S2256-119

What This Bill Does

Provides fiscal year 2026 Agriculture, Rural Development, FDA, and related-agency appropriations and a long set of policy riders controlling USDA transfers, National Finance Center operations, nonprofit indirect costs, rural loans, SNAP retailer standards, food and drug rules, rural water Buy America requirements, persistent-poverty allocations, housing preservation grants, child nutrition procurement, conservation technical services, fish advice, bison marketing grants, pet shelter grants, tobacco enforcement, hemp definitions, rural energy circuit riders, rescissions, and office-closure restrictions.

Who Benefits and How

USDA agencies benefit from continued appropriations and targeted flexibilities for loan programs, working capital services, rural development, conservation technical services, National Finance Center shared services, and emergency operations. Rural communities benefit from persistent-poverty set-asides, rural housing preservation technical assistance, rural water and wastewater program funding, Energy Circuit Riders, community facilities, broadband, telemedicine, and rural business programs. SNAP retailers benefit because USDA cannot enforce the 2016 variety requirements until the variety definition is broadened. Meat, poultry, and egg establishments benefit from continued FSIS holiday or overtime inspection availability, though they pay the inspection costs. Domestic iron and steel producers benefit from a Buy America requirement in rural water and wastewater projects. School meal programs benefit from a bar on PRC poultry and seafood procurement and a temporary rule on paid-lunch pricing. Bison producers, Tribal bison organizations, pet shelter grantees, and affordable housing nonprofits benefit from specific $2 million or $3 million grant provisions. FDA tobacco enforcement benefits from at least $200 million in tobacco user fees for ENDS enforcement and a multi-agency task force.

Who Bears the Burden and How

USDA, FDA, Farm Credit Administration, Rural Development, NRCS, NIFA, FSIS, APHIS, and FDA tobacco staff must comply with dozens of spending restrictions, notifications, reports, waivers, and program rules. Federal taxpayers bear the cost of the appropriations while prior-year balances are rescinded from NRCS conservation operations, NIFA research and education, Food for Peace Title II grants, broadband pilot balances, and the Working Capital Fund. Nonprofit institutions working under USDA cooperative agreements face a 10 percent indirect-cost cap. FDA is barred from moving to electronic prescribing information without new federal law, from enforcing specified produce-safety rules against certain entities, and from issuing new sodium or ultra-processed food guidance. Hemp-derived cannabinoid product makers face a narrowed hemp definition that excludes synthetic or intoxicating cannabinoid products from hemp. USDA office and lab reorganization plans face restrictions, and grant terminations require advance written notice to appropriations committees.

Key Provisions

• Authorizes USDA Working Capital Fund transfers while requiring agency-administrator approval and appropriations-committee notice for National Finance Center changes.
• Limits USDA nonprofit cooperative-agreement indirect costs to 10 percent of total direct costs.
• Bars FDA electronic prescribing-information rules unless Congress enacts authorizing law.
• Blocks enforcement of SNAP retailer variety requirements until USDA broadens acceptable variety definitions.
• Authorizes FSIS to charge meat, poultry, and egg establishments for overtime and holiday inspections.
• Requires U.S.-produced iron and steel for rural water and wastewater projects, with public-interest, availability, quality, and cost waivers.
• Requires at least 10 percent of specified rural loans and grants to assist persistent poverty counties.
• Appropriates $2 million for rural multifamily housing preservation technical assistance, $2 million for bison production and marketing, $3 million for pet shelter grants, and $4 million for Energy Circuit Riders.
• Bars school meal procurement of PRC poultry and seafood and directs FDA fish-consumption advice by September 30, 2026.
• Rescinds unobligated balances including $30 million from NRCS conservation operations, $22 million from NIFA research and education, $200 million from Food for Peace Title II grants, and $78 million from the Working Capital Fund.
• Requires at least $200 million in FDA tobacco user fees for e-cigarette and vape enforcement and narrows the hemp definition to exclude certain hemp-derived cannabinoid products.