Senate Appropriations Committee Issues Report on Agriculture, Rural Development, FDA, Related Agencies Appropriations Bill (Part 4 of 6)

WASHINGTON, May 26 -- The Senate Appropriations Committee issued a report (S.Rpt. 115-259) on legislation (S. 2976) making appropriations for Agriculture, Rural Development, Food and Drug Administration, and related agencies programs for the fiscal ending Sept. 30, 2019. The report was advanced by Sen. John Hoeven, R-North Dakota, on May 24.

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2018 (budget authority)................. $483,716,000

Budget estimate, 2019 (budget authority)................ 244,249,000

Committee recommendation (budget authority)............. 493,945,000

This fund was established in 1965 (Public Law 89-117) pursuant to section 517 of title V of the Housing Act of 1949 (42 U.S.C. 517(d)), as amended. This fund may be used to insure or guarantee rural housing loans for single-family homes, rental and cooperative housing, farm labor housing, and rural housing sites. Rural housing loans are made to construct, improve, alter, repair, or replace dwellings and essential farm service buildings that are modest in size, design, and cost. Rental housing insured loans are made to individuals, corporations, associations, trusts, or partnerships to provide low-cost rental housing and related facilities in rural areas. These loans are repayable in terms up to 30 years.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $493,945,000 for the Rural Housing Insurance Fund Program Account [RHIF].

The Federal Credit Reform Act of 1990 (Public Law 101-508) established the RHIF program account. Appropriations to this account will be used to cover the lifetime subsidy costs associated with the direct loans obligated and loan guarantees committed in 2019, as well as for administrative expenses. The following table presents the loan subsidy levels as compared to the 2018 levels and the 2019 budget request:

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

[In thousands of dollars]

(TABLE OMITTED)

Energy Efficiency.--The Committee recognizes opportunities to reduce costs for rural housing and save taxpayer money by embracing energy efficiency standards in rural housing, with measures such as air sealing, and installing insulation, window films, and roofs.

Maturing Mortgages.--The Committee remains concerned about the alarming number of multi-family housing mortgages scheduled to mature in the next few years. As these mortgages mature, projects and units will be removed from USDA's affordable rural housing program, placing very low income rural residents in jeopardy of untenable rent increases and possible eviction.

The Secretary is directed to engage affordable housing advocates, project owners, tenants, and others as practicable, to find acceptable and effective long term solutions that will retain projects in the affordable rural housing program.

Rural Housing.--The Committee is concerned that Rural Housing Service resources do not reach minority, socially disadvantaged, and tribal communities in proportion to their rural populations. For example in fiscal year 2016, of the 7,113 direct loans made nationally by the Rural Housing Service, only 12 went to American Indians or Alaska Natives on tribal land. The Committee believes that the use of Rural Housing loans or funding should support minority, socially disadvantaged, tribal communities, and all other eligible applicants, so as to ensure they have equal access to Rural Housing programs. The Committee directs the Secretary to work with tribal governments and native community development financial institutions (Native CDFIs) to better prepare American Indians or Alaska Natives applicants on tribal land. The Committee further directs USDA Rural Housing Service to report to the Committee on the distribution of loans and resources to these three populations no later than 90 days after enactment of this act.

RENTAL ASSISTANCE PROGRAM

Appropriations, 2018.................................... $1,345,293,000

Budget estimate, 2019................................... 1,331,400,000

Committee recommendation................................ 1,331,400,000

Rental assistance is authorized under section 521(a)(2) of the Housing Act of 1949, as amended (42 U.S.C. 1490a). The objective of the program is to reduce rents paid by low-income families living in Rural Housing Service financed rental projects and farm labor housing projects. Under this program, low-income tenants will contribute the higher of: (1) 30 percent of monthly adjusted income; (2) 10 percent of monthly income; or (3) designated housing payments from a welfare agency.

Payments from the fund are made to the project owner for the difference between the tenant's payment and the approved rental rate established for the unit.

The program is administered in tandem with the Rural Housing Service section 515 rural rental housing program and the farm labor loan and grant programs. Priority is given to existing projects for units occupied by rent over-burdened low- income families and projects experiencing financial difficulties beyond the control of the owner.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $1,331,400,000 for the Rental Assistance Program.

MULTI-FAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT

Appropriations, 2018.................................... $47,000,000

Budget estimate, 2019...................................................

Committee recommendation................................ 50,000,000

The Rural Housing Voucher Program was authorized under the Housing Act of 1949 (42 U.S.C. 1940r) to assist very low income families and individuals who reside in rental housing in rural areas. Housing vouchers may be provided to residents of rental housing projects financed by section 515 loans that have been prepaid after September 30, 2005. Voucher amounts reflect the difference between comparable market rents and tenant-paid rent prior to loan prepayment. Vouchers allow tenants to remain in existing projects or move to other rental housing.

