Appendix A.12 House Report 114-531

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Appendix A.12 House Report 114-531

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Appendix A.12. House Report 114-531

114TH CONGRESS
" HOUSE OF REPRESENTATIVES
2d Session

REPORT
114–531

AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG
ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS BILL, 2017

APRIL 26, 2016.—Committed to the Committee of the Whole House on the State of
the Union and ordered to be printed

Mr. ADERHOLT, from the Committee on Appropriations,
submitted the following

R E P O R T
together with
DISSENTING AND ADDITIONAL VIEWS
[To accompany H.R. 5054]

The Committee on Appropriations submits the following report in
explanation of the accompanying bill making appropriations for Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies for fiscal year 2017.
CONTENTS
Page

Title
Title
Title
Title
Title
Title
Title

I—Agricultural Programs ...............................................................................
II—Conservation Programs ...........................................................................
III—Rural Development Programs ...............................................................
IV—Domestic Food Programs ........................................................................
V—Foreign Assistance and Related Programs .............................................
VI—Related Agencies and Food and Drug Administration .........................
VII—General Provisions .................................................................................

4
43
46
55
62
65
82

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OVERVIEW
The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Subcommittee has jurisdiction over the
U.S. Department of Agriculture (USDA), except for the Forest Service, the Food and Drug Administration (FDA), the Commodity Futures Trading Commission (CFTC), and the Farm Credit Administration (FCA). The Subcommittee’s responsibility covers a vast and
diverse group of agencies responsible for such things as promoting
99–791

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55
[Dollars in Thousands]
FY 2016
enacted

FY 2017
estimate

Committee
provision

Grants ......................................................................................................

22,000

34,950

25,000

Total, Loan Subsidy and Grants .....................................................

$36,872

$74,442

$62,560

COMMITTEE PROVISIONS

For the Distance Learning, Telemedicine, and Broadband Program, the Committee provides an appropriation of $62,560,000,
which includes $25,000,000 for distance learning and telemedicine
grants.
Broadband Loan and Grant Program Priorities.—The Committee
recognizes the advantages of extending broadband services, including the economic development opportunities and improved health
care services that broadband technology provides. Funding provided for the broadband programs is intended to promote availability in those areas where there is not otherwise a business case
for private investment in a broadband network. The Committee directs RUS to focus expenditures on projects that bring broadband
service to underserved households and areas.
Tribal Communities.—The Committee notes that tribal communities continue to struggle with gaining access to broadband service. The Committee encourages the Secretary to provide a report
that identifies the specific challenges Indian Tribal Organizations
(ITOs) have in gaining access to broadband service and provide a
plan for addressing these challenges, including how the Community
Connect program can assist ITOs.
TITLE IV
DOMESTIC FOOD PROGRAMS
OFFICE

OF THE

UNDER SECRETARY FOR FOOD, NUTRITION,
CONSUMER SERVICES

2016 appropriation .............................................................................
2017 budget estimate .........................................................................
Provided in the bill .............................................................................
Comparison:
2016 appropriation ......................................................................
2017 budget estimate ..................................................................

AND

$811,000
814,000
811,000
–––
¥3,000

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COMMITTEE PROVISIONS

For the Office of the Under Secretary for Food, Nutrition, and
Consumer Services, the Committee provides an appropriation of
$811,000.
Communication from FNS.—The Committee recognizes the efforts made to increase communication and reduce delays by FNS
in completing requested reports. Reports requested by the Committees on Appropriations of the House and Senate, as well as information regarding FNS programs, are an important part of the
Committees’ oversight responsibilities. The directives and issues
that are specified in the House, Senate, or conference report are
very important to the Committee and the dates specified are mandatory. FNS is expected to keep the Committee apprised of activi-

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56
ties and issues, especially those mentioned in Committee reports.
FNS is reminded that the Committee reserves the right to call before it any agency that does not submit reports on time.
Public Release of Information.—The Committee directs FNS to
continue making all policy documents related to the Special Supplemental Nutrition Program for Women, Infants, and Children
(WIC) program (including, but not limited to, instructions, memoranda, guidance, and questions and answers) available to the public on the Internet within one week of their release to WIC state
administrators.
Program Eligibility.—The Committee directs FNS to work with
states to ensure full compliance with the law mandating that every
WIC and SNAP participant meet all program eligibility requirements. FNS is also directed to ensure these programs are not being
promoted to ineligible individuals, which would increase program
costs.
Fruit and Vegetable Consumption.—The Committee continues to
urge FNS to recognize in relevant agency publications and regulations related to all federal nutrition programs, including nutrition
education programs and child nutrition programs, the nutritional
benefits provided by all forms of fruits, vegetables, and beans,
whether canned, dried, fresh, or frozen.
FOOD

