Order Code RL32504
CRS Report for Congress
Received through the CRS Web
Funding Plant and Animal Health Emergencies:
Transfers from the Commodity Credit Corporation
July 30, 2004
Jim Monke
Analyst in Agricultural Policy
Resouces, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

---

Funding Plant and Animal Health Emergencies:
Transfers from the Commodity Credit Corporation
Summary
The Secretary of Agriculture has the authority to transfer funds from the
Commodity Credit Corporation (CCC) to the Animal and Plant Health Inspection
Service (APHIS) for emergency control programs. The Secretary’s use of this
authority has increased in recent years, and has become an issue within government
concerning the method for funding plant and animal health programs.
The authority to transfer money for plant and animal health emergencies is
found both in annual appropriations acts and in the U.S. Code. Discretion rests with
the Secretary of Agriculture, who is subject to limited review when making transfers.
The definition and use of the word “emergency” have caused particular concern.
Some parties interpret emergency to include only the initial occurrence of an
outbreak. Others interpret emergency to include any outbreak that “threatens
agricultural production” for which officials deem appropriations insufficient.
CCC transfers represent a significant source of funding for APHIS activities.
Nearly all CCC transfers go to the pest and disease management function. CCC
transfers rose from $31 million in FY1998 to a high of $378 million in FY2003, an
increase of 1,100% in six years. From FY1998 to FY2003, CCC transfers averaged
$217 million annually, almost 10 times as much as over the FY1990-FY1998 period.
In recent years, the Office of Management and Budget has been concerned over
the continuing and growing use of CCC funds for the eradication of plant and animal
pests and diseases, which OMB says should be funded through regular appropriations
after the initial outbreak. However, congressional appropriations committees have
consistently reiterated that the Secretary should use the authority to transfer CCC
funds, and USDA has continued its past practice of fund use.
Analysis of CCC transfers for plant and animal health emergencies from
FY1998 to FY2004 leads to several observations. First, the number and value of
CCC transfers has risen substantially since FY1998. Second, most of the amount
transferred each year goes to just one or two emergencies. Third, several eradication
programs were short-term and funded only by CCC transfers, while other programs
consistently have received CCC transfers in addition to appropriations. Finally, some
programs receive large, initial CCC transfers followed by progressively smaller
transfers as appropriations gradually take their place.
Examples of pest and disease programs receiving CCC transfers in recent years
include Asian longhorned beetle, avian influenza, BSE, citrus canker, emerald ash
borer, glassy-winged sharpshooter, plum pox, and sudden oak death.
This report will be updated as events warrant.

---

Contents
Federal Sources for Plant and Animal Health Funds . . . . . . . . . . . . . . . . . . . . . . . 1
Importance of CCC Transfers to APHIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Authority for CCC Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
In Appropriations Acts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
In Statute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
For Plant Pests and Diseases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
For Animal Pests and Diseases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Secretarial Discretion and Limited Review . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Debate Between Congress and the Administration . . . . . . . . . . . . . . . . . . . . . . . . 6
OMB Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Appropriations Committee Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
USDA Positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
CCC Transfers Since 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Growth in Size and Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
One-Time Crises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Ongoing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Relation to Budget Requests and Appropriations . . . . . . . . . . . . . . . . 12
Transfers That Decline Over Time . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
List of Figures
Figure 1. CCC Transfers and APHIS Appropriations . . . . . . . . . . . . . . . . . . . . . . 2
List of Tables
Table 1. CCC Transfers and APHIS Appropriations, FY1998-2004 . . . . . . . . . . 3
Table 2. APHIS Programs Receiving CCC Transfers: Budget Requests,
Appropriations, and CCC Transfers, FY1998-FY2005 . . . . . . . . . . . . . . . . . 9