The Multi-family Housing Revitalization Program includes funding for housing vouchers and a demonstration program for the preservation and revitalization of affordable multi-family housing projects. Rural Development's multi-family housing portfolio faces dual pressures for loan prepayments and repair/ rehabilitation stemming from inadequate reserves resulting in deferred property maintenance.

Provision of affordable rental housing can be accomplished more economically by revitalizing existing housing stock rather than funding new construction. The Multi-family Housing Revitalization Program includes revitalization tools for maintenance of existing units and vouchers to protect tenants in those projects that prepay. Flexibility is provided to allow Rural Development to utilize funding to meet the most urgent local needs for tenant protection and project revitalization.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $50,000,000 for the Multi-family Housing Revitalization Program, including $26,000,000 for vouchers and $24,000,000 for a housing preservation demonstration program.

Multi-Family Housing Preservation.--The Committee directs the Secretary to provide a report within 120 days of enactment of this Act to estimate the cost of providing rural housing vouchers to all low income households currently receiving USDA rental assistance and residing in a property financed with a Section 515 loan that are set to mature in the subsequent fiscal year and subsequent ten fiscal years. In addition, the Secretary is directed to provide quarterly reports to the Committee on transfers between vouchers and the housing preservation demonstration program within the Multi-Family Housing Revitalization Program Account.

MUTUAL AND SELF-HELP HOUSING GRANTS

Appropriations, 2018.................................... $30,000,000

Budget estimate, 2019...................................................

Committee recommendation................................ 30,000,000

The Mutual and Self-Help Housing Grants Program is authorized by title V of the Housing Act of 1949. Grants are made to local organizations to promote the development of mutual or self-help programs under which groups of usually 6 to 10 families build their own homes by mutually exchanging labor. Funds may be used to pay the cost of construction supervisors who work with families in the construction of their homes and for administrative expenses of the organizations providing the self-help assistance.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $30,000,000 for Mutual and Self-Help Housing Grants.

RURAL HOUSING ASSISTANCE GRANTS

Appropriations, 2018.................................... $40,000,000

Budget estimate, 2019...................................................

Committee recommendation................................ 40,000,000

The Rural Housing Assistance Grants Program consolidates funding for rural housing grant programs. This consolidation of housing grant funding provides greater flexibility to tailor financial assistance to applicant needs.

Very Low-Income Housing Repair Grants.--The Very Low-Income Housing Repair Grants Program is authorized under section 504 of title V of the Housing Act of 1949. The rural housing repair grant program is carried out by making grants to very low- income families to make necessary repairs to their homes in order to make such dwellings safe and sanitary, and remove hazards to the health of the occupants, their families, or the community.

These grants may be made to cover the cost of improvements or additions, such as repairing roofs, providing toilet facilities, providing a convenient and sanitary water supply, supplying screens, repairing or providing structural supports or making similar repairs, additions, or improvements, including all preliminary and installation costs in obtaining central water and sewer service. A grant can be made in combination with a section 504 very low-income housing repair loan.

No assistance can be extended to any one individual in the form of a loan, grant, or combined loans and grants in excess of $27,500, and grant assistance is limited to persons, or families headed by persons who are 62 years of age or older.

Supervisory and Technical Assistance Grants.--Supervisory and technical assistance grants are made to public and private nonprofit organizations for packaging loan applications for housing assistance under sections 502, 504, 514/516, 515, and 533 of the Housing Act of 1949. The assistance is directed to very low-income families in underserved areas where at least 20 percent of the population is below the poverty level and at least 10 percent or more of the population resides in substandard housing. In fiscal year 1994 a Homebuyer Education Program was implemented under this authority. This program provides low-income individuals and families education and counseling on obtaining and/or maintaining occupancy of adequate housing and supervised credit assistance to become successful homeowners.

Compensation for Construction Defects.--Compensation for construction defects provides funds for grants to eligible section 502 borrowers to correct structural defects, or to pay claims of owners arising from such defects on a newly constructed dwelling purchased with RHS financial assistance. Claims are not paid until provisions under the builder's warranty have been fully pursued. Requests for compensation for construction defects must be made by the owner of the property within 18 months after the date financial assistance was granted.

Rural Housing Preservation Grants.--Rural housing preservation grants (section 533) of the Housing and Urban- Rural Recovery Act of 1983 (42 U.S.C. 1490m) authorizes the Rural Housing Service to administer a program of home repair directed at low- and very low-income people.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $40,000,000 for the Rural Housing Assistance Grants Program.

The following table compares the grant program levels recommended by the Committee to the fiscal year 2018 levels and the budget request:

RURAL HOUSING ASSISTANCE GRANTS

[In thousands of dollars]

(TABLE OMITTED)

The Committee recommends that the Rural Housing Service prioritize funding for communities with unique weather patterns in need of replacing antiquated heating systems with more efficient technologies.