AND

NUTRITION SERVICE

CHILD NUTRITION PROGRAMS
(INCLUDING TRANSFERS OF FUNDS)

$22,149,746,000
23,230,733,000
23,175,679,000
+1,025,933,000
¥55,054,000

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COMMITTEE PROVISIONS

For the Child Nutrition Programs, the Committee provides
$23,175,679,000.
School Meals.—The Committee remains concerned about the
challenges and costs that local schools face in implementing the
various regulations from the Healthy, Hunger-Free Kids Act of
2010. Some schools are continuing to have difficulty complying
with the whole grain requirements that went into effect on July 1,
2014, and schools are increasingly concerned with further reductions in the sodium requirements. In order to provide schools with
the certainty and flexibility they need for the 2017–2018 school
year, the Committee continues to extend the whole grain waiver
provision to those school food authorities demonstrating a hardship
in implementing the whole grain standards.
The Committee also continues a provision stating that sodium
standards cannot be reduced below Target 1 until the latest scientific research establishes that the reduction is beneficial for children. According to information provided by USDA, the overwhelming majority of research that has been reviewed on this issue
was conducted more than 10 years ago, with most research conducted in the 1980s and 1990s. The Committee notes that the re-

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57
quirement that the latest scientific research prove that further sodium reductions are beneficial for children has not been met.
As schools seek to implement the school meal standards, the
Committee encourages USDA to consider ways to assist schools
with technical assistance and training, including the services of
not-for-profit culinary institutions, to provide healthy, cost-effective
foods that students will eat.
Improper Payments.—The Committee remains concerned about
the staggering error rates for the National School Lunch Program
(NSLP) and School Breakfast Program (SBP), which were about 16
percent and 23 percent, respectively, in fiscal year 2015. This
amounts to $1,800,000,000 in improper payments for NSLP and
$875,000,000 for SBP. While the error rate for SBP had a small decrease, there was a slight increase in the error rate for NSLP. OIG
completed an audit report in May of 2015 that evaluated how FNS
is attempting to lower the error rates, and the Committee acknowledges FNS is working to address this issue. The fiscal year 2016
explanatory statement directed FNS to provide a report addressing
OIG’s recommendations. The Committee expects this report by
June 1, 2016.
Potable Water.—The Committee is aware of the statutory requirement that schools and child care centers make potable water
available to children free of charge during meal times in the place
where meals are served. The Committee directs USDA to provide
a report on the actions that have been taken to ensure that potable
water is being provided in schools and child care centers.
Technology Use in School Meal Programs.—The Committee supports increased use of technology as a strategy to combat waste,
fraud and abuse in the school meal programs and urges USDA to
continue to allow local control in the selection of technology platforms. The Committee directs USDA to clearly communicate to recipients of any funding that can be used for technology infrastructure in or for the support of school meal programs that the funds
are intended to establish state systems that are capable of interoperability or interface with the technology platforms selected by
school districts.
The following table reflects the Committee recommendations for
the child nutrition programs:

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[Dollars in Thousands]

Child Nutrition Programs:
School Lunch Program ..........................................................................................................................
School Breakfast Program .....................................................................................................................
Child and Adult Care Food Program .....................................................................................................
Summer Food Service Program .............................................................................................................
Special Milk Program ............................................................................................................................
State Administrative Expenses ..............................................................................................................
Commodity Procurement ........................................................................................................................
Food Safety Education ...........................................................................................................................
Coordinated Review ...............................................................................................................................
Computer Support and Processing .......................................................................................................
Training and Technical Assistance .......................................................................................................
CNP Studies and Evaluations ...............................................................................................................
CN Payment Accuracy ...........................................................................................................................
Farm to School Team ............................................................................................................................
Team Nutrition .......................................................................................................................................
Healthier U.S. Schools Challenge ..........................................................................................................
School Meals Equipment Grants ...........................................................................................................

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$12,756,627
4,486,347
3,446,278
628,484
9,236
279,058
1,428,089
2,869
10,000
11,876
18,137
21,274
10,974
3,426
15,504
1,500
25,000

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58
[Dollars in Thousands]

Summer EBT Demonstration .................................................................................................................

21,000

Total ..............................................................................................................................................

