); and

(III)

require that before the end of the agreement, at least 90 percent of the funds received pursuant to the agreement are spent on redeemed incentives at the eligible retailer; and

(ii)

may only be entered in to with an entity that previously received a grant under this subsection.

(C) Priority

The Secretary shall prioritize cooperative agreements—

(i)

in the same manner as projects under paragraph (2); and

(ii)

that work in a variety of retail settings, including independent retailers and farmers markets.

(1)

by amending paragraph (1) to read as follows:

(1) In general

The Secretary shall establish—

(A)

a pilot grant program under which the Secretary shall award grants to eligible entities to conduct projects that demonstrate and evaluate the impact of the projects on—

(i)

the improvement of dietary health through increased consumption of fruits and vegetables;

(ii)

the reduction of individual and household food insecurity; and

(iii)

the reduction in healthcare use and associated costs; and

(B)

a grant program described in subparagraph (A) that has a demonstrated ability to expand clinical research on the value of delivering the program through clinical practice.;

(2)

in paragraph (3), by adding at the end the following:

(C) Criteria

(i) Seeding infrastructure grants

The Secretary shall establish criteria for awarding grants under paragraph (1)(A) that—

(I)

study previously unknown facts about the program design;

(II)

establish or validate best practices; or

(III)

establish infrastructure that aids community health centers and independent produce retail outlets.

(ii) Expansion grants

The Secretary shall establish criteria for awarding grants under paragraph (1)(B) that have—

(I)

a minimum intervention cohort of 300 patients;

(II)

a matched group or have demonstrated the ability to scale when delivered through clinical practice; and

(III)

an intervention duration of 12 months or longer.; and

(3)

by adding at the end the following:

(6) Range of awards

The amount of a grant awarded—

(A)

under subsection (c)(1)(A) shall be not less than $100,000 and not more than $400,000; and

(B)

under subsection (c)(1)(B) shall be not less than $1,000,000 and not more than $2,500,000.

(7) Report

Not later than 3 years after the date of the enactment of the GusNIP Expansion Act of 2026, the Secretary, in consultation with the Comptroller General of the United States, the Secretary of Health and Human Services, the Administrator of the Centers for Medicare and Medicaid Services, and any other relevant agency head shall conduct a study and issue recommendations on how to transition payment for the produce prescription program to health insurance programs not later than 10 years after the date of the enactment of the GusNIP Expansion Act of 2026.

(8) Review panel

Not later than 1 year after the date of enactment of the GusNIP Expansion Act of 2026, the Secretary shall establish a review panel to review grant applications under this subsection.

(1)

in paragraph (1), by striking 2023 and inserting 2031;

(2)

in paragraph (2)—

(3)

in paragraph (3)—