Part I.
Sets out legislative findings.
Part II.
Requires by January 1, 2027, that the Department of Health and Human Services (DHHS), Division of Social Services (Division), request a waiver from the US Department of Agriculture (USDA) authorizing the state to operate a nutrition incentive program that would increase the purchasing power of food and nutrition services benefits for fruits, vegetables, and other healthy foods. Requires the Division to report to the specified NCGA committee within 30 days of the USDA's decision to either grant or deny the waiver.
Enacts new GS 108A-53.5 with the purpose of expanding access to nutritious food for recipients of food and nutrition services programs in this state by supporting and funding nutrition incentive programs that increase the purchasing power of food and nutrition services benefits for fruits, vegetables, and other healthy foods. Requires DHHS to administer food and nutrition services nutrition incentive programs as authorized by federal law and in accordance with this statute. Requires DHHS to (1) establish, operate, expand, or support the state's participation in Double-Up Food Bucks (defined as nutrition incentive programs modeled on or affiliated with the Double-Up Food Bucks network that match food and nutrition services electronic benefit transfer (EBT) benefits for the purchase of eligible foods at participating locations), Market Match, Healthy Incentives Program, or similar SNAP nutrition incentive programs; (2) enter into contracts, cooperative agreements, or memoranda of understanding with nonprofits, local governments, farmers, farmers market associations, grocery retailers, food cooperatives, or other entities to implement and operate nutrition incentive programs; (3) seek, receive, accept, and administer funds to expand food and nutrition services nutrition incentive programs; and (4) provide technical assistance, outreach, education, and operational support to vendors, market operators, and communities to increase participation in nutrition incentive programs. Requires nutrition incentive programs (as defined) implemented under this statute to meet all applicable federal requirements and: (1) match electronic food and nutrition benefit purchases for fruits, vegetables, and other nutritious foods at a rate determined by DHHS based on available funding and federal guidelines and (2) ensure that incentive matches are redeemable at participating locations at the point of purchase or through token, voucher, or electronic credit mechanisms. Requires an annual report by December 1 to the specified NCGA committee and division on the five listed topics, including the number of participating food and nutrition services benefits households, the number and type of participating vendors, and the outcomes related to access to healthy food. Effective upon approval from the USDA of the requested waiver.
Appropriates $11 million from the General Fund to the Division in recurring funds for 2026-27 to support SNAP matching funds, program administration, outreach, and other nutrition incentive purposes authorized under this Part, subject to approval of the waiver. Effective July 1, 2026.
Appropriates $16 million in recurring funds from the General Fund to DHHS, Division of Central Management and Support, beginning in 2026-27 to cover the loss in federal receipts for the administrative costs of the federal Supplemental Nutrition Assistance Program (SNAP) as a result of Public Law 119-21. Allows DHHS to allocate a portion of these funds to any division within DHHS that incurs a loss of federal receipts for the administrative costs of SNAP as a result of Public Law 119-21. Appropriates $69 million in recurring funds beginning in 2026-27 from the General Fund to DHHS, Division of Social Services, to cover the loss of federal receipts for the administrative costs of the federal Supplemental Nutrition Assistance Program (SNAP) as a result of Public Law 119-21. Allows for the funds to be distributed to counties proportional to each county's loss of federal receipts. Effective July 1, 2026.
Part III.
Adds new Article 1C, Food Assistance Program, to GS Chapter 106, providing as follows. Establishes the State Food Procurement and Farmer Stabilization Program (Program) within the Department of Agriculture and Consumer Services (DACS) to purchase food products grown or processed in North Carolina for distribution to food assistance programs. Requires that the Program encourage broad participation among North Carolina farmers and food producers and prioritizes procurement from small and mid-sized farms, beginning farmers, historically underserved producers, and producers located in economically distressed or rural areas. Allows using funds for the program for costs related to food purchasing, aggregation, storage, transportation, and coordination, in addition to the Department's reasonable administrative expenses. Requires an annual report by February 15 to the specified NCGA committee and division and specifies what must be included in each report.
Appropriates $9 million in recurring funds for 2026-27 from the General Fund to the DACS to administer the Program.
Amends GS 106-744 by expanding upon the allowable uses of funds in the North Carolina Agricultural Development and Farmland Preservation Trust Fund to also include providing farmland preservation grants to local governments and nonprofit land conservation organizations, and providing local governments with technical assistance and capacity-building support related to farmland preservation planning and implementation.
