Domestic Commodity Distribution and Food Assistance Act

Domestic Commodity Distribution and Food Assistance Act - Requires the Secretary of Agriculture to distribute surplus Commodity Credit Corporation (CCC) stocks to eligible agencies (as defined in this Act).

Requires the CCC to pay for commodity processing with funds or with in-kind payments to the processor.

Requires the Secretary to publish an annual announcement of such anticipated surplus stocks.

Provides that up to 500,000 metric tons of wheat available under the Food Security and Wheat Reserve Act of 1980 may be used for domestic purposes. Requires the CCC to use any additional reserves to replenish such stocks by September 30, 1985.

Provides for State distribution of commodities under this Act. States that if a State agency cannot meet the requests for a given commodity such agency shall give special consideration to organizations that serve low-income and unemployed persons.

Provides administrative money to the States to run such program. Prohibits States from charging recipient agencies for related program costs. Requires States to pay the distribution costs of organizations serving low-income and unemployed persons.

Requires the Secretary and the States to work with private companies and recipient agencies to make it easier for recipients to process such commodities into end use products. Directs the Secretary to use moneys saved on storage and spoilage to process commodities into food products for agencies serving low-income and unemployed persons.

Exempts such commodity distributions from specified food stamp prohibitions.