---

Funding Plant and Animal
Health Emergencies: Transfers
from the Commodity Credit Corporation
Federal Sources for Plant and Animal Health Funds
The Secretary of Agriculture has the authority to transfer funds from the
Commodity Credit Corporation (CCC) to the Animal and Plant Health Inspection
Service (APHIS) for emergency control programs. The Secretary’s use of this
authority has increased in recent years, and has become an issue within government
concerning the method for funding plant and animal health programs.
Within the U.S. Department of Agriculture (USDA), APHIS is responsible for
protecting U.S. agriculture from foreign pests and diseases, responding to domestic
animal and plant health problems, and facilitating agricultural trade through science-
based standards.1
APHIS receives an annual appropriation from Congress for pest and disease
management, including many allocations for specific outbreaks.2 But in emergencies,
such as unforseen disease outbreaks or when resources for existing eradication
programs are deemed not to be sufficient, the Secretary of Agriculture may transfer
funds from the CCC or other USDA accounts.
The CCC is a wholly owned government corporation with the authority to have
up to $30 billion in outstanding debt to the U.S. Treasury.3 These borrowed funds
are used widely throughout USDA to finance farm commodity programs, various
conservation and trade programs, and emergency spending. The CCC repays the
funds it borrows from the Treasury through a periodic congressional appropriation
1 Although some early versions of the Homeland Security Act of 2002 (P.L. 107-296) would
have moved all of APHIS to the new Department of Homeland Security (DHS), the act left
the majority of APHIS intact at USDA because of its scientific expertise and importance to
agriculture in general. The act did transfer most of agricultural border inspection function
(including about 2,680 inspectors) from APHIS to DHS. However, APHIS retains a
presence in border security through pre-inspections abroad, inspecting passengers and cargo
entering the mainland Hawaii and Puerto Rico, and consulting with DHS on agricultural
inspection issues. For more information, see CRS Report RL32399, Border Security:
Inspections Practices, Policies, and Issues, by Ruth Wasem et al.
2 See CRS Report RL32301, Appropriations for FY2005: U.S. Department of Agriculture
and Related Agencies, by Ralph Chite et al.
3 See CRS Electronic Briefing Book on Agriculture, “Commodity Credit Corporation
(CCC) Spending,” by Ralph Chite, at [http://www.congress.gov/brbk/html/ebagr31.html];
and the CCC Charter Act at [http://www.fsa.usda.gov/ccc/ccc_charter.htm].

---

CRS-2
so that its $30 billion debt limit is not depleted. Congress generally provides this
infusion through the regular annual USDA appropriation. Because of the difficulty
in estimating its funding needs due to uncontrollable variables such as crop and
weather conditions, the CCC receives a “current indefinite appropriation,” which
allows the CCC to receive “such sums as are necessary” during the fiscal year.
Importance of CCC Transfers to APHIS
Since 1948, the Secretary of Agriculture has had the authority to supplement
APHIS appropriations for plant and animal pest and disease eradication programs by
transferring money from other USDA accounts.
From FY1990 to FY1998, CCC transfers to APHIS averaged $22 million
annually and addressed one or two emergencies per year.4 From FY1998 to FY2003,
CCC transfers averaged $217 million annually, almost 10 times as much, and have
addressed as many as 11 emergencies per year. Specifically, CCC transfers rose from
$31 million in FY1998 to a high of $378 million in FY2003 (see Figure 1, Table 1),
an increase of 1,100% in six years.
CCC transfers represent a significant source of funding for APHIS activities,
especially compared to appropriated funds. Nearly all CCC transfers go to the pest
and disease management function, since those programs address eradication and
control issues directly.
Figure 1. CCC Transfers and
APHIS Appropriations
1200
1000
800
600
400
200
0
1998 1999 2000 2001 2002 2003 2004*
Fiscal year
CCC transfer
APHIS appropriation
* CCC transfers in FY2004 through June 30.
Source: CRS.
4 See CRS Report RL31466, Homeland Security Department: USDA Issues, by Jean
Rawson.

