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115th Congress   }                                           {   Report
                         HOUSE OF REPRESENTATIVES
 1st Session     }                                           {  115-232

======================================================================



 
   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS BILL, 2018

                                _______
                                

 July 17, 2017.--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

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3268]

    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 2018.

                                CONTENTS

                                                                   Page
Title I--Agricultural Programs...................................     4
Title II--Farm Production and Conservation Programs..............    39
Title III--Rural Development Programs............................    46
Title IV--Domestic Food Programs.................................    56
Title V--Foreign Assistance and Related Programs.................    61
Title VI--Related Agencies and Food and Drug Administration......    64
Title VII--General Provisions....................................    80

                                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 the production of a 
plentiful food supply; assisting farmers and ranchers across 
the country with sound production practices; improving the 
quality of life and vitality of communities in rural America; 
assisting indigent populations in the U.S. and abroad with 
basic nutritional needs; research and development in 
agriculture to improve productivity and stability; overseeing 
commodity markets that provide confidence for businesses, 
traders, investors, and the public; supporting a safe food 
supply; and safe and effective drugs and medical devices. The 
activities of these agencies impact every American every day of 
the year.
    The funding levels provided in this appropriations bill 
continue to demonstrate how seriously this Committee takes its 
responsibility to fund the highest priority programs and 
activities while helping to address the nation's debt, deficit, 
and economic challenges.
    The Committee does not include funding to begin new 
programs and, except where specifically noted, does not provide 
additional funding for pay increases. The Committee identifies 
savings of almost $1,000,000,000 at USDA and reins in 
regulatory overreach at the FDA, USDA, and CFTC.

                         Oversight and Hearings

    Consistent with the Committee on Appropriations Oversight 
Plan, as approved and transmitted to the Committee on Oversight 
and Government Reform and the Committee on House Administration 
in January of 2017, the Subcommittee began the fiscal year 2018 
process committed to maintaining the Committee's focus on 
comprehensive oversight of federal discretionary spending under 
the Subcommittee's jurisdiction. In order to thoroughly review 
the President's budget request for fiscal year 2018 and examine 
how funds appropriated in previous years had been managed, the 
Subcommittee held six hearings for the agencies and programs of 
the USDA, the FDA, CFTC and the FCA. The hearings included:
        USDA Inspector General--February 15, 2017
        Farm Credit Administration--February 28, 2017
        Member Day--March 9, 2017
        Secretary of Agriculture--May 24, 2017
        Food and Drug Administration--May 25, 2017
        Commodity Futures Trading Commission--June 8, 2017
    As stewards of the taxpayer's dollar, the Subcommittee is 
responsible for ensuring that the funds under its jurisdiction 
are wisely invested and properly used. As such, the 
Subcommittee established four objectives to guide its hearings, 
oversight activities, and the development of its bill and 
report recommendations for fiscal year 2018. These objectives 
include evaluating and accounting for taxpayer dollars to 
guarantee efficiency and accountability; investing in rural 
infrastructure as a catalyst for growth; ensuring support for 
American farmers, ranchers, and producers; and protecting the 
health of people, plants, and animals.
    Through its oversight activities, the Subcommittee can 
accomplish its goal of improving the management of agencies and 
programs by identifying and reducing waste, fraud, and abuse. 
It is joined in this effort by USDA's Inspector General, CFTC's 
Inspector General, and the Inspector General's Office of the 
Department of Health and Human Services. During the hearing 
with USDA's Office of the Inspector General (OIG), the 
Subcommittee focused on USDA financial statements, improper 
payments, and how well USDA's agencies are managing their 
programs.
    For the first time since 1998, the Farm Credit 
Administration testified before the Agriculture Subcommittee. 
The Subcommittee discussed FCA's role in providing access to 
credit, the critical safety net for our nation's producers, and 
the state of the American farm economy.
    The Subcommittee questioned the Secretary of Agriculture 
about spending reductions included in USDA's budget request 
that are proposed for some of USDA's most popular and 
successful programs, such as Rural Development loan and grant 
programs and food aid programs. The Subcommittee also discussed 
USDA's proposal to reorganize several mission areas and create 
an Under Secretary for Trade and Foreign Agricultural Affairs 
as directed by the 2014 Farm Bill.
    When the Subcommittee heard from the FDA, it focused on 
preventing burdensome regulations for producers and the 
American people, in addition to ongoing discussions of how the 
FDA is implementing the Food Safety Modernization Act (FSMA), 
addressing opioid abuse, and regulation of tobacco products. 
The FDA regulates over 20 percent of every consumer dollar 
spent on products in the U.S., and so the Subcommittee reminded 
the FDA to be aware of the comprehensive economic impact of 
their regulatory decisions.
    While examining CFTC's budget request, the Subcommittee 
acknowledged the submission provided by the President for a 
funding level of $250,000,000. The Subcommittee reviewed how 
federal labor laws and collective bargaining agreements can 
create a coercive deficiency requiring an Act of Congress to 
avoid furloughs or terminations at the agency. Finally, the 
Subcommittee continued its oversight into policy issues 
including a scheduled, automatic reduction of the Swap Dealer 
de Minimis level.
    Because the Subcommittee knows that it cannot fulfill all 
requests for funding, it focuses on those areas that are most 
effective, broadly supported, and capable of delivering 
positive outcomes and a substantial return on investment. The 
Subcommittee will monitor the issues identified by its 
constituents and other stakeholders, those issues discussed at 
the hearings, and other high priority matters relevant to the 
management of USDA, FDA, CFTC, and FCA. The Subcommittee will 
maintain its oversight efforts throughout the 115th Congress to 
ensure taxpayer dollars are wisely and prudently used on behalf 
of the American people.

                                TITLE I


                         AGRICULTURAL PROGRAMS


                   Processing, Research and Marketing


                        Office of the Secretary


                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2017 appropriation....................................       $44,555,000
2018 budget estimate..................................        42,064,000
Provided in the bill..................................        21,703,000
Comparison:
    2017 appropriation................................       -22,852,000
    2018 budget estimate..............................       -20,361,000
 

    The following table reflects the amount provided by the 
Committee for each office and activity:

                         OFFICE OF THE SECRETARY
                         [Dollars in Thousands]
------------------------------------------------------------------------
                                          FY 2017    FY 2018   Committee
                                          Enacted    Estimate  Provision
------------------------------------------------------------------------
Office of the Secretary................     $5,051     $4,859     $4,850
Office of Tribal Relations.............        502        501        501
Assistant to the Secretary for Rural         - - -      - - -        800
 Development...........................
Office of Homeland Security and              1,496      1,448      1,448
 Emergency Coordination................
Office of Advocacy and Outreach........      1,209      1,171      1,171
Office of the Assistant Secretary for          804        802        800
 Administration........................
Departmental Administration............     24,124     22,501      2,781
Office of the Assistant Secretary for        3,869      3,521      3,091
 Congressional Relations...............
Office of Communications...............      7,500      7,261      6,261
                                        --------------------------------
    Total..............................    $44,555    $42,064    $21,703
------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Office of the Secretary, the Committee provides an 
appropriation of $21,703,000. The Committee recommendation 
includes the following offices under the Office of the 
Secretary: immediate Office of the Secretary; Office of Tribal 
Relations; Assistant to the Secretary for Rural Development; 
Office of Homeland Security and Emergency Coordination; Office 
of Advocacy and Outreach; Office of the Assistant Secretary for 
Administration; Departmental Administration; Office of the 
Assistant Secretary for Congressional Relations; and Office of 
Communications.
    Pay Cost.--The Committee does not include requested funding 
for a civilian pay increase across the Department. Should the 
President provide a civilian pay increase for fiscal year 2018, 
it is assumed that the cost of such a pay increase will be 
absorbed within existing appropriations for fiscal year 2018.
    Commodity Credit Corporation (CCC) Obligations and 
Commitments.--The Secretary is directed to notify the 
Committees on Appropriations of the House and Senate in writing 
15 days prior to the obligation or commitment of any emergency 
funds from the CCC.
    CCC Report.--The Committee directs the Secretary to provide 
a report on November 15, 2017, and May 16, 2018, on planned 
uses of funding under the authorities of Section 4 and Section 
11 of the CCC Charter Act.
    Crop Biotechnology & Biotech Ingredients.--Public and 
private sector scientists knowledgeable in genetic engineering, 
toxicology, chemistry, nutrition, and other scientific areas 
have carefully evaluated and assessed the safety of genetically 
engineered plants, food, and food ingredients and have 
determined that such products are safe for human and animal 
consumption. The Committee directs USDA to continue 
coordination efforts with the FDA to provide education and 
outreach to the public on the safety and benefits of crop 
biotechnology and food and animal feed ingredients derived from 
biotechnology.
    Nutrition Research Coordination.--The Committee seeks to 
bring more transparency and coordination to nutrition research 
and evaluation projects conducted by the Department. The 
Secretary is directed to ensure both the Research, Education, 
and Economics (REE) and the Food, Nutrition, and Consumer 
Services mission areas coordinate and finalize the Food and 
Nutrition Service (FNS) Research and Evaluation Plan submitted 
in fiscal year 2018 to prevent duplication of efforts and 
resources. The plan submitted for fiscal year 2018 shall 
include a brief description of the projects FNS expects to 
pursue and whether or not it was mandated by law.
    Section 731 of the bill states that FNS shall not receive 
any funding for new research and evaluation projects in fiscal 
year 2018 until the Committees on Appropriations of the House 
and Senate receive the fiscal year 2018 Research and Evaluation 
Plan that has been developed in coordination with REE. In 
submitting the fiscal year 2019 budget justification, FNS is 
directed to provide its Research and Evaluation Plan 
simultaneously with its budget request. There is an expectation 
that this process will be followed in the future.
    Improper Payments, Unachieved Savings, and Financial 
Management.--The Committee remains concerned with USDA's 
overall management of crucial financial issues that result in 
savings, efficiencies, and transparency for taxpayers. USDA has 
not complied with improper payment requirements for five 
consecutive years. Progress has been made in the area of 
financial statement accuracy and reporting, but work remains. 
OIG has also identified in open recommendations $724,000,000 in 
unachieved savings at USDA.
    Congressional Relations Allocation Notification.--Within 30 
days of the enactment of this Act, the Secretary shall notify 
the Committees on Appropriations of the House and Senate on the 
allocation of the funds provided to the Assistant Secretary for 
Congressional Relations by USDA agency, along with an 
explanation for the agency-by-agency distribution of the funds.
    State Office Co-location.--The Committee continues to 
direct that any reallocation of resources related to the co-
location of state offices scheduled for fiscal year 2018 and 
subsequent years is subject to the Committee's reprogramming 
procedures required under law.
    Administrative Provision.--The Committee directs the 
Secretary to advise the Committees on Appropriations of the 
House and Senate, through the Office of Budget and Program 
Analysis (OBPA), of the status of all reports requested of the 
Department in this bill at the time of submission of the fiscal 
year 2019 budget request and monthly thereafter. All 
correspondence related to the directives in this bill must be 
addressed to the Committee on Appropriations.
    Loan and Grant Programs.--The Committee directs the 
Department, through OBPA, to provide quarterly reports to the 
Committees on Appropriations of the House and Senate on the 
status of obligations and funds availability for the loan and 
grant programs provided in this bill.
    The Committee further directs that if an estimate of loan 
activity for any program funded in Titles II and III of this 
bill indicates that a limitation on authority to make 
commitments for a fiscal year will be reached before the end of 
that fiscal year, or in any event when 75 percent of the 
authority to make commitments has been utilized, the Secretary 
shall promptly notify the Committees on Appropriations of the 
House and Senate through OBPA.
    Communication from USDA.--Members of the Committee must be 
informed of the activities, pending and proposed actions, and 
expenditures made by USDA and its respective agencies so that 
Congress can determine whether laws and programs are being 
implemented and carried out in accordance with the intent of 
Congress. A collaborative working relationship between the 
Committee and the agencies is necessary to ensure efficient and 
effective implementation of Congress' funding decisions. USDA 
is directed to ensure that the Committee is notified of major 
changes to existing policies and any significant developments 
in its operations prior to providing non-governmental 
stakeholders such information.
    Grant Notifications.--Section 722 of the bill requires the 
Secretary to notify the Committees on Appropriations of the 
House and Senate three business days in advance of the 
announcement of discretionary grant allocations or contract 
awards totaling $1,000,000 or more. The Committee also directs 
USDA to provide quarterly reports on all discretionary grant 
awards totaling less than $1,000,000. The Committee expects 
these deadlines to be met.
    Decentralized Rent and Homeland Security.--In fiscal year 
2015, the Committee provided the Department with the authority 
to decentralize rent from the General Services Administration 
(GSA) and the Department of Homeland Security (DHS). The 
previous Administration requested this authority ``as part of 
USDA's implementation of the former President's `Freeze the 
Federal Footprint' initiative'' and to encourage efficiencies 
across the Department at individual agencies. The Secretary is 
directed to build upon these efforts to find savings within the 
total estimated costs for fiscal year 2018. If USDA does not 
find ways to reduce its physical footprint or the cost of its 
existing footprint, such increased costs will need to be 
absorbed by the agency to the detriment of the core missions of 
these agencies.
    Real Property.--The Committee directs the Department to 
review their real property portfolio and develop an action plan 
which prioritizes actions for the disposal of excess or 
underutilized property. Recognizing challenges to property 
disposal exist, the Department is encouraged to partner with 
Congress to explore ways to improve and expedite the property 
disposition process.
    FSMA Implementation and Interagency Coordination.--The 
Committee provides level funding for the National Institute for 
Food and Agriculture (NIFA) to be the sole agency providing 
education and technical assistance for farmers in implementing 
new requirements resulting from FSMA. The Committee commends 
NIFA's extension programs for the relationship they have built 
with our nation's producers, and hopes that they will continue 
to build this trust through FSMA implementation. The Secretary 
is directed to work with the Commissioner of the FDA to ensure 
that there is no duplication of efforts and resources for FSMA 
education and training at the farm level.
    Design-Build.--The Committee encourages the Department to 
use the design-build method of project delivery when 
appropriate.
    Flexibility in Loan and Loan Guarantee Levels.--The bill 
includes language to exceed by up to 25 percent the limitation 
on loan and loan guarantee levels without budget authority upon 
written notification to the Committees on Appropriations of the 
House and Senate.
    Rural Poverty.--The Department has statutory authorities 
and programs designed to help break the multi-generational trap 
of poverty in rural counties. The Committee recognizes that 
USDA may utilize existing programs and funding within RD and 
FNS in order to assist families, create jobs, and develop a 
path towards independence and self-sufficiency. Other existing 
resources such as the extension service and public universities 
can be used for coordination and outreach activities. As of 
June 2017, the Committee has not received the detailed plan 
required to be submitted by the Secretary which would detail 
all funding resources and bundled services to combat rural 
poverty.
    Urban Agriculture, Vertical Farming, Aquaponics, and Non-
Traditional Agriculture.--The Committee acknowledges the need 
for an expanded USDA role in support of the emerging industries 
of vertical farming, urban agriculture, aquaponics, and 
alternative forms of agriculture in American cities and 
surrounding communities. Support from the Department is needed 
for producers who often have different needs than traditional 
agricultural producers. These non-traditional methods of 
agricultural production have the potential to reduce the use of 
water and pesticides, improve yields for particular crops, 
serve lower income populations, and provide year round crops at 
the local level. USDA should consider intramural and extramural 
research where the Department and its stakeholders can work 
towards advancing technologies in this field. Therefore, the 
Committee directs USDA to evaluate current needs in this field, 
compare the needs with current or planned activities, and 
deliver a report explaining how to further advance urban 
agriculture, vertical farming, aquaponics and other forms of 
non-traditional agriculture.
    Under Secretary for Trade and Foreign Agricultural 
Affairs.--The Committee supports the newly established Under 
Secretary for Trade and Foreign Agricultural Affairs as 
required by the 2014 Farm Bill and subsequent Agriculture 
Appropriations Acts. The focus of this office should be not 
only the promotion and sales of American agricultural products 
but also trade enforcement and related activities, which will 
help level the playing field for U.S. agricultural interests in 
international markets.
    Smart Energy Management Systems.--The Committee encourages 
the Department to evaluate emerging energy management 
technologies that could assist in creating more reliable and 
resilient energy infrastructure for farming operations. 
Opportunities to improve smart energy management systems, 
including battery life, have a multitude of benefits including 
reducing operating costs and extending the life of the system 
while assisting utility companies by increasing the resiliency 
of the grid and reducing the need for peak power.
    Agroterrorism.--The United States enjoys a safe, plentiful, 
and inexpensive food supply. The Committee views domestic food 
production as a priority for national security. The Committee 
is concerned with the growing threats posed by agroterrorism, 
which is the deliberate introduction of an animal or plant 
disease for the purpose of generating fear, causing economic 
losses, or undermining social stability. The dangers to our 
food production posed from foreign terrorist organizations are 
real. The Committee directs the Secretary to explore the 
Department's laboratory and response capacity to address the 
reality of agroterrorism, and how national response plans can 
better incorporate agroterrorism. The Committee encourages the 
Secretary to coordinate with DHS, HHS, intelligence agencies, 
Interior, EPA, and other agencies to improve response plans, 
conduct vulnerability assessments, and expand monitoring and 
surveillance for agroterrorism. The Committee also encourages 
the Secretary to focus on bolstering tracking systems for 
agricultural products, laboratory networks, and border 
inspection training.
    Native American Foods.--Native American tribes suffer among 
the highest rates of diabetes in the United States. Traditional 
Native American diets have been shown to be culturally relevant 
and protective against metabolic diseases such as diabetes. The 
Food Distribution Program on Indian Reservations (FDPIR) has 
increased the variety of traditional foods offered in the 
program. The Committee directs USDA to develop programs in 
conjunction with Indian Tribal Organizations to restore food 
ecosystems and revive traditional foods based on dietary 
preferences of Native American populations. USDA shall continue 
to collaborate with FDPIR agencies on recommendations for food 
package changes, including the addition of traditional foods.
    Rural Broadband.--The Committee directs the Department to 
continue coordinating with Federal Communications Commission, 
National Telecommunications and Information Administration and 
other related federal agencies to ensure that policies tied to 
one federal program do not undermine the objectives and 
functionality of another. The Committee encourages USDA to 
continue working with the rural communications industry to 
identify and pursue ways to continue broadband deployment and 
adoption.
    The Committee directs the Department to prepare a report in 
collaboration with the Federal Communications Commission and 
Department of Commerce detailing areas of responsibility 
towards addressing rural broadband issues. The report shall 
include, but not be limited to, how the programs work 
complimentarily to one another; how they address broadband 
issues in unserved and underserved areas, including tribal 
lands; identify barriers to infrastructure investment in rural 
areas and tribal lands; data speeds which fixed, wireless and 
mobile broadband users in rural areas and tribal lands 
experience; and cost estimates to increase speeds to 25 mbps in 
unserved communities and communities currently being served by 
speeds less than 25 mbps. The report shall be submitted to the 
Committee within 180 days of enactment of this Act. This 
information will help to provide lawmakers with a more complete 
understanding of connectivity issues in rural America as the 
Committee considers future funding for broadband to bridge the 
digital divide.
    Cotton Ginning Cost Share Program.--The Committee supports 
the establishment of a Cotton Ginning Cost Share Program for 
the 2016 cotton crop. The Committee recognizes the significant 
challenges cotton producers continue to face. If the Secretary 
establishes such a program, the Committee encourages the 
Secretary provide such assistance beginning with the 2016 
cotton crop and on an ongoing basis, consistent with 7 U.S.C. 
1308(b).
    Science, Technology, Engineering and Mathematics (STEM) 
Plan.--The Committee recognizes that access to broadband is 
crucial for better health, educational, and economic 
opportunities and appreciates the plan being developed for 
increasing access to education in STEM fields through the 
Distance Learning and Telemedicine program. The Committee 
directs the Assistant to the Secretary for Rural Development to 
begin implementing the initial phases of this plan no later 
than six months after the enactment of this Act.
    Technology Enhancements of Ambulances and Medical 
Facilities.--The Committee continues to support Distance 
Learning, Telemedicine, and Broadband program grants that 
assist rural communities in connecting to the rest of the world 
and overcoming the effects of remoteness and low population 
density. The Committee urges the Assistant to the Secretary for 
Rural Development to continue implementing the grants used to 
upgrade the equipment and facilities of ambulances and other 
emergency transportation vehicles and medical facilities, such 
as hospital and community health centers, providing such 
technical assistance as may be needed.
    Agriculture Buildings and Facilities.--The Committee does 
not provide funding for the Agriculture Buildings and 
Facilities account. The Consolidated and Further Continuing 
Appropriations Act, 2015 provided the Department the authority 
to establish the Nonrecurring Expense Fund to invest in and 
modernize the Department's facilities infrastructure. The 
Committee urges the Department to utilize this authority to 
address physical infrastructure needs.
    Performance Measures.--The Committee directs USDA agencies 
funded by this Act to comply with title 31 of the United States 
Code, including the development of their organizational 
priority goals and outcomes such as performance outcome 
measures, output measures, efficiency measures, and customer 
service measures.

