Proposed Act: The Food Security and Transparency Act (FSTA)
Purpose and Findings
To incentivize grocery stores to donate unsold perishable and non-perishable food to alleviate hunger and support American families facing food insecurity and homelessness, while ensuring accountability and transparency.
We the People Find that:
Grocery stores in the United States are responsible for approximately 10% of the nation’s food waste, discarding about 43 billion pounds (21.5 million tons) of food annually. This significant waste stems from various factors, including overstocking, cosmetic imperfections, and the disposal of unsold perishable items. Notably, a substantial portion of this discarded food remains edible, highlighting opportunities for improved inventory management and donation practices to reduce waste.
The estimated government savings from donating just 50% of the food waste (21.5 million tons) would be astounding. According to some estimates, every ton of food recovered can save around $1,500 in food assistance and waste management costs.
Let’s break down the calculation:
1. 50% of 21.5 million tons = 10.75 million tons of food saved
2. $1,500 savings per ton × 10.75 million tons = $16.125 billion
Thus, if 50% of grocery store food waste were donated instead of discarded, it could save approximately $16.125 billion in government costs related to food assistance and waste management.
Key Provisions
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Enhanced Tax Write-Offs for Food Donations
• Grocery stores donating unsold but safe-for-consumption food to qualified nonprofit organizations, food banks, and community kitchens will receive a 100% tax deduction for the retail value of the donated goods.
• Enhanced deductions will apply to donations made throughout the fiscal year, providing a significant financial incentive for stores to donate rather than discard usable food. -
Transparency and Reporting Requirements
• Participating grocery stores must document and report the quantity and type of food donated, as well as its estimated retail value, to maintain eligibility for full tax write-offs.
• Reports will be submitted quarterly and will be available for public access to increase transparency, ensuring that communities can understand the impact of donations on local hunger relief efforts.
• A national database managed by the Department of Agriculture will be established to compile these reports, fostering accountability and allowing stakeholders to assess the effectiveness of the program. -
Food Donation Certification and Compliance Standards
• Grocery stores must adhere to health and safety standards to ensure donated food is safe for consumption, aligning with federal guidelines to prevent liability concerns.
• Participating stores will receive a “Certified Donor” designation, incentivizing community support and positive branding while emphasizing a commitment to addressing hunger. -
Government Subsidies for Operational Support
• In addition to tax write-offs, grocery stores participating in the FSTA may be eligible for federal subsidies to offset costs associated with packaging, transportation, and logistics for donated food.
• These subsidies will prioritize stores in low-income or food desert areas, increasing food access in underserved communities. -
Establishment of Community Food Partnerships
• The act will encourage grocery stores to partner with local nonprofits, food banks, and shelters to streamline the donation process, supporting efficient distribution to those most in need.
• Financial incentives will be provided to local nonprofits that participate in these partnerships, allowing them to expand their infrastructure for handling and distributing food donations effectively. -
Annual Review and Evaluation
• The Department of Agriculture, in partnership with the Department of Health and Human Services, will conduct an annual evaluation to assess the program’s impact on food waste reduction, hunger alleviation, and grocery store participation.
• The results will be reported to Congress to determine if adjustments in tax incentives or reporting requirements are necessary to maximize effectiveness.
Expected Outcomes
• Reduction in Food Waste: Increased donations will decrease the amount of food going to waste, aligning with national sustainability goals.
• Improved food Security: By redirecting food to families in need, this act will help address hunger in America, especially in areas classified as food deserts.
• Enhanced Corporate Responsibility: With transparency and reporting in place, grocery stores will be encouraged to maintain high standards of social responsibility, fostering public trust and community support.
• Cost Savings for Nonprofits: By covering some logistical costs, the government can make it easier for nonprofits to distribute food, helping them focus resources on direct support for individuals and families.
• Government savings of $16.125 billion in costs related to food assistance and waste management.
This act would support a healthier, more sustainable, and ethically responsible food system, leveraging tax incentives to make a substantial impact on hunger and homelessness in the U.S.