Congressional Research Service IF11491.3 (Supplemental Appropriations for Agriculture and Related Agencies Due to COVID-19)

Summary

A Congressional Research Service product, IF11491 (version 3), updated May 8, 2020, on supplemental appropriations for agriculture and related agencies due to COVID-19. It summarizes over $36 billion of appropriations and policy changes in the jurisdiction of the Agriculture appropriations subcommittees from four acts passed in March and April 2020 (P.L. 116-123, P.L. 116-127, P.L. 116-136 and P.L. 116-139). It reports that the acts provide a total of $163 million for the Food and Drug Administration. It describes USDA's Farmers to Families Food Box Program, which plans to buy about $100 million per month each of fresh produce, dairy products and meat products, and $470 million of additional purchases with Section 32 authority announced May 4, 2020.

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Updated May 8, 2020
Supplemental Appropriations for Agriculture and
Related Agencies Due to COVID-19
In March and April 2020, Congress passed and the Commodity Credit Corporation (CCC) using the
President signed four supplemental appropriations acts in Secretary’s general discretion to support agriculture. As of
response to the COVID-19 pandemic (P.L. 116-123, P.L. the date of this report, USDA has not announced how it will
116-127, P.L. 116-136, and P.L. 116-139; Table 1). This In distribute the direct payments regarding commodities,
Focus summarizes over $36 billion of appropriations and payment rates, payment limits, and other terms.
policy changes in the jurisdiction of the Agriculture The $3 billion commodity purchase program uses indefinite
appropriations subcommittees. These supplemental authority in the Families First Coronavirus Relief Act (the
appropriations acts are referred to here by order of passage. second supplemental) to make purchases for emergency
For comparison, the regular annual Agriculture distribution. On April 21, USDA announced plans to
appropriations are discussed in CRS Report R45974, implement a Farmers to Families Food Box Program by
Agriculture and Related Agencies: FY2020 Appropriations. purchasing about $100 million per month of fresh produce,
Food and Drug Administration (FDA) $100 million per month of dairy products, and $100 million
For FDA to respond to the public health emergency of the per month of meat products (chicken and pork). Products
COVID-19 pandemic, the first, third, and fourth purchased from farmers and processors are to be assembled
supplemental appropriations acts provide a total of $163 into household-ready boxes for expedited distribution.
million. The funds are to develop medical countermeasures On May 4, 2020, USDA announced $470 million of
and tests (e.g., drugs, vaccines), and monitoring of medical additional purchases with Section 32 authority. USDA
product supply chains. See CRS Report R46285, intends to buy $170 million of produce, $120 million of
Coronavirus Preparedness and Response Supplemental dairy products, $80 million of poultry, $70 million of fish,
Appropriations Act, 2020 (P.L. 116-123): First and $30 million of pork for distribution through food banks.
Coronavirus Supplemental; and CRS Report R44576, The See CRS Report RL34081, Farm and Food Support Under
Food and Drug Administration (FDA) Budget: Fact Sheet. USDA’s Section 32 Program.
Nutrition Assistance The third supplemental appropriation also replenishes by
Access to food has been a concern, particularly in light of July up to $14 billion of funding availability for the CCC,
school closures. Rising unemployment may also increase which operates with a $30 billion line of credit with the
participation in the Supplemental Nutrition Assistance U.S. Treasury. The $14 billion is not new spending, and
Program (SNAP) and other food assistance programs. will reimburse CCC for past spending. This reimbursement
could increase opportunities for USDA to use its executive
The second and third supplemental appropriations acts
provide a total of $26 billion for nutrition assistance and authority to provide future support. See CRS Insight
give the U.S. Department of Agriculture (USDA) certain IN10941, Commodity Credit Corporation: Q&A.
flexibilities to increase program access and accommodate
Disaster Designation
social distancing. The Congressional Budget Office (CBO)
For producers, the majority of USDA’s existing disaster
estimated that SNAP policies in the second law will
response programs cover natural disasters (physical and
increase mandatory spending by more than $21 billion over
FY2020-FY2021, some of which the third act provides. See production). The losses from the pandemic are economic
and do not trigger agricultural disaster assistance programs
CRS Insight IN11250, USDA Domestic Food Assistance
Programs’ Response to COVID-19: P.L. 116-127, P.L. 116- such as emergency loans, despite the President’s declaration
136, and Related Efforts. of a public health emergency under the Stafford Act (CRS
Insight IN11251, The Stafford Act Emergency Declaration
Agricultural Producers for COVID-19). However, USDA has announced some loan
On April 17, 2020, USDA announced a $19 billion flexibilities, including payment deferrals and moratoriums
Coronavirus Food Assistance Program (CFAP), composed on foreclosures.
of $16 billion of direct payments to farmers and $3 billion
of commodity purchases. See CRS Report R46347,
Rural Development
The third supplemental appropriation provides $146 million
COVID-19, U.S. Agriculture, and USDA’s Coronavirus
for USDA rural development programs, including $100
Food Assistance Program (CFAP).
million for broadband grants, $25 million for rural
The CFAP has three funding sources. The $16 billion of telemedicine and distance learning, and $20.5 million to
direct payments is derived from $9.5 billion in the CARES support rural business loans. See CRS In Focus IF11262,
Act (the third supplemental) and $6.5 billion from the The ReConnect Broadband Pilot Program.