                          Executive Operations


                     OFFICE OF THE CHIEF ECONOMIST

 
 
 
2017 appropriation....................................       $18,917,000
2018 budget estimate..................................        17,211,000
Provided in the bill..................................        16,777,000
Comparison:
    2017 appropriation................................        -2,140,000
    2018 budget estimate..............................          -434,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Chief Economist (OCE), the Committee 
provides an appropriation of $16,777,000.
    Drought Resilience.--The Committee is concerned about the 
extent and severity of the drought in the U.S. and recognizes 
the importance of understanding and being prepared for drought. 
The Committee encourages the OCE to continue research and work 
with partners on drought resilience efforts to better address 
the serious threat posed by drought in the U.S.
    Policy Research.--The Committee includes $4,000,000 for 
policy research under 7 U.S.C. 3155 for entities with existing 
institutional capacity, including staff, databases, models, and 
long-term, well-documented experience, to conduct complex 
economic and baseline analysis for the benefit of USDA, the 
Congressional Budget Office, and the Congress.

                     OFFICE OF HEARINGS AND APPEALS

 
 
 
2017 appropriation....................................       $13,399,000
2018 budget estimate..................................        14,716,000
Provided in the bill..................................        13,399,000
Comparison:
    2017 appropriation................................             - - -
    2018 budget estimate..............................        -1,317,000
 

                          COMMITTEE PROVISIONS

    For the Office of Hearings and Appeals, the Committee 
provides an appropriation of $13,399,000.

                 OFFICE OF BUDGET AND PROGRAM ANALYSIS

 
 
 
2017 appropriation....................................        $9,525,000
2018 budget estimate..................................         9,093,000
Provided in the bill..................................         9,093,000
Comparison:
    2017 appropriation................................          -432,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Office of Budget and Program Analysis, the 
Committee provides an appropriation of $9,093,000.

                Office of the Chief Information Officer


 
 
 
2017 appropriation....................................       $49,538,000
2018 budget estimate..................................        58,950,000
Provided in the bill..................................        49,538,000
Comparison:
    2017 appropriation................................             - - -
    2018 budget estimate..............................        -9,412,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Chief Information Officer (CIO), the 
Committee provides an appropriation of $49,538,000. This 
includes $33,000,000 for cybersecurity activities, including 
support of the Continuous Diagnostics and Mitigation program.
    IT Purchases and Oversight.--The Committee directs the CIO 
to comply with the spirit and letter of the Federal Information 
Technology Acquisition Reform Act and incorporate its 
principles into future planning and current oversight of IT 
activities across the Department and the performance plan 
required in H. Rpt. 113-468.
    Digital Workspace.--The Committee recognizes that the use 
of digital workspace technologies can increase user 
productivity, enhance cybersecurity, and allow workforce 
flexibility. The Committee encourages the Department to explore 
a broad ecosystem support of multi-factor authentication 
solutions to strengthen the Department's cybersecurity posture. 
This should include strategies and programs that reduce the 
total life cycle costs of traditional legacy workspace 
infrastructure.

                 Office of the Chief Financial Officer


 
 
 
2017 appropriation....................................        $8,028,000
2018 budget estimate..................................         5,836,000
Provided in the bill..................................         5,836,000
Comparison:
    2017 appropriation................................        -2,192,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Office of the Chief Financial Officer (CFO), the 
Committee provides an appropriation of $5,836,000.
    Digital Accountability and Transparency Act (DATA).--The 
Committee supports the work of the CFO to bring the Department 
into compliance with the DATA.
    Shared Costs Report.--While the Committee notes that the 
Department did not find any increased costs in its Shared Costs 
Programs per the report required by the 2015 Appropriations 
Act, the Department also did not identify any savings. The 
Committee continues to direct the production of the report 
required in Public Law 113-235 and directs the agency to 
identify areas of savings and efficiencies.

           Office of the Assistant Secretary for Civil Rights


 
 
 
2017 appropriation....................................          $901,000
2018 budget estimate..................................           896,000
Provided in the bill..................................           800,000
Comparison:
    2017 appropriation................................          -101,000
    2018 budget estimate..............................           -96,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for Civil Rights, 
the Committee provides an appropriation of $800,000.

                         Office of Civil Rights


 
 
 
2017 appropriation....................................       $24,206,000
2018 budget estimate..................................        23,304,000
Provided in the bill..................................        23,304,000
Comparison:
    2017 appropriation................................          -902,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Office of Civil Rights, the Committee provides an 
appropriation of $23,304,000.

                     Hazardous Materials Management


                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2017 appropriation....................................        $3,633,000
2018 budget estimate..................................         3,503,000
Provided in the bill..................................         3,503,000
Comparison:
    2017 appropriation................................          -130,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Hazardous Materials Management, the Committee provides 
an appropriation of $3,503,000.

                      Office of Inspector General


 
 
 
2017 appropriation....................................       $98,208,000
2018 budget estimate..................................        92,689,000
Provided in the bill..................................        95,628,000
Comparison:
    2017 appropriation................................        -2,580,000
    2018 budget estimate..............................        +2,939,000
 

                          COMMITTEE PROVISIONS

    For the Office of Inspector General, the Committee provides 
an appropriation of $95,628,000. This amount does not include 
funding for staff buyouts or reductions in investigations and 
audits.
    Investigations.--The Committee encourages the Inspector 
General to continue its current investigations in a timely 
manner and engage in feedback from all stakeholders and 
affected parties to ensure that limited resources are provided 
to those most in need.

                     Office of the General Counsel


 
 
 
2017 appropriation....................................       $44,697,000
2018 budget estimate..................................        42,970,000
Provided in the bill..................................        42,970,000
Comparison:
    2017 appropriation................................        -1,727,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Office of the General Counsel, the Committee 
provides an appropriation of $42,970,000.

                            Office of Ethics


 
 
 
2017 appropriation....................................        $4,136,000
2018 budget estimate..................................         3,538,000
Provided in the bill..................................         3,945,000
Comparison:
    2017 appropriation................................          -191,000
    2018 budget estimate..............................          +407,000
 

                          COMMITTEE PROVISIONS

    For the Office of Ethics, the Committee provides an 
appropriation of $3,945,000.

  Office of the Under Secretary for Research, Education, and Economics


 
 
 
2017 appropriation....................................          $893,000
2018 budget estimate..................................           891,000
Provided in the bill..................................           800,000
Comparison:
    2017 appropriation................................           -93,000
    2018 budget estimate..............................           -91,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Research, 
Education, and Economics, the Committee provides an 
appropriation of $800,000.
    Coffee Plant Health.--The Committee appreciates ARS and 
NIFA's work to address existing and emerging challenges to 
coffee production in the United States and commends the 
agency's work with research partners and coffee grower groups. 
The Committee encourages ARS, NIFA, and its partners to 
maintain support for coffee plant health research.
    Food Safety and Defense Technology Research.--The Committee 
remains concerned that global competition and the demand for 
increased productivity, efficiency, and profitability could put 
food safety and security at risk. The ability to rapidly, 
accurately, and cost effectively detect pathogens or 
contaminants in the food supply chain is critical to protecting 
the United States from food-borne illnesses and exploitation. 
The Committee directs USDA to invest in the research and 
development of novel bio-detection technologies and the 
implementation of mobile bio-detection platforms. The 
Department should consider technologies currently in use or 
under development in other fields, such as medicine or homeland 
security, to determine whether the technology can meet the 
needs in high volume food production or mobile food defense 
monitoring.
    Fusarium Mycotoxins.--The Committee recognizes that 
Fusarium mycotoxins are harmful to several components of the 
poultry industry, negatively affect catfish, horses, and swine, 
and are toxic to humans. Due to the endophytic habit of 
Fusarium verticillioides, it is also prevalent in corn and 
wheat, which are major ingredients in animal feed. Therefore, 
the Committee urges USDA to support research programs studying 
the endophytic habits and genetic variability of Fusarium 
mycotoxins to develop an intervention plan to prevent harm to 
humans and animals.
    Indirect Costs.--The Committee is concerned that USDA 
research programs are inconsistent in the amount of overhead 
charges which can be paid to cooperating institutions. The 
Committee directs REE to submit a report within 60 days of 
enactment of this Act on current policies related to such 
indirect costs by account and by program.
    Leveraging Plant Genome Information.--The Committee 
recognizes the potential impact that variable weather, 
environments, and production systems can have on the yield and 
quantity of maize and the need for greater prediction of plant 
performance under variable growing conditions. The Committee 
encourages USDA to support research that leverages plant 
genomic information with phenotypic and environmental data 
through an interdisciplinary framework, resulting in an 
understanding of plant processes that affect productivity and 
the ability to predict plant performance.
    Office of Pest Management Policy.--The Committee commends 
the Office of Pest Management Policy for its work providing the 
Department, federal agencies, producers, and other interested 
stakeholders scientifically sound analysis of pest management 
issues important to agriculture, especially methyl bromide 
transition, pesticide resistance management, and the 
development of antimicrobials to combat citrus greening. The 
Committee encourages the Under Secretary to better utilize this 
office and directs ARS to continue to support its vital work.
    Pollinators and Colony Health Research.--The Committee 
recognizes that Colony Collapse Disorder and related colony 
health issues are a significant concern to beekeepers, honey 
producers, farmers, researchers, policymakers, and the public. 
It appreciates USDA's logical, scientifically based approach to 
studying these issues and directs the Department to continue to 
focus on the challenges facing pollinators.
    Potato Research.--The Committee supports research efforts 
to combat crop-threatening pest and disease pressures, 
including the potato cyst nematode. The Committee also 
recognizes the importance of research initiatives to identify 
and improve desired traits for new potato varieties and directs 
the Department to continue working with universities, industry 
and potato growers on these projects.
    Poultry Technology Research.--The Committee understands 
that the U.S. poultry industry is the most efficient in the 
world. However, with expected global growth in demand and 
competition, technological advances in broiler production are 
critical to increasing production and profitability. The 
Committee supports cooperative research that contributes to 
increased efficiencies in housing, equipment, energy and 
environmental controls tailored to meet the long-term needs of 
the industry.
    Screening Technologies.--The Committee encourages the 
development of technologies that will provide rapid, portable, 
and facile screening of food fish species at port sites and 
wholesale and retail centers.
    Vector Control.--The Committee encourages USDA to support 
research, including the work done through the Biotechnology 
Risk Assessment Research Grants program, to develop innovative 
vector control technologies targeted to combatting Zika-
carrying Aedes aegypti mosquitos. The Committee is aware that 
vaccine development takes time, pesticide use has a variety of 
limitations, and human health effects and treatment will be a 
challenge for years to come. Therefore, the Committee urges 
USDA to utilize pest management programs and partner 
organizations to conduct research to develop and test effective 
repellents, create new molecular pesticide technologies that 
prevent mosquitoes from reproducing, and explore natural 
product remedies to deter pests.

                       Economic Research Service


 
 
 
2017 appropriation....................................       $86,757,000
2018 budget estimate..................................        76,690,000
Provided in the bill..................................        76,788,000
Comparison:
    2017 appropriation................................        -9,969,000
    2018 budget estimate..............................           +98,000
 

                          COMMITTEE PROVISIONS

    For the Economic Research Service (ERS), the Committee 
provides an appropriation of $76,788,000. The Committee does 
not concur with the request to reduce funding for the 
increasing drought resilience survey.
    Breastfeeding.--The Committee recognizes the benefits of 
human milk in the first year of life as well as the economic 
impacts of breastfeeding rates on healthcare costs. The 
Committee directs ERS to update its 2001 Jon Weimer study of 
the economic benefits of breastfeeding and make it publicly 
accessible within 12 months of enactment of this Act. The 
updated study should assess the impact of clinically 
recommended breastfeeding rates on economic outcomes and 
healthcare systems including, but not be limited to, the impact 
on direct and indirect costs, including preventable deaths, 
preventable medical conditions, and lost workplace 
productivity.
    Evidence-Based Policymaking.--As part of the bipartisan 
effort to improve government capacity for evidence-based 
policymaking, the Committee encourages ERS to explore ways to 
assist rural communities in using data and evidence to address 
local challenges. In particular, ERS should examine ways in 
which local governments in rural communities could access the 
research and data expertise of public land-grant universities 
to help communities address local needs and priorities.
    Food Waste.--Food waste is a major problem in the United 
States. In 2014, ERS released a study on food waste at the 
consumer and retail levels which found that 430 billion pounds 
of food were not eaten in the U.S. in 2010. However, there is a 
lack of data relating to on-farm food loss and what that means 
in terms of lost income and marketing opportunities for 
farmers. Such information could help to create new markets for 
cosmetically imperfect food, value-added products, or other 
business opportunities for farmers. The Committee directs ERS 
to conduct a study that describes the quantity and types of 
produce wasted on farms, barriers to recovering that produce, 
and new market opportunities to increase recovery and farmers' 
income.

                National Agricultural Statistics Service


 
 
 
2017 appropriation....................................      $171,239,000
2018 budget estimate..................................       185,677,000
Provided in the bill..................................       183,781,000
Comparison:
    2017 appropriation................................       +12,542,000
    2018 budget estimate..............................        -1,896,000
 

                          COMMITTEE PROVISIONS

    For the National Agricultural Statistics Service (NASS), 
the Committee provides an appropriation of $183,781,000, of 
which $63,350,000 is for the Census of Agriculture.

                     Agricultural Research Service


                         SALARIES AND EXPENSES

 
 
 
2017 appropriation....................................    $1,170,235,000
2018 budget estimate..................................       993,144,000
Provided in the bill..................................     1,132,625,000
Comparison:
    2017 appropriation................................       -37,610,000
    2018 budget estimate..............................      +139,481,000
 

