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1 1 (April 3, 2020)

handle is hein.crs/govcqyu0001 and id is 1 raw text is: FF. ' ,iE S .r. i , 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 three supplemental appropriations acts in response to the COVID-19 pandemic (P.L. 116-123, P.L. 116-127, and P.L. 116-136; Table 1). This In Focus summarizes $36 billion of appropriations and policy changes in the jurisdiction of the Agriculture appropriations subcommittees. These supplemental appropriations acts are referred to in this In Focus by order of passage (i.e., first, second, and third). For comparison, the regular annual Agriculture appropriations are discussed in CRS Report R45974, Agriculture and Related Agencies: FY2020 Appropriations. For FDA to respond to the public health emergency of the COVID-19 pandemic, the first and third supplemental appropriations acts provide a total of $141 million. The FDA role is development of medical countermeasures (e.g., drugs, vaccines), advanced manufacturing, and monitoring of medical product supply chains. See CRS Report R46285, Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (P.L. 116-123): First Coronavirus Supplemental; and CRS Report R44576, The Food and Drug Administration (FDA) Budget: Fact Sheet. Nuktim, ,Assi st am,-,', Access to food has been a concern, particularly in light of school closures. Rising unemployment may also increase participation in the Supplemental Nutrition Assistance Program (SNAP) and other food assistance programs. The second and third supplemental appropriations acts provide a total of $26 billion for nutrition assistance and give the U.S. Department of Agriculture (USDA) certain flexibilities to increase program access and accommodate social distancing. The Congressional Budget Office (CBO) estimates that SNAP policies in the second law will increase mandatory spending by more than $21 billion over FY2020-FY2021. See CRS Insight IN11250, USDA Domestic Food Assistance Programs'Response to COVID- 19: P.L. 116-127, P.L. 116-136, and Related Efforts. The third supplemental provides $9.5 billion for USDA to support agricultural producers impacted by coronavirus, including producers of specialty crops, producers that supply local food systems, including farmers' markets, restaurants, and schools, and livestock producers, including dairy producers. This approach is similar to recent emergency appropriations for wildfires and hurricanes in which USDA was tasked to develop a payment program from a general appropriation. As of the date of this report, USDA has not announced how it will distribute the $9.5 billion. It has yet to determine the breadth of producers to be included, payment rates, and the methods of support (payments or by purchasing commodities). Several Members of Congress and relevant industry groups have sent letters to USDA with requests for how this money should be spent. The third supplemental appropriation also replenishes up to $14 billion of funding availability for the Commodity Credit Corporation (CCC). CCC operates with a $30 billion line of credit with the U.S. Treasury (see CRS Insight IN10941, Commodity Credit Corporation: Q&A). The $14 billion would reimburse CCC for past spending. It is not new spending and not part of the subtotal of the appropriations act. CCC uses its borrowing authority to finance authorized farm bill programs and broadly support the U.S. agriculture industry. The supplemental reimbursement could increase opportunities for USDA to use its executive authority in CCC to provide direct support payments, as it did with trade aid payments in 2018 and 2019 (see CRS Report R45865, Farm Policy: USDA's 2019 Trade Aid Package). The third supplemental allows Marketing Assistance Loans in FY2020 to be repaid over 12 months (rather than nine months) to provide flexibility in responding to disruptions. For producers, the majority of USDA's existing disaster response programs cover natural disasters (physical and production) and do not apply to economic or market losses. The losses from the COVID-19 pandemic are economic and do not trigger agricultural disaster assistance programs such as emergency loans, despite the President's declaration of a public health emergency under the Stafford Act (CRS Insight IN 11251, The Stafford Act Emergency Declaration for CO VID-19). However, USDA has announced some flexibilities for farm loan and rural housing loan programs, including payment deferrals and moratoriums on foreclosures. Ruura,,~ t~mn The third supplemental appropriation provides $146 million for USDA rural development programs, including $100 million for broadband grants, $25 million for rural telemedicine and distance learning, and $20.5 million to support rural business loans. See CRS In Focus IF11262, The ReConnect Broadband Pilot Program. gognpo ' -p\qm ggmm g 'S a X

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