Appropriates $47 million in recurring funds for 2026-27 from the General Fund to DACS to be allocated to the North Carolina Agricultural Development and Farmland Preservation Trust Fund to be used for purposes consistent with this Fund.
Part IV.
Enacts new GS 106-26.30 establishing the Targeted Military and Veteran Food Assistance Program (Assistance Program) established within DACS to address food insecurity among members of the military, military veterans, and military families. Requires using the program to provide food assistance to veterans and members of the US Armed Forces and the North Carolina National Guard, and their dependents and other members of their household, who are experiencing or at risk of experiencing food insecurity. Sets out allowable fund uses. Requires DACS to procure and distribute, to the extent practicable, nutritious food products grown or processed in North Carolina. Allows giving priority to households experiencing demonstrable food insecurity and financial hardship. Requires DACS to administer the Program in coordination with food banks, food assistance programs, veterans' service organizations, military family support organizations, and other appropriate public or private partners. Requires an annual report by February 15 to the specified NCGA committee and division. Sets out what must be included in the report.
Appropriates $140 million in recurring funds for 2026-27 from the General Fund to DACS to administer the Assistance Program.
Appropriates $20 million for 2026-27 from the General Fund to DACS for grants to nonprofit and local government administered food assistance programs for the purposes of expanding and strengthening food storage, transportation, coordination, and distribution capacity.
Part V.
Enacts new GS 106-26.35 establishing the Mobile Markets and Food Bank Grant Program (Program) within DACS to expand access to nutritious food in rural and underserved areas of the state by supporting mobile food pantries, temporary or pop-up food distribution sites, mobile markets, and similar food distribution models designed to serve populations experiencing food insecurity. Requires DACS to administer the program in consultation with DHHS. Allows entering into interagency agreements to allocate responsibilities related to program design, grantmaking, monitoring, and reporting. Allows DACS to coordinate with food banks, nonprofit organizations, local governments, tribal governments, and other appropriate public and private partners to carry out the purposes of this statute. Allows grants to be issued to food banks and food pantries, nonprofits, local governments, and tribal governments operating in the state. Sets out allowable uses of the funds. Requires DACS to develop application procedures, eligibility requirements, award criteria, and reporting standards necessary to carry out this statute, with priority given to projects that serve rural communities, areas with high rates of food insecurity, and populations with limited access to traditional retail food outlets. Requires an annual report by February 15 to the specified NCGA committees and division; specifies what is to be included in the report.
Appropriates $8 million in recurring funds for 2026-27 from the General Fund to DACS to administer the program.
Establishes the Grocery Store and Food Retail Pilot Program to increase access to affordable, nutritious food in underserved areas and food deserts across the state by providing loans and grants to support capital costs associated with the establishment, expansion, rehabilitation of grocery stores, food cooperatives, mobile markets, or similar food retail outlets that offer a meaningful selection of staple foods and fresh produce. Requires DHHS to administer the pilot program in consultation with the Department of Commerce and DACS. Authorizes DHHS to award grants and low-interest or forgivable loans under the Pilot Program. Allows funds to be used for eligible capital expenses including specified types of costs. Requires DHHS to report annually by February 15, 2028, to the specified NCGA committee and division, and sets out what must be included in the report. Appropriates $10 million for 2026-27 from the General Fund to DHHS to administer the Grocery Store and Food Retail Pilot Program.
Part VI.
Enacts new Article 9, Dynamic Pricing, to GS Chapter 75. Defines dynamic pricing as a practice by which a retail price is increased, decreased, or otherwise changed during the course of a business day or more frequently than once in a 24-hour period; defines household essential good as a consumer good used for cleaning, hygiene, sanitation, baby care, or other ordinary household purpose; also defines electronic shelf label and retail grocery store. Makes it illegal for a a retail grocery store to use an electronic shelf label to implement dynamic pricing for any food, beverage, or household essential good. Sets out limited purposes for which retail grocery stores may use an electronic shelf label. Violations are an unfair or deceptive trade practice. Allows the attorney general to bring a civil action to recover a civil penalty of not more than $5,000 for each violation of this Article and specifies that each distinct price change in violation of this Article constitutes a separate violation. Effective October 1, 2026, and applies to acts or omissions occurring on or after that date.
Part VII.
Except as otherwise provided, effective July 1, 2026.

Statutes affected:
Filed: 106-744