Reconciliation bill clears House hurdle in 17-16 vote

A massive $4 trillion reconciliation package has cleared a major hurdle but still faces a rocky road to passage in the U.S. House.

The mega bill narrowly passed the U.S. House Budget Committee on May 18, sending it to the Rules Committee for negotiated changes to be added and clearing the way for a floor vote later this week.

Four House Freedom Caucus members had initially held up the package, which hinges on securing votes for a controversial overhaul to the Supplemental Nutrition Assistance Program and other contested cuts, before voting “present” to allow the bill to be reported out on a 17-16, party-line vote.

The proposal would add $60 billion in farm bill programs to the agriculture portion of the mega bill, with the additional funding coming from $290 billion in cuts to SNAP spending over the next 10 years.

The rules committee took up debate in the early morning hours of May 21.

Cuts breakdown

The SNAP cuts, along with Medicaid cuts debated by the House Energy and Commerce Committee, have drawn opposition. The cuts would shift some federal SNAP spending to states for the first time in the history of the program, which helps to feed more than 40 million low-income Americans.

Planned changes also include a plan to limit future benefits increases and new work requirements.

On May 14, the House Agriculture Committee reported the package out of committee.

According to analysis from Politico, the ag committee cuts include:

• Forcing states to pay for part of SNAP benefits based on their payment error rates saves $128 billion.
• Changing work requirements, waivers and other criteria for SNAP recipients who are able-bodied adults without dependents saves $92 billion.
• Limiting future updates to the Thrifty Food Plan, the basis for calculating SNAP, saves $37 billion.
• Forcing states to pay for more of SNAP administrative costs saves $27 billion.
• Restrictions on participants including internet costs in computing shelter expenses saves $11 billion.
• Requiring state agencies to use indications of SNAP overpayments to prevent overpayments of other federal and state benefits saves $7 billion.
• Closing an internet utility loophole for SNAP participants who are not elderly or disabled saves $6 billion.
• Scrapping the National Education and Obesity Prevention Program for SNAP participants saves $5 billion.
• Reducing the tolerance level for SNAP error payments from $37 to $0 saves $80 million.
• Changing the general SNAP work requirement age from over 15 and under 60 to over 17 and under 65 does not affect direct spending.

The nonpartisan Congressional Budget Office is still estimating how much the committee will save by limiting SNAP benefits to U.S. citizens and permanent lawful residents and how much it will spend by extending mandatory funding for federal projects aimed at reducing food waste, according to Politico.

Industry reaction

“As very positive news, the spending package that cleared committee includes not only program crop spending but also enhancements to key Specialty Crop Farm Bill Alliance priorities,” National Potato Council CEO Kam Quarles said in a statement.

Those funding enhancements include:

• Specialty Crop Research Initiative: $175 million per year (an increase from $80 million)
• Specialty Crop Block Grant Program: $100 million per year (and increase from $85 million)
• Adjusted Gross Income: The limitation is eliminated if 75% or more income is derived from farming
• Market Access Program: $200 million (a 100% increase)
• Section 7721 – Pest and Disease programs under Plant Protection Act: $90 million per year (an increase from $75 million)

“The current lack of a modern farm bill remains concerning, particularly for the fruit and vegetable sector within specialty crops. Our industry has undergone more significant transformations since the 2018 farm bill than any other part of agriculture,” Quarles said. “The landscape for specialty crop growers is drastically different today compared to when the last farm bill was enacted, and we continue to urge Congress to provide growers the modern tools they need through a comprehensive, bipartisan farm bill.”

Quarles is co-chair of the Specialty Crop Farm Bill Alliance, a national coalition of more than 150 organizations representing growers of fruits, vegetables, dried fruit, tree nuts, nursery plants and other products. The SCFBA also applauded specialty crop investments in the reconciliation package in a May 13 statement.

“Although our strong preference is to enact agriculture policy in the context of a comprehensive bipartisan farm bill, we appreciate the chairman’s (ag committee chair Glenn “GT” Thompson) long-standing support of our industry and for seizing this opportunity to support America’s specialty crop growers,” the statement said.

The National Young Farmers Coalition condemned the proposed cuts in a May 15 statement.

“This budget proposal is a betrayal of the values that sustain our food system. These are not the investments young farmers need,” said Erin Foster West, policy campaigns director of the National Young Farmers Coalition. “Instead of passing a bipartisan farm bill that builds resilience for farmers and families alike, this bill fast-tracks harmful cuts to nutrition programs that serve as both a safety net for families and a revenue stream for farmers. It trades long-term food security for short-term austerity.”

The International Fresh Produce Association has encouraged a focus on increasing access to and consumption of fresh fruits and vegetables in SNAP discussions. Mollie Van Lieu, IFPA vice president of nutrition and health policy, recently told The Packer that SNAP serves 42 million people a year with an average monthly benefit of about $211 per person, which breaks down to $60 a day or $6 per meal.

Van Lieu has also called for data showing that people would spend more money on fruits and vegetables before supporting proposed SNAP restrictions to soda and candy.

In March, the organization submitted policy recommendations (.pdf) to the Make America Healthy Again Commission reinforcing its commitment to improving public health nationwide and reducing diet-related diseases.

Rocky road ahead

The ranking member of the House Agriculture Committee said in remarks reported by Brownfield Ag News May 13 that the size of the proposed cuts in the reconciliation bill make the prospects of getting a five-year farm bill completed dim.

“I’ve told GT I’m going to stay at the table no matter what happens,” Rep. Angie Craig of Minnesota said.  “But I’ve also warned him that anywhere near these cuts that the House instructions require of this committee are going to make it very, very problematic for me to get 150 Democrats to support the farm bill.”

A new farm bill has been long-delayed, with organizations including the NPC repeatedly calling for its passage to be prioritized. In a May 2 statement, NPC expressed appreciation for Congressional efforts to put together the reconciliation bill but noted “the House Agriculture Committee is being asked to shoulder a very substantial portion of the overall savings, amounting to $230 billion in spending reductions.”

“We appreciate Chairman Thompson’s efforts to make the best of a difficult situation. Our desire is for a full comprehensive farm bill this year, but politics are complicating that goal,” Quarles said in that statement. “If this alternative Reconciliation Bill is used to fund improvements for program crops, we need to ensure that America’s fruit and vegetable producers also have their funding priorities on it.”

Opposition to Medicaid cuts in the  House Energy and Commerce Committee bill has made headlines. Protestors interrupted a May 13 committee hearing by chanting, “No cuts to Medicaid!” Capitol Police escorted the protesters, some in motorized wheelchairs, out of the room and later said 25 people were arrested for “illegally demonstrating,” NBC News reported.

Democratic Sens. Tina Smith of Minnesota, Brian Schatz of Hawaii, and Cory Booker of New Jersey delivered letters to the committee from constituents about the negative impacts of the Medicaid cuts in the House proposal, according to NBC News.

The CBO projects the legislation will save $715 billion and lead to 8.6 million fewer people with health care coverage.