Rural Community Facilities Program Account

(including transfers of funds)

Appropriations, 2018.................................... $48,627,000

Budget estimate, 2019...................................................

Committee recommendation................................ 52,063,000

Community facility loans were created by the Rural Development Act of 1972 (7 U.S.C. 1926 et seq.) to finance a variety of rural community facilities. Loans are made to organizations, including certain Indian tribes and corporations not operated for profit and public and quasi-public agencies, to construct, enlarge, extend, or otherwise improve community facilities providing essential services to rural residents. Such facilities include those providing or supporting overall community development, such as fire and rescue services, healthcare, transportation, traffic control, and community, social, cultural, and recreational benefits. Loans are made for facilities which primarily serve rural residents of open country and rural towns and villages of not more than 20,000 people. Healthcare, fire and rescue facilities, and educational facilities are the priorities of the program and receive the majority of available funds.

The Community Facility Grant Program authorized in the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104-127), is used in conjunction with the existing direct and guaranteed loan programs for the development of community facilities, such as hospitals, fire stations, and community centers. Grants are targeted to the lowest income communities. Communities that have lower population and income levels receive a higher cost-share contribution through these grants, to a maximum contribution of 75 percent of the cost of developing the facility.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $52,063,000 for the Rural Community Facilities Program Account.

The following table provides the Committee's recommendations, as compared to the fiscal year 2018 and budget request levels:

RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

[In thousands of dollars]

(TABLE OMITTED)

Community Facilities Program Priorities.--The Secretary is encouraged to prioritize Community Facilities program awards to applications that develop facilities to provide prevention, treatment, or recovery services for substance abuse disorder and for rural communities facing severe wildfire risk.

Rural Business--Cooperative Service

The Rural Business--Cooperative Service [RBS] was established by Public Law 103-354, Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994, dated October 13, 1994. Its programs were previously administered by the Rural Development Administration, the Rural Electrification Administration, and the Agricultural Cooperative Service.

RURAL BUSINESS PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2018.................................... $77,342,000

Budget estimate, 2019...................................................

Committee recommendation................................ 69,619,000

The Rural Business and Industry Loan Program was created by the Rural Development Act of 1972, and finances a variety of rural industrial development loans. Loans are made for rural industrialization and rural community facilities under Rural Development Act amendments to the Consolidated Farm and Rural Development Act (7 U.S.C. 1932 et seq.) authorities. Business and industrial loans are made to public, private, or cooperative organizations organized for profit, to certain Indian tribes, or to individuals for the purpose of improving, developing or financing business, industry, and employment or improving the economic and environmental climate in rural areas. Such purposes include financing business and industrial acquisition, construction, enlargement, repair or modernization, financing the purchase and development of land, easements, rights-of-way, buildings, payment of startup costs, and supplying working capital.

Rural business development grants were authorized by the Agricultural Act of 2014 and can be made to governmental and nonprofit entities, and Indian tribes. Up to 10 percent of appropriated funds may be used to: identify and analyze business opportunities; identify, train, and provide technical assistance to existing or prospective rural entrepreneurs and managers; assist in the establishment of new rural businesses and the maintenance of existing businesses; conduct economic development planning, coordination and leadership development; and establish centers for training, technology, and trade. The balance of appropriated funding may be used for projects that support the development of business enterprises that finance or facilitate: the development of small and emerging private business enterprise; the establishment, expansion, and operation of rural distance learning networks; the development of rural learning programs; and the provision of technical assistance and training to rural communities for the purpose of improving passenger transportation.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $69,619,000 for the Rural Business Program Account.

The following table provides the Committee's recommendations, as compared to the fiscal year 2018 and budget request levels:

RURAL BUSINESS PROGRAM ACCOUNT

[In thousands of dollars]

(TABLE OMITTED)

Regional Food Hubs.--The Committee encourages USDA to partner with States and other interested partners to build and refurbish food hub and food distribution centers that serve rural farmers but are located in urban areas through programs like the Business and Industry guaranteed loan program.

Rural Business Development Grants.--Rural coastal economies have often been economically disadvantaged by the loss of natural resource-related jobs and have been the first rural communities to feel the negative effects of a changing climate. As these rural coastal communities continue to have agriculture-related economic opportunity such as value-added seafood processing as well as new opportunities, the use of Rural Business Development grants may be prioritized in rural coastal communities to support innovation and job growth within all sectors, including for related infrastructure. Particular priority should be given in the case of public-private partnerships and cross-jurisdictional efforts.

Rural Business Program Account.--The Committee recommends $500,000 for transportation technical assistance.

The Committee directs that of the $4,000,000 recommended for grants to benefit Federally Recognized Native American Tribes, $250,000 shall be used to implement an American Indian and Alaska Native passenger transportation development and assistance initiative.