---

CRS-3
Over the FY1998-FY2004 period, CCC transfers were more than the amounts
appropriated for pest and disease management (116%), and 28% of the total
appropriation for all APHIS activities (see Table 1).
In recent years, pest and disease management has become the largest line item
in the APHIS budget, rising from a $96 million appropriation in FY1998 to $335
million in FY2004. Thus, in the past two years, pest and disease management has
consumed about 60% of total APHIS spending (appropriations and CCC transfers,
but excluding border inspection user fees).
Table 1. CCC Transfers and APHIS Appropriations, FY1998-2004
($ million)
Fiscal Year
Total
1998-
2004*
2003
2002
2001
2000
1999
1998
APHIS Functions
2004
CCC Transfers to APHIS
218
378
200
335
217
143
31
1,522
APHIS Salaries & Expenses:
Pest and Disease Exclusion
151.6
146.5
229.4
211.2
200.5
195.1
190.8
1,325
Monitoring and Surveillance
138.5
132.9
89.9
84.5
79.1
75.7
73.7
674
Pest and Disease Management
335.2
321.3
221.1
162.1
90.5
89.5
96.2
1,316
Animal Care
16.8
16.8
15.6
12.5
10.5
9.5
9.5
91
Scientific, Technical Services
74.3
65.2
60.4
55.0
53.0
51.9
52.9
413
Other
4.3
4.7
4.1
5.3
7.6
4.1
3.1
33
Subtotal: Salaries, Expenses
721
687
620
531
441
426
426
3,852
Total APHIS
939
1,066
821
866
659
569
457
5,375
CCC Transfers as % of Pest
65%
118%
91%
207%
240%
160%
32%
116%
and Disease Management
CCC Transfers as % of Total
23%
35%
24%
39%
33%
25%
7%
28%
* CCC transfers in FY2004 reflect announcements through June 30, 2004.
Source: Compiled by CRS using APHIS budget office spreadsheet (7/13/2004).

---

CRS-4
Authority for CCC Transfers
The authority to transfer money for plant and animal health emergencies is
found both in annual appropriations acts and in the U.S. Code. Such authorities date
back to 1948.
In Appropriations Acts
The FY2004 Consolidated Appropriations Act (P.L. 108-199) provides the
following language regarding transfers from other USDA accounts to APHIS.
Similar language has appeared in appropriations from previous years, and remains
in the House-passed FY2005 appropriation bill (H.R. 4766).
Provided further, that, in addition, in emergencies which threaten any segment
of the agricultural production industry of this country, the Secretary may transfer
from other appropriations or funds available to the agencies or corporations of
the Department such sums as may be deemed necessary, to be available only in
such emergencies for the arrest and eradication of contagious or infectious
disease or pests of animals, poultry, or plants, and for expenses in accordance
with sections 10411 and 10417 of the Animal Health Protection Act (7 U.S.C.
8310 and 8316) and sections 431 and 442 of the Plant Protection Act (7 U.S.C.
7751 and 7772), and any unexpended balances of funds transferred for such
emergency purposes in the preceding fiscal year shall be merged with such
transferred amounts. (P.L. 108-199)
In Statute
The Plant Protection Act (P.L. 106-224, Title IV, Sec. 402, June 20, 2000) and
the Animal Health Protection Act (P.L. 107-171, Title X, Sec. 10402, May 13, 2002)
provide the authorities for APHIS to conduct animal and plant health monitoring and
surveillance, and to regulate and enforce such programs, including pest and disease
management and eradication. These acts replace previous authorities dating back
several decades, and combine such authorities into a more unified framework.
For Plant Pests and Diseases. Transfers for plant pests and diseases are
addressed in 7 U.S.C. 7772 (Title 7: Agriculture, Chapter 104: Plant Protection,
Subchapter IV: Authorization of Appropriations):
7 U.S.C. 7772
(a) Authority to transfer certain funds. In connection with an emergency in
which a plant pest or noxious weed threatens any segment of the agricultural
production of the United States, the Secretary may transfer from other
appropriations or funds available to the agencies or corporations of the
Department of Agriculture such amounts as the Secretary considers necessary to
be available in the emergency for the arrest, control, eradication, and prevention
of the spread of the plant pest or noxious weed and for related expenses.
(b) Availability. Any funds transferred under this section shall remain available
for such purposes without fiscal year limitation.
(c) Secretarial discretion. The action of any officer, employee, or agent of the
Secretary in carrying out this Act,1 including determining the amount of and
making any payment authorized to be made under this chapter, shall not be

