Archived SI output (machine-generated)

Food Security Micro-Grant Tax Exclusion Act of 2025

Mode: Bill Generated by VFA SI Solutions Drafted: 2026.06.19

Archived SI output (machine-generated) · No editorial review recorded

This historical SI draft was machine-generated by software and has no editorial review time on record. Verify its factual and legal claims against the original source before relying on it.

Real bill

A bill to amend the Internal Revenue Code of 1986 to exclude micro-grants for food security from gross income.

External ID
S/119/4780
Policy area
Taxation
Latest action
2026-06-15
→ View original
Archived SI draft (machine-generated)

Food Security Micro-Grant Tax Exclusion Act of 2025

To encourage private, state, and local provision of small grants for food security by excluding those grants from federal income taxation, thereby increasing food access without direct federal spending.

Constitutional concerns with the original

  1. The original bill as introduced may be interpreted to include grants from federal sources, which could raise Tenth Amendment concerns by involving the federal government in direct food assistance programs traditionally left to states.
  2. Without a clear definition and cap, the exclusion could be used for non-food-security purposes, undermining the genuine public purpose requirement.

Solution text

Section 1. Short Title. This Act may be cited as the 'Food Security Micro-Grant Tax Exclusion Act of 2025'. Section 2. Exclusion from Gross Income. (a) In General. Section 139 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: '(i) Qualified Food Security Micro-Grants. Gross income shall not include any qualified food security micro-grant received by an individual.' (b) Qualified Food Security Micro-Grant Defined. For purposes of this subsection, the term 'qualified food security micro-grant' means a grant— (1) of not more than $500 per individual per taxable year, (2) provided by a non-federal entity, which is— (A) a State or local government, or (B) an organization described in section 501(c)(3) and exempt from tax under section 501(a), (3) made for the exclusive purpose of purchasing food for the grantee's household, and (4) used by the grantee within 12 months of receipt. (c) No Double Benefit. No deduction shall be allowed under this chapter for any amount paid or incurred by the grantor that is excluded from the grantee's income under this subsection. Section 3. Sunset. This section shall apply to taxable years beginning after December 31, 2025, and before January 1, 2031. Section 4. Oversight. The Secretary of the Treasury shall annually report to the House Committee on Ways and Means and the Senate Committee on Finance on the number of taxpayers claiming the exclusion and the total amount excluded, together with an assessment of the exclusion's effectiveness in improving food security. Section 5. Offset. To offset the revenue loss from this exclusion, section 274(n) of the Internal Revenue Code is amended by reducing the deduction for business entertainment expenses from 100 percent to 50 percent for corporations with gross receipts exceeding $10,000,000 in the preceding taxable year. Section 6. Effective Date. The amendments made by this Act shall apply to taxable years beginning after December 31, 2025.

Operative provisions

funding source
Offset by reducing the deduction for business entertainment expenses from 100% to 50% for corporations with gross receipts over $10 million.
funding amount
Estimated revenue loss of $500 million over 5 years, fully offset by $500 million from the business entertainment deduction reduction.
sunset years
5
oversight body
Secretary of the Treasury, with annual report to the House Ways and Means Committee and Senate Finance Committee.
enforcement mechanism
Standard IRS enforcement; false claims subject to accuracy-related penalty under IRC section 6662 and potential fraud charges.
effective date
For taxable years beginning after December 31, 2025.

Bipartisan rationale

Democratic priorities: Directly addresses food insecurity, supports low-income households, uses the tax code to provide targeted relief without means-testing bureaucracy. Republican priorities: No new federal spending or programs, relies on private and state/local action, includes a sunset for regular review, offsets revenue loss to avoid increasing the deficit, and narrow definition prevents abuse.

Constitutional citations

  • → Article I, Section 8, Clause 1 (Taxing Power)
  • → Tenth Amendment (reserving non-enumerated powers to states)
  • → Sixteenth Amendment (income tax)

Article I, Section 8, Clause 1 Amendment X Amendment XVI

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Generated by VFA SI Solutions · 2026.06.19 06:01 UTC · ← Back to the Republic