INTERMEDIARY RELENDING PROGRAM FUND ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

[In thousands of dollars]

(TABLE OMITTED)

The rural development intermediary relending loan program was originally authorized by the Economic Opportunity Act of 1964 (Public Law 88-452). The making of rural development loans by the Department of Agriculture was reauthorized by Public Law 113-79, the Agricultural Act of 2014.

Loans are made to intermediary borrowers (small investment groups) who in turn will reloan the funds to rural businesses, community development corporations, private nonprofit organizations, public agencies, et cetera, for the purpose of improving business, industry, community facilities, and employment opportunities and diversification of the economy in rural areas.

The Federal Credit Reform Act of 1990 established the program account. Appropriations to this account will be used to cover the lifetime subsidy costs associated with the direct loans obligated in 2019, as well as for administrative expenses.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $8,625,000 for the Intermediary Relending Program Fund.

RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

[In thousands of dollars]

(TABLE OMITTED)

The Rural Economic Development Loans program was established by the Reconciliation Act of December 1987 (Public Law 100-203), which amended the Rural Electrification Act of 1936 (Act of May 20, 1936), by establishing a new section 313. This section of the Rural Electrification Act (7 U.S.C. 901) established a cushion of credit payment program and created the rural economic development subaccount. The Administrator of RUS is authorized under the Act to utilize funds in this program to provide zero interest loans to electric and telecommunications borrowers for the purpose of promoting rural economic development and job creation projects, including funding for feasibility studies, startup costs, and other reasonable expenses for the purpose of fostering rural economic development.

COMMITTEE RECOMMENDATION

The Committee recommends a loan program level of $45,000,000, to be funded from earnings on the Cushion of Credit and fees on guaranteed underwriting loans made pursuant to section 313A of the Rural Electrification Act of 1936.

RURAL COOPERATIVE DEVELOPMENT GRANTS

Appropriations, 2018.................................... $27,550,000

Budget estimate, 2019...................................................

Committee recommendation................................ 30,050,000

Rural cooperative development grants are authorized under section 310B(e) of the Consolidated Farm and Rural Development Act, as amended. Grants are made to fund the establishment and operation of centers for rural cooperative development with their primary purpose being the improvement of economic conditions in rural areas. Grants may be made to nonprofit institutions or institutions of higher education. Grants may be used to pay up to 75 percent of the cost of the project and associated administrative costs. The applicant must contribute at least 25 percent from non-Federal sources, except 1994 institutions, which only need to provide 5 percent. Grants are competitive and are awarded based on specific selection criteria.

Cooperative research agreements are authorized by 7 U.S.C. 2204b. The funds are used for cooperative research agreements, primarily with colleges and universities, on critical operational, organizational, and structural issues facing cooperatives.

Cooperative agreements are authorized under 7 U.S.C. 2201 to any qualified State departments of agriculture, university, and other State entity to conduct research that will strengthen and enhance the operations of agricultural marketing cooperatives in rural areas.

The Appropriate Technology Transfer for Rural Areas [ATTRA] program was first authorized by the Food Security Act of 1985. The program provides information and technical assistance to agricultural producers to adopt sustainable agricultural practices that are environmentally friendly and lower production costs.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $30,050,000 for Rural Cooperative Development Grants.

Of the funds recommended, $3,750,000 is for the Appropriate Technology Transfer for Rural Areas program, with $500,000 to be used for veterans' training in agriculture.

The Committee has included language in the bill that not more than $3,000,000 shall be made available to cooperatives or associations of cooperatives whose primary focus is to provide assistance to small, minority producers.

Value Added.--The Committee recommends $17,500,000 for value-added agricultural product market development grants. Of this amount, the Secretary is directed to make $2,500,000 for Agriculture Innovation Center funding available as grants to States authorized to host, and that have previously hosted a USDA Agriculture Innovation Center and where the State continues to demonstrate support, and provide non-Federal grant funding to producers developing, producing, and marketing value-added agricultural and food products.

RURAL ENERGY FOR AMERICA PROGRAM

Appropriations, 2018.................................... $293,000

Budget estimate, 2019...................................................

Committee recommendation................................ 338,000

The Rural Energy for America Program is authorized under section 9007 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107). This program may fund energy audits, direct loans, loan guarantees, and grants to farmers, ranchers, and small rural businesses for the purchase of renewable energy systems and for energy efficiency improvements.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $338,000 for the Rural Energy for America Program.

The following table provides the Committee's recommendation as compared to the fiscal year 2018 and budget request levels:

RURAL ENERGY FOR AMERICA PROGRAM

[In thousands of dollars]

(TABLE OMITTED)

Biogas System Development.--The Secretary is encouraged, in coordination with other Federal agencies, to support biogas system development with financial and technical assistance through existing energy programs, and to prioritize the collection and analysis of related environmental, technical, and economic performance data.