$23,175,679

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS,
AND CHILDREN (WIC)

$6,350,000,000
6,350,000,000
6,350,000,000
–––
–––

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COMMITTEE PROVISIONS

For the Special Supplemental Nutrition Program for Women, Infants, and Children, the Committee provides an appropriation of
$6,350,000,000. The Committee provides for continuation of the
breastfeeding peer counselor program and infrastructure.
USDA data shows that WIC participation rates have decreased
steadily since fiscal year 2010. The President’s budget request includes a projection of an average monthly participation rate of 8.1
million women, infants, and children for fiscal year 2017. However,
the average monthly participation rate was 8.0 million for fiscal
year 2015, and the current average for fiscal year 2016 is 7.9 million. Birth rates also remain at an all-time low according to the
Centers for Disease Control and Prevention (CDC).
USDA is estimating recovery and carryover funds to be much
higher than average at more than $600,000,000. Furthermore, the
Secretary has a sufficient WIC contingency reserve fund as a safety
net to meet unexpected demand. With lower participation rates,
higher carryover funds, and an ample reserve fund, the Committee
provides funding that will ensure all eligible participants will be
served. The Committee will continue to monitor WIC participation,
carryover funds, and food costs and take additional action as necessary to ensure that funding provided in fiscal year 2017 remains
sufficient to serve all eligible applicants.
Income Eligibility Standards.—The Committee continues to monitor WIC income eligibility standards to ensure all procedures are
followed by the WIC state and local agencies. FNS has been conducting Certification and Eligibility Management Evaluations on
all state agencies and ITOs in order to ensure compliance and
maintain program integrity in the participant certification process.
USDA is directed to provide a report describing the results of these
evaluations, detailing discrepancies found in determining participant eligibility and the certification process. The report should include steps FNS will take to ensure state agencies and ITOs adhere to the income verification procedures that the Department has
implemented.
Program Integrity and Fraudulent Activities.—The FNS WIC
Program Integrity and Monitoring Branch plays a role in helping
WIC state agencies address vendor management, cost containment,
and fraudulent activities such as the online sale of WIC-provided
infant formula. The Committee remains concerned about fraud and
abuse in the program and directs FNS to provide a report on this
branch’s efforts and results in addressing these areas.

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59
WIC Eligibility of Multivitamins.—The Committee encourages
FNS to prepare a report assessing the inclusion of vitamins eligible
for purchase as part of the supplemental foods under the special
supplemental nutrition program for women, infants, and children
(WIC). Such report shall include: whether there are dietary deficiencies within the WIC population that could be enhanced through
such inclusion; considerations regarding the implementation and
possible health impacts of such inclusion; cost considerations related to such inclusion. This report shall be submitted to the Committee not later than 90 days after enactment of this Act.
Zika Outreach and Education.—The Committee is supportive of
ensuring pregnant women are educated on the various methods for
preventing exposure to the Zika virus during pregnancy. The Committee directs the Department, in consultation with the Centers for
Disease Control and Prevention, to continue its education and outreach efforts through the WIC program to provide pregnant women
with the information they need to prevent Zika. During fiscal year
2017, the Department is directed to designate $10,000,000 to assist
with Zika outreach and education, with priority given to States
with the greatest need.
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

$80,849,383,000
81,689,168,000
79,673,277,000
¥1,176,106,000
¥2,015,891,000

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COMMITTEE PROVISIONS

For the Supplemental Nutrition Assistance Program, the Committee provides $79,673,277,000. The total amount includes
$3,000,000,000 for a contingency reserve to be used only in the
amount necessary. Section 748 provides an additional $19,000,000
for the purchase of TEFAP commodities in order to maintain the
fiscal year 2016 funding level.
The Committee provides an increase of $4,000,000 for Nutrition
Education and Program Information solely for SNAP Employment
and Training technical assistance. The Committee is aware of coordinated attempts to circumvent the directive in the fiscal year
2016 explanatory statement in order to provide funding for existing
Centers of Excellence. Therefore, consistent with the Consolidated
Appropriations Act of 2016, the Committee does not provide funding for new or existing Centers of Excellence, which have not been
authorized by Congress.
Required Reporting for Out-of-State Moves.—The Committee remains committed to eliminating fraud and abuse within SNAP. Bill
language is included to require SNAP participants to report to the
state agency when they move outside of the state in which they are
certified. This provision closes a loophole in order to prevent fraudulent SNAP participation in multiple states.
SNAP Purchase Report.—The Committee is aware that FNS is
preparing a report describing purchases made by SNAP recipients
as compared to non-SNAP recipients. FNS is directed to complete
this report as soon as practicable and make this report publicly
available.

