June 7, 2005

On May 25, the House Appropriations Committee completed action on its FY2006 Agriculture Appropriations spending bill. The Agriculture Appropriations Subcommittee had completed its markup on May 16th.

House floor action is expected after the Memorial Day recess (May 30 - June 3). The Senate Agriculture Appropriations Subcommittee is expected to mark up their version of the funding bill in mid-June.

The House Committee discretionary funding levels are described below.

WIC: WIC was funded at $5.257 billion (an increase of almost $22 million above the FY2005 level and a decrease of $253 million below the Administration's FY2006 budget request). The Committee noted that since the time of the Administration's budget request (submitted in February), estimates for WIC program participation and food costs have declined for FY2005 and FY2006.

A contingency fund of $125 million was included, with a possible rescission of up to $32 million attached to the contingency fund. Also included was a $15 million earmark for continuation of the breastfeeding peer counselor program. The Committee specifically excluded an Administration proposal that would have required a 25 percent cap for nutrition services and administration.

The Committee included an Administration proposal to cap Medicaid adjunctive eligibility for WIC at 250 percent of poverty (affecting six states - - Rhode Island, Minnesota, Missouri, New Hampshire, Vermont, and Maryland - - with Medicaid eligibility above 250 percent of poverty). WIC advocates had opposed this cap.

The Committee also made changes to the current moratorium on expanding "WIC-only" stores. Language was included allowing the moratorium to be lifted upon implementation of interim final cost-containment regulations by USDA. The Committee also created an exemption to the current moratorium related to the prices charged in WIC-only stores.

In a separate account from WIC, the Committee appropriated $20 million for the WIC Farmers' Market Nutrition Program. The FY2005 level was also $20 million.

TEFAP: The Committee provided $140 million for mandatory TEFAP commodity purchases and $50 million for transportation and storage costs, with up to $10 million in additional administrative funding (the same levels as FY2005).

CSFP: The Commodity Supplemental Food Program received $107.7 million in annual funding with an expected commodity inventory of $6 million. The FY2006 funding is $3 million less than FY2005, and CFSP advocates had urged an additional $20 million in funding to reflect increased food package costs.

FRAC Recommendations. WIC: support $5.3 billion, and maintain the $125 million contingency fund; reject the Administration's proposal to cap WIC grants for nutrition services at 25 percent; oppose the cap on Medicaid adjunctive eligibility for WIC at 250 percent of poverty; and support continuation of the moratorium on "WIC-only" stores. TEFAP: Support $140 million to maintain mandatory USDA commodity purchases and $60 million for administrative support. CSFP: Fund $136.3 million to maintain current caseload. Farmers' Market Programs: Support $20 million for the WIC Farmers' Market Nutrition Program and $15 million for the Seniors Farmers' Market Program.

Also urge the Subcommittee to expand the "Lugar Summer Food pilot" program (Simplified Summer Food Program), move towards restoration of CACFP audit funding to 1-1/2 percent (from the current 1 percent), and expand the CACFP supper pilot program. For more information on these three priorities, go to http://www.frac.org/Press_Release/05.12.05.html

For contact information on members/staff of the Senate Agriculture Appropriations Subcommittee, go to http://www.frac.org/Legislative/Congress_Contacts.html#