Energy Efficiency Coordination.--The Committee directs increased coordination and cooperation among USDA agencies and offices to better utilize the energy efficiency and renewable energy programs available through the Rural Energy for America program. Additionally, no later than 120 days after enactment of this Act, USDA is directed to submit a report to the Committee detailing how the agencies make information about its energy programs accessible to rural communities and how funds are being leveraged for energy efficiency investments in rural areas.

Energy Storage Technologies.--The Secretary is directed to clarify that energy storage technologies are eligible for Rural Energy for America program funding.

Rural Utilities Service

The Rural Utilities Service [RUS] was established under the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (Public Law 103-354), October 13, 1994. RUS administers the electric and telephone programs of the former Rural Electrification Administration and the water and waste programs of the former Rural Development Administration.

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2018.................................... $560,263,000

Budget estimate, 2019...................................................

Committee recommendation................................ 558,183,000

The water and waste disposal program is authorized by sections 306, 306A, 309A, 306C, 306D, 306E, and 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq., as amended). This program makes loans for water and waste development costs. Development loans are made to associations, including corporations operating on a nonprofit basis, municipalities and similar organizations, generally designated as public or quasi-public agencies, that propose projects for the development, storage, treatment, purification, and distribution of domestic water or the collection, treatment, or disposal of waste in rural areas. Such grants may not exceed 75 percent of the development cost of the projects and can supplement other funds borrowed or furnished by applicants to pay development costs.

The solid waste grant program is authorized under section 310B(b) of the Consolidated Farm and Rural Development Act. Grants are made to public bodies and private nonprofit organizations to provide technical assistance to local and regional governments for the purpose of reducing or eliminating pollution of water resources and for improving the planning and management of solid waste disposal facilities.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $558,183,000 for the Rural Water and Waste Disposal Program Account.

The Committee recommends $68,000,000 for water and waste disposal systems grants for Native Americans, including Native Alaskans, and the Colonias. The Committee recognizes the special needs and problems for delivery of basic services to these populations, and encourages the Secretary to distribute these funds in line with the fiscal year 2014 distribution, to the degree practicable. In addition, the Committee makes up to $19,000,000 available for the circuit rider program.

The Committee is concerned about raw sewage discharge in some rural communities in the mid-south, particularly historically impoverished communities that have had difficulty utilizing Rural Development programs. The Committee is aware of the unique challenges faced by these communities and directs the Department to develop a pilot program to coordinate with a regional university to solve untreated raw sewage issues with innovative technologies and strategic management and regulatory models. The pilot should address rural wastewater management including: county needs assessments, testing wastewater options, defining funding mechanisms for remediation and developing regulatory guidance.

The following table provides the Committee's recommendations, as compared to the fiscal year 2018 and budget request levels:

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

[In thousands of dollars]

(TABLE OMITTED)

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) provides the statutory authority for the electric and telecommunications programs.

The Federal Credit Reform Act of 1990 (Public Law 101-508) established the program account. An appropriation to this account will be used to cover the lifetime subsidy costs associated with the direct loans obligated and loan guarantees committed in fiscal year 2019, as well as for administrative expenses.

COMMITTEE RECOMMENDATIONS

The following table reflects the Committee's recommendation for the Rural Electrification and Telecommunications Loans Program Account, the loan subsidy and administrative expenses, as compared to the fiscal year 2018 and budget request levels:

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT

[In thousands of dollars]

(TABLE OMITTED)

Cyber and Electric Grid Security.--The Secretary is encouraged to prioritize Rural Utilities Service electric program loan awards for cyber and electric grid security improvements. Energy Efficiency and Conservation Loan Program Oversight.--The Committee is concerned that the Energy Efficiency and Conservation Loan Program does not yet have performance measures in place, as highlighted by a 2016 Inspector General report. The Committee directs USDA to institute such measures prior to awarding any additional funding through the program, or no later than 180 days from enactment of this Act.

DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM

[In thousands of dollars]

(TABLE OMITTED)

The Distance Learning, Telemedicine, and Broadband Program is authorized by the Food, Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. 950aaa et seq.), as amended by the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104-127). This program provides incentives to improve the quality of phone services, to provide access to advanced telecommunications services and computer networks, and to improve rural opportunities.

This program provides the facilities and equipment to link rural education and medical facilities with more urban centers and other facilities providing rural residents access to better healthcare through technology and increasing educational opportunities for rural students. These funds are available for loans and grants.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $68,830,000 for the Distance Learning, Telemedicine, and Broadband Program. Funds recommended for the RUS broadband program are intended to promote broadband availability in those areas where there is not otherwise a business case for private investment in a broadband network. The Committee encourages RUS to focus expenditures on projects that bring broadband service to currently unserved households.