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SNAP Error Rates.—An OIG report issued in September of 2015
reviewed the FNS quality control process for determining the
SNAP error rate associated with benefits provided to recipients.
OIG found vulnerabilities and inconsistencies in the methods used
to determine the error rate and concluded FNS’ quality control
process resulted in an understatement of SNAP’s error rates. The
fiscal year 2016 explanatory statement directed the Department to
provide a report on how FNS will address OIG’s recommendations.
The Committee expects this report no later than June 1, 2016.
Recruitment Activities.—The Committee continues to direct
USDA to ensure that Section 4018 of the 2014 farm bill is implemented and enforced in a manner consistent with the statute
which prohibits USDA from conducting recruitment activities, advertising the program, or entering into agreements with foreign
governments to promote SNAP benefits. The Committee continues
to direct USDA to enforce this provision to ensure that state agencies are not reimbursed for such activities consistent with the statute.
Issuance of SNAP Benefits.—The Committee notes that some
states issue SNAP benefits to recipients in a compressed time
frame, usually at the beginning of the month, which causes challenges for both SNAP participants and retailers. The Committee
continues to direct FNS to work with those states with a compressed issuance schedule to provide benefits at least twice per
month and to report to the Committees on Appropriations of the
House and Senate progress made on this issue.
Electronic Benefit Transfer (EBT) Equipment.—The Committee is
aware that some farmers markets and farmers selling directly to
consumers are interested in EBT equipment that operates for a variety of federal nutrition programs. FNS is encouraged to assist
farmers markets and direct-selling farmers in obtaining EBT
equipment that allows participation in other federal nutrition programs.
The following table reflects the Committee recommendations for
SNAP:

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[Dollars in Thousands]

Supplemental Nutrition Assistance Program Account:
Benefits ...................................................................................................................................................
Contingency Reserve ...............................................................................................................................
Administrative Costs:
State Administrative Costs .....................................................................................................................
Nutrition Education and Obesity Prevention Grant Program ..................................................................
Employment and Training .......................................................................................................................
Mandatory Other Program Costs .............................................................................................................
Discretionary Other Program Costs .........................................................................................................
Administrative Subtotal ..................................................................................................................
Nutrition Assistance for Puerto Rico (NAP) ............................................................................................
American Samoa .....................................................................................................................................
Food Distribution Program on Indian Reservations ................................................................................
TEFAP Commodities .................................................................................................................................
Commonwealth of the Northern Mariana Islands ...................................................................................
Community Food Project ..........................................................................................................................
Program Access .......................................................................................................................................
Subtotal ..........................................................................................................................................
Total .......................................................................................................................................

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$68,801,122
3,000,000
4,348,604
414,000
465,680
193,417
998
5,422,699
1,965,415
7,893
151,000
299,000
12,148
9,000
5,000
2,449,456
$79,673,277

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61
COMMODITY ASSISTANCE PROGRAM

$296,217,000
313,139,000
315,139,000
+18,922,000
+2,000,000

COMMITTEE PROVISIONS

The Committee provides an appropriation of $315,139,000 for the
Commodity Assistance Program. The recommended funding level
for the Commodity Supplemental Food Program is $236,120,000.
The Committee recommendation includes $18,548,000 for the
Farmers’ Market Nutrition Program.
The Committee has included $59,401,000 for administrative
funding for The Emergency Food Assistance Program (TEFAP).
For the Food Donations Programs, the Committee provides an
appropriation of $1,070,000 for Pacific Island Assistance.
TEFAP Handling and Distribution Costs.—In addition to grant
funds supporting commodity handling and distribution costs, the
bill permits states to use up to 10 percent of the funds provided
for purchasing TEFAP commodities to help with the costs of storing, transporting, and distributing commodities. The Committee expects state agencies to consult with their emergency feeding organizations on the need for the conversion of such funds.
NUTRITION PROGRAMS ADMINISTRATION

$150,824,000
179,447,000
168,524,000
+17,700,000
¥10,923,000

COMMITTEE PROVISIONS

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For Nutrition Programs Administration, the Committee provides
$168,524,000. This funding level includes $1,000,000 for FNS to
contract for an independent study to identify the best means of efficiently consolidating Child Nutrition Program reporting requirements for school food authorities and state agencies. The Committee expects the study to be completed no later than 18 months
from the date of enactment of this Act.

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File Type	application/pdf
File Title	HR531.PS
Author	nbeyler
File Modified	2018-01-17
File Created	2018-01-16