Supplemental Appropriations for Agriculture and the Food and Drug Administration Due to COVID-19 (IF11491, Version 1)
Summary
A Congressional Research Service In Focus, IF11491, dated April 3, 2020, summarizing $36 billion of appropriations and policy changes for agriculture and the Food and Drug Administration in the three COVID-19 supplemental acts Congress passed in March 2020. The second and third acts provide a total of $26 billion for nutrition assistance, and the first and third give FDA $141 million for medical countermeasures and supply chain monitoring. The third act includes $9.5 billion for farm support that USDA had not yet decided how to distribute, and replenishes up to $14 billion for the Commodity Credit Corporation to reimburse past spending. It also lets Marketing Assistance Loans in FY2020 be repaid over 12 months rather than nine.
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April 3, 2020
Supplemental Appropriations for Agriculture and the Food and
Drug Administration Due to COVID-19
In March 2020, Congress passed and the President signed As of the date of this report, USDA has not announced how
three supplemental appropriations acts in response to the it will distribute the $9.5 billion. It has yet to determine the
COVID-19 pandemic (P.L. 116-123, P.L. 116-127, and P.L. breadth of producers to be included, payment rates, and the
116-136; Table 1). This In Focus summarizes $36 billion of methods of support (payments or by purchasing
appropriations and policy changes in the jurisdiction of the commodities). Several Members of Congress and relevant
Agriculture appropriations subcommittees. industry groups have sent letters to USDA with requests for
how this money should be spent.
These supplemental appropriations acts are referred to in
this In Focus by order of passage (i.e., first, second, and The third supplemental appropriation also replenishes up to
third). For comparison, the regular annual Agriculture $14 billion of funding availability for the Commodity
appropriations are discussed in CRS Report R45974, Credit Corporation (CCC). CCC operates with a $30 billion
Agriculture and Related Agencies: FY2020 Appropriations. line of credit with the U.S. Treasury (see CRS Insight
Food and Drug Administration (FDA) IN10941, Commodity Credit Corporation: Q&A). The $14
billion would reimburse CCC for past spending. It is not
For FDA to respond to the public health emergency of the
new spending and not part of the subtotal of the
COVID-19 pandemic, the first and third supplemental
appropriations act.
appropriations acts provide a total of $141 million. The
FDA role is development of medical countermeasures (e.g., CCC uses its borrowing authority to finance authorized
drugs, vaccines), advanced manufacturing, and monitoring farm bill programs and broadly support the U.S. agriculture
of medical product supply chains. See CRS Report R46285, industry. The supplemental reimbursement could increase
Coronavirus Preparedness and Response Supplemental opportunities for USDA to use its executive authority in
Appropriations Act, 2020 (P.L. 116-123): First CCC to provide direct support payments, as it did with
Coronavirus Supplemental; and CRS Report R44576, The trade aid payments in 2018 and 2019 (see CRS Report
Food and Drug Administration (FDA) Budget: Fact Sheet. R45865, Farm Policy: USDA’s 2019 Trade Aid Package).
Nutrition Assistance The third supplemental allows Marketing Assistance Loans
Access to food has been a concern, particularly in light of in FY2020 to be repaid over 12 months (rather than nine
school closures. Rising unemployment may also increase months) to provide flexibility in responding to disruptions.
participation in the Supplemental Nutrition Assistance
Program (SNAP) and other food assistance programs. Disaster Designation
For producers, the majority of USDA’s existing disaster
The second and third supplemental appropriations acts
response programs cover natural disasters (physical and
provide a total of $26 billion for nutrition assistance and
production) and do not apply to economic or market losses.
give the U.S. Department of Agriculture (USDA) certain
The losses from the COVID-19 pandemic are economic and
flexibilities to increase program access and accommodate
do not trigger agricultural disaster assistance programs such
social distancing. The Congressional Budget Office (CBO)
as emergency loans, despite the President’s declaration of a
estimates that SNAP policies in the second law will
public health emergency under the Stafford Act (CRS
increase mandatory spending by more than $21 billion over
Insight IN11251, The Stafford Act Emergency Declaration
FY2020-FY2021. See CRS Insight IN11250, USDA
for COVID-19). However, USDA has announced some
Domestic Food Assistance Programs’ Response to COVID-
flexibilities for farm loan and rural housing loan programs,
19: P.L. 116-127, P.L. 116-136, and Related Efforts.
including payment deferrals and moratoriums on
Agricultural Producers foreclosures.
The third supplemental provides $9.5 billion for USDA to Rural Development
“support agricultural producers impacted by coronavirus,
The third supplemental appropriation provides $146 million
including producers of specialty crops, producers that
for USDA rural development programs, including $100
supply local food systems, including farmers’ markets,
million for broadband grants, $25 million for rural
restaurants, and schools, and livestock producers, including
telemedicine and distance learning, and $20.5 million to
dairy producers.” This approach is similar to recent
support rural business loans. See CRS In Focus IF11262,
emergency appropriations for wildfires and hurricanes in
The ReConnect Broadband Pilot Program.
which USDA was tasked to develop a payment program
from a general appropriation.
https://crsreports.congress.gov
Supplemental Appropriations for Agriculture and the Food and Drug Administration Due to COVID-19
USDA Agency Operations million combined supplemental for FSIS and FSA are to
The third supplemental also provides $141 million to six support temporary employees and adjustments to respond to
USDA agencies or offices, including the Animal and Plant COVID-19 workload demands. FAS receives $4 million to
Health 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. These agency
mentioned above, other provisions outside the jurisdiction
operation funds were the focus of the USDA portion of the
of agriculture appropriations may provide loans and grants
Administration’s request on March 17, 2020, prior to the to agriculture-related businesses. See CRS Report R46284,
third supplemental. Most of this USDA request and the COVID-19 Stimulus Assistance to Small Businesses: Issues
enacted appropriation is to replace a combined $100 million
and Policy Options; and CRS Insight IN11232, SBA
of user fee revenues that are expected to decline for APHIS Economic Injury Disaster Loans for COVID-19.
due to reduced air passenger traffic and for AMS because of
reduced grading, inspections, and audit services. The $36
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
Department/Agency/Programa 3/6/2020 3/18/2020 3/27/2020
Department of Health and Human Services
Food and Drug Administration 61 80
Department of Agriculture
Food and Nutrition Service
Supplemental Nutrition Assistance Program (SNAP) account —b
SNAP reserve 15,510
Northern Mariana Islands, Puerto Rico, American Samoa 100 200
Food Distribution Program 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 (producer support) 9,500
Commodity Credit Corporation (CCC) [14,000]c
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
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, such as certain rural housing programs being eligible for housing assistance, certain agricultural
businesses being eligible for Small Business Administration loan assistance, and other direct payments to individuals and businesses.
b. CBO estimates that certain SNAP policy changes will increase mandatory spending by $21.24 billion in FY2020-FY2021.
c. 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 and to
implement existing farm bill programs (see CRS Insight IN10941, Commodity Credit Corporation: Q&A).
IF11491
Jim Monke, Specialist in Agricultural Policy
https://crsreports.congress.gov
Supplemental Appropriations for Agriculture and the Food and Drug Administration Due to COVID-19
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