---

CRS-5
subject to a review of longer than 60 days by any officer or employee of the
Federal Government other than the Secretary or the designee of the Secretary.
(Pub. L. 106-224, title IV, Sec. 442, June 20, 2000, 114 Stat. 455; Pub. L.
107-171, title VII, Sec. 7504(b), May 13, 2002, 116 Stat. 466.)
1 This Act, referred to in (c), probably should read “this title” meaning title IV
of Pub. L. 106-224, June 20, 2000, known as the Plant Protection Act.
For Animal Pests and Diseases. Using similar language to that above,
transfers for animal pests and diseases are addressed in 7 U.S.C. 8316 (Title 7:
Agriculture, Chapter 109: Animal Health Protection, Sec. 8316: Authorization of
Appropriations):
7 U.S.C. 8316
(b) Transfer of funds.
(1) In general. In connection with an emergency under which a pest or disease
of livestock threatens any segment of agricultural production in the United
States, the Secretary may transfer from other appropriations or funds available
to the agencies or corporations of the Department of Agriculture such funds as
the Secretary determines are necessary for the arrest, control, eradication, or
prevention of the spread of the pest or disease of livestock and for related
expenses.
(2) Availability. Any funds transferred under this subsection shall remain
available until expended, without fiscal year limitation.
(3) Reviewability. The action of any officer, employee, or agent of the Secretary
in carrying out this section (including determining the amount of and making any
payment authorized to be made under this chapter) shall not be subject to review
of longer than 60 days by any officer or employee of the Federal Government
other than the Secretary or the designee of the Secretary.
(c) Use of funds. In carrying out this chapter, the Secretary may use funds made
available to carry out this chapter for (1) the employment of civilian nationals in
foreign countries; and (2) the construction and operation of research laboratories,
quarantine stations, and other buildings and facilities for special purposes.
(Pub. L. 107-171, title X, Sec. 10417, May 13, 2002, 116 Stat. 507.)
Secretarial Discretion and Limited Review
Discretion over the need and size of CCC transfers rests with the Secretary of
Agriculture, and the Secretary’s decision is subject to limited review (a maximum of
60 days) by others in the government. For plants, this discretion is discussed in
paragraph (c) of 7 U.S.C. 7772; for animals, in paragraph (b)(3) of 7 U.S.C. 8316.
The time limit is intended to ensure a rapid government response to agricultural
health issues. Such review became important in the spring of 2004 when the White
House’s Office of Management and Budget (OMB) delayed the release of funds for
emerald ash borer (OMB’s position is discussed in the next section). USDA
announced a $28.2 million transfer on March 23, 2004, but administrative issues with
OMB were cleared only on May 28.5
5 The Detroit News, “Federal funds to fight ash borer coming, USDA promises,” May 29,
2004, [http://www.detnews.com/2004/metro/0405/30/metro-167621.htm].

---

CRS-6
Debate Between Congress and the Administration
The definition and use of the word “emergency” have caused particular concern,
especially given the word’s use in both statute and appropriations acts to authorize
such transfers. Some parties interpret the term to include only the initial occurrence
of an outbreak. Others read the authorization more generally and allow an emergency
to include any outbreak that “threatens agricultural production” for which officials
deem current appropriations are insufficient for eradication and control.
OMB Position
In recent years, OMB has been concerned about the continuing and growing use
of CCC funds for the eradication of plant and animal pests and diseases, which OMB
says should be funded through regular appropriations after the initial outbreak.
The FY 2004 Budget requested full funding for a number of important pest
eradication programs, such as the Asian Longhorned Beetle, Citrus Canker, and
tropical bont tick. Because the Committee’s failure to provide the requested
funding will result in a need to transfer mandatory funding from the Commodity
Credit Corporation, the Administration has included these additional costs in its
scoring of the Committee bill. (OMB Statement of Administrative Policy on S.
1427, November 5, 2003)
OMB has called the use of CCC funds for anything but unforeseen emergencies,
and especially ongoing eradication programs beyond the first or second year,
“backdoor financing” that avoids the discipline of the budget process.
The FY 2002 Budget proposed that ongoing projects to combat plant pest and
disease infestations be funded through the normal discretionary appropriations
process. The Committee chose not to accept this approach and instead
recommended that the majority of the funding be provided through transfer from
the Commodity Credit Corporation (CCC). Authority to transfer funding from
CCC is intended for use in emergency situations. Using this emergency authority
for eradication efforts, which can be predicted, planned for, and will continue for
several years, is inconsistent with the clear intent of the provision authorizing
these transfers. Therefore, using emergency funding for anything other than truly
unforeseen crises can be viewed as backdoor financing that avoids the discipline
of the discretionary budget caps. (OMB, Statement of Administrative Policy on
S. 1191, October 25, 2001, and H.R. 2330, June 27, 2001)
Appropriations Committee Position
In report language, Congressional appropriations committees have consistently
reiterated that the Secretary should use the authority to transfer CCC funds for animal
and plant health emergencies. The reports repeatedly reject attempts by the
Administration to change the authority or ongoing process for funding emergency
eradication efforts. For the FY2002 appropriation, the House report contained more
extensive comments than usual for the justification to transfer CCC funds. Typically,
such report language is limited to the first sentence below.

