H.R. 4800, Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2015

H.R. 4800

Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2015

Committee
Appropriations

Date
June 11, 2014 (113th Congress, 2nd Session)

Staff Contact
David Smentek

Floor Situation

On Wednesday, June 11, 2014 the House will begin consideration of H.R. 4800, the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2015, under a rule.  H.R. 4800 was introduced on June 4, 2014, by Rep. Robert Aderholt (R-AL), Chairman, House Appropriations Subcommittee on Agriculture,Rural Development, Food and Drug Administration, and Related Agencies.  The bill was marked up and reported out of the House Appropriations Committee, as amended, on May 29, 2014, by a vote of 31-18.[1]

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[1] http://appropriations.house.gov/news/documentsingle.aspx?DocumentID=381506

Bill Summary

H.R. 4800 funds the Department of Agriculture, the Food and Drug Administration, Commodity Futures Trading Commission, and the Farm Credit Administration.  This legislation provides a total of $142.5 billion in discretionary and mandatory funding, which is $3 billion below the fiscal year 2014 enacted level and $1.5 billion below the President’s request.  The bill provides $20.9 billion in discretionary funding, the same level as the fiscal year 2014 enacted level.  “The legislation focuses investments in programs that support U.S. agriculture, boost rural communities, maintain food and drug safety, and provide nutrition for children, families, and seniors.”[1]

The major provisions of the bill are as follows:

Title I – Agricultural Programs:

The Committee recommends a total of $25.7 billion in mandatory and discretionary funding for agricultural programs, which is $4.3 billion below the fiscal year 2014 enacted level and $181.9 million above the President’s request.  Funding for agricultural programs includes the following:

  • Agricultural Research – The bill provides $2.81 billion for agriculture research programs, which includes the Agricultural Research Service (ARS) and the National Institute of Food and Agriculture (NIFA).  The funding level is $166 million above the fiscal year 2014 enacted level.  Agricultural research includes the following:
    • Agricultural Research Service (ARS) – The bill provides $1.3 billion in funding for the ARS, including $155 million for ARS buildings and facilities identified as priorities in the USDA Agricultural Research Service Capital Investment Strategy.  This funding represents an increase of $152.8 million above the fiscal year 2014 enacted level, and $170.9 million above the request.  “The Committee does not concur with the agency’s proposed closures and redirections of research programs and provides sufficient funding for ARS to maintain existing investments.”[2]
    •  National Institute of Food and Agriculture (NIFA) – This legislation provides $1.3 billion to NIFA, including $774.5 million for research and education activities.  The Committee’s recommendation is $3.3 million below the fiscal year 2014 enacted level and $61.7 million below the request.
  • Animal and Plant Health Inspection Service – This legislation provides $870.7 for the Animal and Plant Health Inspection Service, an increase of $45.8 million above the fiscal year 2014 enacted level.  “This funding will provide support for programs to help control or eradicate plant and animal pests and diseases that can be crippling to U.S. producers and entire agricultural industries, and includes increases to fight citrus greening and an epidemic porcine virus.”[3]
  • Agricultural Marketing Service – The bill provides $1.3 billion to the Agricultural Marketing Service program, an increase of $16.4 million above the fiscal year 2014 enacted level and $1.8 million below the request.
  • Food Safety and Inspection Service – The Committee recommends $1 billion for the Food Safety and Inspection Service, which is $5.5 million below the 2014 enacted level and $3.8 million above the request.  “These mandatory inspection activities help ensure the safety and productivity of the country’s $186 billion meat and poultry industry, and keep safe, healthy food on American tables. The funding provided will maintain more than 8,000 frontline inspection personnel for meat, poultry, and egg products at more than 6,400 facilities across the country.”[4]
  • Farm Service Agency (FSA) – This legislation provides $1.5 billion for the FSA, which is $26.9 million above the fiscal year 2014 enacted level and $65.7 million above the request.  The FSA supports various farm, conservation, loan, and emergency programs, and will help farmers and ranchers with the implementation of the farm bill.
  • Federal Crop Insurance Corporation (FCIC) Fund (Mandatory) – For the Federal Crop Insurance Corporation Fund, the Committee provides an appropriation of such sums as may be necessary.  According to the President’s 2015 budget, this is estimated to be $8.7 billion for fiscal year 2015.  This is estimated to be $836.9 million less than in fiscal year 2014.
  • Commodity Credit Corporation Fund (Mandatory) – “For reimbursement for net realized losses to the Commodity Credit Corporation, the Committee provides such sums as may be necessary to reimburse for net realized losses sustained but not previously reimbursed.”[5]  According to the President’s fiscal year 2015 budget, this is estimated to be $9.1 billion for fiscal year 2015, approximately $3.5 billion less than in fiscal year 2014.  The Commodity Credit Corporation is a Government-owned and operated entity created to stabilize, support, and protect farm income and prices.