The Committee recommendation includes $3,000,000 to address critical healthcare needs, as authorized by section 379G of the Consolidated Farm and Rural Development Act.

Broadband Grants.--Of the funds recommended, $30,000,000 in grants shall be made available to support broadband transmission for rural areas.

Broadband Infrastructure.--The Committee recognizes the importance of access to high speed broadband to promote job creation and income generation in remote rural areas. For these reasons, a broadband infrastructure initiative was begun in fiscal year 2018. The Committee recommendation provides additional funding for this initiative, and encourages the Department to implement the pilot program as promptly as is feasible. The Committee notes that it is the policy of RUS to avoid duplication of efforts when financing telecommunications infrastructure via its programs; however, the Committee is concerned that this policy does not extend to the deployment of broadband-capable infrastructure. In order to prevent duplication of services, the Committee directs RUS to implement operational changes and report back to the Committee on administrative efforts to eliminate duplicative or over building of broadband technology.

Determination of Sufficient Access to Broadband.--This Committee has provided substantial funding to extend high speed broadband access to remote rural areas. The Secretary was directed to reevaluate, on an annual basis, the criteria for broadband sufficient access. The Secretary is encouraged to coordinate with the Federal Communications Commission and other relevant Federal entities when making determinations of sufficient access, to ensure the most accurate and up-to-date broadband coverage data are used, while being cognizant of potential problems of overbuilding.

Locating Existing Infrastructure.--The Secretary is encouraged to utilize appropriate grant program funds to locate buried, antiquated infrastructure facilities prior to construction of new utilities infrastructure financed by the Rural Utilities Service.

Multi-Strand Fiber Optic Cable.--The Committee recommends that, within these funds, the Secretary explore a pilot grant program to demonstrate the use of multi-strand fiber optic cable that exist as part of electrical transmission infrastructure to provide state-of-the-art broadband services to currently underserved rural schools and medical centers within a mile of the existing cable.

RUS Grants and Loans for Open Access Infrastructure Projects.--The Committee is aware that public entities have invested in open access fiber infrastructure that is facilitating the delivery of high-speed broadband services by licensed telecommunications providers, including the model pioneered by public port authorities. The Committee understands that while particular open access fiber projects may be eligible for RUS grants and loans, more generally, there exist significant barriers to government backing for these types of open access investments. The Committee believes RUS programs should support financially-feasible open access infrastructure projects that meet program goals. The Committee urges RUS to ensure the agency's criteria and application processes provide for fair consideration of open access projects by accounting for the unique structures and opportunities such projects present in advancing broadband deployment in unserved and underserved communities.

TITLE IV

DOMESTIC FOOD PROGRAMS

Office of the Under Secretary for Food, Nutrition, and Consumer Services

Appropriations, 2018.................................... $800,000

Budget estimate, 2019................................... 800,000

Committee recommendation................................ 800,000

The Office of the Under Secretary for Food, Nutrition and Consumer Services provides direction and coordination in carrying out the laws enacted by the Congress with respect to the Department's nutrition assistance activities. The Office has oversight and management responsibilities for the Food and Nutrition Service.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $800,000 for the Office of the Under Secretary for Food, Nutrition and Consumer Services.

Food Security in Frontier Communities.--The Committee appreciates the intent of the Food and Nutrition Service to focus on implementing locally-designed initiatives to increase food security in frontier communities within its area of responsibility. Helping these communities to adapt to changing growing conditions and subsistence food availability and to develop the capacity to grow more food locally will improve their tenuous food security and provide opportunities for economic development in extremely low-income regions. The Committee therefore strongly encourages the Food and Nutrition Service to finalize plans to work with relevant stakeholders to develop and implement the plans that were initiated in the past year.

Nutrition Program Efficiency.--The Committee encourages the Secretary to focus process and technology improvement grants within the Food and Nutrition Service [FNS] to expand public- private partnerships to increase food security in a cost- efficient and accountable manner.

Food and Nutrition Service

The Food and Nutrition Service represents an organizational effort to eliminate hunger and malnutrition in this country. Nutrition assistance programs provide access to a nutritionally adequate diet for families and persons with low incomes and encourage better eating patterns among the Nation's children. These programs include:

Child Nutrition Programs.--The National School Lunch and School Breakfast, Summer Food Service, and Child and Adult Care Food programs provide funding to the States, Puerto Rico, the Virgin Islands, American Samoa, and Guam for use in serving nutritious lunches and breakfasts to children attending schools of high school grades and under, to children of preschool age in child care centers, and to children in other institutions in order to improve the health and well-being of the Nation's children, and broaden the markets for agricultural food commodities. Through the Special Milk Program, assistance is provided to the States for making reimbursement payments to eligible schools and child care institutions which institute or expand milk service in order to increase the consumption of fluid milk by children. Funds for this program are provided by direct appropriation and transfer from section 32.

