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

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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
authority to provide future support. See CRS Insight
provide a total of $26 billion for nutrition assistance and
IN10941, Commodity Credit Corporation: Q&A.
give the U.S. Department of Agriculture (USDA) certain
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
production). The losses from the pandemic are economic
FY2020-FY2021, some of which the third act provides. See
and do not trigger agricultural disaster assistance programs
CRS Insight IN11250, USDA Domestic Food Assistance
Programs’ Response to COVID

such as emergency loans, despite the President’s declaration
-19: P.L. 116-127, P.L. 116-
of a public health emergency under the Stafford Act (CRS
136, and Related Efforts.
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
Rural Development
of commodity purchases. See CRS Report R46347,
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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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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