Title II – Conservation Programs: 

This legislation provides $869 million for conservation programs, including $843.1 million for the Natural Resources Conservation Service and $25 million for the Watershed Rehabilitation Program.  The Committee’s recommendation is $43.1 million above the fiscal year 2014 enacted level and $53.3 million above the request.

Title III – Rural Development Programs: 

The Committee provides a total of $2.4 billion in funding for rural development programs, an increase of $205 million above the request, and $38.1 million above the fiscal year 2014 enacted level.  “These programs help create an environment for economic growth by supporting basic rural infrastructure, providing loans to increase opportunities for rural businesses and industries, and helping balance the playing field in local rural housing markets. The bill also establishes a new Chief Risk Officer to oversee and be accountable for the $200 billion rural development loan portfolio.”[6]  Funding for rural development programs includes the following: 

  • Rural Housing Loans and Rental Assistance – This legislation provides a loan level of $25.3 billion for the Rural Housing Insurance Fund program account, including $24 billion in loan authority for the Single Family Housing guaranteed loan program.  Funding for the Single Family Housing guaranteed loan program is the same level as the fiscal year 2014 enacted level.  In addition, the bill provides $1 billion in direct loans, which is an increase of $142 million above the fiscal year 2014 enacted level and $682 million above the request.  Finally, this legislation provides $1.1 billion in rental assistance for affordable rental housing for low-income families and the elderly in rural communities.
  • Business and Industry Loans – The funding in this legislation supports $881 million in loan authority to help small businesses in rural areas.  These loans are supported by $45 million in discretionary appropriations, which is $22 million below the fiscal year 2014 enacted level.
  • Rural Infrastructure – This legislation includes $1.3 billion in loans for rural water and waste program loans, an increase of $84.7 million from the fiscal year 2014 enacted level and $5.3 million below the request.  This legislation also provides $466.9 million in waste and water grants, an increase of $4.5 million above fiscal year 2014 levels and $162.9 million above the request.  Finally, this legislation provides $6.2 billion in rural electric and telephone infrastructure loans, which is the same level as fiscal year 2014 and $845 million above the request. 

Title IV – Domestic Food Programs: 

This legislation contains both discretionary and mandatory funding for food and nutrition programs within the Department of Agriculture.  These programs include: 

  • Child Nutrition Programs (Mandatory) – This legislation provides $20.5 billion in required mandatory funding for child nutrition programs, which is $1.2 billion above the fiscal year 2014 enacted level and $13.2 million below the request.  “This funding will provide free or reduced-price school lunches and snacks for 30.4 million children who qualify for the program. Responding to the requests of local schools, the bill includes language requiring USDA to establish a process that will allow schools demonstrating an economic hardship to seek a temporary waiver from compliance with certain nutrition regulations during the 2014-15 school year.”[7]  This funding is outside the discretionary funding jurisdiction of the Appropriations Committee.
  • Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) – The bill provides $6.6 billion in discretionary funding for WIC, which is $92.8 million below the fiscal year 2014 enacted level and $200 million below the request.  “This program provides supplemental nutritional foods needed by approximately 8.5 million pregnant and nursing mothers, babies and young children each month.”  This legislation also provides $25 million for states to transfer from paper vouchers to the electronic benefit transfer (EBT) system.  This will improve transparency by reducing waste, fraud, and abuse in the program.
  • Supplemental Nutrition Assistance Program (SNAP) (Mandatory) – The bill provides $82.3 billion in required mandatory spending for SNAP, which is $81 million above the 2014 level and $2 billion below the request.  Included in the total is $3 billion for the SNAP reserve fund, which is $2 billion below the request.  This fund is used to cover any increases in participation.  SNAP provides food assistance to more than 47 million Americans every month.  The bill includes language to require the Secretary to report on actions taken to reduce waste, fraud, and abuse in SNAP, including a directive to ban fraudulent retailers.  It also includes the required enforcement of a ban on certain recruitment activities and advertisements, or outreach with foreign governments.