---

CRS-7
The Committee expects the Secretary of Agriculture to continue to use the
authority provided in this bill to transfer funds from the Commodity Credit
Corporation for the arrest and eradication of animal and plant pests and diseases
that threaten American agriculture. By providing funds in this account, the
Committee is enhancing the work that has begun to combat emergency outbreaks.
The Committee notes that funds appropriated in this bill are subject to obligation
within the fiscal year for which they are appropriated while funds transferred
from the CCC are available until expended. For example, according to USDA’s
fiscal year 2002 budget justifications, there is about $65,000,000 in CCC funds
that was transferred in fiscal year 2000 that was still available for obligation as
of April 9, 2001. If those funds had been appropriated, they would not have been
available in fiscal year 2001. The use of the Secretary’s emergency authority
places the Department in a better position to respond to emergencies, more so
than the annual budget and appropriations cycle that takes about 18 months to
complete. (H.Rept. 107-116, to accompany H.R. 2330)
USDA Positions
In the past few years, USDA has taken several positions. In its FY2002 budget
request, USDA proposed creating a large, appropriated emergency fund for ongoing
plant and animal health emergencies.6 The request included $196 million in
appropriations for ongoing emergencies that were previously funded by CCC
transfers.7 The request was not funded by Congress.
Since the 2002 budget, USDA has not proposed such a large emergency fund,
although it has proposed more modest increases in appropriations for several pest and
disease programs, purportedly to reduce CCC transfers. With current budgetary
pressures, OMB has signaled in recent comments about the FY2005 budget that it
may be less interested in a large contingency fund for plant and animal health.
Consistent with the need for responsible spending restraint, the Administration
urges the Congress to fully fund unavoidable obligations and not to include any
emergency funding, including contingent emergencies. (OMB Statement of
Administrative Policy on H.R. 4766, July 13, 2004)
Other Administration efforts to change the policy for CCC transfers were
attempted in FY2003 and FY2004. For FY2003, the Administration proposed
deleting the authority in appropriations language for emergency transfers and putting
new criteria into the Agricultural Risk Protection Act.8 Although appropriators
rejected that proposal, USDA again proposed appropriations language for FY2004
6 This request differed from the contingency fund of about $4 million annually that APHIS
has had for many years. The contingency fund is used for initial surveys or administrative
work on new outbreaks, and is not large enough, or intended, for the actual eradication
efforts and producer compensation programs, which can cost tens or hundreds of millions
of dollars.
7 Explanatory Notes for the President’s FY2002 Budget Request, p. 14-17.
8 Explanatory Notes for the President’s FY2003 Budget Request, p. 14-17.

