a positive economic effect for small farmers and local economies. 3. Locally-produced and unprocessed foods pilot program Section 18 of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1769 ) is amended by inserting before subsection (b) the following: (a) Locally-Produced and unprocessed foods pilot program (1) In general The Secretary shall carry out a grant program to make 3-year grants to 8 States or Indian tribal organizations to provide school food authorities with an increased reimbursement for free and reduced price lunches that are qualified lunches (as defined in paragraph (10)). (2) Application To be eligible to receive a grant under this subsection, a State or Indian tribal organization shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. (3) Selection of States (A) Regional requirement In awarding grants to States or Indian tribal organizations under this subsection, the Secretary shall select at least one State or Indian tribal organization located in each of the following regions designated by the Administrator of the Food and Nutrition Service: (i) The Mid-Atlantic Region. (ii) The Midwest Region. (iii) The Mountain Plains Region. (iv) The Northeast Region. (v) The Southern Region. (vi) The Southwest Region. (vii) The Western Region. (B) Priority (i) Highest priority To the maximum extent practicable, in awarding grants under this subsection, the Secretary shall give the highest priority to a State or Indian tribal organization that proposes in an application under paragraph (2) to carry out a project that, as determined by the Secretary— (I) makes local food products available on the menu of the eligible institution