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Agricultural Research 
Service (ARS), the Committee provides an appropriation of 
$1,132,625,000.
    While the Committee does not concur with all of the 
proposed decreases for fiscal year 2018, the Committee 
encourages ARS to reallocate resources for research that have 
been determined by the ARS as mature or where research 
objectives have been accomplished to other high priority 
research areas. The Committee does not concur with the budget 
request regarding the termination of extramural research.
    Agricultural Research Facilities.--The Committee does not 
concur with the proposed closure of 17 research facilities in 
the budget request and is concerned about the continued trend 
towards reductions in on-the-ground agricultural research 
through proposed cutbacks and consolidations without a clear 
plan to ensure that research reflects local needs and growing 
conditions. However, the Committee recognizes the need to 
increase efficiencies and streamline operations, particularly 
as research matures and objectives are met.
    The Committee directs ARS to provide a report that 
comprehensively evaluates its current and future research 
initiatives and facility capabilities. The evaluation should 
include, but not be limited to, prioritization of research 
being conducted at each facility, costs of facility operations 
and maintenance, facility condition including deferred 
maintenance needs, scientists' availability to conduct 
research, associated costs and long-term savings of closing a 
specific facility, economic impact of closure on the existing 
community, relocation costs and other effects on employees. In 
conducting this evaluation, ARS shall include input from 
interested stakeholders, including ARS scientists and other 
scientists. Future budget requests with proposals to close 
research facilities should include this information to ensure 
considerations of consolidation do not jeopardize long-term 
research objectives.
    Animal Research.--The Committee expects the Department to 
keep the Committee informed on the progress of establishing 
adequate policies, procedures, and processes of oversight of 
animal research at the USMARC as recommended by the USDA Office 
of the Inspector General in the U.S. Meat Animal Research 
Center Review issued in September 2016. The Committee also 
requests updates related to ongoing APHIS inspections and any 
findings at ARS research facilities conducting animal research.
    Aerial Application Research.--The Committee recognizes the 
importance of the ARS Aerial Application Technology Program. 
The program conducts innovative research making aerial 
applications more efficient, effective, and precise. Research 
for aerial application serves the public good as a vital tool 
for the future, as agriculture strives to meet the food, fiber, 
and bio-energy demands of a growing population.
    Alfalfa Research.--The Committee supports research into 
alfalfa seed and forage systems, which hold the potential to 
maximize crop yields, increase milk production, and improve 
genetics.
    ARS Field Stations.--The Committee recognizes the 
successful utilization of authorities granted in previous 
annual appropriations Acts to further cooperation between 
industry and the ARS Canal Point, Florida Sugarcane Field 
Station. However, the Committee is concerned that this 
partnership is jeopardized by requirements that are outside the 
scope of the functionality of the facilities. The Committee 
directs ARS to resolve these issues, thus allowing this model 
partnership to continue. Additionally, the Committee recognizes 
Florida's importance as a sentinel state in studying invasive 
pests and diseases. With new species entering ports every week, 
it is critical that ARS devote attention to the need for 
research facilities to study these threats.
    Aquaculture Industry Coordination.--Nearly half the seafood 
consumed across the world is the result of aquaculture, and the 
aquaculture industry is a critical and growing part of the U.S. 
economy. However, less than one percent of worldwide production 
comes from U.S. producers. In January 2016, the National 
Oceanic and Atmospheric Administration's National Marine 
Fisheries Services issued a final rule to open the federal 
waters in the Gulf of Mexico to development of aquaculture. The 
Committee is concerned that vital seedstock required to 
implement this initiative will be sourced from foreign 
aquaculture producers. The Committee encourages the agency to 
support and protect the U.S. aquaculture industry by working 
collaboratively with U.S. aquaculture producers and research 
institutions that specialize in the development of aquaculture 
technologies.
    Aquatic Animal Health.--The Committee supports ARS' work 
with land-grant universities and other federal partners to 
develop solutions to aquatic animal pathogens including 
Aeromonas in catfish and viral hemorrhagic septicemia in 
finfish. ARS is encouraged to collaborate with industry 
stakeholders on the development of potential vaccines and 
therapeutants.
    Blueberry and Cranberry Research.--The Committee directs 
ARS to continue researching the cultural needs of blueberries 
and cranberries including genetic improvements to increase 
genetic diversity and improve resistance to various disease and 
insects.
    Cereal Rust Research.--The Committee remains concerned 
about cereal rust diseases and supports research towards 
developing resistance genes against cereal rust races, 
including resistance to new cereal rust varieties and 
identifying when and how new cereal rust races emerge.
    Citrus Greening Disease Research.--The Committee commends 
ARS' research efforts on citrus greening disease and encourages 
the agency to continue working to develop methods to reduce 
transmission and enhance immunity in citrus trees and to work 
with industry, universities, growers, and other partners to 
develop effective control mechanisms. The Committee also 
encourages ARS to coordinate its efforts with the Huanglongbing 
Multi-Agency Coordination (HLB MAC) group.
    Co-Location of Researchers.--The Committee encourages ARS 
to develop a plan to maximize its investments in plant science 
facilities and research by taking advantage of the synergies 
and efficiencies realized through the co-location of USDA 
researchers in state-of-the-art facilities with university and 
other stakeholders.
    Cotton Ginning.--The Committee recognizes the importance of 
pollution abatement, improving fiber quality, ginning 
efficiency, cotton seed and other byproducts, and remains 
committed to expanding research in cotton ginning and 
innovation by existing laboratories.
    Floriculture and Nursery Research Initiative (FNRI).--The 
Committee values the importance of floral and horticultural 
industry as floriculture and nursery crops are the third-
largest domestic crop in value, outranked only by corn and 
soybeans. The FNRI is focused on addressing and solving the 
industry's challenges and needs. The Committee provides 
$500,000 above the fiscal year 2017 funding level to expand 
research capacity.
    Forest Products Research.--The forest products sector is an 
important part of the U.S. economy. The Committee supports 
research on wood quality, forest product evaluation standards 
and valuation techniques, and ARS' continuing work with the 
Forest Products Laboratory.
    Germplasm Enhancement of Maize.--The Committee supports the 
germplasm enhancement of maize project and encourages continued 
cooperation between ARS and industry.
    Greenhouse Technology Research.--The Committee recognizes 
the importance of advancing greenhouse technology and exploring 
its capabilities to address the energy and water challenges 
inherent in four-season production systems, beginning in food 
insecure communities across the country. The Committee 
encourages ARS to work with the Department of Energy (DOE) for 
greenhouse technology research that explores how to integrate 
ongoing research projects at the various DOE National Labs to 
develop affordable, deployable, and energy- and water-efficient 
food production platforms for undernourished regions of the 
country. By working together, ARS and DOE can bring their 
respective strengths and resources to designing the most 
desirable, low-cost, and efficient production system. The 
Committee also encourages ARS to work with DOE in researching 
novel solutions for lowering energy costs for greenhouse 
operations while optimizing plant growth and morphology.
    Hops Research.--The Committee recognizes that the U.S. hops 
industry has experienced unprecedented expansion due to the 
brewing industry's economic growth over the past decade. To 
sustain this growth, new varieties of hops are needed to 
prevent disease and expand production throughout the country. 
The Committee provides $1,000,000 for hops-related research.
    Horticultural Research and Education.--The Committee 
recognizes the U.S. National Arboretum as a prominent research 
body staffed with highly skilled and dedicated scientists with 
a history of scientific discovery in environmental 
horticulture. The Committee encourages continued support of the 
Arboretum as its research and academic programs not only work 
towards developing new approaches in detecting and treating 
plant disease, but also the ability to connect people with 
plants in a unique and serene environment that enhances the 
public understanding of agricultural plant sciences.
    Human Nutrition Research.--There is strong evidence that 
nutrition plays a vital role in how a person ages, particularly 
its significance for preventative health care and degenerative 
and age-related diseases. Research is needed to address the 
needs of the rapidly growing number of older Americans. The 
Committee encourages ARS to continue research relating to the 
effect of nutrition on aging.
    Livestock Protection.--The Committee recognizes the 
challenges caused by infectious disease problems arising from 
wildlife-domestic animal agriculture interactions, particularly 
between domestic sheep and wild bighorn sheep. Researchers have 
recently produced an experimental vaccine to protect bighorn 
populations from disease, but much work is still required. The 
Committee encourages ARS to pursue work to determine the role 
of domestic sheep in causing die-offs of bighorn sheep from 
respiratory disease and develop methods to reduce transmission 
and enhance immunity in domestic and bighorn sheep.
    Lower Mississippi River Basin.--The Committee recognizes 
the groundwater problems in the Lower Mississippi River Basin 
and encourages ARS, in collaboration with university research, 
extension scientists and local stakeholders, to identify gaps 
in water management research and focus efforts on the 
development of conservation and irrigation techniques to reduce 
water usage in agriculture production while maintaining crop 
quality and yield.
    National Agricultural Library.--The Committee encourages 
ARS to maintain a focus on agricultural-related legal issues 
within the National Agricultural Library. The Committee notes 
that as the agriculture sector faces increasing financial 
stress, there is a necessity that agriculture-related legal 
issues be addressed on an increasingly frequent basis. Further, 
agriculture-related legal issues are increasingly complex, and 
the impact of these legal issues continues to broaden in scope. 
The Committee recommends that the National Agricultural Library 
play an important role in assisting all stakeholders with 
understanding these issues.
    Nutrient Runoff Reduction Programs.--The Committee 
encourages ARS to study the long-term effectiveness of 
voluntary nutrient runoff reduction programs and policy options 
that could reduce soil, chemical and nutrient runoff.
    Porcine Virus Research.--The Committee is aware of ongoing 
research to identify mechanisms of viral pathogenesis, 
transmission, and immunity to porcine epidemic diarrhea virus 
(PEDv) and encourages ARS to continue its efforts to identify 
the genetic virulence factors of PEDv, identify a protective 
immune response, including transmission of maternal antibodies 
through the milk, and evaluate new vaccine platforms for the 
development of improved PEDv vaccines.
    Pulse Health Initiative.--The Committee is aware of the 
need to investigate the ability of pulse crops, such as dry 
beans, dry peas, lentils, and chickpeas, to provide solutions 
to critical health issues and to improve the sustainability and 
environmental benefits of using pulse crops in cropping 
rotations. The Committee encourages ARS to continue its work on 
these important issues.
    Safe and Abundant Water Supply.--The Committee supports 
technological development to address key agricultural water 
resource issues across the U.S. to support agricultural 
production.
    Sage Grouse.--The Committee is aware that listing the 
greater sage grouse as endangered under the Endangered Species 
Act has the potential to negatively affect rural communities in 
the eleven states that have sage brush ecosystems. The 
Committee encourages ARS to work with its partners on sage 
brush and related rangeland research that will help preserve 
the greater sage grouse and the other species that rely on the 
sage brush ecosystem.
    Sclerotinia Initiative.--The Committee is aware of the 
importance of controlling Sclerotinia in sunflowers, soybeans, 
canola, edible beans, peanuts, peas, lentils, and chickpeas and 
encourages ARS to continue its support of this initiative.
    Small Grain Genomics.--The Committee supports research on 
small grain genomics to address national genomic and breeding 
needs for U.S. crops to keep small grains and feed as viable 
crops and continue their substantial contributions to the 
agricultural economy.
    Sorghum in Agriculture.--The Committee recognizes the 
growing significance of sorghum in agriculture due to water 
conservation traits and increased utilization. However, the 
sugarcane aphid (Melanaphis sacchari), a new and devastating 
invasive pest, is an existential threat to the sorghum 
industry. Funding is included to pursue research into the 
discovery of genetically conferred pest resistance, evaluate 
gene flow and advance the durability and sustainability of 
fitness traits in sorghum.
    U.S. Sheep Experiment Station (USSES).--The Committee 
recognizes the unique and valuable contributions the USSES 
makes toward increasing the production efficiency of sheep and 
improving sustainable rangeland ecosystems. The Committee also 
recognizes a unique opportunity to expand other research 
initiatives. The Committee encourages ARS to work with various 
stakeholders regarding efforts to propose mission improvements 
for the USSES. The Committee encourages ARS to hire the two 
vacant positions at USSES to help maintain important rangeland 
research.
    U.S. Wheat and Barley Scab (USWBS).--The Committee 
recognizes the importance of the research carried out through 
the ARS U.S. Wheat and Barley Scab Initiative. Fusarium head 
blight is a major threat to agriculture, inflicting substantial 
yield and quality losses throughout the U.S.
    Wheat Falling Numbers Test Research.--The Committee 
recognizes the emerging crisis surrounding wheat starch 
degradation, as detected by the Hagberg-Perten Falling Numbers 
Test, and encourages ARS to continue researching the accuracy 
of the test and the environmental, storage, and genetic 
conditions leading to this quality loss.

                        BUILDINGS AND FACILITIES

 
 
 
2017 appropriation....................................       $99,600,000
2018 budget estimate..................................             - - -
Provided in the bill..................................        60,000,000
Comparison:
    2017 appropriation................................       -39,600,000
    2018 budget estimate..............................       +60,000,000
 

                          COMMITTEE PROVISIONS

    For Agricultural Research Service, Buildings and 
Facilities, the Committee provides an appropriation of 
$60,000,000 for priorities identified in the USDA ARS Capital 
Investment Strategy, April 2012.

               National Institute of Food and Agriculture


                   RESEARCH AND EDUCATION ACTIVITIES

 
 
 
2017 appropriation....................................      $849,518,000
2018 budget estimate..................................       769,613,000
Provided in the bill..................................       830,402,000
Comparison:
    2017 appropriation................................       -19,116,000
    2018 budget estimate..............................       +60,789,000
 

                          COMMITTEE PROVISIONS

    For Research and Education Activities, the Committee 
provides an appropriation of $830,402,000.
    Agricultural Research Enhancement Awards.--The Committee 
continues to direct that not less than 15 percent of the 
competitive research grant funds be used for USDA's agriculture 
research enhancement awards program, including USDA-EPSCoR, in 
accordance with 7 U.S.C. 450i.
    Bioactives and Prebiotics Used in Animal Production.--The 
Committee supports enhanced research efforts to advance the 
development of alternatives to sub-therapeutic doses of 
antibiotics used in animal production. The Committee encourages 
NIFA to examine nutritional alternatives and feed additives 
containing bioactives and prebiotics that may lead to reduced 
antibiotic use and boost immune responses in livestock.
    Budget Request for Fiscal Year 2019.--The Committee 
appreciates NIFA's efforts to provide additional information in 
its budget requests over the past four years. For the fiscal 
year 2019 budget request, the Committee is particularly 
interested in the request for the Agriculture and Food Research 
Initiative (AFRI) and requests that the agency provide greater 
detail on the levels proposed to be allocated to and the 
expected publication date, scope, and allocation level for each 
request for awards to be published under each priority area 
specified in section 2(b)(2) of the Competitive, Special, and 
Facilities Research Grant Act (7 U.S.C. 450i(b)(2)).
    Citrus Disease Research Program.--The 2014 Farm Bill 
established the Emergency Citrus Disease Research and Extension 
Program, which is intended to discover and develop tools for 
early detection, control, and eradication of diseases and pests 
that threaten domestic citrus production and processing, and 
provided $25,000,000 per year in mandatory funding for the 
program through the Specialty Crop Research Initiative. The 
Committee believes research projects funded under this 
authority should be prioritized based on the critical threat of 
citrus greening and encourages NIFA, to the maximum extent 
practicable, to follow the recommendations of the National 
Agricultural Research, Extension, and Education Advisory 
Board's citrus disease subcommittee and to collaborate with the 
HLB MAC group.
    Crop Degradation.--The Committee is aware of crop 
degradation issues harming agricultural producers. For example, 
starch degradation in Pacific Northwest soft white wheat crops 
led to significant value losses for producers in late 2016. The 
Committee encourages NIFA to conduct research through AFRI into 
soft white wheat crop quality loss to mitigate its impact on 
producers.
    Increasing Diversity in Agricultural Career Fields.--The 
Committee is concerned with the low numbers of African 
Americans working in agricultural career fields such as 
farming, ranching, producing, IT, science, and finance. The 
Committee encourages NIFA to develop a working group that 
includes leadership from the 1860, 1890, and 1994 institutions 
within the land grant university system to develop an 
actionable plan aimed at increasing the number of minorities 
entering into the agricultural workforce. The Committee also 
recommends that the plan include strengthening agricultural 
education at the University level and creating partnerships for 
feeder programs into graduate studies to foster the career 
potential pipeline.
    Livestock and Poultry Waste Research.--The Committee 
recognizes the benefits of improved methods of managing animal 
waste in livestock and poultry production and encourages NIFA 
to support research and development of innovative technologies, 
particularly those that are operationally and economically 
feasible and have a high probability of widespread 
implementation. The Committee directs NIFA to submit a report 
on what steps it can take to work with other federal agencies 
to develop a comprehensive approach to all value chains related 
to manure management to include energy production, energy 
credits, nutrient credits, and mineral supplements, taking into 
consideration the full range of livestock production to include 
cattle, poultry, and swine.
    Minor Crop Pest Management.--The Committee recognizes that 
data collection efforts are needed to maintain and develop the 
tools needed to assure adequate vector control and protect 
public health. In addition, the Committee supports continuation 
of the IR-4 Public Heath Pesticide Program through the Deployed 
Warfighter Protection Program to provide critical assistance 
for supporting vector control, including regulatory and other 
support needed to maintain public health.
    Organic Agriculture.--The Committee encourages USDA to 
ensure that the needs of the U.S. organic sector are more fully 
addressed through AFRI. As USDA's flagship competitive 
agricultural research grant program, AFRI funding should be 
reflective of the needs of all aspects of U.S. agriculture, 
including organic. The Committee directs USDA to develop a plan 
for meeting this goal, including how the agency will ensure 
organic research conducted through AFRI is not duplicative of 
research conducted with mandatory funds through the Organic 
Agriculture Research and Extension Initiative and other 
research programs, and report back to the Committee within 60 
days of enactment of this Act.
    Research at Historically Black Colleges and Universities 
and Hispanic Serving Institutions.--The Committee encourages 
NIFA to continue to support biotechnology by promoting research 
at the land-grant colleges and universities, including the 
Historically Black Colleges and Universities and Hispanic 
Serving Institutions, and directs NIFA to encourage 
partnerships among universities and industry.
    Water Quality.--The Committee encourages USDA to research 
alternatives to land application of animal manures in areas 
where over-application is harming fresh water drinking 
supplies. The Committee also urges USDA to identify alternative 
collection and processing options to remove toxic elements and 
yield usable material.
    Zoonotic Disease Research.--The eradication of zoonotic 
livestock diseases has been a priority of federal and state 
animal health officials, as was reflected in the 2014 Farm 
Bill. The Committee recognizes the need for this research and 
encourages NIFA to support the development of improved 
management tools for zoonotic livestock diseases that have 
significant wildlife reservoirs.
    The following table reflects the amounts provided by the 
Committee:

               National Institute of Food and Ariculture


                                        RESEARCH AND EDUCATION ACTIVITIES
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                    2017       2018    Committee
               Program/Activity                          Authorization            Enacted    Estimate  Provision
----------------------------------------------------------------------------------------------------------------
Hatch Act....................................  7 U.S.C. 361a-i.................   $243,701   $243,238   $243,701
McIntire-Stennis Cooperative Forestry Act....  16 U.S.C. 582a through a-7......     33,961     28,867     33,961
Research at 1890 Institutions (Evans-Allen     7 U.S.C. 3222...................     54,185     54,082     54,185
 Program).
Payments to the 1994 Institutions............  7 U.S.C. 301 note...............      3,439      3,432      3,439
Education Grants for 1890 Institutions.......  7 U.S.C. 3152(b)................     19,336     19,299     19,336
Education Grants for Hispanic-Serving          7 U.S.C. 3241...................      9,219      9,202      9,219
 Institutions.
Education Grants for Alaska Native and Native  7 U.S.C. 3156...................      3,194      3,188      3,194
 Hawaiian-Serving Institutions.
Research Grants for 1994 Institutions........  7 U.S.C. 301 note...............      1,801      1,798      1,801
Capacity Building for Non Land-Grant Colleges  7 U.S.C. 3319i..................      5,000      - - -      - - -
 of Agriculture.
Grants for Insular Areas.....................  7 U.S.C. 3222b-2, 3362 and 3363.      2,000      1,996      1,800
Agriculture and Food Research Initiative.....  7 U.S.C. 450i(b)................    375,000    349,335    375,000
Veterinary Medicine Loan Repayment...........  7 U.S.C. 3151a..................      6,500      4,991      6,500
Veterinary Services Grant Program............  7 U.S.C. 3151b..................      2,500      - - -      2,500
Continuing Animal Health and Disease Research  7 U.S.C. 3195...................      4,000      - - -      4,000
 Program.
Supplemental and Alternative Crops...........  7 U.S.C. 3319d..................        825      - - -      - - -
Multicultural Scholars, Graduate Fellowship    7 U.S.C. 3152(b)................      9,000      - - -      9,000
 and Institution Challenge Grants.
Secondary and 2-year Post-Secondary Education  7 U.S.C. 3152(j)................        900      - - -        900
Aquaculture Centers..........................  7 U.S.C. 3322...................      4,000      - - -      4,000
Sustainable Agriculture Research and           7 U.S.C. 5811, 5812, 5831, and       27,000     19,009     24,667
 Education.                                     5832.
Farm Business Management.....................  7 U.S.C. 5925f..................      1,450      - - -      - - -
Sun Grant Program............................  7 U.S.C. 8114...................      3,000      - - -      - - -
Alfalfa and Forage Research Program..........  7 U.S.C. 5925...................      2,250      - - -      - - -
Minor Crop Pest Management (IR-4)............  7 U.S.C. 450i(c)................     11,913     11,890     11,913
Special Research Grants:                       7 U.S.C. 450i(c)................  .........  .........  .........
  Global Change/UV Monitoring................  ................................      1,405      - - -      - - -
  Potato Research............................  7 U.S.C. 450i(c)................      2,250      - - -      2,000
  Aquaculture Research.......................  7 U.S.C. 450i(c)................      1,350      - - -      - - -
                                                                                --------------------------------
        Total, Special Research Grants.......  ................................      5,005      - - -      2,000
Necessary Expenses of Research and Education
 Activities:
    Grants Management Systems................  ................................      7,830      7,424      7,424
    GSA Rent and DHS Security Expenses.......  ................................      5,960      - - -      - - -
    Federal Administration--Other Necessary    ................................      6,549     11,862     11,862
     Expenses.
        Total, Necessary Expenses............  ................................     20,339     19,286     19,286
                                                                                --------------------------------
            Total, Research and Education      ................................   $849,518   $769,613   $830,402
             Activities.
----------------------------------------------------------------------------------------------------------------

              NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND

 
 
 
2017 appropriation....................................     ($11,880,000)
2018 budget estimate..................................      (11,857,000)
Provided in the bill..................................      (11,880,000)
Comparison:
    2017 appropriation................................             - - -
    2018 budget estimate..............................           +23,000
 

                          COMMITTEE PROVISIONS

    For the Native American Institutions Endowment Fund, the 
Committee provides $11,880,000.