---

CRS-8
that did not include the usual authority for making emergency transfers.9 Again,
Congress rejected the proposal.
In the FY2005 budget request, USDA proposes addressing the definition of
emergency by deleting “in emergencies” and replacing it with “for sudden, urgent,
and unforeseen circumstances.”10 The House-passed version of the agriculture
appropriations bill (H.R. 4766) continues to use the old language.
Despite these past Administration positions to reduce CCC transfers, USDA has
continued to use its authority and has even drawn more heavily upon the CCC. This
points out that even within the Administration, USDA and OMB can have conflicting
positions on the delivery of programs, even when the Administration’s budgetary and
legislative requests appear more unified.
CCC Transfers Since 1998
Table 2 presents all CCC transfers for plant and animal health emergencies
from FY1998 to FY2004 (FY2003 is the last complete year; FY2004 transfers are
through June 30). The table includes any eradication effort having a CCC transfer
during the period, and is thus a subset of all APHIS pest and disease management
programs. To help compare the importance of CCC activity for a particular
eradication program, the table includes the budget request (including the FY2005
request) and the appropriated amount.
Table 2 reveals several examples that relate to Congressional, USDA, and OMB
positions. These are summarized below and discussed in greater detail after the table.
! The number and value of CCC transfers have risen substantially since 1998.
! Each year, most of the amount transferred goes to just one or two
emergencies (e.g., BSE in 2004, Exotic Newcastle in 2003, avian influenza
in 2002).
! Several control programs were short-term and funded only by CCC transfers
(e.g., Belgian sheep TSE, Exotic Newcastle, hog cholera, Mormon cricket).
! Some programs consistently have received CCC transfers (e.g., Asian
longhorned beetle, citrus canker, fruit fly).
! Some programs receive large CCC transfers followed by progressively
smaller transfers as appropriators have time to respond through the budget
cycle and formal budget requests come from the Administration (e.g.,
Pierce’s disease, Asian longhorned beetle, and citrus canker, and possibly
sudden oak death and emerald ash borer).
9 Explanatory Notes for the President’s FY2004 Budget Request, p. 14-16.
10 Explanatory Notes for the President’s FY2005 Budget Request, p. 15-22.

---

CRS-9
Table 2. APHIS Programs Receiving CCC Transfers:
Budget Requests, Appropriations, and CCC Transfers, FY1998-FY2005
($ million)
Table 2.
Fiscal Year
Total
APHIS Programs
With CCC Transfers, FY2005
FY1998-
FY2004* FY2003 FY2002 FY2001 FY2000 FY1999 FY1998
FY1998-FY2005
est.
FY2004*
Asian Longhorned
Beetle
Request
9.3
39.8
49.2
51.8
4.6
2.1
147.5
Appropriation
tbd
30.0
26.2
16.9
2.1
2.1
0.0
1.3 a
78.6
CCC Transfer
tbd
7.0
27.6
49.6
14.1
6.9
105.2
Avian Influenza
Request
12.8
2.0
2.0
Appropriation
tbd
1.0
1.0
CCC Transfer
tbd
13.7
-16.8 b
85.2
82.1
Belgian Sheep TSE
CCC Transfer
1.6
2.1
3.7
Bovine Spongiform
Encephalopathy
c
c
c
c
c
Request
17.0
8.3
8.4
16.8
c
c
c
c
c
Appropriation
tbd
8.3
8.4
16.8
CCC Transfer
tbd
74.9
74.9
Chronic Wasting
Disease
Request
20.1
15.0
7.2
22.2
Appropriation
tbd
18.5
14.8
33.4
CCC Transfer
tbd
10.4
12.2
2.7
25.2
Citrus Canker
Request
52.5
56.1
59.4
37.0
20.5
173.0
Appropriation
tbd
33.4
25.6
9.1
0.0
68.2
CCC Transfer
tbd
13.3
30.4
23.1
117.5
90.8
25.0
300.1
Emerald Ash Borer
Request
12.5
0.0
Appropriation
tbd
1.5
1.5
CCC Transfer
tbd
43.4
14.6
57.9
Exotic Newcastle
CCC Transfer
tbd
220.2
220.2
Hog Cholera
CCC Transfer
tbd
4.1
5.3
9.4

