In the United States, a significant portion of the population, roughly 40 million Americans, faces challenges in securing adequate nutrition due to limited access to fresh and healthy food. Recognizing this critical issue, the U.S. Department of Agriculture (USDA) established the Healthy Food Financing Initiative (HFFI) to bridge the gap between families and nutritious food options. This initiative provides resources to healthy food retail and food enterprise projects, helping them overcome the financial barriers associated with serving low-access areas.
What is the Healthy Food Financing Initiative?
The Healthy Food Financing Initiative (HFFI) is a public-private partnership designed to improve access to healthy food in underserved areas across the United States. Administered by Reinvestment Fund, a national, nonprofit Community Development Financial Institution (CDFI), on behalf of USDA Rural Development, HFFI offers a range of resources, including grants, loans, technical assistance, and programming. These resources are targeted towards projects that aim to expand or preserve the availability of staple and perishable foods in communities with low and moderate-income populations.
America’s Healthy Food Financing Initiative is the result of a national effort by PolicyLink, Reinvestment Fund and The Food Trust to raise awareness on the issue of limited food access in many communities across America.
Key Objectives
The HFFI program strives to achieve multiple goals, including:
- Reducing health disparities and improving the health of families and children
- Creating jobs and stimulating local economic development in low-income communities
How HFFI Works
As the National Fund Manager for HFFI, Reinvestment Fund plays a crucial role in leveraging private capital, establishing financing and technical assistance programs, and directing capital to eligible projects and partnerships. The initiative operates through a combination of public and private funding, maximizing its reach and impact.
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To be eligible for financial or technical assistance through USDA’s Healthy Food Financing Initiative, applicants must propose a project in an underserved area.
Reinvestment Fund's Role
Reinvestment Fund is responsible for:
- Leveraging private capital
- Establishing financing and technical assistance programs
- Channeling capital to fund eligible projects and partnerships
Funding and Impact
Since 2010, HFFI programs at the federal, state, and local levels have leveraged significant financial resources. To date, HFFI programs have helped leverage more than $220 million in grants and an estimated $1 billion in additional financing. This funding has supported the introduction of nearly 1,000 grocery and other healthy food retail projects in more than 35 states across the country.
HFFI Eligibility and Project Examples
To be eligible for financial or technical assistance through USDA's Healthy Food Financing Initiative, applicants must propose a project in an underserved area. Furthermore, projects involving retail sales must accept benefits under the Supplemental Nutrition Assistance Program (SNAP).
Several projects across the United States exemplify the impact of HFFI:
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- Illinois: Austin Grocery Initiative: Forty Acres Fresh Market and Westside Health Authority are partnering on the Austin Grocery Initiative, which will open a 3,000 square foot specialty grocery store that provides affordable fresh food for the west side neighborhood of Austin, Chicago. Forty Acres Market will operate a pop-up market in Austin, one weekend per month for a year, while in the predevelopment stage of the brick and mortar location.
- South Dakota: Buche Foods: Buche Foods used their award to reopen a grocery store located on the Pine Ridge Indian Reservation. After years of unstable operations and poor management, Buche Foods was awarded the contract by the Oglala Sioux Tribal Council to revitalize and manage the grocery store on the reservation.
- West Virginia: WV Grocer Lab: The West Virginia Food & Farm Coalition (NSAC members) along with healthy food access and food system development partners throughout the state, will launch the WV Grocer Lab. This project will support food access in three communities in West Virginia and develop a coordinated approach for future retail development in the region. The WV Grocer Lab will provide consulting services, equipment, inventory, and other supplies to the two rural and one urban retail supermarket projects. The project will also develop a learning network among the retail models to help grocers access regional food supply chain networks, reduce inventory costs and enhance long-term sustainability.
These examples demonstrate how HFFI supports diverse projects, from revitalizing existing stores to establishing new food retail outlets in underserved communities.
Project Requirements
Eligible projects must:
- Be located in an underserved area
- Focus on expanding or preserving access to staple and perishable foods
- Accept SNAP benefits (if the project involves retail sales)
Legislative History and Funding
USDA's HFFI was created in the 2014 Farm Bill. The 2018 Farm Bill reauthorized HFFI, and expanded eligibility from only food retail to food retail and food enterprises. The 2018 Farm Bill reauthorized the program at $125 million until expended. Because USDA’s HFFI does not receive mandatory farm bill funding, the program must rely on the annual appropriations process.
The Healthy Food Access Portal
In 2013, Reinvestment Fund along with PolicyLink and The Food Trust launched the Healthy Food Access Portal, an online gateway to information and resources for communities and policymakers working to improve access to healthy food. The portal highlights successful food retail models as well as webinars, case studies and reports.
The Importance of Healthy Food Financing Initiatives
Millions of Americans live in communities without access to a supermarket or other healthy food retail. This problem impacts residents of cities, small towns, rural areas and everywhere in between, especially those living in lower-income neighborhoods. Healthier communities create healthier economies, and research shows that the development or presence of a grocery store not only improves health outcomes but also creates jobs and stimulates additional investment.
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