Statement of Administration Policy: H.R. 9027 - Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2025

STATEMENT OF ADMINISTRATION POLICY

(House Rules)
(Rep. Cole, R-OK)

The Administration strongly opposes House passage of H.R. 9027, making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies programs for the fiscal year (FY) ending September 30, 2025 and for other purposes.

Earlier this year, the Administration and members of both parties in the Congress came together to pass bipartisan appropriations bills to fund programs that keep Americans safe and healthy, invest in education and affordable housing, and build on the economic progress of the past three and a half years. These appropriations bills are consistent with the agreement the President and House Republican leadership reached last year to avoid a first-ever default and protect the President's investment agenda and critical programs from deep cuts, using necessary adjustments to statutory caps.

Rather than respecting their agreement and taking the opportunity to engage in a productive, bipartisan appropriations process to build on last year's bills, House Republicans are again wasting time with partisan bills that would result in deep cuts to law enforcement, education, housing, healthcare, consumer safety, energy programs that lower utility bills and combat climate change, and essential nutrition services.

The draft bills also include numerous, partisan policy provisions with devastating consequences including harming access to reproductive healthcare, threatening the health and safety of Lesbian, Gay, Bisexual, Transgender, Queer, and Intersex (LGBTQI+) Americans, endangering marriage equality, hindering critical climate change initiatives, and preventing the Administration from promoting diversity, equity, and inclusion.

The Administration stands ready to engage with both chambers of the Congress in a bipartisan appropriations process to enact responsible appropriations bills that fully fund Federal agencies in a timely manner.

If the President were presented with H.R. 9027, he would veto it.

The Administration would like to take this opportunity to share additional views regarding the House Appropriations Committee's (Committee) version of the bill.

Department of Agriculture (USDA)

Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) Topline. The Administration is concerned that the low funding level provided in the bill for WIC could create funding shortages and put the program at risk of being unable to serve all eligible women and children, causing waitlists, greater hardships, and poorer health outcomes for this vulnerable population. The Administration appreciates that the bill provides funding for the Cash Value Voucher for fruits and vegetables at the levels recommended by the National Academies of Sciences, Engineering, and Medicine. The Administration looks forward to working with the Congress to continue the longstanding bipartisan agreement to provide enough funds for WIC to serve all eligible participants.

Food and Nutrition Service (FNS) Administrative Funding. The Administration is deeply concerned that the bill reduces administrative funding for Nutrition Programs Administration (NPA). The bill provides $140 million to NPA, which is 32-percent lower than the FY 2025 Budget request level. NPA funds operating expenses for administering the nutrition assistance programs at FNS. This reduction would lead to significant permanent reductions in staffing levels, curtailing critical program support services, and negatively impacting FNS's ability to properly administer and oversee many food and nutrition programs.

Rural Housing. The Administration is deeply concerned that the Committee has rejected proposals included in the FY 2025 Budget request that would improve housing for rural Americans. In particular, the bill would continue a penalty that requires that low-income borrowers who have paid off their loan in full repay the subsidy cost when they no longer occupy the home—essentially continuing a death tax on poor, rural Americans who want to pass-on their homes to their children. No other Federal mortgage program has this requirement, and the Administration urges the Congress to accept the Administration's proposal to eliminate it for rural Americans. The Committee has also rejected the Administration's policy to reduce home energy costs in rural communities by including language in section 743 of the bill that prevents rural housing programs from implementing Federal housing efficiency standards.

Water and Wastewater Grants and Loans. The Administration is deeply concerned that the bill reduces funding for rural water and wastewater grants and loans. The bill cuts these critical infrastructure programs by 16 percent compared to the FY 2024 enacted level and by 38 percent compared to the FY 2025 Budget request.

Rural Partners Network (RPN). The Administration is deeply concerned that the bill eliminates funding for the RPN, which facilitates Federal partnerships with rural communities to promote equitable access to Federal resources by collaborating collectively across over 20 Federal agencies and regional commissions. RPN staff on the ground are now supporting 36 community networks in 10 States and Puerto Rico.

Rural Business-Cooperative Service. The Administration is concerned that the bill reduces funding for rural business grants and loans. The bill provides $51 million for these important rural programs, which is 44-percent lower than the FY 2025 Budget request level. These programs help expand job opportunities and create new markets in rural communities.

Agricultural Marketing Service (AMS). The Administration strongly opposes section 729 of the bill, which would prohibit the promulgation of rules that would bolster competition and transparency in the meat and poultry industries, in accordance with Executive Order 14036, "Promoting Competition in the American Economy." These rules are critical to preventing abuse of farmers and ranchers by dominant meat and poultry processors, and providing farmers and ranchers more and better options for selling their products—which would increase their share of the food dollar. The Administration also objects to the funding level provided in the bill for AMS, which is significantly below the level that it was funded at for the last three fiscal years. This funding level would also eliminate new staffing positions to enact various marketing rules in the Packers and Stockyards Division, further hindering efforts to bolster competition and promote transparency in this sector.

Department of Health and Human Services—Food and Drug Administration (FDA)

Regulating Tobacco Products. The Administration is concerned with language in section 733 of the bill that would threaten FDA's ability to regulate tobacco products. This provision would significantly limit the FDA's authority to protect public health.

Funding Reductions. The Administration is concerned that funding reductions contained in the bill compared to the FY 2025 Budget request, including for essential staff, buildings and facilities, and other critical infrastructure investments to ensure food safety, personal care product safety, and a robust supply chain, would leave the FDA underprepared to address ongoing and emerging public health challenges in FY 2025.

Other Independent Agencies

Commodity Futures Trading Commission (CFTC) Funding. The Administration objects to the funding level provided in the bill for CFTC, which is $54 million below the gross funding level requested in the FY 2025 Budget. This funding level would significantly impede Administration priorities, undermine oversight of the derivatives market, and severely constrain CFTC's ability to respond to industry and address market innovation, especially with respect to digital assets.

Constitutional Concerns

Certain provisions of the draft bill raise separation of powers concerns, including by conditioning the Executive authority to take certain actions on receiving the approval of the House and Senate Committees and by preventing the President from recommending certain legislation to the Congress. The Administration looks forward to working with the Congress to address these and other concerns.

The Administration looks forward to working with the Congress as the FY 2025 appropriations process moves forward.