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Supplemental Appropriations for Agriculture and Related Agencies Due to COVID-19

USDA Agency Operations The $36 million combined amount for FSIS and FSA is to
The third supplemental provides $141 million to six USDA support temporary employees and adjustments to respond to
agencies or offices, including the Animal and Plant Health COVID-19 workload demands. FAS received $4 million to
Inspection Service (APHIS), Agricultural Marketing repatriate staff and provide temporary housing.
Service (AMS), Food Safety and Inspection Service (FSIS),
Agricultural Businesses
Foreign Agricultural Service (FAS), Farm Service Agency
In addition to the support for agricultural producers
(FSA), and Office of the Inspector General (OIG). These
mentioned above, other provisions outside the jurisdiction
funds, except for OIG, were part of the Administration’s
of agriculture appropriations may provide loans and grants
request on March 17, 2020, for the third supplemental.
to agriculture-related businesses. See CRS Insight IN11357,
Most of the USDA request was to replace a combined $100
COVID-19-Related Loan Assistance for Agricultural
million of user fee revenues that are expected to decline for
Enterprises, and CRS Report R46284, COVID-19 Relief
APHIS due to reduced air passenger traffic and for AMS
Assistance to Small Businesses: Issues and Policy Options.
because of reduced grading, inspections and audit services.
Table 1. Summary of Supplemental Appropriations for Agriculture and Related Agencies Due to COVID-19
Jurisdiction of the House and Senate Agriculture Appropriations Subcommittees (dollars in millions)
P.L. 116-123 P.L. 116-127 P.L. 116-136 P.L. 116-139
Department/Agency/Programa 3/6/2020 3/18/2020 3/27/2020 4/24/2020

Department of Health and Human Services
Food and Drug Administration 61 80 22
Department of Agriculture
Food and Nutrition Service
Supplemental Nutrition Assistance Program (SNAP) —b
SNAP reserve 15,510
Northern Mariana Is., Puerto Rico, Am. Samoa 100 200
Food Distribution on Indian Reservations 100
Child Nutrition Programs 8,800
The Emergency Food Assistance Program 400 450
Special Supplemental Nutrition Program for Women,
Infants, and Children 500
Office of the Secretary (purchases and producer support) —c 9,500
Commodity Credit Corporation (CCC) [14,000]d
Rural Development
Rural e-Connectivity Pilot Program (ReConnect) 100
Distance Learning and Telemedicine Program 25
Business & Industry Loans 20.5
Animal and Plant Health Inspection Service 55
Agricultural Marketing Service 45
Food Safety and Inspection Service 33
Foreign Agricultural Service 4
Farm Service Agency 3
Office of Inspector General 0.75
Total in the Jurisdiction of Agriculture Appropriations 61 1,000 34,926 22
Source: Compiled by CRS, using identified public laws and CBO score of H.R. 6201, Families First Coronavirus Response Act.
a. All funding in this table is designated as emergency and does not count against budget caps. This table excludes other support that
agriculture or rural entities may receive from other portions of these supplemental appropriations acts.
b. CBO estimates that certain SNAP policy changes would increase mandatory spending by $21.24 billion in FY2020-FY2021.
c. Includes authority for USDA to purchase commodities for emergency distribution; used for the $3 billion food purchase portion of CFAP.
d. The $14 billion for CCC is not new spending and is not part of the $34.9 billion subtotal of the act. It is a reimbursement for prior
obligations and increases the availability of funding (i.e., access to borrowing authority) for USDA to make future obligations.
Jim Monke, Specialist in Agricultural Policy
IF11491

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Supplemental Appropriations for Agriculture and Related Agencies Due to COVID-19

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