Special Supplemental Nutrition Program for Women, Infants, and Children [WIC].--This program safeguards the health of pregnant, postpartum, and breast-feeding women, infants, and children up to age 5 who are at nutritional risk because of inadequate nutrition and income by providing supplemental foods. The delivery of supplemental foods may be done through health clinics, vouchers redeemable at retail food stores, or other approved methods which a cooperating State health agency may select. Funds for this program are provided by direct appropriation.

Supplemental Nutrition Assistance Program.--This program seeks to improve nutritional standards of needy persons and families. Assistance is provided to eligible households to enable them to obtain a better diet by increasing their food purchasing capability, usually by furnishing benefits in the form of electronic access to funds. The program also includes Nutrition Assistance to Puerto Rico.

The program also includes the Food Distribution Program on Indian Reservations, which provides nutritious agricultural commodities to low-income persons living on or near Indian reservations who choose not to participate in the Supplemental Nutrition Assistance Program.

Commodity Assistance Program [CAP].--This program provides funding for the Commodity Supplemental Food Program [CSFP], the Farmers' Market Nutrition Program, Disaster Assistance, Pacific Island Assistance, and administrative expenses for TEFAP.

CSFP provides supplemental foods to low-income elderly persons age 60 and over.

TEFAP provides commodities and grant funds to State agencies to assist in the cost of storage and distribution of donated commodities.

Nutritious agricultural commodities are provided to residents of the Federated States of Micronesia and the Marshall Islands. Cash assistance is provided to distributing agencies to assist them in meeting administrative expenses incurred. It also provides funding for use in non- presidentially declared disasters, and for FNS' administrative costs in connection with relief for all disasters. Funds for this program are provided by direct appropriation.

Nutrition Programs Administration.--Most salaries and Federal operating expenses of the Food and Nutrition Service are funded from this account. Also included is the Center for Nutrition Policy and Promotion [CNPP] which oversees improvements in and revisions to the food guidance systems, and serves as the focal point for advancing and coordinating nutrition promotion and education policy to improve the health of all Americans.

CHILD NUTRITION PROGRAMS

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2018.................................... $24,254,139,000

Budget estimate, 2019................................... 23,146,940,000

Committee recommendation................................ 23,184,012,000

The Child Nutrition Programs, authorized by the Richard B. Russell National School Lunch Act (Public Law 79-396) and the Child Nutrition Act of 1966 (Public Law 89-642), provide Federal assistance to State agencies in the form of cash and commodities for use in preparing and serving nutritious meals to children while they are attending school, residing in service institutions, or participating in other organized activities away from home. The purpose of these programs is to help maintain the health and proper physical development of America's children. Milk is provided to children either free or at a low cost, depending on their family income level. FNS provides cash subsidies to States for administering the programs and directly administers the program in the States which choose not to do so. Grants are also made for nutritional training and surveys and for State administrative expenses. Under current law, most of these payments are made on the basis of reimbursement rates established by law and applied to lunches and breakfasts actually served by the States. The reimbursement rates are adjusted annually to reflect changes in the Consumer Price Index for food away from home.

COMMITTEE RECOMMENDATIONS

The Committee recommends $23,184,012,000 for the Child Nutrition Programs.

Administrative Reviews.--The Committee understands the importance of the formal administrative reviews state agencies conduct as required by the Healthy, Hunger-Free Kids Act. However, the Committee encourages the Secretary to return to the 5-year inspection cycle for schools that consistently comply with Federal standards to allow state agencies more flexibility in performing their oversight and on-sight technical assistance roles. High-risk schools that do not consistently comply with Federal regulations should continue to be reviewed on a more frequent basis. The Committee also encourages FNS to assist state agencies in collaborating with one another when identifying risk factors to ensure that the administrative review process is effective and consistent nationwide.

Buy American.--The Committee remains supportive of existing laws requiring school food authorities to purchase domestic commodities or products to serve in school meal programs. The Committee recognizes that despite this statutory requirement, there has been an alarming increase of foreign products served in our schools. The Committee encourages the Secretary to fully define and enforce all applicable Buy American provisions within the Secretary's jurisdiction. Further, the Secretary shall report on all actions taken to comply with this directive within 180 days of enactment of this Act.

Farm to School Program.--Successful implementation of Farm to School programs requires broad-based knowledge of best practices regarding coordination among farmers, processors, distributers, students, teachers, dietary and food preparation staff, and USDA professionals. Of the grant funds provided, the Committee directs the Secretary to use at least $150,000 to coordinate with established entities, such as regional Farm to School institutes, for the creation and dissemination of information on farm to school program development, and to provide practitioner education and training, and ongoing school year coaching and technical assistance.

