House GOP leaders were left searching for a way forward to avoid a government shutdown over the Christmas holidays after the House Thursday night soundly rejected the latest stopgap spending bill.
 
Only two Democrats voted for the stripped-down bill that GOP leaders worked out with President-elect Donald Trump. But just as importantly, 38 Republicans voted against the bill, reflecting the anger of fiscal conservatives over the debt limit increase that was included in the measure at Trump’s insistence.
 
Keep in mind: This year-end chaos hardly bodes well for Republicans in 2025, when they’ll have a razor-thin majority in the House. Raising the debt limit would smooth the way for passing a major tax bill in 2025. But conservative hardliners are making it pretty clear they will be demanding deep cuts in spending during the next Congress.
 
What’s next? There is a lot of support in Congress for disaster aid for hurricane victims as well as economic assistance for farmers. The two issues are riding together. But it’s unclear how much can be attached to a new continuing resolution, and when one will pass.
 
 “We need to continue to stay at the table, and we need to stay here as long as we need to, to make sure we're taking care of the people of western North Carolina and our farmers,” said North Carolina Democrat Don Davis, a member of the House Ag Committee.
 
FDA Human Foods leader sees alignment with RFK Jr.
 
Jim Jones, deputy commissioner of FDA’s human foods program, says Robert F. Kennedy Jr.’s statements on food and nutrition could be in line with ongoing efforts at the FDA to improve healthy eating.
 
Speaking on a press call, Jones said it’s still unclear what policy directions the incoming administration will take in the Department of Health and Human Services. Kennedy, who brought the “Make America Healthy Again” tagline into the Trump campaign, was nominated to lead HHS. He’s been critical of the food and agricultural system, and has elevated concerns with ultra-processed foods, poor nutrition and food additives. Notably, he’s also threatened to fire all nutrition scientists in federal agencies. 
 
As for what the FDA is doing on food that aligns with Kennedy’s vision, Jones cites FDA’s efforts to reduce sodium and a final rule updating the “healthy” definition. “But again, until there’s new leadership giving us their new policy direction, it’s really premature to say exactly how well these activities will align with their goals,” Jones said. 
 
FDA’s new definition for the term “healthy” includes high-in-fat foods like olive oil, salmon and nuts that were previously not eligible for the “healthy” claim.
 
Take note: The rule is set to publish in the Federal Register on Dec. 27 and take effect 60 days later. The compliance date is set for Feb. 25, well into the Trump administration. 
 
MAHA caucus forms on Hill
 
Five senators, including Sen. Roger Marshall, R-Kan., have launched the Make America Healthy Again Caucus. 
 
Marshall was one of several senators who met with Kennedy this week to discuss his potential confirmation as HHS secretary. Following that meeting, Marshall said he received the necessary assurances that Kennedy has a “great love and compassion” for agriculture, and that the two share many of the same goals. 
 
The new caucus will be focused on nutrition, access to affordable, nutritious food, improving primary care and addressing the root causes of chronic diseases. Kennedy endorsed the creation of the new caucus, according to Marshall’s office. The other caucus members: Tommy Tuberville, R-Ala., Rick Scott, R-Fla., Cynthia Lummis, R-Wyo., and Ron Johnson, R-Wis.
 
USDA bringing back old biotech regulatory process
 
USDA is returning to its pre-2020 regulatory regime for approving new genetically engineered crops. A federal judge recently struck down a 2020 rule that exempted some gene modifications from regulation and allowed developers to decide whether their products qualify.
 
A notice to stakeholders says the agency is “re-establishing the regulatory and non-regulatory processes under the pre-May 2020 framework” to provide stability. It will resume issuing permits “in the coming days,” the notice said.
 
Take note: According to the USDA’s Regulatory Status Review webpage, regulatory status review responses, confirmation request responses and active permits issued prior to Dec. 2 all remain valid.
 
CBO: Trump tariff plans would cut deficit, growth, fuel inflation
 
A 10% across-the-board tariff on U.S. imports coupled with a 60% tariff on goods from China would likely reduce the deficit but cut economic output and spur modest price rises, the Congressional Budget Office says. 
 
Senate Majority Leader Chuck Schumer, D-N.Y., and Sens. Ron Wyden, D-Ore., and Sheldon Whitehouse, D-R.I., had asked the office to look into the budgetary and economic effects of several tariff scenarios President-elect Donald Trump floated on the campaign.
 
In a report, CBO says the tariffs, if implemented, could reduce the budget deficit by up to $2.7 trillion – once other economic effects are taken into account. Economic output, however, could also fall by as much as 0.6% of GDP, stemming from lost productivity, rising uncertainty and retaliatory tariffs.
 
Administration unlocks new funding for fertilizer production
 
USDA is putting another $116 million into expanding domestic fertilizer production. The funding will be delivered through the Fertilizer Production Expansion Program, a central part of the administration’s push to promote domestic production and bring fertilizer costs down.
 
The program has already issued $517 million in grants since 2022, the Biden administration says in a review of U.S. supply chains published the same day.
 
More than 80% of the fertilizer used by U.S. farmers comes from domestic manufacturers. But U.S. production is concentrated in nitrogen and phosphate fertilizers. The country relies heavily on potash fertilizer imports – the bulk of which come from Canada.
 
Rural schools, county officials grapple with lack of funding
 
Lawmakers have yet to reauthorize a measure that provides rural counties and school districts federal assistance to offset the loss of property tax revenue on public lands, despite it expiring on Sept. 30. A measure to do so passed the Senate with unanimous consent in November but has not yet been put on the House floor. 
 
A three-year reauthorization was included in the farm bill passed this spring by the House Ag Committee, but that bill also never reached the House floor.
 
Why it matters: “It’s a crushing blow to these 700 counties,” Jaime Greene, the Superintendent of Trinity Alps School District in northern California, told Agri-Pulse of counties with large tracts of Forest Service land, which rely on the revenue to supplement their lack of tax dollars.
 
 Agri-Pulse reported earlier this year that without Secure Rural Schools Act funding, counties and school districts may need to lay off personnel, halt road and bridge projects and limit wildfire prevention activities.
 
Final word
 
“I just think shutting down the government is stone cold stupid’ – Sen. John Kennedy, R-La.

Related Articles