---

CRS-10
Table 2.
Fiscal Year
Total
APHIS Programs
With CCC Transfers, FY2005
FY1998-
FY2004* FY2003 FY2002 FY2001 FY2000 FY1999 FY1998
FY1998-FY2005
est.
FY2004*
Infectious Salmon
Anemia
Request
1.0
0.0
Appropriation
tbd
0.0
CCC Transfer
tbd
8.3
8.3
Karnal Bunt
Request
0.9
0.9
0.9
0.5
2.2
Appropriation
tbd
0.9
0.9
1.7
CCC Transfer
tbd
0.6
4.3
7.3
18.6
30.8
Fruit Fly Exclusion
Request
63.5
61.3
64.0
56.0
55.1
25.2
22.3
21.0
304.9
Appropriation
tbd
56.7
61.7
39.0
32.5
25.5
23.0
21.0
259.4
CCC Transfer
tbd
9.8
20.4
14.1
33.6
21.1
25.7
12.4
137.2
Mormon Cricket
CCC Transfer
tbd
20.0
20.0
National Animal ID
Request
33.2
0.0
Appropriation
tbd
0.0
CCC Transfer
tbd
18.8
18.8
Pierce’s Disease
(Glassy-winged
Sharpshooter)
Request
24.0
8.5
8.5
4.0
21.0
Appropriation
tbd
22.1
17.5
8.5
0.4 a
48.5
CCC Transfer
tbd
5.2
8.8
8.7
22.3
45.0
Plum Pox
Request
3.5
3.5
5.6
9.0
Appropriation
tbd
3.5
4.0
7.5
CCC Transfer
tbd
3.5
2.1
16.9
22.4
Pseudorabies
Request
4.4
4.3
4.5
34.6
4.0
4.6
4.6
4.5
61.0
Appropriation
tbd
4.3
4.3
4.2
4.0
4.6
4.6
4.5
30.3
CCC Transfer
tbd
56.3
40.0
80.0
176.3
Rabies
Request
21.4
19.8
25.5
16.5
61.7
Appropriation
tbd
21.1
19.8
11.8
1.5
1.5
1.5
1.3
58.3
CCC Transfer
tbd
4.9
6.6
4.2
15.7

---

CRS-11
Table 2.
Fiscal Year
Total
APHIS Programs
With CCC Transfers, FY2005
FY1998-
FY2004* FY2003 FY2002 FY2001 FY2000 FY1999 FY1998
FY1998-FY2005
est.
FY2004*
Scrapie
Request
20.9
17.1
22.6
21.0
8.0
3.0
3.2
2.9
77.9
Appropriation
tbd
15.6
15.4
3.1
3.0
3.0
3.0
2.9
46.0
CCC Transfer
tbd
6.0
10.0
16.0
Spring Viremia of
Carp
Request
1.0
0.0
Appropriation
tbd
0.0
CCC Transfer
tbd
11.7
11.7
Sudden Oak Death
Request
2.0
0.0
Appropriation
tbd
4.5 d
1.7
0.8 a
7.0
CCC Transfer
tbd
15.5
15.5
Tuberculosis (bovine)
Request
20.9
15.1
20.1
18.6
5.0
4.9
5.0
4.9
73.6
Appropriation
tbd
14.8
14.8
8.7
5.5
4.9
4.9
4.9
58.6
CCC Transfer
tbd
65.9
60.2
126.1
Subtotal of selected
programs above
Requests
321
252
276
239
97
40
35
33
973
Appropriations
tbd
236
215
102
49
42
37
36
717
CCC Transfers
tbd
218
378
200
335
217
143
31
1,522
Number
Number of programs
with CCC transfers
tbd
10
11
11
10
8
5
2
22
Source: Compiled by CRS using APHIS budget office spreadsheet (7/13/2004).
* CCC transfers in FY2004 reflect announcements through June 30, 2004.
a Transferred from the appropriated contingency fund (see note 6 on page 7).
b Balance moved from Avian Influenza to Exotic Newcastle Disease.
c Before FY2003, BSE activity was funded from the APHIS Health Monitoring and Surveillance function without specific
requests or allocations.
d Includes $2 million transferred from the contingency fund, and $0.5 million miscellaneous.

