Eyeing SNAP cuts in reconciliation

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Jan 13, 2025 View in browser
 
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By Grace Yarrow

With help from Marcia Brown

Speaker of the House Rep. Mike Johnson (R-La.) speaks to the press.

House Republicans are passing around a list of potential budget cuts they could include in their reconciliation package, including potential reforms and trims to SNAP benefits. | Angelina Katsanis/POLITICO

QUICK FIX

— SNAP and nutrition policies could be cut as part of House Republicans’ plans to reduce trillions in federal spending in reconciliation discussions.

— USDA nominee Brooke Rollins’ confirmation hearing still hasn’t been rescheduled after paperwork delays held up the process.

— The Treasury Department released long-awaited guidance on a key clean fuel tax credit, but left key details to the incoming Trump administration.

IT’S MONDAY, JAN. 13. Welcome to Morning Agriculture. I’m your host Grace Yarrow. Send tips and ideas to gyarrow@politico.com and follow us @Morning_Ag.

ANOTHER NOTE: Morning Ag’s Meredith Lee Hill has started a new role on POLITICO’s Congress team. We’ll miss her dearly and are endlessly grateful for her incredible work during her years on the ag beat! Keep in touch and send tips to Meredith at meredithlee@politico.com.

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Driving the day

SNAP ON THE CHOPPING BLOCK? House Republicans are passing around a list of potential cuts they could use to offset President-elect Donald Trump’s top priorities, our Ben Leonard, Meredith Lee Hill and Kelsey Tamborrino write.

One option on the table? Cutting the Supplemental Nutrition Assistance Program (SNAP).

The “menu” of reconciliation options being passed around the House GOP caucus says that the federal government could save $22 billion by reforming SNAP.

MA reported last year that a GOP trifecta in Washington would open the door for Republicans to pass a plan to limit future updates to the Thrifty Food Plan, which serves as the basis for calculating SNAP benefits. That’s the most popular option for reducing SNAP spending among Republicans; the move was included in the House GOP-led farm bill that passed out of the House Ag Committee last year.

Ag Committee prep: House Ag Chair G.T. Thompson (R-Pa.) held a meeting for committee Republicans last week to discuss options for reconciliation talks.

“We have been directed to take a look in our jurisdiction for the things that may fit into budget reconciliation, so we’re doing that,” Thompson said, adding that there was no specific conclusion from the brainstorming session.

“There’s some programs I would sooner keep available for the farm bill for funding, like the IRA dollars,” Thompson said. “We’re going to need some dollars to invest in the new programming that we feel the American farmer needs.”

Rep. Max Miller (R-Ohio) said he’d be open to advocate for limits to the Thrifty Food Plan or including “stabilization” measures for farmers and ranchers in the reconciliation talks.

Remember: Any plans to limit SNAP could divide the House GOP caucus and anger centrists, given that huge cuts to SNAP would affect more than 40 million people in the U.S. who use the program to buy food.

Spending under the Inflation Reduction Act, including popular tax credits or climate-smart programs that agricultural producers benefit from, could also be rolled back as part of the reconciliation package. House GOP leadership agreed to make $2.5 trillion in spending cuts through the budget reconciliation process as part of last year’s government funding negotiations.

Rep. Chellie Pingree (D-Maine), a member of the House Ag Committee, said she’s concerned about Republicans looking for “any vehicle possible to roll back IRA money.”

“I have no insight into it, but I’m sure we will be fighting back on the reconciliation,” Pingree told MA last week.

Trump Transition

ROLLINS’ HEARING PUSHED: USDA nominee Brooke Rollins’ confirmation hearing, originally scheduled for Wednesday, has been pushed due to delays in Rollins’ financial disclosures and FBI background check, as Meredith wrote last week.

Senate Ag Chair John Boozman (R-Ark.) hasn’t scheduled a new date for the hearing. Panel rules require seven days' notice before a hearing, though Boozman could strike an agreement with ranking member Amy Klobuchar (D-Minn.) to waive those rules.

Senate Ag Committee Democrats met virtually on Friday to discuss their approach to Rollins’ confirmation hearing. Sen. John Fetterman (D-Pa.) already said he’d vote for Rollins, and other Democrats could also vote for her to be confirmed as the next USDA head.

Rollins told your host last week that she was encouraged by Fetterman’s support and hopes to rally more Democrats around her goals.

Rollins also played down the paperwork delays: “Really, for me, I have been through so much of this, having worked in the last West Wing, that hopefully my paperwork is pretty easy and clear and clean.”

Sen. Jerry Moran (R-Kan.) told MA it’s the “best outcome” for senators to have paperwork ahead of the hearing. Other Republicans have privately expressed the same concerns.

“I’m anxious for us to get people who are qualified in place. But, I suppose, in order for people to ask questions about the things that are in the report in their statements, the reports are important,” Moran told MA.

ICYMI: Senate Ag Committee Republicans who met with HHS nominee Robert F. Kennedy Jr. are softening on their concerns about Kennedy’s plans that could affect food and ag.

