This Act may be cited as the “EQIP Improvement Act of 2023”.

(a) In general.—Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa–2) is amended—

(1) in subsection (d), by striking paragraph (2) and inserting the following:

“(2) LIMITATION ON PAYMENTS.—A payment to a producer for performing a practice may not exceed, as determined by the Secretary—

“(A) except as provided in subparagraphs (B) through (D), 75 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, or training;

“(B) 40 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, or training for—

“(i) an access road;

“(ii) an animal mortality facility;

“(iii) an aquaculture pond;

“(iv) clearing and snagging;

“(v) a dam;

“(vi) a dam using a diversion;

“(vii) a dike;

“(viii) a diversion;

“(ix) a fish raceway or tank;

“(x) an irrigation pipeline;

“(xi) an irrigation reservoir;

“(xii) land clearing;

“(xiii) land smoothing;

“(xiv) a livestock pipeline;

“(xv) obstruction removal;

“(xvi) a pond;

“(xvii) a pumping plant;

“(xviii) spoil spreading;

“(xix) a surface drain using a field ditch;

“(xx) a main or lateral surface drain;

“(xxi) a vertical drain;

“(xxii) a waste facility closure;

“(xxiii) a waste storage facility;

“(xxiv) waste transfer; or

“(xxv) a waste treatment lagoon;

“(C) 100 percent of income foregone by the producer; or

“(D) in the case of a practice that includes 1 or more elements described in subparagraphs (A) through (C)—

“(i) 75 percent of the costs incurred with respect to any elements described in subparagraph (A);

“(ii) 40 percent of the costs incurred with respect to any elements described in subparagraph (B); and

“(iii) 100 percent of the income forgone with respect to any elements described in subparagraph (C).”; and

(2) in subsection (f), by striking the subsection designation and heading and all that follows through “For each” in paragraph (2)(B) and inserting the following:

“(f) Allocation of funding for wildlife habitat.—For each”.

(b) Limitation on payments.—Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa–7) is amended by striking “$450,000” and inserting “$150,000”.

(c) Report to Congress.—Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa–2) is amended by adding at the end the following:

“(k) Annual report to Congress.—Not less frequently than once each year, the Secretary shall submit to Congress a report describing—

“(1) the amount obligated under the program with respect to each category of practice, with information categorized by fiscal year and State; and

“(2) the amount obligated under the program in each State, with information categorized by fiscal year and the size of the operation of each producer.”.