The House passed this morning the 2016 $1.1 trillion spending bill and $629 billion tax package by a vote of 316 to 113. The 2,009-page bill is made up of the 12 annual spending bills, which are bundled into one “omnibus.” The House immediately adjourned for the holidays until January 5, leaving the Senate to wrap up consideration and clear the omnibus for the president’s signature later today. The agreement, which came after weeks of bipartisan negotiations, is the broadest tax and spending deal since the January 2013 “fiscal cliff” agreement..
President Barack Obama is holding a press conference this afternoon to take questions from reporters at the White House before departing for his annual Hawaii vacation.
The House has relied on some procedural maneuvers to pass the package by holding separate votes on the tax package and the omnibus appropriations package, which funds the government for the rest of fiscal 2016 through September 2016. . If both pass, the Senate is expected to then bundle the two packages together for a final vote before sending it to President Obama for this signature.
Canada and Mexico previously filed a case with the World Trade Organization against the beef and pork COOL regulations, which they won on appeal. A second case was filed when USDA new rules addressing concerns from the beef and pork industry, which Canada and Mexico also won on appeal.
Subsequently, the WTO ruled that Canada and Mexico were within their rights to impose retaliatory tariffs of more than $1 billion. With the repeal of COOL for beef and pork in the omnibus bill, it is expected that all retaliatory tariffs will be set aside.
“The National Chicken Council is pleased that Congress is poised to repeal the mandatory country-of-origin labeling regulations for beef and pork, which have twice been deemed illegal by the WTO,” said NCC President Mike Brown. “The retaliatory tariffs awarded by the WTO to Mexico and Canada totaling over $1 billion should not now be levied against any of our chicken and fowl products, or any other American goods. This is a victory for all U.S. agricultural products and a win-win for U.S. chicken producers and consumers. When at the meat case, consumers seeking chicken made in the USA can continue to readily identify these products of American origin.”
The omnibus bill fails to prohibit funding for EPA’s and the Army Corps’ controversial “Waters of the U.S.” rule.
The omnibus does prohibit funding for the Department of Agriculture and the Department of Health and Human services dietary guidelines that are not limited to nutritional and dietary information as well as directly the Secretary of Agriculture to work with the National Academy of Medicine to study the dietary guidelines process.
Highlights of the spending package that affect the chicken industry are as follows:
The U.S. Department of Agriculture (USDA) total budget is $21.75 billion in mandatory and discretionary funding, an increase of more than $1.93 billion over fiscal 2015. The funding includes $81.8 billion in mandatory spending for food stamps and $21.3 billion in mandatory spending for child nutrition programs. The largest discretionary program in the bill, the Women, Infants and Children nutrition program, would receive $6.62 billion. The Food and Drug Administration will receive $4.49 billion, including a $75 million increase in user fees for a total of $1.9 billion to be collected from industry. Other highlights include:
- Agricultural Research Service (ARS) The building and facilities fund will receive $212 million, including $113.7 million allocated for the acquisition of land, construction, repair, and purchase of fixed equipment for the Southeast Poultry Research Laboratory (SERPL) in Athens, Georgia. The laboratory is the leading research facility research involved in research initiatives on Avian Influenza and Newcastle disease.
- Animal and Plant Health Inspection Service (APHIS) will have a total budget of $894,415,000 of which $3,973,000 will be used for the National Veterinary Stockpile that assists in the supply of critical veterinary countermeasures used for emergency preparedness and response efforts in the event of an intentional or unintentional introduction of an animal disease into the U.S. market. Also included in APHIS’ budget is $12,000,000 for the National Animal Health Laboratory Network; $55,340,000 for Avian Health; $16,417,000 for Veterinary Biologics; $36,540,000 for Veterinary Diagnostics; and $28,410,000 for Animal Welfare.
- Agricultural Marketing Service (AMS) will receive $81,223,000 for the agency.
- Food Safety and Inspection Service (FSIS) will have a budget of $1,016,474,000 to carry out services authorized by the Meat, Poultry and Egg Inspection Acts, as well efforts in the implementation of new poultry inspection rules and enforcement of the Humane Methods of Slaughter Act.
- Market Access Program and Foreign Market Development (MAP): The Foreign Agricultural Services provided $172.8 million for the Market Access Program and $27.5 million for Foreign Market Development to market and promote activities that help build commercial export markets for U.S. agricultural products, including chicken.
The spending package includes two “riders’ rolled into the must-pass bill, including a change in the visa-waiver program, which allows foreign travelers from 38 countries to make short trips to the United States without a visa, but includes an added layer of security screening for those travelers if they have recently visited Iraq, Syria or other nations with significant terrorist activity.
The second rider ends the 40-year ban on exporting U.S. crude oil abroad, except in economic or national security emergencies, in exchange for an extension of tax credits for solar and wind power.
The tax package includes a two-year postponement of the so-called “Cadillac tax,” the first major change that Congress has made to the Affordable Care Act since its passage. The Cadillac tax had been scheduled to start in 2018 and was intended to decrease the federal deficit and slow health-care spending by reining in expensive insurance policies.
The bill would also suspend temporarily two other taxes, which have already begun, including lifting for two years a tax on medical devices as well as a one-year moratorium in 2017 on a tax levied on all private health insurance.
The omnibus will continue to allow taxpayer funds, from both discretionary funding under Title X and from Medicaid reimbursement, to flow to Planned Parenthood Federation of America affiliates