Title V – Foreign Assistance and Related Programs:

The bill provides a total of $1.8 billion for foreign assistance and related programs.  Including in this legislation is an appropriation of $182.6 million for the Foreign Agricultural Service, which is $4.7 million above the 2014 enacted level.  The bill also provides $1.7 billion for overseas food aid, of which $1.47 billion in funding is allocated to Food for Peace Title II grants.  $375 million of this is allocated for non-emergency assistance.  This funding is $66 million above the 2015 budget estimate.  Title II grants provide emergency and development programs administered through the United States Agency for International Development (USAID).  Finally, it provides $198.1 million in McGovern-Dole International Food for Education and Child Nutrition Program grants, an increase of $13 million from fiscal year 2014 that is offset by savings in the bill. 

Title VI – Related Agencies and Food and Drug Administration (FDA):

The bill funds the FDA and related agencies at $2.8 billion, which is $24.8 million above the fiscal year 2014 enacted level and $63.7 million below the President’s request.  These programs include: 

  • Food and Drug Administration (FDA) – The Committee provides an appropriation of approximately $2.6 billion in discretionary funding for the FDA, an increase of $23 million over the fiscal year 2014 enacted level.  Total funding for the FDA, including user fees, is $4.5 billion, which is $98 million above the fiscal year 2014 enacted level.  Food safety activities are increased by $25 million, and drug safety activities are increased by $12 million.
  • Commodity Futures Trading Commission (CFTC) – The bill provides $218 million for the CFTC, which is an increase of $2.6 million from the fiscal year 2014 enacted level and $62.4 million below the request.  This increase is targeted to necessary information technology improvements.
  • Farm Credit Administration (FCA) – For a limitation on the expenses of the FCA, the Committee provides $54 million, a decrease of $8.6 million from the fiscal year 2014 limitation and $11.1 million below the budget estimate.  The limitation reflects the FCA’s approximate average level of obligations for the last 5 years.  The bill provides the FCA the authority to exceed the limitation by up to 10 percent upon notification to the House and Senate Appropriations Committees.[8]

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[1] http://appropriations.house.gov/news/documentsingle.aspx?DocumentID=380251
[2] See House Report 113-468, p. 12.
[3] http://appropriations.house.gov/news/documentsingle.aspx?DocumentID=380251
[4] Id.
[5] See House Report 113-468, p. 33.
[6] http://appropriations.house.gov/news/documentsingle.aspx?DocumentID=380251
[7] Id.
[8] See House Report 113-468, p. 66.

Cost

Based on CBO scoring, the bill provides a budget authority of $20.9 billion.  Including both discretionary and mandatory funding for nutrition programs, the bill totals $142.5 billion.

Amendments

(Pre-Printed Amendments as Reflected in the Congressional Record Dated June 11, 2014)

1)         Rep. Huelskamp (R-KS) Amendment #1 – At the end of the bill (before the short title), insert the following:SEC. __. None of the funds made available by this Act may be used to finalize, implement, administer, or enforce the proposed rule entitled “Importation of Beef From a Region in Brazil” published by the Department of Agriculture in the Federal Register on December 23, 2013 (78 Fed. Reg. 77370 et seq.).

2)         Rep. Hartzler (R-MO) Amendment #2 – At the end of the bill (before the short title), insert the following:Sec. __. None of the funds made available by this Act may be used to implement section 12106 of the Agricultural Act of 2014 (Public Law 113-79; 128 Stat. 980), section 11016(b) of the Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 122 Stat. 2130), or the amendments made by such sections.  Both sections refer to authorization for food safety inspections.

3)         Rep. Blackburn (R-TN) Amendment #3 – At the end of the bill (before the short title), insert the following:

Sec. __. (a) Each amount made available by this Act is hereby reduced by 1 percent.
(b) The reduction in subsection (a) shall not apply with respect to the following mandatory accounts:

(1) “Federal Crop Insurance Corporation Fund.”
(2) “Commodity Credit Corporation Fund–Reimbursement for Net Realized Losses.”
(3) “Child Nutrition Programs.”
(4) “Supplemental Nutrition Assistance Program.”

4)         Rep. Blumenauer (D-OR) Amendment #4 – At the end of the bill (before the short title), insert the following new section:Sec. __. None of the funds made available by this Act may be used to pay the salaries and expenses of personnel of the Department of Agriculture to provide any benefit described in subparagraph (A), (B), or (E) of subsection (b)(2) of section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a) to a person or legal entity if the average adjusted gross income (as defined in subsection (a) of such section) of such person or legal entity exceeds $250,000.

