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1 1 (August 13, 2019)

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     I Congressional Research Service
lrfIfo r r g th Vegislative debate since 1914


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                                                                                         Updated August 13, 2019

Proposed Relocation/Realignment of USDA's ERS and NIFA


Background
As part of the proposed reorganization of the U.S.
Department of Agriculture (USDA), Secretary Perdue
announced in August 2018 the department's intention to
relocate the Economic Research Service (ERS) and the
National Institute of Food and Agriculture (NIFA) outside
the Washington, DC, metropolitan area. He also proposed
realigning ERS from the Office of the Undersecretary for
Research, Education, and Economics (REE) to the Office of
the Chief Economist. Among the stated reasons for the
agency relocations are (1) improving USDA's ability to
attract and retain qualified staff without the burden of the
high cost of living; (2) placing USDA resources closer to
the many agricultural stakeholders who live and work
outside the Washington, DC, area; and (3) creating
departmental savings on high employment costs and rent.

In a subsequent Federal Register notice, USDA invited
interested parties to make proposals for siting the relocated
headquarters of ERS and NIFA. In October 2018, USDA
announced that it had received 136 expressions of interest
in 35 states. In early May, three sites were chosen for final
determination: the Purdue University area (Indiana), Kansas
City (Missouri), and Research Triangle (North Carolina).
Two additional back-up sites were named: Madison,
Wisconsin, and St. Louis, Missouri. On June 13, Secretary
Perdue announced that the Kansas City region would be the
new location for NIFA and ERS. A cost-benefit analysis of
the relocation was also released with the announcement
USDA further announced that the department would not
realign ERS with the Office of the Chief Economist but
retain the agency under the REE mission area.

Current Status of the Proposed Relocation
With the June decision to relocate to the Kansas City
region, current ERS and NIFA employees were given until
July 15 to accept an offer to relocate or to separate from
service with the agencies. As of that date, 72 ERS
employees and 73 NIFA employees agreed to the move,
and 250 (99 from ERS and 151 from NIFA) declined.
Seventy-six ERS employees and 21 NIFA employees will
remain in Washington, D.C.

In response to a letter from Representative Steny Hoyer and
Delegate Eleanor Holmes Norton in late September 2018,
USDA's Office of the Inspector General (OIG) began a
review of the proposed relocation. The OIG report was
released on August 5, 2019, and found that USDA had legal
authority to realign ERS and relocate the agencies.
However, OIG concluded that under the FY2018
Consolidated Appropriations Act (P.L. 115-141), there
were certain limitations on USDA's budget authorities to
realign or relocate their offices. The OIG found that USDA
had not obtained Appropriations Committee approval, as


required by Section 717(a) of that act, nor had it complied
with the reporting deadline requirement in Section 753 of
the act. That same language was in the FY2019
appropriations bill and in the House-passed FY2020 bill.

In response, USDA stated its disagreement with the OIG's
questioning its budget authorities regarding the relocation.
The Department asserted that its actions fully comply with
all applicable laws and that the budgetary provisions cited
in the OIG report requiring committee approval are
unconstitutional. OIG, in response, noted that USDA's
position was not consistent with prior positions taken by the
Department and recommended that USDA seek the Office
of General Counsel's opinion regarding compliance with
the relevant appropriations provisions, including whether
there were any corresponding violations of the
Antideficiency Act, which prohibits agencies from
spending funds not appropriated.

Economic Research Service
ERS was founded in 1961 as the successor agency of the
Bureau of Agricultural Economics, which was established
in 1922. ERS conducts economic and statistical analyses on
agricultural commodities, trade and international
agriculture, rural demography, agricultural marketing, food
price forecasting, surveys of farm and crop production
practices, farm and rural labor and income analysis, food
safety and nutrition, natural resources, and the environment.
More recently, ERS has developed geospatial online
mapping tools to integrate and display data and research
results geographically.

National Institute of Food and Agriculture
A 2004 USDA task force report recommended the
formation of a National Institute for Food and Agriculture.
The task force recommended that such an institute should

* support fundamental research addressing the frontiers of
   knowledge while leading to practical results or further
   scientific discovery;

* distribute research grants through a competitive, peer-
   reviewed process and be solely a grant-awarding entity,
   not one that conducts its own in-house research;

* enhance, not replace, existing USDA research;

* receive oversight from committees of scientists and a
   council of advisors;

* achieve increasing annual appropriations over a five-
   year period until it received $1 billion per year; and


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