                          EXTENSION ACTIVITIES

 
 
 
2017 appropriation....................................      $477,391,000
2018 budget estimate..................................       462,890,000
Provided in the bill..................................       475,876,000
Comparison:
    2017 appropriation................................        -1,515,000
    2018 budget estimate..............................       +12,986,000
 

                          COMMITTEE PROVISIONS

    For Extension Activities, the Committee provides an 
appropriation of $475,876,000.
    Rural Health and Safety Education Programs.--The opioid 
abuse epidemic is one of the greatest threats facing rural 
America today, and the Committee supports all efforts to 
address this problem through improved health and safety 
education and outreach. The Committee provides $1,500,000 for 
Rural Health and Safety Education Programs to combat opioid 
abuse in rural communities.
    The following table reflects the amounts provided by the 
Committee:

               National Institute of Food and Agriculture


                                              EXTENSION ACTIVITIES
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                  FY 2017    FY 2018   Committee
               Program/Activity                          Authorization            Enacted    Estimate  Provision
----------------------------------------------------------------------------------------------------------------
Smith-Lever Act, Section 3(b) and (c)          7 U.S.C. 343(b) and (c) and        $300,000   $299,430   $300,000
 programs and Cooperative Extension.            208(c) of P.L. 93-471.
Extension Services at 1890 Institutions......  7 U.S.C. 3221...................     45,620     45,533     45,620
Extension Services at 1994 Institutions......  7 U.S.C. 343(b)(3)..............      4,446      4,438      4,446
Facility Improvements at 1890 Institutions...  7 U.S.C. 3222b..................     19,730     19,693     19,730
Renewable Resources Extension Act............  16 U.S.C. 1671 et. seq..........      4,060      - - -      4,060
Rural Health and Safety Education Programs...  7 U.S.C. 2662(i)................      3,000      - - -      1,500
Food Animal Residue Avoidance Database         7 U.S.C. 7642...................      1,250      1,248      1,250
 Program.
Women and Minorities in STEM Fields..........  7 U.S.C. 5925...................        400      - - -        400
Food Safety Outreach Program.................  7 U.S.C. 7625...................      5,000      4,990      5,000
Smith-Lever Act, Section 3(d):...............  7 U.S.C. 343(d).................  .........  .........  .........
    Food and Nutrition Education.............  ................................     67,934     67,805     67,934
    Farm Safety and Youth Farm Safety          ................................      4,610      - - -      4,610
     Education Programs.
    New Technologies for Agricultural          ................................      1,550      - - -      1,550
     Extension.
    Children, Youth, and Families at Risk....  ................................      8,395      8,379      8,395
    Federally Recognized Tribes Extension      ................................      3,039      3,033      3,039
     Program.
                                                                                --------------------------------
        Total, Section 3(d)..................  ................................     85,528     79,217     85,528
Necessary Expenses of Extension Activities:
    Agriculture in the K-12 Classroom........  7 U.S.C. 3152(j)................        552        551        552
    Federal Administration--Other Necessary    ................................      7,805      7,790      7,790
     Expenses for Extension Activities.
                                                                                --------------------------------
        Total, Necessary Expenses............  ................................      8,357      8,341      8,342
                                                                                ================================
            Total, Extension Activities......  ................................   $477,391   $462,890   $475,876
----------------------------------------------------------------------------------------------------------------

                         INTEGRATED ACTIVITIES

 
 
 
2017 appropriation....................................       $36,000,000
2018 budget estimate..................................        20,276,000
Provided in the bill..................................        35,000,000
Comparison:
    2017 appropriation................................        -1,000,000
    2018 budget estimate..............................       +14,724,000
 

                          COMMITTEE PROVISIONS

    For Integrated Activities, the Committee provides an 
appropriation of $35,000,000.
    Food and Agriculture Defense Initiative.--The Committee 
supports the critical contributions that labs within the 
National Animal Health Laboratory Network (NAHLN), including 
those located at Colleges of Veterinary Medicine, make in 
responding to emerging threats to American agriculture. When 
expanding the network, the Committee encourages NIFA to take 
into consideration laboratories which would enhance the 
capacity for surveillance, monitoring, and response; the 
concentration of human and animal populations that are directly 
at risk; geography, ecology, and climate; evidence of active 
collaboration with, and support of, state animal health 
officials; and evidence of stakeholder support and engagement.
    The following table reflects the amounts provided by the 
Committee:

               National Institute of Food and Agriculture


                                              INTEGRATED ACTIVITIES
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                  FY 2017    FY 2018   Committee
               Program/Activity                          Authorization            Enacted    Estimate  Provision
----------------------------------------------------------------------------------------------------------------
Methyl Bromide Transition Program............  7 U.S.C. 7626...................     $2,000     $- - -     $2,000
Organic Transition Program...................  7 U.S.C. 7626...................      4,000      - - -      4,000
Regional Rural Development Centers...........  7 U.S.C. 450i(c)................      2,000      - - -      1,000
Food and Agriculture Defense Initiative......  7 U.S.C. 3351...................      8,000      5,684      8,000
Crop Protection/Pest Management Program......  7 U.S.C. 7626...................     20,000     14,592     20,000
                                                                                --------------------------------
    Total, Integrated Activities.............  ................................    $36,000    $20,276    $35,000
----------------------------------------------------------------------------------------------------------------

  Office of the Under Secretary for Marketing and Regulatory Programs


 
 
 
2017 appropriation....................................          $901,000
2018 budget estimate..................................           891,000
Provided in the bill..................................           800,000
Comparison:
    2017 appropriation................................          -101,000
    2018 budget estimate..............................           -91,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Marketing and 
Regulatory Programs, the Committee provides an appropriation of 
$800,000.

               Animal and Plant Health Inspection Service


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2017 appropriation....................................      $946,212,000
2018 budget estimate..................................       810,000,000
Provided in the bill..................................       906,400,000
Comparison:
    2017 appropriation................................       -39,812,000
    2018 budget estimate..............................       +96,400,000
 

                          COMMITTEE PROVISIONS

    For the Animal and Plant Health Inspection Service, 
Salaries and Expenses, the Committee provides an appropriation 
of $906,400,000.
    The Committee maintains the fiscal year 2017 funding levels 
for Avian Health at $55,340,000; Cattle Health at $91,500,000; 
National Veterinary Stockpile at $5,725,000; Cotton Pests at 
$11,520,000; Wildlife Damage Management at $103,375,000, 
Wildlife Services Methods Development at $18,855,000, Overseas 
Technical and Trade Operations at $22,115,000, and Animal 
Welfare at $28,810,000.
    Within the amount included for Specialty Crop Pests, the 
Committee includes $59,500,000 for fruit fly exclusion and 
detection; $55,830,000 for citrus health, including $2,000,000 
for the Huanglongbing Multi-Agency Coordination efforts; 
$19,100,000 for the glassy-winged sharpshooter; $6,318,000 for 
the pale cyst nematode; $6,621,000 for the light brown apple 
moth; and, $5,000,000 for the European grapevine moth.
    The following table reflects the amounts provided by the 
Committee:

                         [Dollars in Thousands]
------------------------------------------------------------------------
                                                           Committee
                                                           Provision
------------------------------------------------------------------------
Animal Health Technical Services.....................            $35,250
Aquatic Animal Health................................              2,250
Avian Health.........................................             55,340
Cattle Health........................................             91,500
Equine, Cervid, and Small Ruminant Health............             19,500
National Veterinary Stockpile........................              5,725
Swine Health.........................................             24,700
Veterinary Biologics.................................             16,300
Veterinary Diagnostics...............................             36,970
Zoonotic Disease Management..........................             14,500
                                                      ------------------
    Subtotal, Animal Health..........................            302,035
Agricultural Quarantine Inspection (Appropriated)....             27,800
Cotton Pests.........................................             11,520
Field Crop & Rangeland Ecosystem Pests...............              8,800
Pest Detection.......................................             27,300
Plant Protection Methods Development.................             20,630
Specialty Crop Pests.................................            160,000
Tree & Wood Pests....................................             38,000
                                                      ------------------
    Subtotal, Plant Health...........................            294,050
Wildlife Damage Management...........................            103,375
Wildlife Services Methods Development................             18,855
                                                      ------------------
    Subtotal, Wildlife Services......................            122,230
Animal & Plant Health Regulatory Enforcement.........             16,190
Biotechnology Regulatory Services....................             18,500
                                                      ------------------
    Subtotal, Regulatory Services....................             34,690
Contingency Fund.....................................                450
Emergency Preparedness & Response....................             36,500
                                                      ------------------
    Subtotal, Safeguarding and Emergency Preparedness             36,950
Agriculture Import/Export............................             15,070
Overseas Technical and Trade Operations..............             22,115
                                                      ------------------
    Subtotal, Safe Trade & International Technical                37,185
     Assistance......................................
Animal Welfare.......................................             28,810
Horse Protection.....................................                700
                                                      ------------------
    Subtotal, Animal Welfare.........................             29,510
APHIS Information Technology Infrastructure..........              4,200
Physical/Operational Security........................              5,100
GSA Rental and DHS Security Payments.................             40,450
                                                      ------------------
    Subtotal, Agency Management......................             49,750
                                                      ------------------
      Total, Salaries & Expenses.....................           $906,400
------------------------------------------------------------------------

    Animal Welfare.--The bill provides $28,810,000 for the 
Animal Welfare program in order to ensure that minimum 
standards of care and treatment are provided for certain 
animals bred for commercial sale, used in research, transported 
commercially, or exhibited to the public. The Committee 
maintains the fiscal year 2017 increase of $400,000, of which a 
majority of funds can be used to support the Memorandum of 
Understanding (MOU) between APHIS and ARS. The MOU is necessary 
for ARS to utilize the skills and expertise of APHIS' animal 
care staff and to help ARS ensure high standards of care for 
animals used in ARS funded research. At a minimum, the MOU 
should verify that ARS is adhering to its own standards and 
guidelines for research practices as required by the Humane 
Animal Care and Use policy, a policy that is closely aligned 
with the Animal Welfare Act (AWA); ensure that every ARS 
location engaging in research and testing on vertebrate animals 
has a fully functioning Institutional Animal Care and Use 
Committee (IACUC) in place; and ensure that each IACUC produces 
a semi-annual report with a description of and the reasons for 
any major deviations from the requirements outlined in ARS 
policy.
    Animal Welfare Inspection Records.--On February 3, 2017, 
USDA restricted the public's access to the search tool for the 
Animal Care Inspection System in order to conduct a 
comprehensive review of the information on its website. Such an 
action limited the public's review of inspection reports, 
research facility annual reports, and lists of persons licensed 
and registered under the AWA, as well as lists of persons 
licensed by USDA-certified horse industry organizations and 
associations to inspect horses for compliance with the Horse 
Protection Act (HPA). While the Committee recognizes the need 
to strike a balance between the privacy rights and personal 
identifiable information of regulated entities and the public's 
need to know if regulated parties or institutions are complying 
with federal law, USDA must utilize the resources provided in 
this bill to promptly finish reviewing the information on its 
website, restore all legally permissible records previously 
removed, and resume posting on the USDA website. The online 
searchable database should allow analysis and comparison of 
data and include all inspection reports, annual reports, and 
other documents related to enforcement of the HPA and the AWA.
    Antimicrobial Resistance.--The Committee continues to 
support funding to collect additional data that will inform 
policy related to the appropriate antibiotic use in all 
settings across agriculture and clinical medicine. The 
Committee provides funds for on-farm surveillance and data 
collection to enhance the understanding of on-farm levels of 
antibiotic use and the impact on antimicrobial resistance 
levels. The information collected should clearly delineate 
between antibiotics used for food-producing and companion 
animals. Further, to avoid duplication with existing programs 
like the National Antimicrobial Resistance Monitoring System, 
the Committee expects surveys regarding on-farm usage to be 
limited to collecting information about the antibiotics used 
and should not be utilized for other regulatory purposes. In 
designing these surveys, the Committee expects the agency to 
work primarily with end-users of antibiotics and veterinarians 
providing care to the animals. APHIS will collect this 
information through its statistical unit under the Confidential 
Information Protection and Statistical Efficiency Act, which 
will guarantee that all information collected is protected from 
distribution in a manner that could identify an individual 
respondent for the full time the data is in existence. This 
information is needed for use in the larger National Strategy 
for Combatting Antibiotic Resistant Bacteria with other federal 
partners.
    Aquatic Animal Health.--The Southeastern United States is a 
center for aquatic biodiversity, supporting hundreds of native 
species that occur nowhere else on Earth. It also is home to 
the vast majority of the pond-based aquaculture operations. The 
Southeast is the only region in the country that lacks a multi-
state/regional aquatic animal health plan. The Committee is 
aware of multiple pathogenic outbreaks both in wild waters and 
commercial ponds. Sick, abnormal, lesioned, or dead fish cause 
alarm among local citizens and sport fishers, lessen desire to 
go fishing and buy fishing licenses, raise doubts about clean 
water, discourage consumers from buying seafood, and tarnish 
the image of a tourism destination, thereby affecting local and 
regional economies. The Committee directs APHIS to work 
collaboratively with ARS, the National Marine Fisheries 
Service, the Fish and Wildlife Service, state resource 
managers, aquatic disease diagnostic labs, and academic 
institutions to develop a regional aquatic animal health plan 
including appropriate monitoring and detection.
    Cattle Health.--The Committee is aware of and concerned 
about the recent spread of Cattle Fever Ticks outside the 
quarantine area. The Committee requests that APHIS submit a 
report on its plans and efforts to control the spread of these 
ticks within 90 days of the date of enactment of this Act.
    Cervid Health.--Funding is provided in the bill for the 
national, voluntary Herd Certification Program (HCP) and 
regulations for the interstate movement of farmed or captive 
deer, elk, and moose. The cervid industry continues to 
participate in the agency's HCP, which supports the domestic 
and international marketability of U.S. cervid herds. Funds are 
to be used for a combination of surveillance, research, and 
indemnification for culling herds where Chronic Wasting Disease 
(CWD) infection has been found. Currently the only reliable 
test is a brain biopsy. The agency is encouraged to utilize 
resources to help speed up the development of a live test for 
CWD that would greatly decrease the need for indemnity. The 
Committee encourages APHIS to maintain its commitment to the 
HCP and the cervid industry, and directs the agency to spend no 
less than $3,500,000 for cervid health activities. Within the 
funds provided, the agency should give consideration to 
indemnity payments if warranted.
    Citrus Health Response Program (CHRP).--CHRP is a national 
program for the pest and disease exclusion and eradication 
activities including those associated with HLB and its vector 
the Asian Citrus Psyllid. The survival of the citrus industry 
in the U.S. is dependent on this funding, which supports 
efforts in citrus-producing states to research, survey, and 
combat both the pest and the disease. In addition to the funds 
provided in this account, the Committee encourages APHIS to 
utilize the funds available in the Plant Pest and Disease 
Management and Disaster Prevention Programs account to the 
greatest extent possible in an attempt to sustain the economic 
viability of the citrus industry.
    Cost Sharing with States and Other Cooperators.--The 
Committee directs APHIS to maximize the use of cost-sharing 
agreements or matching requirements with states, territories, 
producers, foreign governments, non-governmental organizations, 
and any other recipient of services in order to reduce the cost 
burden on the agency.
    Cotton Pests.--The Committee encourages APHIS and the 
cotton industry to make every effort to ensure the boll weevil 
does not re-infest areas of the U.S. where it has been 
successfully eradicated. The Boll Weevil Eradication Program, 
an outstanding example of a public-private partnership, has 
successfully eradicated the boll weevil from all U.S. cotton-
producing regions except for the extreme lower parts of Texas 
in the Lower Rio Grande Valley (LRGV) bordering Tamaulipas, 
Mexico. Growers in the LRGV, with assistance from APHIS and the 
support of the entire industry, continue to conduct an active 
program to eradicate the boll weevil. The LRGV serves as the 
barrier between boll weevil infested areas of Mexico and boll 
weevil-free areas of the United States.
    Emergency Outbreaks.--The Committee continues to include 
specific language relating to the availability of funds to 
address emergencies related to the arrest and eradication of 
contagious or infectious diseases or pests of animals, poultry 
or plants. The Committee expects the Secretary to continue to 
use the authority provided in this bill to transfer funds from 
the CCC for the arrest and eradication of animal and plant 
pests and diseases that threaten American agriculture. By 
providing funds in this account, the Committee is enhancing, 
not replacing, the use of CCC funding for emergency outbreaks.
    Export Certification.--The Committee recognizes personnel 
constraints placed on Ports of Entry, particularly those on the 
U.S.-Mexico Border, with regard to sanitary/phytosanitary 
certifications for exported goods. In the best interest of 
cross-border trade and agribusiness, any lack of certified 
personnel for certification purposes should be addressed by 
seeking cooperation between agencies, whether in the form of an 
MOU or through the certification process, authorizing 
additional hours for existing agents to facilitate the crossing 
and trade of perishable goods per USDA and DHS rules. The 
Committee believes that dual certification or inspection 
capabilities for shared staff, many of whom have prior 
experience with the partner agency, will more efficiently 
facilitate increased trade and commerce.
    Feral Swine Management.--Feral swine are found in at least 
41 states and have an estimated population of more than 
5,000,000. These invasive species cause more than 
$1,500,000,000 in damages and control costs in the United 
States each year, with at least $800,000,000 of this due to 
direct damage to agriculture. The Committee believes this 
damage assessment far underestimates the level of damage when 
considering the impact to the environment, native species, 
habitat, historic sites, and residential and commercial areas. 
The Committee supports APHIS' National Feral Swine Damage 
Management Program, which involves feral swine activities in 
the areas of research, development, education, outreach, and 
coordination. The Committee urges APHIS to spend no less than 
the amount provided in fiscal year 2017 and directs APHIS to 
use these funds to support its existing cooperative service 
agreement process, which identifies and develops unmet needs 
for feral swine control nationwide.
    Foreign Market Access Requests.--Increasingly, U.S. 
agriculture is facing non-tariff trade barriers, which are 
limiting the ability for U.S. agriculture to open and maintain 
access to key export markets. The Committee directs APHIS to 
review and update the list of foreign market access requests 
submitted by U.S. producers, producer groups, companies and/or 
non-government agencies. All efforts should be made to assign 
the appropriate agency resources to opening and maintaining 
access to foreign markets for U.S. products. By December 1, 
2017, the agency should provide an update to the Committee on 
the number of foreign market access requests that have been 
successfully granted for U.S. agriculture; export volumes; the 
number of foreign market access requests that have been granted 
for imports to the U.S. marketplace; and the number of 
outstanding requests and the length of time each request has 
been pending before the agency. The agency should identify the 
limitations in achieving and maintaining foreign market access 
for U.S. agriculture.
    Foreign Zoonotic Disease Response.--The Committee 
recognizes and commends APHIS for its efforts to address the 
challenges associated with eradicating foreign zoonotic 
diseases such as HPAI and FMD in a timely manner. In order to 
reduce the spread of disease outbreaks in the future, the 
Committee directs APHIS to use existing funds to undertake a 
review of existing protocols for foreign zoonotic disease 
eradication, including stamping-out policies, and to develop a 
strategy that improves agency, state and local, and industry 
responsiveness. This plan should take into consideration 
existing technology limitations, adverse weather, lack of 
water, and other issues that may hinder APHIS' eradication 
efforts in the event of future outbreaks. Furthermore, APHIS 
should consider funds available to states through the current 
cooperative agreements for surveillance testing and backyard 
flock surveillance; grant or cost share opportunities for 
farmers to give them the ability to enhance biosecurity 
measures at their operations; the need for veterinarian 
positions in states for biosecurity activities; and needs to 
address the unavailability of vaccine for FMD.
    Grapevine Import Regulations.--The Committee urges APHIS to 
update its import regulations for grapevines. The current 
regulatory review process and requirements for pathogen 
screening of imports are expensive, cumbersome and time-
consuming. Complying without the use of available technology 
can take in excess of thirteen years to complete. APHIS should 
issue new regulations that dramatically shorten the review 
timeline by using new technology and prioritize the approval of 
new grape varieties suited for colder, harsher climates.
    Horse Protection Act.--The Committee has continually 
encouraged APHIS to work more closely with stakeholders 
pursuant to the HPA. Specifically, the agency has been directed 
to provide greater and more consistent transparency, to work 
more closely with stakeholders on rules and regulations, and to 
move away from the subjective nature of current inspection 
methods in favor of objective measurements. While the Committee 
recognizes some progress, the agency must work in good faith to 
address the Committee's requests, which are intended to further 
the dual goals of the HPA to care for animals engaged in the 
trade and promote the industry in a safe manner. The Committee 
has become aware that APHIS intends to modify regulations 
associated with the HPA through rule-making actions and notes 
that any substantive changes to the statute or its intent 
should be made by Congress through the legislative process.
    Huanglongbing Emergency Response.--The Committee maintains 
the increased funding levels for HLB emergency response within 
the Specialty Crop Pests line item. The Committee encourages 
APHIS to allocate sufficient resources in order to continue 
vital management, control, and associated activities to address 
citrus greening. The disease, for which there is no cure, has 
caused a reduction in citrus production by over 60 percent 
since 2007 in Florida alone. All citrus producing counties in 
Texas are under quarantine, and California has found the Asian 
Citrus Psyllid, the vector of the disease, in some backyard 
trees but not in the commercial groves to date. The spread of 
this disease has called the future of the domestic citrus 
industry into question, costing thousands of jobs and millions 
of dollars in lost revenue. In addition, the agency is 
encouraged to support priorities and strategies identified by 
the HLB MAC group to benefit the citrus industry. The agency 
should appropriately allocate resources based on critical need 
and maximum effect to the citrus industry.
    The Committee provides $2,000,000 for citrus health to 
support priorities and strategies identified by the HLB MAC 
group. The MAC is focused on short-term solutions to help the 
citrus industry, and the cooperative nature of federal, state, 
and industry representatives in this group is expected to 
result in the development of tools and techniques to address 
this devastating disease. The MAC has been an effective 
resource in helping growers explore new possible solutions. The 
agency should appropriately allocate resources based on 
critical need and maximum impact to the citrus industry. These 
citrus health activities directly protect citrus production on 
approximately 765,000 acres in the United States worth more 
than $3,300,000,000 for the 2014-2015 growing season.
    Light Brown Apple Moth.--The Committee encourages APHIS to 
engage state and international regulatory bodies to deregulate 
the light brown apple moth. The Committee is concerned that if 
APHIS simply withdraws federal regulation without the necessary 
work with other regulatory officials, APHIS will shift, not 
reduce, the regulatory burden. Should APHIS withdraw the 
federal order for the light brown apple moth, it must take 
steps to reduce the overall burden on growers. The Committee 
maintains flat funding for the light brown apple moth to 
support the second phase of the Joint Forward Plan and urges 
the Department to develop initiatives for permanent, ongoing 
departmental regulatory partnerships while continuing to engage 
stakeholders and trading partners throughout North America.
    National Animal Health Laboratory Network.--The 
laboratories within the NAHLN network are on the frontline for 
detection of newly identified and reemerging animal diseases. 
NAHLN laboratories provide a critical contribution to animal 
and public health. The bill provides funding for NAHLN through 
both APHIS and NIFA at approximately $12,000,000 and 
$4,300,000, respectively, resulting in a total investment of 
$16,300,000 for fiscal year 2018. NAHLN laboratories were 
invaluable during the 2015 outbreak of HPAI, which 
significantly increased testing needs. At the same time, NAHLN 
laboratories must also continue testing for other animal 
diseases of concern.
    Orobanche Ramosa.--The Committee recognizes that APHIS' 
efforts to eradicate Orobanche ramosa, also known as branched 
broomrape, in Texas were not completely successful and has 
resulted in its reemergence as a threat to agriculture. As 
such, the Committee encourages APHIS to work with the 
appropriate Congressional Committees, along with states and 
local stakeholders to formulate and execute a plan, which will 
permanently eradicate the branched broomrape.
    Overseas Trade and SPS Disputes.--Funds for the Overseas 
Technical and Trade Operations account should help resolve 
sanitary and phytosanitary trade issues that could result in 
the opening of new markets and retaining and expanding existing 
market access for U.S. agricultural products.
    Plant Pest and Disease Management and Disaster Prevention 
Program.--The Committee believes that the increase of 
$12,500,000 for this program in fiscal year 2018 should 
dedicate new resources to the clean plant network, citrus 
health, and tree and wood pest surveillance.
    Predator Control Device Review.--The Committee encourages 
APHIS Wildlife Services to review the M-44 devices to ensure 
the program is safely operated by qualified and trained 
professionals that minimize non-target species while 
effectively protecting livestock and poultry from predators. 
APHIS is also encouraged to evaluate alternative methods to 
determine if there are adequate substitutes based on livestock 
protection and overall safety.
    Potato Cyst Nematode Eradication.--The Committee includes 
funding to maintain resources for the potato cyst nematode 
eradication program at the fiscal year 2017 level in order to 
continue with successful efforts to eradicate this pest. If 
left untreated, this pest could spread, affecting other crops.
    Regional Biosecurity Plans.--The Secretary of Agriculture 
shall submit to the Committees on Appropriations of the House 
and Senate, at the time the President's budget for fiscal year 
2019 is submitted under section 1105(a) of title 31, United 
States Code, a report describing the steps USDA has taken to 
implement the Regional Biosecurity Plan for Micronesia and 
Hawaii, as developed jointly by the Department and other 
federal and non-federal entities. The report shall include an 
update on previous and upcoming implementation activities, 
including estimates of additional funding to be used or needed 
for planned activities.
    Vaccine for Foot-and-Mouth Disease.--FMD is a highly 
contagious viral disease eradicated from the U.S. in 1929, but 
it is still a threat since countries around the globe continue 
grappling with the disease. This disease could cause billions 
of dollars in damage to the economy if unchecked. APHIS has 
publicly stated that the FMD vaccine bank is insufficient to 
deal with a large scale FMD outbreak in the U.S. and that a 
larger vaccine bank is needed. APHIS has also noted that 
expanding the current FMD vaccine supply is an expensive 
investment. Having sufficient quantities of vaccine readily 
available and deployable to control an FMD outbreak would 
appear to be a critical part of the USDA APHIS mission. Rapid 
control of FMD protects the security of the U.S. food supply, 
limiting the economic damage from livestock losses due to the 
disease, and also shortens disruptions to trade and commerce 
that would occur as long as FMD goes uncontrolled due to a lack 
of vaccine. The Committee is concerned that this potential 
vaccine shortage could result in the compromised management of 
an FMD outbreak in the United States. In order that the 
Committee can better understand the budget implications 
required to address this vaccine shortage, APHIS is directed to 
report to the Committees on Appropriations of the House and 
Senate within 90 days of enactment of this Act on contingency 
plans to develop an expanded vaccine bank and the estimated 
funding necessary for implementation and maintenance.
    Wildlife Damage Management.--While receiving support from 
cooperators to conduct wildlife management operations, special 
emphasis should be placed on those areas such as oral rabies 
vaccination, livestock protection, predator damage management 
for avian predators such as the blackbird and raven in Western 
states and cormorants in the south, and other such activities 
that will reduce or eliminate threats to agricultural 
industries. The Committee expects APHIS to provide no less than 
$28,000,000 for the national rabies control and surveillance 
efforts. No less than $250,000 should be available for the 
agency to support the use of fixed-wing aircraft to reduce 
blackbird depredation in the Northern Great Plains.
    Of particular concern is the continued and repeat 
depredation by wolves and packs in the Pacific Northwest. In 
certain states where state management plans require state 
agencies to utilize lethal control of wolves, it is important 
these actions are taken to protect livestock. As experts in the 
field of managing predators to prevent depredation, USDA has 
valuable knowledge, tools and resources that can assist states 
in managing the federally reintroduced wolves. The Committee 
directs USDA to prioritize and complete the documentation and 
processes needed to allow them to assist states and local 
livestock producers with managing this situation.