5)         Rep. Bridenstine (R-OK) Amendment #5 –  At the end of the bill (before the short title), insert the following new section:Sec. __. None of the funds made available by this Act may be used to implement or enforce the final rule entitled “Milk in the Northeast and Other Marketing Areas; Order Amending the Orders” published by the Agricultural Marketing Service of the Department of Agriculture in the Federal Register on April 23, 2010 (75 Fed. Reg. 21157 et seq.).

6)         Rep. Connolly (D-VA) Amendment #6 – At the end of the bill (before the short title), insert the following new section: Sec. __. None of the funds made available by this Act may be provided to a Member of Congress or the spouse of a Member of Congress through any agriculture program administered by the Secretary of Agriculture (or by any agency of the Department of Agriculture) that provides financial support (including incentives, payments, loans, and contracts) to persons based on the business of agriculture in which such persons are engaged.

7)         Rep. Royce (R-VA) Amendment #7 – Page 16, line 14, after the dollar amount, insert “(reduced by $15,500,000).”  Page 48, line 18, after the dollar amount, insert “(increased by $10,000,000).”  This amendment would reduce funding for the Agricultural Marketing Service by $15.5 million and redirect $10 million toward the salaries and expenses account of the Foreign Agricultural Service.

8)         Rep. Gallego (D-TX) Amendment #8 – Page 3, line 4, after the dollar amount, insert “(reduced by $3,869,000).”  Page 82, line 2, after the dollar amount, insert “(increased by $3,869,000).”  This amendment would eliminate any funding for the Office of the Assistant Secretary for Congressional Relations for the U.S. Department of Agriculture to carry out programs funded within the Act, and redirect it to the spending reduction account.

Additional Information

For questions or further information contact the GOP Conference at 5-5107.

Additional Views

STATEMENT OF ADMINISTRATION POLICY
H.R. 4800 — Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2015

(Rep. Rogers, R-KY)

The Administration strongly opposes House passage of H.R. 4800, making appropriations for Agriculture, Rural Development, Food and Drug Administration, and related agencies for the fiscal year ending September 30, 2015, and for other purposes.  The bill undermines key investments in financial oversight, injects political decision-making into science-based nutrition standards, and includes objectionable language riders.  If the President were presented with H.R. 4800, his senior advisors would recommend that he veto the bill.

The Administration looks forward to working with the Congress on an orderly appropriations process that supports economic growth, opportunity, and our national security while avoiding unnecessary fiscal crises that hold the Nation’s economy back.  This process should include reconciling funding levels for individual appropriations bills to promote economic growth and national security, and passing bills without ideological provisions that could undermine an orderly appropriations process.

The President’s fiscal year (FY) 2015 Budget provides a roadmap for making investments to accelerate economic growth, expand opportunity for all hard-working Americans, and ensure our national security, while continuing to improve the Nation’s long-term fiscal outlook.  At the same time, the Budget takes key steps to both continue and enhance the Administration’s efforts to deliver a Government that is more effective, efficient, and supportive of economic growth.  The President’s Budget adheres to the FY 2015 spending levels agreed to in the Bipartisan Budget Act (BBA) and shows the choices the President would make at those levels—increasing rental assistance for rural families, supporting critical nutrition programs for mothers and young children, and providing resources to implement the critical financial protections established in the Wall Street Reform Act.  However, the levels agreed to in the BBA are already below FY 2007 funding levels adjusted for inflation and are not sufficient—either in FY 2015 or beyond—to ensure the Nation is achieving its full potential.  For that reason, the Budget also includes a fully paid for Opportunity, Growth, and Security Initiative—evenly split between defense and non-defense priorities—that presents additional investments to grow the economy, expand opportunity, and enhance security.  The Opportunity, Growth, and Security Initiative would support over $270 million in priority research in areas such as advanced genetics, earth science, and climate change resilience.

The Administration would like to take this opportunity to share additional views regarding the Committee’s version of the bill and urges the Congress to resolve these issues during the FY 2015 appropriations process.

 U.S. Department of Agriculture (USDA)

Child Nutrition.  The Administration strongly opposes language in the bill that would require the Secretary to establish a waiver process to eliminate current nutrition requirements for school breakfasts and lunches during the 2014-2015 school year for any school or district that demonstrates a net operating loss on school meals for at least six months beginning in July 2013.    This would be a major step backwards for the health of American children by undermining the effort to provide kids with more nutritious food.  More generally, the Administration strongly opposes the inclusion of any language in the bill that would override science-based standards that improve child nutrition.