Iowa Republican Sen. Chuck Grassley, a longtime advocate of farm interests, told reporters Thursday that Kennedy’s views on farming and food production are “much more reasonable than I expected,” even though Kennedy has criticized the use of genetically modified plants and pesticides in the past.

“The reports I read didn’t reflect what he actually believes and how he will act in those areas,” Grassley said.

Boozman also told reporters last week he had a “good meeting” with Kennedy during which they spoke about Kennedy’s views on pesticides.

AROUND THE AGENCIES

45Z GUIDANCE RELEASED: The Treasury Department is laying the groundwork for industry to claim the new clean fuel tax credit created under Democrats’ climate law — but key decisions will be left to the incoming Trump administration, which is expected to try to reverse many of President Joe Biden's green energy policies, our Kelsey Tamborrino writes.

Treasury issued a notice of intent to propose regulations on Friday for the clean fuel production tax credit, known as 45Z, and a notice detailing the appropriate methodologies for determining the lifecycle greenhouse gas emissions of fuels.

What’s next: The documents should provide industry with some interim certainty this year, but leaves final details on how the tax credit will be implemented to the incoming administration.

The long-awaited guidance is a top priority for the biofuels industry and producers of crops used in sustainable aviation fuel. But ag industry representatives said they were let down that Treasury didn’t give more clarity for producers.

Geoff Cooper, president and CEO of the Renewable Fuels Association, said it “falls short of expectations and remains incomplete.”

“The guidance is a potential step in the right direction, but much work remains to be done before clean fuel producers, farmers, and consumers can fully benefit from the 45Z program,” Cooper said in a statement.

LINE SPEEDS: USDA released two studies on the impact of increased line speeds on poultry and hog plant workers' safety. The studies confirmed workers' higher-than-average risks of musculoskeletal injuries. The studies found that faster line speeds did not necessarily increase workers' risk of injury, but indicated that poultry workers than handled more carcasses were at increased risk of injury.

Forty percent of poultry and 42 percent of swine workers reported moderate to severe work-related pain in the last 12 months.

Meatpacking workers already have higher than average rates of workplace injury, according to the Bureau of Labor Statistics. Repetitive motions can cause painful carpal tunnel syndrome and workers are at high risk of cuts and scrapes as well. Workers are also exposed to toxic chemicals and work in cold environments to preserve the carcasses.

“We call upon OSHA and the USDA in the incoming administration to make worker safety a priority, and mitigate risk at poultry plants to address the dangerous conditions outlined in the reports,” said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union, which represents poultry processing workers. “We need to mandate job modifications that reduce ergonomic stressors and additional staffing to decrease repetitive motion and work speed; increase workers’ access to early and adequate medical treatment; and create better tool-sharpening programs to reduce the impact of cutting jobs.”

Background: The first Trump administration increased processing line speeds and several plants were granted waivers to continue operating at increased speeds during the Biden administration.

Reactions: The meat industry welcomed the studies, immediately urging to make increased line speed pilots permanent.

“Pork producers appreciate USDA’s thoughtful and thorough approach to maintaining increased packing capacity, giving us more opportunities to safely and more efficiently deliver our products to consumers,” said National Pork Producers Council President and Minnesota pork producer Lori Stevermer. “As expected, after more than three years of operating at increased line speeds, FSIS has confirmed that increased line speeds are not a leading factor in worker safety.”

Congressional Republicans likewise praised the results.

“The Biden-Harris administration needlessly created years of uncertainty throughout the duration of these studies, which deviated far beyond the original mission and attempted to villainize the pork and poultry industry, despite no findings of higher line speeds being a leading factor of increased risk to workers,” Boozman and Thompson wrote in a joint statement. “These studies confirm what we have known all along – U.S. meat and poultry companies have the highest worker safety standards in the world."

FIRST IN MA: The National WIC Association, which represents state agencies that administer the nation’s top federal nutrition program for low-income moms and babies, urged the incoming administration to continue to fully fund WIC, the Special Supplemental Nutrition Program for Women, Infants, and Children.

In a letter to Trump transition co-chairs Linda McMahon and Howard Lutnick first shared with POLITICO, National WIC Association President Georgia Machell urged the administration to make permanent waivers that allowed WIC participants to register online and to buy food online, too. Machell also urges the administration to support the program’s newly-updated food packages.

Row Crops

— USDA plans to strengthen inspection policies and introduce new training for food safety inspectors in response to a deadly outbreak of listeria in deli meat, Marcia writes.

— A surprise immigration raid in California illustrates what awaits farmworkers and businesses if Trump follows through on his mass deportation promises. (CalMatters)

— “Make America Healthy Again” advocates and allies will hold a MAHA ball to mark Trump’s inauguration, our Megan Messerly and Dasha Burns write.

— The FDA found dozens of violations at an onion supplier linked to a deadly outbreak of E. coli in McDonald’s foods. (CBS News)

THAT’S ALL FOR MA! Drop us a line and send us your agriculture job announcements or events: gyarrow@politico.com, meredithlee@politico.com, marciabrown@politico.com, abehsudi@politico.com and ecadei@politico.com.

 

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