                     Agricultural Marketing Service


                           MARKETING SERVICES

 
 
 
2017 appropriation....................................       $84,933,000
2018 budget estimate..................................        77,462,000
Provided in the bill..................................        77,573,000
Comparison:
    2017 appropriation................................        -7,360,000
    2018 budget estimate..............................          +111,000
 

                          Committee Provisions

    For Marketing Services of the Agricultural Marketing 
Service (AMS), the Committee provides an appropriation of 
$77,573,000. The Committee maintains the fiscal year 2017 
funding level for the National Organic Program.
    Acer Access.--AMS oversees more than 20 research and 
promotion boards that empower producers and agribusinesses to 
pool their own resources to develop and strengthen markets and 
conduct research and promotion activities. The Committee 
encourages AMS to meet with the maple syrup industry, upon 
their request, to discuss the steps in creating a Research and 
Promotion Program, similar to the process other sectors of the 
agriculture industry have undertaken.
    Organic Fraud.--The organic industry is valued at 
approximately $50,000,000,000 with significant premiums being 
paid for organic crops, foods, and products. When consumers pay 
these premiums, there needs to be certainty that domestic and 
imported products meet all of the required organic standards. 
The Committee is concerned about reports of fraud in the 
organic program, especially among imports. The Committee is 
aware that the OIG is finishing an audit to understand how AMS 
evaluates the equivalency of foreign countries' organic 
processes, and both AMS and OIG continue to investigate 
instances of foreign and domestic fraud. AMS is directed to 
provide the Committee with timely updates on the investigation 
of allegations of fraud in organic markets, as well as the 
results and recommendations of the OIG's audit of organic 
equivalency agreements.
    Rural Infrastructure.--Inadequate market access is a 
critical barrier to economic growth in rural and agricultural 
communities. The fiscal year 2017 Consolidated Appropriations 
Act provided $1,000,000 for the Transportation Services 
Division to continue working with other federal, state and 
local agencies, as well as producers and those involved in all 
sectors of agricultural transportation, to address rural 
infrastructure needs to ensure producers have domestic and 
international market access. The Committee urges AMS to make 
public the results of the research and agricultural 
transportation workshops so that stakeholders, policymakers, 
and transportation planners can address rural infrastructure 
deficiencies.

                 LIMITATION ON ADMINISTRATIVE EXPENSES

 
 
 
2017 limitation.......................................     ($61,227,000)
2018 budget limitation................................      (60,982,000)
Provided in the bill..................................      (61,227,000)
Comparison:
    2017 limitation...................................             - - -
    2018 budget limitation............................          +245,000
 

                          COMMITTEE PROVISIONS

    The Committee provides a limitation of $61,227,000 on 
Administrative Expenses of the Agricultural Marketing Service.

          FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY

                              (SECTION 32)

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2017 appropriation....................................     ($20,705,000)
2018 budget estimate..................................      (20,489,000)
Provided in the bill..................................      (20,705,000)
Comparison:
    2017 appropriation................................             - - -
    2018 budget estimate..............................          +216,000
 

                          COMMITTEE PROVISIONS

    For the Marketing Agreements and Orders Program, the 
Committee provides a transfer from Section 32 funds of 
$20,705,000.
    The following table reflects the status of this fund for 
fiscal years 2017 and 2018:

ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD FISCAL YEARS
                                2017-2018
                         [Dollars in Thousands]
------------------------------------------------------------------------
                                              FY 2017        Committee
                                              Enacted        Provision
------------------------------------------------------------------------
Appropriation (30% of Customs Receipts).     $10,929,840     $10,370,878
Less Transfers:
    Food & Nutrition Service............      -9,503,998      -8,872,010
    Commerce Department.................        -145,175        -154,868
                                         -------------------------------
      Total, Transfers..................      -9,649,173      -9,026,878
Prior Year Appropriation Available,              166,333         125,000
 Start of Year..........................
Transfer of Prior Year Funds to FNS             -125,000        -125,000
 (F&V;)..................................
    Budget Authority, Farm Bill:........       1,322,000       1,344,000
Rescission of Current Year Funds........        -231,374        -263,393
Appropriations Temporarily Reduced--             -79,626         -77,352
 Sequestration..........................
Unavailable for Obligations (F&V;                -125,000        -125,000
 Transfer to FNS).......................
    Budget Authority, Appropriations             886,000         878,255
     Act:...............................
Less Obligations:
    Child Nutrition Programs                     465,000         465,000
     (Entitlement Commodities)..........
    State Option Contract...............           5,000           5,000
    Removal of Defective Commodities....           2,500           2,500
    Emergency Surplus Removal...........               0               0
    Disaster Relief.....................           5,000           5,000
    Additional Fruits, Vegetables, and           206,000         206,000
     Nuts Purchases.....................
    Fresh Fruit and Vegetable Program...          43,000          47,000
    Estimated Future Needs..............         103,355          91,197
                                         -------------------------------
      Total, Commodity Procurement......         829,855         821,697
    Administrative Funds:
        Commodity Purchase Support......          35,440          35,853
        Marketing Agreements and Orders.          20,705          20,705
                                         -------------------------------
          Total, Administrative Funds...          56,145          56,558
          Total Obligations.............         886,000         878,255
Unobligated Balance, End of Year........               0               0
Unavailable for Obligations (F&V;                 125,000         125,000
 Transfer to FNS).......................
                                         -------------------------------
    Total, End of Year Balances.........        $125,000        $125,000
------------------------------------------------------------------------

                   PAYMENTS TO STATES AND POSSESSIONS

 
 
 
2017 appropriation....................................        $1,235,000
2018 budget estimate..................................         1,109,000
Provided in the bill..................................         1,109,000
Comparison:
    2017 appropriation................................          -126,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Payments to States and Possessions, the Committee 
provides an appropriation of $1,109,000.

        Grain Inspection, Packers and Stockyards Administration


                         SALARIES AND EXPENSES

 
 
 
2017 appropriation....................................       $43,482,000
2018 budget estimate..................................        42,975,000
Provided in the bill..................................        42,888,000
Comparison:
    2017 appropriation................................          -594,000
    2018 budget estimate..............................           -87,000
 

                          COMMITTEE PROVISIONS

    For the Grain Inspection, Packers and Stockyards 
Administration, the Committee provides $42,888,000.

        LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES

 
 
 
2017 limitation.......................................     ($55,000,000)
2018 budget limitation................................      (60,000,000)
Provided in the bill..................................      (60,000,000)
Comparison:
    2017 limitation...................................        +5,000,000
    2018 budget limitation............................             - - -
 

                          COMMITTEE PROVISIONS

    The Committee includes a limitation on inspection and 
weighing services expenses of $60,000,000. The Committee does 
not concur with the agency's proposal to remove the limitation 
on inspection and weighing services expenses. The agency has 
sufficient carryover balances in this account for these 
activities. Additionally, the bill includes authority to exceed 
by 10 percent the limitation on inspection and weighing 
services with notification to the Committees on Appropriations 
of the House and Senate.

             Office of the Under Secretary for Food Safety


 
 
 
2017 appropriation....................................          $819,000
2018 budget estimate..................................           814,000
Provided in the bill..................................           800,000
Comparison:
    2017 appropriation................................           -19,000
    2018 budget estimate..............................           -14,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food Safety, the 
Committee provides an appropriation of $800,000.

                   Food Safety and Inspection Service


 
 
 
2017 appropriation....................................    $1,032,062,000
2018 budget estimate..................................     1,038,069,000
Provided in the bill..................................     1,038,069,000
Comparison:
    2017 appropriation................................        +6,007,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Food Safety and Inspection Service (FSIS), the 
Committee provides an appropriation of $1,038,069,000.
    The following table reflects the Committee's 
recommendations for fiscal year 2018:

                   FOOD SAFETY AND INSPECTION SERVICE
                         [Dollars in Thousands]
------------------------------------------------------------------------
                                                         Recommendation
------------------------------------------------------------------------
Federal Inspection....................................          $921,762
Public Health Data Communication Infrastructure System            34,580
International Food Safety and Inspection..............            16,487
State Food Safety and Inspection......................            61,568
Codex Alimentarius....................................             3,672
                                                       -----------------
    Total, Food Safety and Inspection Service.........        $1,038,069
------------------------------------------------------------------------

    Brazilian Beef.--Due to the very high level of health, 
sanitation and animal health problems in Brazilian beef exports 
found by FSIS inspectors, USDA suspended all imports of fresh 
beef from Brazil. The Committee applauds this action. However, 
given news reports about the severity of the corruption among 
Brazilian health and industry officials, the Committee directs 
USDA to conduct a full review of Brazil's food safety 
equivalency determination for all products that are eligible to 
be exported to the United States, including raw beef. That 
review shall be completed within 180 days of enactment of this 
Act and a report shall be provided to the Committee and posted 
on the Department's website.
    Humane Methods of Slaughter.--FSIS shall ensure that 
inspectors hired with funding previously specified for 
enforcement under the Humane Methods of Slaughter Act focus 
their attention on overseeing compliance with humane handling 
rules for live animals as they arrive and are offloaded and 
handled in pens, chutes, and stunning areas, and that all 
inspectors receive robust national training, including on the 
Regulatory Essentials, Humane Animal Tracking System, and 
Public Health Information System.
    Poultry from the People's Republic of China.--Prior to 
finalizing any rule allowing poultry raised and slaughtered in 
the People's Republic of China (PRC) into the United States, 
the Secretary shall provide a report to the Committee, and post 
the report on the FSIS website, as to all measures that that 
USDA will take to ensure that: (1) the PRC will provide 
continuous inspection with government inspection personnel in 
all poultry plants exporting to the U.S., including carcass-by-
carcass inspection in slaughter facilities; (2) the PRC will 
publicly report all animal disease outbreaks affecting poultry 
in a timely fashion; and (3) the PRC will publicly disclose all 
recalls of poultry products in a timely fashion.
    Public Health Veterinarians.--The Committee is concerned 
about the persistent vacancy rate for public health 
veterinarians (PHVs) within FSIS. The Committee directs the 
Department to continue FSIS' new incentive programs for PHVs 
and report the results no later than March 2018. Additionally, 
the Committee directs USDA to work with other federal agencies 
to explore the authority needed and how special salary rates 
may be implemented in the recruitment and retention of PHVs.
    Siluriformes Inspection.--Since implementing the 
Siluriformes inspection program, FSIS has conducted numerous 
inspections and has prevented more than 423 tons of adulterated 
or ineligible product from entering the U.S. food supply. FSIS 
has exceeded the number of inspections and findings by the FDA 
that previously had jurisdiction over the program. Given these 
results, the Committee does not concur with the President's 
budget request to transfer this responsibility back to FDA. 
FSIS is protecting the public health, and the Committee expects 
the agency to continue with full compliance by September 1, 
2017.

                                TITLE II


               FARM PRODUCTION AND CONSERVATION PROGRAMS


   Office of the Under Secretary for Farm Production and Conservation


 
 
 
2017 appropriation....................................          $901,000
2018 budget estimate..................................           896,000
Provided in the bill..................................           875,000
Comparison:
    2017 appropriation................................           -26,000
    2018 budget estimate..............................           -21,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Farm Production 
and Conservation, the Committee provides an appropriation of 
$875,000.
    Reorganization.--The Committee is supportive of the 
Secretary's reorganization of the farm production and 
conservation mission areas under one Under Secretary and 
expects this position to equally focus on each mission. The 
Committee directs the Under Secretary to provide briefings 
during fiscal year 2017 on preliminary strategies and plans for 
the reorganization related to the consolidation, co-location, 
relocation, and closure of field offices and staff; and the 
development and combination of information technology systems, 
specifically farm program modernization.

                          Farm Service Agency


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
                                                                                Transfer from
                                                              Appropriation   Program Accounts   Total, FSA S&E;
----------------------------------------------------------------------------------------------------------------
2017 appropriation........................................    $1,206,110,000    ($309,610,000)  ($1,515,720,000)
2018 budget estimate......................................     1,130,163,000     (297,888,000)   (1,428,051,000)
Provided in the bill......................................     1,166,317,000     (297,888,000)   (1,464,205,000)
Comparison:
    2017 appropriation....................................       -39,793,000       -11,722,000     -(51,515,000)
    2018 budget estimate..................................      +$36,154,000            $- - -    +($36,154,000)
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Farm Service Agency (FSA), 
the Committee provides an appropriation of $1,166,317,000 and 
transfers of $297,888,000, for a total program level of 
$1,464,205,000.
    The Committee does not: 1) provide the one-time FY 2017 
increases of $6,000,000; 2) accept reductions in non-federal 
full time employees (FTE); 3) accept savings from farm program 
modernization; and 4) accept any reduction in FTE for 
international commodity operations and food aid programs 
including Food for Peace Title II and the McGovern-Dole 
International Food for Education Program.
    The Committee does: (1) accept savings from FTE attrition; 
(2) provide funding for CCC audit readiness; (3) accept savings 
from federal and non-federal operating expenses; (4) direct 
farm program modernization savings to be used for other IT 
purposes proposed and as determined by the Secretary; and (5) 
accept IT operation maintenance and imaging savings.
    The Committee notes that the Department has the authority 
to include state organic program fees and transitional 
certification fees from programs established under the Organic 
Foods and Production Act of 1990 when administering the program 
under 7 U.S.C. 6523.
    CLEAR Initiative.--The Committee is encouraged by FSA's 
announcement of the new Conservation Reserve Program (CRP) 
initiative, the Clean Lakes, Estuaries, and Rivers (CLEAR) 
initiative, which creates a funding mechanism for the 
installation of saturated buffers and denitrifying bioreactors 
(NRCS Standard Codes 604 and 605, respectively) into CRP 
buffers (CP 21 & CP 22). The CLEAR announcement established 
policy to incentivize and allow the installation of bioreactors 
into new, existing, and re-enrolled CRP buffers. However, 
saturated buffers were only allowed in new and re-enrolled CRP 
buffers. The Committee understands this has limited the ability 
of stakeholders to install saturated buffers into CRP without 
penalty. The Committee recommends FSA look into changing the 
CLEAR guidelines to allow the installation of saturated buffers 
in new, re-enrolled and existing CRP contracts to allow FSA 
cost-shared installation of saturated buffers, and to examine 
allowing for installation of saturated buffers through non-
federal programs and initiatives without penalty to landowners.
    Emergency Conservation Program (ECP).--The Committee 
encourages USDA to continue providing updates of funding needs 
for ECP, especially in the aftermath of drought, wildfires, and 
other natural disasters. The Committee encourages FSA to be 
flexible in meeting new challenges as it was during recent 
wildfire outbreaks when it allowed grazing on CRP lands.
    Oriental Fruit Fly.--The Committee strongly urges FSA to 
make funds available to those farmers who were negatively 
impacted by an Oriental Fruit Fly quarantine from October 2015 
through February 2016. The farmers, who were unable to bring 
their crop to market, sustained devastating losses, although 
the quarantine was necessary and successful in eradicating the 
Oriental Fruit Fly pest. Because crop insurance and other 
similar programs do not apply in instances of a state or 
federally declared quarantine, the impacted farmers are in need 
of relief. The Committee believes it is within FSA's purview to 
make funds available to the impacted farmers.