Special Supplemental Nutrition Program for Women, Infants and Children (WIC)The Administration is strongly opposed to language in the bill that would require the inclusion of white potatoes in the WIC food package, while taking the unprecedented step of overriding the science-based review process used to determine which foods should be included in the WIC food package.  The Administration appreciates that the Committee provides sufficient funding to serve all projected WIC participants for FY 2015, but urges the Congress to fully fund the FY 2015 Budget request for $150 million in contingency funds to ensure that the program has sufficient resources to meet unexpected changes in participation.

Child Nutrition School Equipment Grants.  The Administration appreciates the Committee’s continued support for school meals equipment grants, but urges the Congress to fully fund the FY 2015 Budget request of $35 million to help school districts purchase the equipment needed to serve healthier meals, improve food safety, expand access to meals, and improve energy efficiency.

Healthy Food Financing Initiative (HFFI).  The Administration is concerned that the Committee did not provide the requested $13 million for the newly authorized HFFI program in the most recent Farm Bill.  This program would be used to support increased access to healthy foods in underserved areas, create and preserve quality jobs, and revitalize low income communities.

Food Aid Reform.  The Administration is concerned that the bill excludes food aid reforms proposed in the President’s Budget that would support two million more people in crises without additional resources. The bill also eliminates some flexible food purchase authority provided in the FY 2014 appropriations process.  Further, by raising the non-emergency food aid floor to $375 million from the level in the most recent Farm Bill, the bill reduces the amount that would otherwise be available for emergency food aid.  At a time when major food crises are increasing, including those in South Sudan and Syria, these reforms are critically needed.

National Institute of Food and Agriculture.  The Administration is concerned that the Committee included no funding to support the three research innovation institutes, as requested in the FY 2015 Budget, and recommended by the President’s Council of Advisors on Science and Technology.  These institutes would provide competitive grants to support public-private cooperation for pollinator health research, advanced manufacturing, and anti-microbial resistance, all important issues facing the Nation.

Rental Assistance Grant Program.  The Administration appreciates that the Committee fully funds Rental Assistance Grants at $1.1 billion.  The Administration encourages the Congress to adopt all of the funding flexibilities proposed in the FY 2015 Budget in order to improve the management and efficiency of the program.

Summer Electronic Benefit Transfer (EBT) Demonstration.  The Administration appreciates the Committee providing $27 million to support summer EBT pilots, consistent with the President’s policy.  These pilots are proving successful in reducing childhood hunger and improving nutrition in the months when school meals are unavailable.

Department of Health and Human Services, Food and Drug Administration (FDA)

FDA Rulemaking Rider.  The Administration strongly opposes provisions that unduly interfere with FDA’s rulemaking process.  The bill includes a general provision that withholds $20 million from FDA’s Salaries and Expenses account until FDA issues final guidance on abuse-deterrent formulations of opioids.  FDA is committed to publishing final guidance in a timely manner once comments received on the draft guidance have been considered.  Withholding funds until the final guidance is published would limit FDA’s ability to dedicate staff and resources appropriately and could have far-reaching negative impacts on FDA’s public health mission.

User Fees.  The Administration continues to support new proposed user fees that would provide vital resources to enhance FDA’s capacity to support a prevention-based food safety system and urges the Congress to enact these user fees as proposed in the FY 2015 Budget request.

Other Agencies

Commodity Futures Trading Commission (CFTC).  The Administration strongly opposes the $62 million reduction in funding from the FY 2015 Budget request for CFTC.  The further reduction to the amount available for salaries and other general expenses would reduce the number of CFTC staff and significantly impede the Commission’s ability to perform its market oversight functions and fully implement enacted financial reforms to protect investors.

Civilian Pay Raise

The Administration urges the Congress to support the proposed 1.0 percent pay increase for Federal civilian employees to help the Government remain competitive in attracting and retaining our Federal workforce.  A 1.0 percent civilian pay increase reflects the tight budget constraints that we continue to face, while also recognizing the critical role civilian employees play for the Nation—doing everything from assuring the safety of our food and airways, to securing our borders, to searching for cures to diseases.  It also recognizes the sacrifices they have already made through prior pay freezes and last year’s furloughs due to sequestration.

The Administration looks forward to working with the Congress as the FY 2015 appropriations process moves forward.