Innovation in School Meals.--The Committee is aware that there are many new, innovative, and healthy products available that meet the National School Lunch Program and School Breakfast Program nutrition standards. The Committee is concerned about FNS' interpretation of current policies that does not allow schools to get credit for serving any such product unless it visibly represents the food component in its natural or recognizable form. The Committee encourages the Secretary to allow innovative food products made from fruits, vegetables, or legumes that meet nutrition standards for school feeding programs. The Committee understands that many of these foods are already in the retail market and encourages FNS to educate children about the many ways these nutritious foods can be served and enjoyed.

Pulse Crops.--The Committee recognizes the nutritional value of pulse crops for children and encourages FNS to support school food authorities in sourcing and serving pulse crops.

Summer Food Service Program.--The Committee recognizes that in many rural and frontier areas of the country where homes are widely scattered, children and youth are unable to access congregate feeding sites that participate in the Summer Food Service Program and that existing mobile food delivery efforts are not able to meet the need. The Committee supports the Food and Nutrition Service allowing State Agencies to enable Summer Food Service Program service institutions that serve such areas where eligible children and youth have barriers to access or limited access to a congregate feeding site to use their customary reimbursement payments to develop and implement innovative methods to deliver or otherwise make available foods to eligible children and youth by non-congregate means or in non-congregate settings. In addition, the Committee requests USDA submit a report within 1 year of enactment describing how many Summer Food Service Program grantees, in which states, put in place innovative methods of food delivery by non-congregate means and in non-congregate settings, what innovative methods were used, and how many additional youth were served as a result.

Vegetables in the School Breakfast Program.--Current regulations regarding the substitution of starchy and non- starchy vegetables for fruit in the School Breakfast Program are creating undue burdens for school food authorities. To encourage vegetable consumption at breakfast, the Committee encourages FNS to allow any variety of vegetable to be substituted for fruit in the School Breakfast Program.

Whole Grain Waivers.--The Committee encourages FNS to simplify the process for School Food Authorities applying for a whole grain waiver to make the process faster and more user- friendly.

The Committee's recommendation provides for the following annual rates for the child nutrition programs.

TOTAL OBLIGATIONAL AUTHORITY

[In thousands of dollars]

(TABLE OMITTED)

The Committee expects FNS to utilize the National Food Service Management Institute to carry out the food safety education program.

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN [WIC]

Appropriations, 2018.................................... $6,175,000,000

Budget estimate, 2019................................... 5,750,000,000

Committee recommendation................................ 6,150,000,000

The special supplemental nutrition program for women, infants, and children [WIC] is authorized by section 17 of the Child Nutrition Act of 1966. Its purpose is to safeguard the health of pregnant, breast-feeding and postpartum women and infants, and children up to age 5 who are at nutritional risk because of inadequate nutrition and inadequate income.

The WIC program food packages are designed to provide foods which studies have demonstrated are lacking in the diets of the WIC program target population. The authorized supplemental foods are iron-fortified breakfast cereal, fruit or vegetable juice which contains vitamin C, dry beans, peas, and peanut butter.

There are three general types of delivery systems for WIC foods: (1) retail purchase in which participants obtain supplemental foods through retail stores; (2) home delivery systems in which food is delivered to the participant's home; and (3) direct distribution systems in which participants pick up food from a distribution outlet. The food is free of charge to all participants.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $6,150,000,000 for the Special Supplemental Food Program for Women, Infants, and Children [WIC].

The Committee recommendation fully funds estimated WIC participation in fiscal year 2019. The Committee recommendation includes $60,000,000 for breastfeeding support initiatives and $19,000,000 for infrastructure. The Committee recognizes new technologies, including telemedicine, that support breastfeeding mothers through access to professional breastfeeding and nutrition consultants. The Committee provides $5,000,000 for competitive grants to allow breastfeeding mothers the ability to interact with International Board Certified Lactation Consultants and all participants access to Registered Dietitians or WIC nutritionists, consistent with the goal of WIC to promote breastfeeding and nutritional health.

WIC Food Package.--The Committee appreciates the work of the National Academies of Science to review and make recommendations for updating the WIC food packages to reflect current science and cultural factors. The Committee notes, however, that while all revised packages now allow some fish, the amounts remain low compared to the recommendations of authoritative agencies such as the World Health Organization and in some cases, sporadic. The Committee strongly encourages the Department to prioritize the health and cultural benefits of fish consumption as regulations are revised to implement the NAS recommendations and to increase the amount of healthful fish above the amounts recommended by the NAS. The Committee also strongly encourages the Department to allow States to prioritize fish over legumes and peanut butter to respond to the cultural preferences of WIC participants in States like Alaska.

Continues with Part 5 of 6

TARGETED NEWS SERVICE: Myron Struck, editor; 703/304-1897; [email protected]; https://targetednews.com