The Cultivating Horticultural Innovation in Local Economies Act of 2026 amends the Federal Agriculture Improvement and Reform Act of 1996 to create a new specialty crop emergency assistance framework . This framework mandates the Secretary of Agriculture to provide direct financial assistance to producers of specialty crops whose operations are impacted by adverse events, including economic crises or market disruptions. Payments to producers will be calculated based on their historical sales of specialty crops from a calendar year preceding the adverse event, multiplied by a payment factor determined by the Secretary to address specific losses. In developing this assistance, the Secretary must consider the higher value and greater input costs associated with specialty crops, as well as the diverse business structures of their producers. The bill establishes payment limitations, generally aligning with existing agricultural payment caps, but includes an exception for producers deriving at least 75% of their gross income from farming, for whom the Secretary will set a cap no less than $900,000. All direct assistance programs for specialty crops, including those under Commodity Credit Corporation authority, must utilize this new framework. To fund this initiative, the bill appropriates $5,000,000,000 for fiscal year 2027, to remain available until expended.