---

CRS-12
Growth in Size and Number
As mentioned above, CCC transfers to APHIS have grown from $31 million in FY1998
to $378 million in FY2003. In the nearly seven fiscal years from October 1, 1998 to June 30,
2004, CCC transfers exceeded $1.5 billion. This is 116% of the cumulative APHIS
appropriation for pest and disease management (see Table 1). The number of transfers and
programs has grown also. In 1998, CCC transfers assisted with 2 eradication programs. In
FY2003, CCC transfers supplemented 11 programs (see Table 2).
Programs to compensate producers for plants and animals that are destroyed are one
reason that CCC transfers are particularly large in certain years. Such compensation
programs quickly amount to tens and sometimes hundreds of millions of dollars.
Each year, the majority of the CCC transfers go to just one or two emergency programs.
In FY2004, the largest transfers to date are for BSE and the associated animal ID issue. In
FY2003, it was for Exotic Newcastle disease; in FY2002, for avian influenza; and in
FY2000-FY2001, for citrus canker.
One-Time Crises
Some eradication efforts have received CCC funding for one-time crises, and do not
have ongoing appropriations or budget requests (e.g., Belgian sheep TSE, Exotic Newcastle
disease, hog cholera, and Mormon cricket).
Ongoing Programs
A few ongoing eradication programs (such as Asian longhorned beetle, citrus canker,
and fruit fly) have consistently received CCC transfers annually with appropriated funds.
These longer-term programs are some examples of the OMB criticism of backdoor financing.
Relation to Budget Requests and Appropriations. Continuing the example,
USDA budget requests for Asian longhorned beetle and citrus canker have exceeded
Congressional appropriations, but CCC transfers have more than made up the difference.
Although some may conclude that Congressional underfunding has precipitated the need for
CCC transfers, this is not necessarily the case.
The time line of budget requests for a future fiscal year (e.g., a request for FY2005 that
is placed in February 2004) may occur before CCC transfers are initiated for the current
fiscal year (e.g., March-September 2004). Thus an apparent “underfunding” in FY2005
appropriations may be due to reasonable adjustments made during the appropriations process
given CCC transfers after the budget request.
Consequently, the reality of the lengthy budget process may be used in support of the
timeliness argument that Congress has made for CCC transfers, especially during rapidly
evolving outbreaks. However, for outbreaks that are known and not evolving in size and
control methods, continuing CCC transfers could indicate that requests or appropriations
were not forecast adequately.

---

CRS-13
Transfers That Decline Over Time. Some eradication programs receive large CCC
transfers in the early years, with smaller transfers in subsequent years. For example, initial
control activity for Pierce’s disease (a.k.a., glassy-winged sharpshooter/GWSS) was funded
with large CCC transfers in FY2000, followed by small and growing appropriations, and
subsequently larger budget requests after FY2002. Half of the total CCC transfers occurred
in the first year, with subsequent CCC transfers being much smaller and more activity being
supported by appropriations.
Even programs with large and ongoing transfers (such as Asian longhorned beetle and
citrus canker) have seen transfers decline as appropriations and budget requests have risen.
Similar examples may include sudden oak death and emerald ash borer. USDA did not
make a specific budget request for sudden oak death until FY2005, even though Congress
appropriated funds in both FY2003 and FY2004. Following a rapid geographic spread of
sudden oak death in the spring of 2004, the Secretary transferred a large amount from CCC
in FY2004, without needing to wait for the appropriations process. With emerald ash borer,
CCC transfers occurred for two years before the Administration included a request.
In conclusion, depending on which eradication programs are chosen, examples of CCC
transfers for plant and animal health emergencies may be used in support of opposing
opinions about the efficacy of transfers. Certainly, the total number and value of CCC
transfers has risen substantially since 1998, although most of the amount transferred each
year goes to just one or two emergencies.
CCC transfers have been particularly effective for several one-time, short-term
emergency responses that have been funded with only CCC transfers, before appropriations
could have been enacted. However, some longer-term eradication programs continue to
receive CCC transfers year after year, raising the issue of budget requests and appropriations.
Finally, some programs receive large initial CCC transfers followed by progressively smaller
transfers as appropriations gradually take their place — a more likely outcome as response
needs evolve and become known.

---