USDA ‘Prepared’ for Looming Government Shutdown, Layoffs Possible

Meatingplace’s Frank Fuhrig reported that “the USDA says it is ready in the event of a federal government shutdown Wednesday in the absence of budget legislation, while opposition Democrats in Congress are warning of potential further cuts to the federal workforce, which the White House has threatened. A shutdown will occur when the 2025 fiscal year ends Tuesday night, unless a continuing resolution is passed.”

“During a 2018 federal shutdown, Food Safety and Inspection Service (FSIS) meat inspection and laboratory testing personnel continued working,” Fuhrig reported. “‘USDA is prepared for all contingencies regarding department operations, including critical services and supports,’ a spokesperson said in a statement to Meatingplace, but did not provide requested details about FSIS operations or potential USDA layoffs.”

Brownfield Ag News’ Carah Hart reported that “Ag Secretary Brooke Rollins says the USDA is fully prepared in case the U.S. government shuts down this week. ‘I believe, sincerely, the incredible and important programs especially that help our farmers, those will continue and they shouldn’t be affected by the shutdown, but we’re still working on the details.’ Rollins made those comments to media at last week’s Ag Outlook Forum.”

USDA Shutdown Contingency Plan Includes Layoffs

Politico’s Grace Yarrow reported that “USDA officials are preparing for more layoffs if the government shuts down this week, according to two people with direct knowledge of the plans.”

“The department has submitted its tentative shutdown contingency plan — which includes a reduction-in-force provision — to the White House’s Office of Management and Budget for approval, according to the individuals, who were granted anonymity to discuss the private talks,” Yarrow reported. “They could not provide further details on which employees would be cut, but the two people said the rest of the proposal largely mirrors USDA’s typical shutdown contingency plan that was last publicly updated during the Biden administration.”

WIC Funds Could be Impacted

Politico’s Marcia Brown and Rachel Shin reported that “money for the nation’s signature nutrition program for millions of low-income moms and babies could run out within days if the government shuts down.”

“Current funds for the $8 billion Special Supplemental Nutrition Program for Women, Infants and Children, or WIC, are nearly depleted, and states won’t be able to access the next fiscal year’s money during a shutdown,” Brown and Shin reported. “WIC’s contingency fund boasts just $150 million — enough to support the current caseload of participants for about one week, according to the National WIC Association.”

“‘We do anticipate that even with the shutdown, there shouldn’t be an immediate impact to WIC. However, if the shutdown goes on beyond a week or so, we are very concerned about the program running out of funds,’ said Ali Hard, policy director at the National WIC Association,” Brown and Shin reported. “Once the program runs out of funds, state agencies that administer WIC will triage participants, prioritizing pregnant and breastfeeding women as well as some infants first. By law, states cannot dole out partial benefits.”

How Else a Shutdown Might Affect USDA

Progressive Farmer’s Chris Clayton reported that “data collection generally ends during a shutdown at agencies such as the National Agricultural Statistics Service (NASS). The Crop Progress report for Oct. 6 could be immediately affected. At least two shutdowns in the past 2018-19 and 2013 forced USDA to suspend the World Agricultural Supply and Demand Estimates (WASDE) for one month as well.”

Additionally, “the Farm Service Agency (FSA) has sent a notice to state and county offices that the agency’s authority to administer the Conservation Reserve Program (CRP) ends after Tuesday as well. Congress has not passed farm bill legislation to extend the program beyond FY 2025,” Clayton reported. “A shutdown combined with the suspension of several farm-bill programs also likely leads to a likely halt on any loan or grant applications at FSA, Rural Development or other agencies as well.”

FarmPolicy News discussed during the shutdown threats toward the end of 2024 that “although many programs are exempt, the public is still likely to feel the impact of a shutdown in several ways,” the Committee for a Responsible Federal Budget wrote, including in a potential lapse of some environmental and food inspection and the availability of benefits from the Supplemental Nutrition Assistance Program.