                         STATE MEDIATION GRANTS

 
 
 
2017 appropriation....................................        $3,904,000
2018 budget estimate..................................         3,398,000
Provided in the bill..................................         3,398,000
Comparison:
    2017 appropriation................................          -506,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For State Mediation Grants, the Committee provides an 
appropriation of $3,398,000.

               GRASSROOTS SOURCE WATER PROTECTION PROGRAM

 
 
 
2017 appropriation....................................        $6,500,000
2018 budget estimate..................................             - - -
Provided in the bill..................................         6,000,000
Comparison:
    2017 appropriation................................          -500,000
    2018 budget estimate..............................        +6,000,000
 

                          COMMITTEE PROVISIONS

    For the Grassroots Source Water Protection Program, the 
Committee provides an appropriation of $6,000,000.

                        DAIRY INDEMNITY PROGRAM

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
2017 appropriation....................................       \1\$500,000
2018 budget estimate..................................        \1\500,000
Provided in the bill..................................        \1\500,000
Comparison:
    2017 appropriation................................             - - -
    2018 budget estimate..............................             - - -
 
\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For the Dairy Indemnity Program, the Committee provides an 
appropriation of such sums as may be necessary (estimated to be 
$500,000 in the President's fiscal year 2018 budget request).

           AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

                         ESTIMATED LOAN LEVELS

 
 
 
2017 loan level.......................................    $8,002,576,000
2018 budget estimate..................................     6,953,884,000
Provided in the bill..................................     7,163,884,000
Comparison:
    2017 loan level...................................      -838,692,000
    2018 budget estimate..............................      +210,000,000
 

                          COMMITTEE PROVISIONS

    For the Agricultural Credit Insurance Fund program account, 
the Committee provides a loan level of $7,163,884,000.
    Farm Loans.--The Committee encourages FSA to continue 
providing updates on the estimates of demand for farm loan 
programs. The Committee also encourages the retention and 
fulfillment of farm loan program officer positions to 
facilitate an orderly processing of applications and prevent 
administrative backlogs.
    The following table reflects the loan levels for the 
Agricultural Credit Insurance Fund program account:

                                    AGRICULTURE CREDIT PROGRAMS--LOAN LEVELS
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                        FY 2017 Enacted    FY 2018 Estimate        Provision
----------------------------------------------------------------------------------------------------------------
Farm Loan Programs
    Farm Ownership:
        Direct......................................          $1,500,000          $1,500,000          $1,500,000
        Unsubsidized Guaranteed.....................           2,750,000           2,500,000           2,500,000
    Farm Operating:
        Direct......................................           1,530,000           1,304,851           1,304,851
        Unsubsidized Guaranteed.....................           1,960,000           1,393,423           1,593,423
        Emergency Loans.............................              22,576              25,610              25,610
        Indian Tribe Land Acquisition Loans.........              20,000              20,000              20,000
    Conservation Loans:
        Unsubsidized Guaranteed.....................             150,000             150,000             150,000
        Indian Highly Fractionated Land.............              10,000               - - -              10,000
        Boll Weevil Eradication.....................              60,000              60,000              60,000
                                                     -----------------------------------------------------------
            Total...................................          $8,002,576          $6,953,884          $7,163,884
----------------------------------------------------------------------------------------------------------------


                            ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                     Direct Loan     Guaranteed   Administrative
                                                                       Subsidy      Loan Subsidy     Expenses
----------------------------------------------------------------------------------------------------------------
2017 appropriation..............................................           $65,178       $20,972       $317,068
2018 budget estimate............................................            52,716        15,467        305,291
Provided in the bill............................................            52,716        15,467        305,291
Comparison:
    2017 appropriation..........................................           -12,462        -5,505        -11,777
    2018 budget estimate........................................            $- - -        $- - -         $- - -
----------------------------------------------------------------------------------------------------------------

    The following table reflects the costs of loan programs 
under credit reform:

            AGRICULTURE CREDIT PROGRAMS--SUBSIDIES AND GRANTS
                         [Dollars in Thousands]
------------------------------------------------------------------------
                                   FY 2017       FY 2018      Committee
                                   Enacted      Estimate      Provision
------------------------------------------------------------------------
Farm Loan Subsidies
    Farm Operating:
        Direct................       $65,178       $52,716       $52,716
        Unsubsidized                  20,972        15,467        17,687
         Guaranteed...........
        Emergency Loans.......         1,262         1,260         1,260
        Indian Highly                  2,550         - - -         2,272
         Fractionated Land....
                               -----------------------------------------
        Total.................        89,962        69,443        73,935
ACIF Expenses:
    Salaries and Expenses.....       306,998       297,386       297,386
    Administrative Expenses...        10,070         7,905         7,905
                               -----------------------------------------
        Total, ACIF Expenses..      $317,068      $305,291      $305,291
------------------------------------------------------------------------

                         Risk Management Agency


                         SALARIES AND EXPENSES

 
 
 
2017 appropriation....................................       $74,829,000
2018 budget estimate..................................     \1\55,000,000
Provided in the bill..................................     \1\55,000,000
Comparison:
    2017 appropriation................................       -19,829,000
    2018 budget estimate..............................             - - -
 
\1\Does not include $20,000,000 from mandatory funding.

                          COMMITTEE PROVISIONS

    For the Risk Management Agency, the Committee provides an 
appropriation of $55,000,000.
    The Committee supports the President's Budget Request to 
use fees for operating expenses and to maintain program 
integrity. The Committee advises the agency to provide updates 
during fiscal year 2017 on the program impact from this 
proposal.

                 Natural Resources Conservation Service


                        CONSERVATION OPERATIONS

 
 
 
2017 appropriation....................................      $864,474,000
2018 budget estimate..................................       766,000,000
Provided in the bill..................................       858,911,000
Comparison:
    2017 appropriation................................        -5,563,000
    2018 budget estimate..............................       +92,911,000
 

                          COMMITTEE PROVISIONS

    For Conservation Operations, the Committee provides an 
appropriation of $858,911,000.
    The Committee provides $9,300,000 for the Snow Survey and 
Water Forecasting Program; $9,400,000 for the Plant Materials 
Centers; and $80,000,000 for the Soil Surveys Program. The 
Committee provides $760,211,000 for Conservation Technical 
Assistance and includes the requested increase for the 
Conservation Delivery Streamlining Initiative.
    Agricultural Conservation Easement Program.--Due to the 
unique ecological needs of each state, the Committee encourages 
NRCS to work with state and local partners to address these 
needs and to ensure the priority needs and projects in each 
state, such as those that are leveraged by public and private 
resources, are addressed.
    Cheat Grass Eradication.--The Committee encourages NRCS to 
continue to assist farmers and ranchers to eradicate, control, 
and reduce the fuel loads associated with cheat grass and to 
collaborate with ARS, as appropriate, on research related to 
cheat grass.
    Community Colleges.--The Committee encourages NRCS to 
collaborate with our nation's community colleges for the 
advancement of agriculture and the adoption of technology and 
conservation practices among producers and landowners. NRCS 
should target specific funds to highlight the special 
contributions that community colleges can provide in terms of 
technical assistance, demonstration, and applied research that 
is available through their agriculture programs.
    Floodplain Buyouts.--The Committee commends the successful 
efforts of NRCS with voluntary floodplain homeowner buyout 
projects. The Committee encourages the NRCS to continue 
collaborative efforts with participating towns and counties to 
mitigate unintended consequences resulting from buyouts, such 
as utility cost increases for homeowners in these regions.
    Harmful Algal Blooms.--The Committee supports NRCS' ongoing 
work to prevent soil erosion leading to harmful algal blooms 
through the introduction of cover crops and encourages 
continued targeting of watersheds where harmful algal blooms 
pose a threat.
    Herbicide Resistance.--The Committee reminds NRCS of the 
challenges many producers are facing due to the spread of 
herbicide-resistant weeds and encourages it to ensure agency 
staff, partners, and producers are aware of conservation 
practice standards, conservation activity plans to address 
herbicide-resistant weeds, and financial assistance available 
through conservation programs to assist producers in their 
efforts to control these weeds.
    Irrigation Agriculture.--The recent drought in the 
Southeast brought to light the need for greater irrigation in 
regions that have not previously had widespread irrigation 
systems. The Committee reiterates its support for irrigation 
agriculture and encourages NRCS to leverage all possible 
funding streams to support the expansion of irrigation 
infrastructure in rural America. The Committee also notes that 
it has not received the report required by H. Rpt. 114-531 and 
directs NRCS to submit this report.
    Locally Led Conservation.--The Committee recognizes that 
locally led conservation is the foundation of the nation's 
highly successful legacy of conservation and encourages NRCS to 
work with state, tribal, local, and other partners on voluntary 
stewardship projects that preserve working agricultural lands 
while protecting watersheds and wildlife habitat.
    Milkweed.--The Committee is concerned about the rapid 
decline in milkweed for monarch butterfly habitat. The 
Committee encourages NRCS consider the increased benefits of 
restoring milkweed for monarch habitat in fiscal year 2018.
    National Marine Sanctuaries.--The Committee urges the 
agency to continue the collaborative agreement with the Office 
of National Marine Sanctuaries to address sources of 
agricultural runoff, such as sediments, nitrates, and 
pesticides.
    Regional Conservation Partnership Program.--The Committee 
commends NRCS for the success of RCPP, through which NRCS 
provides assistance to producers through partnership 
agreements, program contracts, or easement agreements. These 
programs allow for diverse and innovative conservation projects 
which leverage both public and private funding. The Committee 
encourages NRCS to consider the needs of organic farmers, who 
implement a wide variety of creative methods to improve water 
quality and enhance the environment, while implementing RCPP.
    Resource Conservation and Development Councils (RC&Ds;).--
The Committee recognizes RC&Ds; have been valuable partners in 
conservation and encourages NRCS to continue working with local 
councils, as appropriate, to ensure conservation programs meet 
local resource needs.
    Sage Grouse Initiative.--The Committee supports NRCS' sage 
grouse conservation efforts. Through the initiative, NRCS 
provides technical and financial assistance to help landowners 
conserve sage grouse habitat on their land. The initiative is 
an integral part of efforts by federal agencies, several 
western states, and private landowners to help preclude the 
listing of the sage grouse as an endangered species.

               WATERSHED AND FLOOD PREVENTION OPERATIONS

 
 
 
2017 appropriation....................................      $150,000,000
2018 budget estimate..................................             - - -
Provided in the bill..................................        40,000,000
Comparison:
    2017 appropriation................................      -110,000,000
    2018 budget estimate..............................       +40,000,000
 

                          COMMITTEE PROVISIONS

    For the Watershed and Flood Prevention Operations, the 
Committee provides an appropriation of $40,000,000.

                    WATERSHED REHABILITATION PROGRAM

 
 
 
2017 appropriation....................................       $12,000,000
2018 budget estimate..................................             - - -
Provided in the bill..................................        10,000,000
Comparison:
    2017 appropriation................................        -2,000,000
    2018 budget estimate..............................       +10,000,000
 

                          COMMITTEE PROVISIONS

    For the Watershed Rehabilitation Program, the Committee 
provides an appropriation of $10,000,000.

                              CORPORATIONS

    High-Hazard Dams.--Within the funds provided for the 
Watershed Rehabilitation Program, the Committee provides 
$5,000,000 for the repair and rehabilitation of high-hazard 
dams which pose a threat to human life and safety, in 
particular those in rural states which have had recent floods 
that resulted in fatalities.

                Federal Crop Insurance Corporation Fund


 
 
 
2017 appropriation....................................  \1\$8,667,000,00
                                                                       0
2018 budget estimate..................................  \1\8,245,000,000
Provided in the bill..................................  \1\8,245,000,000
Comparison:
    2017 appropriation................................      -422,000,000
    2018 budget estimate..............................             - - -
 
\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For the Federal Crop Insurance Corporation Fund, the 
Committee provides an appropriation of such sums as may be 
necessary (estimated to be $8,245,000,000 in the President's 
fiscal year 2018 budget request).

                   Commodity Credit Corporation Fund


                 REIMBURSEMENT FOR NET REALIZED LOSSES

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2017 appropriation................................    \1\$21,290,712,000
2018 budget estimate..............................     \1\17,483,000,000
Provided in the bill..............................     \1\17,483,000,000
Comparison:
    2017 appropriation............................        -3,807,712,000
    2018 budget estimate..........................                 - - -
 
\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For Reimbursement for Net Realized Losses to the Commodity 
Credit Corporation, the Committee provides such sums as may be 
necessary to reimburse for net realized losses sustained but 
not previously reimbursed (estimated to be $17,483,000,000 in 
the President's fiscal year 2018 budget request).
    Cotton.--The Committee encourages the Commodity Credit 
Corporation to use some of the funding available for Section 5 
of the authorizing Act (15 U.S.C. 714) and Section 32 of the 
Agricultural Adjustment Act (7 U.S.C. 612c) provided in FY 2017 
and available in FY 2018 to be used for purposes of providing 
assistance to the cotton sector. The Committee further 
encourages the Department to explore and act upon other ways to 
assist the sector, including through ginning cost-share 
programs, other methods allowable by law, and as a result of 
the study directed in the fiscal year 2017 appropriations Act. 
The Committee further supports the inclusion of cottonseed as 
an oilseed.

                       Hazardous Waste Management


                        (LIMITATION ON EXPENSES)

 
 
 
2017 limitation.......................................      ($5,000,000)
2018 budget estimate..................................       (5,000,000)
Provided in the bill..................................       (5,000,000)
Comparison:
    2017 limitation...................................             - - -
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Hazardous Waste Management, the Committee provides a 
limitation of $5,000,000.

                               TITLE III


                       RURAL DEVELOPMENT PROGRAMS


                Rural Development Salaries And Expenses


                     (INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
                                                                      FY 2017         FY 2018        Committee
                                                                      Enacted        Estimate        Provision
----------------------------------------------------------------------------------------------------------------
Appropriations..................................................    $225,835,000    $186,076,000    $220,835,000
Transfer from:
    Rural Housing Insurance Fund Program Account................     412,254,000     244,249,000     401,300,000
    Rural Community Facilities Program Account..................           - - -     147,591,000           - - -
    Rural Development Loan Fund Program Account.................       4,468,000           - - -       4,230,000
    Rural Electrification and Telecommunications Loan Program         33,270,000      38,027,000      30,750,000
     Account....................................................
    Distance Learning, Telemedicine, and Broadband Program......           - - -       8,057,000           - - -
                                                                 -----------------------------------------------
        Total, RD Salaries and Expenses.........................    $675,827,000    $624,000,000    $657,115,000
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Rural Development mission 
area, the Committee provides an appropriation of $220,835,000.

                         Rural Housing Service


              RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                 Administrative
                                                               Loan Level       Subsidy Level       Expenses
----------------------------------------------------------------------------------------------------------------
2017 Appropriation........................................       $25,335,133           $89,302          $412,254
2018 Budget Estimate......................................        24,260,000             - - -           244,249
Provided in the Bill......................................        25,217,398            49,515           401,300
Comparison:
    2017 Appropriation....................................          -117,735           -39,787           -10,954
    2018 Budget Estimate..................................         +$957,398          +$49,515         +$157,051
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Rural Housing Insurance Fund program account, the 
Committee provides a loan level of $25,217,398,000.
    Section 502 Intermediary Pilot Program.--The bill directs 
the Secretary to continue and expand the pilot program for 
packaging section 502 direct loans. The pilot requires not less 
than ten non-profit organizations to prepare and review 
applications for single family loans, saving federal funds and 
staff time. The Committee expects the Rural Housing Service to 
expeditiously implement this program.
    Section 514 Housing.--The Committee recognizes changes in 
the agricultural labor market and the effect of these changes 
on farm housing utilization. However, any changes to 
eligibility for farm housing must not displace any farm worker 
who is a United States citizen or a person legally admitted to 
the United States. Eligibility changes would only apply to 
situations where housing units are currently unoccupied or 
underutilized.
    Rural Definition.--Communities need transparency and 
deserve to understand the criteria that are evaluated when 
determining eligibility for RHS programs. The Committee directs 
RHS to submit a report listing the criteria used to define 
``rural in character'' in determining program eligibility.
    The following table reflects the loan levels for the Rural 
Housing Insurance Fund program account:

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                      FY 2017         FY 2018        Committee
                                                                      Enacted        Estimate        Provision
----------------------------------------------------------------------------------------------------------------
Rural Housing Insurance Fund Loans:
    Single Family Housing (sec. 502):
        Direct..................................................      $1,000,000          $- - -        $900,000
        Unsubsidized Guaranteed.................................      24,000,000      24,000,000      24,000,000
    Housing Repair (sec. 504)...................................          26,278           - - -          24,000
    Rental Housing (sec. 515)...................................          35,000           - - -          28,398
    Multi-family Guaranteed (sec. 538)..........................         230,000         250,000         230,000
    Site Development Loans......................................           5,000           - - -           5,000
    Credit Sales of Acquired Property...........................          10,000          10,000          10,000
    Self-help Housing Land Development Fund.....................           5,000           - - -           5,000
    Farm Labor Housing..........................................          23,855           - - -          15,000
                                                                 -----------------------------------------------
        Total, Loan Authorization...............................     $25,335,133     $24,260,000     $25,217,398
----------------------------------------------------------------------------------------------------------------

    The following table reflects the costs of loan programs 
under credit reform:

        ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS
                         [Dollars in Thousands]
------------------------------------------------------------------------
                                          FY 2017    FY 2018   Committee
                                          Enacted    Estimate  Provision
------------------------------------------------------------------------
Rural Housing Insurance Fund Program
 Account (Loan Subsidies and Grants):
    Single Family Housing (sec. 502):
        Direct.........................    $67,700     $- - -    $34,650
    Housing Repair (sec. 504)..........      3,663      - - -      2,959
    Rental Housing (sec. 515)..........     10,360      - - -      7,472
    Farm Labor Housing.................      7,051      - - -      4,008
    Site Development (sec. 524)........        111      - - -         58
    Self-Help Land (sec. 523)..........        417      - - -        368
        Total, Loan Subsidies..........     89,302      - - -     49,515
    Farm Labor Housing Grants..........      8,336      - - -      6,000
RHIF Expenses:
        Administrative Expenses........   $412,254   $244,249   $401,300
------------------------------------------------------------------------

                       RENTAL ASSISTANCE PROGRAM

 
 
 
2017 appropriation....................................    $1,405,033,000
2018 budget estimate..................................     1,345,293,000
Provided in the bill..................................     1,345,293,000
Comparison:
    2017 appropriation................................       -59,740,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Rental Assistance Program, the Committee provides a 
program level of $1,345,293,000.

           MULTIFAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT

 
 
 
2017 appropriation....................................       $41,400,000
2018 budget estimate..................................        20,000,000
Provided in the bill..................................        35,000,000
Comparison:
    2017 appropriation................................        -6,400,000
    2018 budget estimate..............................       +15,000,000
 

    For the Multifamily Housing Revitalization Program Account, 
the Committee provides an appropriation of $35,000,000, 
including $20,000,000 for the rural housing voucher program.

                  MUTUAL AND SELF HELP HOUSING GRANTS

 
 
 
2017 appropriation....................................       $30,000,000
2018 budget estimate..................................             - - -
Provided in the bill..................................        25,000,000
Comparison:
    2017 appropriation................................        -5,000,000
    2018 budget estimate..............................       +25,000,000
 

                          COMMITTEE PROVISIONS

    For Mutual and Self-Help Housing Grants, the Committee 
provides an appropriation of $25,000,000.

               RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2017 appropriation....................................       $47,100,000
2018 budget estimate..................................       147,591,000
Provided in the bill..................................         4,849,000
Comparison:
    2017 appropriation................................       -42,251,000
    2018 budget estimate..............................      -142,742,000
 

                          COMMITTEE PROVISIONS

    For the Rural Community Facilities Program Account, the 
Committee provides an appropriation of $4,849,000.
    The Committee provides funding for Community Facility 
grants in the Rural Economic Infrastructure account.
    The Committee continues to take the Rural Development 
administrative expense transfer from the Rural Housing 
Insurance Fund (RHIF) and does not accept the proposed transfer 
from the Rural Community Facilities program account.
    Power Plus.--The Committee encourages USDA to give 
consideration to Community Facility investments in coal 
communities that have been negatively impacted by changes in 
the coal industry and power sector.
    The following table provides the Committee's 
recommendations as compared to the budget request:

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                          FY 2017 Enacted    FY 2018 Estimate      Provision
----------------------------------------------------------------------------------------------------------------
Loan Levels:
    Community Facility Direct Loans....................       ($2,600,000)       ($3,000,000)       ($2,600,000)
    Community Facility Guaranteed Loans................          (148,305)            (- - -)          (148,305)
Subsidy and Grants:
    Community Facility Guaranteed Loans................              3,322              - - -              4,849
    Community Facility Grants..........................             30,000              - - -              - - -
    Rural Community Development Initiative.............              4,000              - - -              - - -
    Economic Impact Initiative.........................              5,778              - - -              - - -
    Tribal College Grants..............................              4,000              - - -              - - -
    Administrative Expense Transfer....................              - - -            147,591              - - -
                                                        --------------------------------------------------------
        Total, Rural Community Facilities Program                  $47,100           $147,591             $4,849
         Subsidy and Grants............................
----------------------------------------------------------------------------------------------------------------

                   Rural Business-Cooperative Service


                     RURAL BUSINESS PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2017 appropriation....................................       $65,319,000
2018 budget estimate..................................             - - -
Provided in the bill..................................        58,251,000
Comparison:
    2017 appropriation................................        -7,068,000
    2018 budget estimate..............................       +58,251,000
 

                          COMMITTEE PROVISIONS

    For the Rural Business Program Account, the Committee 
provides an appropriation of $58,251,000.
    The Committee provides resources to operate programs under 
the Rural Business-Cooperative Service (RBS). RBS programs 
complement lending activities of the private sector by 
promoting economic prosperity in rural communities through 
improved access to capital and economic development on a 
regional scale.
    The following table provides the Committee's 
recommendations as compared to the budget request:

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                          FY 2017 Enacted   FY 2018 Estimated      Provision
----------------------------------------------------------------------------------------------------------------
Loan Level:
    Business and Industry Guaranteed Loans.............         ($919,765)             $- - -         ($819,000)
Subsidy and Grants:
    Business and Industry Guaranteed Loans.............             35,319              - - -             33,251
    Rural Business Development Grants..................             24,000              - - -             20,000
    Delta Regional Authority/Appalachian Regional                    6,000              - - -              5,000
     Commission........................................
        Total, Rural Business Program Subsidy and                  $65,319             $- - -            $58,251
         Grants........................................
----------------------------------------------------------------------------------------------------------------

    The following programs are included in the bill for the 
Rural Business Program account: $500,000 for rural 
transportation technical assistance and $4,000,000 for 
Federally Recognized Native American Tribes, of which $250,000 
is for transportation technical assistance. The Committee notes 
that the 2014 Farm Bill consolidated the Rural Business 
Opportunity and Rural Business Enterprise grant programs.
    Rural Business Development Grants.--The Committee 
understands the important role that rural business development 
grants have in supporting the development or expansion of 
businesses in rural areas.

              INTERMEDIARY RELENDING PROGRAM FUND ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                 Administrative
                                                             Loan Level       Subsidy Level         Expenses
----------------------------------------------------------------------------------------------------------------
2017 Appropriation.....................................            $18,889             $5,476             $4,468
2018 Budget Estimate...................................              - - -              - - -              - - -
Provided in the Bill...................................             17,500              4,041              4,230
Comparison:
    2017 Appropriation.................................             -1,389             -1,435               -238
    2018 Budget Estimate...............................           +$17,500            +$4,041            +$4,230
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Intermediary Relending Program Fund Account, the 
Committee provides for a loan level of $17,500,000.
    For the loan subsidy, the Committee provides an 
appropriation of $4,041,000. In addition, the Committee 
provides $4,230,000 for administrative expenses.

            RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

                    (INCLUDING RESCISSION OF FUNDS)

------------------------------------------------------------------------
                                                           Loan Level
------------------------------------------------------------------------
2017 Appropriation....................................       $42,213,000
2018 Budget Estimate..................................             - - -
Provided in the Bill..................................        33,077,000
Comparison:
    2017 Appropriation................................        -9,136,000
    2018 Budget Estimate..............................      +$33,077,000
------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Rural Economic Development Loans Program Account, 
the Committee provides for a loan level of $33,077,000.
    Review and Selection Process.--The Committee recognizes 
that demand for the Rural Economic Development Loan and Grant 
Program remains high. The Committee encourages the Rural 
Business-Cooperative Service to award funds on a first-come 
first-serve basis, after taking all other eligibility 
requirements into account, and not the prioritization system 
utilized in fiscal year 2016. The Committee supports utilizing 
a first-come first-serve award system as the most expeditious 
means to award funds to eligible projects.

                  RURAL COOPERATIVE DEVELOPMENT GRANTS

 
 
 
2017 appropriation....................................       $26,550,000
2018 budget estimate..................................             - - -
Provided in the bill..................................        21,000,000
Comparison:
    2017 appropriation................................        -5,550,000
    2018 budget estimate..............................       +21,000,000
 

                          COMMITTEE PROVISIONS

    For Rural Cooperative Development Grants, the Committee 
provides an appropriation of $21,000,000. This total includes 
$2,500,000 for a cooperative agreement for the Appropriate 
Technology Transfer for Rural Areas program and $10,000,000 for 
the value-added agricultural product market development grant 
program.
    The Committee notes that the 2014 Farm Bill provided 
mandatory funding for value-added agricultural product market 
development grants.

                    RURAL ENERGY FOR AMERICA PROGRAM

 
 
 
2017 appropriation....................................          $352,000
2018 budget estimate..................................             - - -
Provided in the bill..................................           291,000
Comparison:
    2017 appropriation................................           -61,000
    2018 budget estimate..............................          +291,000
 

                          COMMITTEE PROVISIONS

    For the Rural Energy for America Program, the Committee 
provides a loan level of $7,520,000 and an appropriation of 
$291,000 for the loan subsidy to make loans as authorized by 
section 9007 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8107).
    The Committee notes that the 2014 Farm Bill provides 
mandatory funding for this program.

                        Rural Utilities Service


             RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2017 appropriation....................................      $571,190,000
2018 budget estimate..................................             - - -
Provided in the bill..................................       472,700,000
Comparison:
    2017 appropriation................................       -98,490,000
    2018 budget estimate..............................      +472,700,000
 

                          COMMITTEE PROVISIONS

    For the Rural Water and Waste Disposal Program Account, the 
Committee provides an appropriation of $472,700,000. Rural 
areas continue to face immense needs and challenges in 
attaining safe and clean water, and the USDA Water and Waste 
Disposal program provides targeted and coordinated support for 
these communities and is essential for the delivery of safe, 
dependable and affordable water and wastewater to rural 
America. The Committee believes this program is complimentary, 
not duplicative of other federal programs and critical in 
supporting quality of life, economic development and health to 
rural communities.
    Water Supplies for Very Small Communities.--The Committee 
is aware of concerns that Rural Utilities Service (RUS) grant 
programs do not adequately help small, disadvantaged, and 
severely disadvantaged communities access the funding and 
expertise necessary to develop sustainable water supplies or 
otherwise improve their wastewater systems, and it directs the 
agency to focus its efforts to assist these communities with 
predevelopment planning to help them address their water supply 
needs.
    Carryover Balances for AK, HI, and Colonias Grants.--The 
Committee is aware of carryover balances of unobligated funds 
provided in prior year appropriations for Water and Waste 
Disposal grants for Alaskan villages, Native American Tribes, 
Hawaiian Homelands, and the Colonias. The Committee urges the 
Department to work with state, local and tribal organization 
stakeholders to provide assistance via water and waste disposal 
grant programs as long as such assistance was requested by the 
respective groups in the year in which the funds were 
appropriated. The Department has flexibility to shift these 
prior year funds among the four areas through a reprogramming 
of funds. Further, the Committee provides flexibility in fiscal 
year 2018 to move funds to other water and waste disposal 
priorities in order to reduce the backlog of related needs 
nationwide.
    Open and Free Competition Policy.--The Committee supports 
the Department's underlying adherence to free and open 
competition on water and waste projects as contained in 7 CFR 
1780.70(b) and (d). The Committee supports efforts to eliminate 
arbitrary actions in the procurement process but is concerned 
that the Department is undermining the ability of local 
communities and the engineer of record to design water and 
wastewater projects in the manner that best serves the unique 
needs and considerations of local communities. In particular, 
the Committee is concerned about the May 17, 2012, memorandum 
and the implementation of pipe materials. The Committee 
believes that the Department must apply its policy uniformly to 
all building materials but is concerned with the Department 
requirements that would unnecessarily delay projects by 
including onerous approval processes. Communities and 
professional engineers are different and specify the pipe 
materials that best suit the needs of their community and 
project. These communities and engineers, therefore make 
different determinations depending on what is suited for a 
given community, including the existence of applicable federal, 
state, or local ordinances or standard specifications. The 
Committee encourages the Department to defer to the engineer of 
record in the selection of materials that meet nationally 
recognized standards, including pipe, absent extraordinary 
circumstances demonstrating arbitrary action.
    Domestic Preference.--The bill includes language specifying 
that RUS' Rural Water and Waste Disposal program account that 
projects utilizing iron and steel shall use iron and steel 
products produced in the United States. RUS shall apply the 
Environmental Protection Agency's definition of public water 
systems while implementing the domestic preference provision.
    RUS Contracting.--The Committee encourages RUS to review 
construction contract procedures to identify means to more 
efficiently build and expand critical power and communications 
infrastructure across rural America. Specifically, the 
Committee is interested in Form 773 contracts and benefits or 
detriments towards increasing the limit of the contracts to 
$1,000,000 and enabling subcontracting opportunities under the 
contracts. The Committee is also interested in any changes to 
bonding requirements should the contract limit be increased and 
what, if any, controls are lost when executing a minor 
construction project over the RUS Form 515 that is currently 
utilized for projects over $250,000.
    Unserved and Underserved Rural Communities.--The Committee 
recognizes there are unserved or underserved rural areas within 
the U.S. that lack the technical, financial, or managerial 
capacity to adequately operate, maintain or provide safe and 
affordable water and wastewater service necessary to protect 
and enhance the public health and economic vitality of their 
communities. It is noted that many contiguous and local 
utilities located outside the unserved or underserved service 
area have the capacity to provide sustainable, essential water 
and wastewater services to these areas. The Committee directs 
the Secretary to explore the potential of providing financial 
and other incentives to the local or contiguous utilities that 
have the demonstrated capacity and ability to provide essential 
water and waste water services to these unserved or underserved 
communities. The Secretary shall provide a report to the 
Committees on Appropriations of the House and Senate with 
findings and recommendations within 180 days of enactment of 
this Act.
    The following table provides the Committee's 
recommendations as compared to the budget request:

 
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                          FY 2017 Enacted    FY 2018 Estimate      Provision
----------------------------------------------------------------------------------------------------------------
Loan Levels:
    Water and Waste Direct Loans.......................       ($1,200,000)             $- - -       ($1,200,000)
    Water and Waste Guaranteed Loans...................           (50,000)              - - -           (50,000)
Subsidy and Grants:
    Direct Subsidy.....................................             52,080              - - -             25,680
    Guaranteed Subsidy.................................                240              - - -                230
    Water and Waste Revolving Fund.....................              1,000              - - -              1,000
    Water Well System Grants...........................                993              - - -                993
    Grants for the Colonias and AK/HI..................             64,000              - - -             45,000
    Water and Waste Technical Assistance Grants........             20,000              - - -             20,000
    Circuit Rider Program..............................             16,897              - - -             16,897
    Solid Waste Management Grants......................              4,000              - - -              4,000
    High Energy Cost Grants............................             10,000              - - -              - - -
    Water and Waste Disposal Grants....................            391,980              - - -            358,900
    306A(i)(2) Grants..................................             10,000              - - -              - - -
                                                        --------------------------------------------------------
        Total, Subsidies and Grants....................           $571,190             $- - -           $472,700
----------------------------------------------------------------------------------------------------------------

   Rural Electrification and Telecommunications Loans Program Account


                     (INCLUDING TRANSFER OF FUNDS)

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                 Administrative
                                                             Loan Level       Subsidy Level         Expenses
----------------------------------------------------------------------------------------------------------------
2017 Appropriation.....................................         $6,940,000             $3,071            $33,270
2018 Budget Estimate...................................          6,190,000                863             38,027
Provided in the Bill...................................          6,940,000                863             30,750
Comparison:
    2017 Appropriation.................................              - - -             -2,208             -2,520
    2018 Budget Estimate...............................          +$750,000             $- - -            -$7,277
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Rural Electrification and Telecommunications Loans 
Program Account, the Committee provides a loan level of 
$6,940,000,000. In addition, the Committee provides $30,750,000 
for administrative expenses.
    The following table reflects the loan levels for the Rural 
Electrification and Telecommunications Loans Program Account:

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                          FY 2017 Enacted    FY 2018 Estimate      Provision
----------------------------------------------------------------------------------------------------------------
Loan Authorizations:
    Electric:
        Direct, FFB....................................         $5,500,000         $5,500,000         $5,500,000
        Guaranteed Underwriting........................            750,000              - - -            750,000
                                                        --------------------------------------------------------
        Subtotal.......................................          6,250,000          5,500,000          6,250,000
Telecommunications:
    Direct, Treasury Rate..............................            345,000            345,000            345,000
    Direct, FFB........................................            345,000            345,000            345,000
                                                        --------------------------------------------------------
        Total, Loan Authorizations.....................         $6,940,000         $6,190,000         $6,940,000
----------------------------------------------------------------------------------------------------------------

                           BROADBAND PROGRAM

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                          FY 2017 Enacted    FY 2018 Estimate      Provision
----------------------------------------------------------------------------------------------------------------
Broadband Program:
    Loan Authorization.................................            $27,043            $26,991            $26,991
    Loan Subsidy.......................................              4,500              4,521              4,521
    Grants.............................................             34,500              - - -              - - -
Distance Learning and Telemedicine:
    Grants.............................................             26,600              - - -              - - -
                                                        --------------------------------------------------------
        Total, Loan Subsidy and Grants.................            $65,600             $4,521             $4,521
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Broadband Program, the Committee provides an 
appropriation of $4,521,000.
    The Committee has provided appropriations for the Distance 
Learning, Telemedicine and Community Connect program under the 
Rural Economic Infrastructure account.
    Broadband Loan 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 loan program 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.

                 Rural Economic Infrastructure Account


                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2017 appropriation....................................            $- - -
2018 budget estimate..................................       161,893,000
Provided in the bill..................................       122,692,000
Comparison:
    2017 appropriation................................      +122,692,000
    2018 budget estimate..............................       -39,201,000
 

                          COMMITTEE PROVISIONS

    For the Rural Economic Infrastructure Account, the 
Committee provides an appropriation of $122,692,000.
    The Rural Economic Infrastructure Account uses the existing 
grant authorities under the Rural Housing Assistance Grant 
accounts, Rural Community Facilities Program account, and 
Distance Learning, Telemedicine, and Broadband Program account, 
providing the Department with flexibility to maximize economic 
impact. The bill includes language requiring at least 15 
percent of resources be allocated to each program area within 
the account.

                                TITLE IV


                         DOMESTIC FOOD PROGRAMS


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


 
 
 
2017 appropriation....................................          $814,000
2018 budget estimate..................................           809,000
Provided in the bill..................................           800,000
Comparison:
    2017 appropriation................................           -14,000
    2018 budget estimate..............................            -9,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food, Nutrition, 
and Consumer Services, the Committee provides an appropriation 
of $800,000.
    Public Release of Information.--The Committee directs FNS 
to continue making all policy documents related to the 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)

 
 
 
2017 appropriation....................................   $22,793,982,000
2018 budget estimate..................................    24,256,266,000
Provided in the bill..................................    24,280,944,000
Comparison:
    2017 appropriation................................    +1,486,962,000
    2018 budget estimate..............................       +24,678,000
 

                          COMMITTEE PROVISIONS

    For the Child Nutrition Programs, the Committee provides 
$24,280,944,000, which includes $25,000,000 for school meals 
equipment grants. School districts across the country continue 
to be in need of equipment to serve healthy meals; therefore, 
the Committee continues this program.
    Afterschool Programs.--The Committee supports the efforts 
of approved food sites to serve students nutritious meals 
through the Summer Food Service Program and the Child and Adult 
Care Food Program. FNS is directed to provide a report on the 
options and costs for serving at-risk, low income children with 
snacks or meals beyond the current limit of two meals per day 
that is established for these programs.
    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. In order to provide schools with the certainty and 
flexibility they need for the 2018-2019 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. Schools will not be 
required to meet the Target 2 levels for sodium and will remain 
compliant if they meet Target 1. Further, schools will have 
flexibility in serving low-fat flavored milk.
    The Secretary is taking positive steps to provide greater 
flexibility and restore local control in serving healthy meals. 
The Committee directs USDA to continue to provide flexibilities 
to implement the requirements under Subsection (p) of section 
12 of the Richard B. Russell National School Lunch Act so that 
local authorities can make decisions on school lunch pricing. 
The Committee encourages the Department to find additional ways 
to provide schools with school lunch pricing flexibility and 
other long-term certainty in implementing the school meals 
programs.
    Training and Technical Assistance.--The Committee is aware 
of the need for training of school nutrition personnel that 
focuses on school food service meal preparation and workforce 
development. Within available funds for Team Nutrition, the 
Committee encourages the Department to allow non-regulatory 
allied professional associations to assist in training school 
food service professionals.
    Unpaid School Lunch Fees.--The Committee is concerned with 
reports that some students with unpaid school lunch fees are 
treated unfairly and being publicly embarrassed. The Committee 
directs the Secretary to issue recommended standards schools 
may adopt to address the issue of shaming school children for 
unpaid school lunch fees, including standards that protect 
children from public embarrassment; that strongly encourage all 
communications about unpaid school lunch fees be directed at 
the parent or guardian, not the child; and that encourage 
schools to take additional steps to work with families falling 
behind in their school lunch fees.
    The following table reflects the Committee recommendations 
for the child nutrition programs:

                         [Dollars in Thousands]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Child Nutrition Programs:
    School Lunch Program.............................        $13,010,053
    School Breakfast Program.........................          4,775,629
    Child and Adult Care Food Program................          3,919,384
    Summer Food Service Program......................            639,789
    Special Milk Program.............................              8,759
    State Administrative Expenses....................            299,139
    Commodity Procurement............................          1,489,349
    Food Safety Education............................              2,864
    Coordinated Review...............................             10,000
    Computer Support and Processing..................             11,880
    Training and Technical Assistance................             13,578
    CNP Studies and Evaluations......................             21,251
    CN Payment Accuracy..............................             10,858
    Farm to School Team..............................              3,407
    Team Nutrition...................................             15,504
    Healthier U.S. Schools Challenge.................              1,500
    School Meals Equipment Grants....................             25,000
    Summer EBT Demonstration.........................             23,000
                                                      ------------------
        Total........................................        $24,280,944
------------------------------------------------------------------------

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

 
 
 
2017 appropriation....................................    $6,350,000,000
2018 budget estimate..................................     6,150,000,000
Provided in the bill..................................     6,150,000,000
Comparison:
    2017 appropriation................................      -200,000,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Special Supplemental Nutrition Program for Women, 
Infants, and Children, the Committee provides an appropriation 
of $6,150,000,000. 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 7.2 million women, infants, and children for fiscal year 
2018. 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 
higher than average. 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 2018 remains sufficient to serve all eligible 
applicants.
    WIC Eligibility of Multivitamins.--H. Rpt. 114-531 
encouraged FNS to prepare a report assessing the inclusion of 
vitamins eligible for purchase as part of the supplemental 
foods under the WIC program. FNS is directed to complete this 
report by the required due date.
    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 either continue 
or expand its education and outreach efforts through the WIC 
program to provide pregnant women with the information they 
need to prevent Zika.

               SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

 
 
 
2017 appropriation....................................   $78,480,694,000
2018 budget estimate..................................    73,612,500,000
Provided in the bill..................................    73,609,950,000
Comparison:
    2017 appropriation................................    -4,870,744,000
    2018 budget estimate..............................        -2,550,000
 

                          COMMITTEE PROVISIONS

    For the Supplemental Nutrition Assistance Program, the 
Committee provides $73,609,950,000. The total amount includes 
$3,000,000,000 for a contingency reserve to be used only in the 
amount necessary.
    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 both SNAP and WIC.
    Nutrition Education.--The Committee encourages FNS to work 
with states to fund projects that collaborate with local 
farmers, farmer's markets and community based childhood obesity 
programs in carrying out SNAP nutrition education programs. 
These nutrition education projects should include fitness and 
behavioral health.
    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.
    SNAP Employment and Training Report.--Not later than 12 
months after enactment of this Act, the Secretary shall submit 
a report to the Committees on Appropriations and Agriculture of 
both Houses of Congress reviewing state SNAP Employment and 
Training programs and services that are specifically designed 
to address barriers to work for ex-offenders, including the 
number served or estimated to be served, the types of services 
provided, and outcome measures such as completion rates and 
increased earnings, if available.
    The following table reflects the Committee recommendations 
for SNAP:

                         [Dollars in Thousands]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Supplemental Nutrition Assistance Program Account:
    Benefits.........................................        $62,639,315
    Contingency Reserve..............................          3,000,000
Administrative Costs:
    State Administrative Costs.......................          4,483,411
    Nutrition Education and Obesity Prevention Grant             421,000
     Program.........................................
    Employment and Training..........................            476,706
    Mandatory Other Program Costs....................            183,880
    Discretionary Other Program Costs................                998
                                                      ------------------
        Administrative Subtotal......................          5,565,995
                                                      ------------------
Nutrition Assistance for Puerto Rico (NAP)...........          1,928,995
American Samoa.......................................              7,747
Food Distribution Program on Indian Reservations.....            153,000
TEFAP Commodities....................................            288,750
Commonwealth of the Northern Mariana Islands.........             12,148
Community Food Project...............................              9,000
Program Access.......................................              5,000
                                                      ------------------
    Subtotal.........................................          2,404,640
                                                      ------------------
        Total........................................        $73,609,950
------------------------------------------------------------------------

                      COMMODITY ASSISTANCE PROGRAM

 
 
 
2017 appropriation....................................      $315,139,000
2018 budget estimate..................................       293,591,000
Provided in the bill..................................       317,139,000
Comparison:
    2017 appropriation................................        +2,000,000
    2018 budget estimate..............................       +23,548,000
 

                          COMMITTEE PROVISIONS

    The Committee provides an appropriation of $317,139,000 for 
the Commodity Assistance Program. The recommended funding level 
for the Commodity Supplemental Food Program is $238,120,000.
    The Committee recommendation continues to provide 
$18,548,000 for the Farmers' Market Nutrition Program as this 
program provides WIC participants with access to fresh fruits 
and vegetables. 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

 
 
 
2017 appropriation....................................      $170,716,000
2018 budget estimate..................................       148,541,000
Provided in the bill..................................       148,541,000
Comparison:
    2017 appropriation................................       -22,175,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Nutrition Programs Administration, the Committee 
provides $148,541,000. This amount includes $2,000,000 to 
continue the Congressional Hunger Center Fellows Program, which 
has been instrumental in developing leaders in combatting 
domestic and global hunger.

                                TITLE V


                FOREIGN ASSISTANCE AND RELATED PROGRAMS


   Office of the Under Secretary for Trade and Foreign Agricultural 
                                Affairs


 
 
 
2017 appropriation....................................            $- - -
2018 budget estimate..................................             - - -
Provided in the bill..................................           875,000
Comparison:
    2017 appropriation................................          +875,000
    2018 budget estimate..............................          +875,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Trade and Foreign 
Agricultural Affairs, the Committee provides an appropriation 
of $875,000. The 2014 Farm Bill required that an Under 
Secretary for Trade and Foreign Agricultural Affairs be 
established. The office was recently proposed by the Secretary 
after the submission of the President's budget proposal and did 
not receive funding in the prior year or the budget.
    Interagency Cooperation.--The Committee encourages the 
Under Secretary to be cognizant and steadfast in raising trade 
enforcement issues related to the agricultural policies of 
foreign nations in cooperation with the Under Secretary for 
Farm Production and Conservation, the U.S. Trade 
Representative, and the Department of Commerce. The Committee 
further encourages the Under Secretary to prioritize trade 
issues related to biotechnology and minimizing trade 
disruptions from avian influenza outbreaks by pursuing 
localization policies.
    Low-Level Presence Trade Policies.--The Committee directs 
the Under Secretary to work with the U.S. Trade Representative 
and other relevant agencies to develop low-level presence 
policies that allow for uninterrupted trade practices in 
agricultural, biotech, and food arenas, specifically related to 
sanitary and phyto-sanitary issues. These policies should be 
risk-based and attempt to minimize disruptions to trade.
    Potable Water.--The Committee encourages the use of 
recently developed potable water technologies in development 
and long-term sustainability projects.

                      Foreign Agricultural Service


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
                                                                              Transfer from
                                                           Appropriation       Export Loan           Total
                                                                                 Account
----------------------------------------------------------------------------------------------------------------
2017 appropriation.....................................       $196,571,000         $6,074,000       $202,645,000
2018 budget estimate...................................        188,167,000          6,382,000        194,549,000
Provided in the bill...................................        195,268,000          6,382,000        201,650,000
Comparison:
    2017 appropriation.................................         -1,303,000           +308,000           -995,000
    2018 budget estimate...............................        +$7,101,000             $- - -        +$7,101,000
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Foreign Agricultural Service, the Committee 
provides an appropriation of $195,268,000 and transfer of 
$6,382,000, for a total appropriation of $201,650,000.
    The Committee provides increases in funding for 
International Cooperative Administrative Support Services and 
$2,000,000 above estimated amounts for the Country Strategy 
Support Fund. The Committee accepts reductions in funding for 
Capital Security Cost Sharing, headquarters savings, and 
reductions in FTE not to exceed $2,000,000.
    Farmer-to-Farmer.--The Committee directs that USDA evaluate 
the John Ogonowski and Doug Bereuter Farmer-to-Farmer program 
and develop strategies that will allow the program to be fully 
integrated and enhanced. Farmer-to-Farmer is an effective model 
of partnership that can leverage volunteer labor for technical 
assistance and capacity building and should be an integral part 
of the Global Food Security Strategy.
    International Program Proposals.--The Committee does not 
accept the legislative proposal to eliminate mandatory 
marketing export promotion programs or any staffing reductions 
due to the planned elimination of the McGovern-Dole 
International Food for Education Program. The Committee 
supports expanding export promotion program activities in 
preparation for needed bilateral trade agreements.
    U.S.-Central America, Mexico Cooperation.--The Committee 
directs the agency to work with its counterparts in Central 
America and Mexico to develop an agricultural working group 
improving the efficiency of the inspection process, the trade 
supply chain, and transportation costs, among other issues. In 
addition, the agency shall use existing programs for academic 
exchanges in agriculture related fields of study in this 
region. The agency shall brief the Committee within 180 days of 
the date of enactment on current efforts in these areas.

  Food for Peace Title I Direct Credit and Food for Progress Program 
                                Account


                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
2017 appropriation....................................          $149,000
2018 budget estimate..................................           149,000
Provided in the bill..................................           149,000
Comparison:
    2017 appropriation................................             - - -
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For administrative expenses to carry out the credit program 
of Food for Peace Title I, Food for Peace Act, and the Food for 
Progress Act, the Committee provides an appropriation of 
$149,000.

                     Food for Peace Title II Grants


 
 
 
2017 appropriation....................................    $1,466,000,000
2018 budget estimate..................................             - - -
Provided in the bill..................................     1,400,000,000
Comparison:
    2017 appropriation................................       -66,000,000
    2018 budget estimate..............................    +1,400,000,000
 

                          COMMITTEE PROVISIONS

    For Food for Peace Title II grants, the Committee provides 
$1,400,000,000, of which $350,000,000 is for non-emergency 
assistance. The bill requires Congressional notification for 
waiving the non-emergency assistance level set forth in the 
Food for Peace Act (FFPA) to meet emergency needs.
    Food for Peace Title II Budget Proposal.--The Committee 
supports the intent, facets, and structure of the FFPA. These 
include 1) requiring the purchase of U.S. commodities; 2) 
requiring the use of U.S.-flagged, maritime ships and sailors 
to ship commodities; and 3) the use of FFP funds to meet the 
non-emergency funding set-aside for development projects. The 
FFPA embodies the spirit of the President's Executive Order to 
``Buy American, Hire American'' while simultaneously lending a 
hand to those in need and furthering national security 
objectives. The Committee supports the use of the Bill Emerson 
Humanitarian Trust to meet additional emergency food aid needs 
and will judiciously consider reimbursements to the Trust in 
future fiscal years following its use.
    Central American Food Assistance.--The Committee directs 
the Administrator of the U.S. Agency for International 
Development to continue briefing the Committee on its efforts, 
including the amount and type of food aid, in Central America.

        MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD

                        NUTRITION PROGRAM GRANTS

 
 
 
2017 appropriation....................................      $201,626,000
2018 budget estimate..................................             - - -
Provided in the bill..................................       201,626,000
Comparison:
    2017 appropriation................................             - - -
    2018 budget estimate..............................      +201,626,000
 

                          COMMITTEE PROVISIONS

    For McGovern-Dole International Food for Education and 
Child Nutrition Program Grants, the Committee provides an 
appropriation of $201,626,000.
    McGovern-Dole Budget Proposal.--The Committee continues to 
support the McGovern-Dole program. The program serves a unique 
purpose and population, and it requires the purchase and hire 
of American commodities and maritime assets to feed people in 
need overseas. The program's most recent audit, performed over 
five years ago, identified weaknesses in monitoring and 
evaluation controls. These issues have been addressed and a 
2016 GAO report (16-861R) found that USDA addressed and 
required the majority of the leading practices for monitoring 
and evaluation policies, consistent with other international 
affairs agencies.

              COMMODITY CREDIT CORPORATION EXPORT (LOANS)

                    CREDIT GUARANTEE PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2017 appropriation....................................        $8,537,000
2018 budget estimate..................................         6,735,000
Provided in the bill..................................         6,735,000
Comparison:
    2017 appropriation................................        -1,802,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For administrative expenses of the Commodity Credit 
Corporation Export Loans Credit Guarantee Program Account, the 
Committee provides an appropriation of $6,735,000.

                                TITLE VI


           RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION


                DEPARTMENT OF HEALTH AND HUMAN SERVICES


                      Food and Drug Administration


                         SALARIES AND EXPENSES

                         [Dollars in Thousands]
------------------------------------------------------------------------
                                                              Total, FDA
                                 Appropriation   User Fees       S&E;
------------------------------------------------------------------------
2017 Appropriation.............    $2,759,378    $1,895,711   $4,655,089
2018 Budget Estimate...........     1,819,718     3,164,392    4,984,110
Provided in the Bill...........     2,759,378     2,386,567    5,145,945
Comparison:
    2017 Appropriation.........         - - -      +490,856     +490,856
    2018 Budget Estimate.......     +$939,660     -$777,825    +$161,835
------------------------------------------------------------------------

    The Committee provides an appropriation of $2,759,378,000 
in new budget authority for the FDA. In addition, the Committee 
recommends the following user fee amounts: $937,434,000--
prescription drugs; $193,291,000--medical devices; 
$493,600,000--human generic drugs; $54,000,000--biosimilar 
biologicals; $24,142,000--animal drugs; $12,100,000--animal 
generic drugs; and $672,000,000--tobacco products. The 
combination of new budget authority and definite user fees 
provides the FDA with a total discretionary salaries and 
expenses level of $5,145,945,000. This total does not include 
permanent, indefinite user fees for the Mammography Quality 
Standards Act; Color Certification; Export Certification; 
Priority Review Vouchers for Pediatric Disease; Food and Feed 
Recall; Food Reinspection; Voluntary Qualified Importer 
Program; the Third Party Auditor Program; Outsourcing Facility; 
and Medical Countermeasure Priority Review Vouchers.
    The Committee recommendation does not include proposed user 
fee increases for Export Certification, Food Facility 
Registration and Inspection, Food Import, International 
Courier, Cosmetics, or Food Contact Notification.
    The Committee does not include funding for a civilian pay 
increase across the agency. Should the President provide a 
civilian pay increase for fiscal year 2018, it is assumed that 
the cost of such a pay increase will be absorbed within 
existing appropriations for fiscal year 2018.
    The Committee recommendation maintains fiscal year 2017 
funding levels for the medical countermeasures initiative.
    Nothing in this section relating to compounding shall be 
construed to compromise patient safety.
    Food Safety Modernization Act Funding.--The Committee 
continues to support the food safety activities related to 
FSMA. Congress has provided more than $300,000,000 in FDA's 
base appropriation for FSMA since fiscal year 2011. The 
Committee directs FDA to continue their outreach and education 
efforts to inform the regulated industries how they come into 
compliance with the FSMA foundational regulations. As 
previously noted, it is the intent of Congress for FDA to 
ensure an even playing field in the application of FSMA 
regulations as it relates to both domestic and imported 
producers, processors, and manufacturers of food and animal 
feed. Also, the Committee believes that FSMA implementation 
places additional requirements on state governments and private 
stakeholders, and therefore urges the FDA to provide sufficient 
resources to state education and inspection programs to address 
these needs.
    Medical Product Safety Funding.--The Committee expects FDA 
to maintain the increased funding levels provided by Congress 
in the past three years for the Precision Medicine Initiative; 
animal drug and medical device review; over-the-counter 
sunscreen ingredient review; The Food and Drug Administration 
Safety and Innovation Act implementation; the Combating 
Antibiotic Resistant Bacteria (CARB) initiative; Pharmacy 
Compounding; and Counterfeit Drug enforcement.
    Proposed Reductions.--While there is no change in the 
overall discretionary funding level, the Committee accepts 
$2,000,000 in savings within the Office of the Commissioner.
    Animal Drug Compounding.--The Committee has been concerned 
that the FDA's proposed draft Guidance for Industry (GFI) for 
animal drug compounding (#230) would apply certain human drug 
compounding requirements to animal drug compounding. There also 
is concern that some state regulatory agencies are implementing 
the guidance even though it is not finalized. The Committee 
appreciates that in the FY 2018 budget request FDA stated, ``In 
the draft guidance, FDA is not proposing to apply sections 503A 
or 503B of the FDCA to the compounding of animal drugs from 
bulk drug substances.'' FDA further explains how some of the 
concepts may be appropriate for animal drugs as well as human 
drugs.
    Within 30 days of enactment of this Act, the Committee 
directs FDA to communicate to state regulatory agencies that 
the guidance is still in draft form. The Committee expects that 
any final guidance on animal drug compounding will only 
reference statutory provisions that specifically relate to 
veterinary practices and will not exceed statutory authority.
    Antibiotics.--The Committee urges the FDA to work to foster 
the development of new antibiotics by supporting greater 
collaboration between industry and the FDA around adaptive 
clinical trials and labeling changes. Robust drug development 
will be needed to ensure patients are protected from bacterial 
resistance.
    Biosimilars.--The Committee recognizes that biosimilars 
offer an important opportunity for expanding the market and 
reducing costs for patients. The Committee urges the FDA to 
partner with external stakeholders including patient 
organizations on educating patients and professionals about 
biosimilars, with a focus on populations for which approved 
biosimilars are indicated.
    Centers of Excellence.--The Committee is encouraged by the 
ongoing research and collaboration underway at the Centers of 
Excellence in Regulatory Science and Innovation (CERSI) 
program. The Committee believes that these programs will help 
the agency improve public health, address scientific challenges 
presented by revolutions in medical product development, and 
improve food safety and quality. The Committee commends the 
agency for launching this program in 2011 and expanding it in 
2014. For this reason, the Committee believes that the agency 
should continue to invest in the existing four locations in the 
CERSI network at their original funding level to ensure their 
efficacy and to capitalize on existing studies.
    Continuous Manufacturing Initiative.--Of the $60,000,000 
made available to the FDA in the 21st Century Cures Act for 
fiscal year 2018, FDA is directed to obligate $10,000,000 to 
create a Continuous Manufacturing Initiative and award grants 
to institutions of higher education and nonprofit organizations 
for the purpose of studying and recommending improvements to 
the process of continuous manufacturing of drugs and biological 
products similar innovative monitoring and control techniques. 
The Committee expects the FDA to partner with existing entities 
with demonstrated capacity and experience on advanced 
manufacturing technologies to lower pharmaceutical costs and 
where limited federal funds will be matched by non-federal 
resources.
    Critical Path Institute.--Innovation in the development of 
new medicines and other therapies can be enhanced by enabling 
FDA to focus on specific program areas such as those outlined 
in FDA's Critical Path Initiative and their Regulatory Science 
objectives. These types of programs which FDA often 
accomplishes through public-private partnerships expand the 
knowledge base for those developing medical products and those 
conducting regulatory review. The Committee provides an 
increase of $400,000 in support of this initiative.
    Crop Biotechnology & Biotech Ingredients.--Plants, food, 
and food ingredients developed using genetic engineering were 
introduced into the U.S. food supply in the 1990s. Public and 
private sector scientists knowledgeable in genetic engineering, 
toxicology, chemistry, nutrition, and other scientific areas 
have carefully evaluated and assessed the safety of these 
products and have determined that such products are safe for 
human and animal consumption. The Committee provides $1,500,000 
for USDA and the FDA to continue efforts to educate the public 
on the safety and benefits of crop biotechnology and food and 
animal feed ingredients derived from biotechnology.
    Dairy Labeling Requirements.--The Committee is aware of the 
concerns with labeling certain foods and beverages as a dairy 
product when the product is plant-based rather than derived 
from animals. The Committee directs the FDA to develop a 
standard of identity for dairy products based upon the dairy 
product terms described in parts 131, 133, and 135 of 
subchapter B of chapter I of title 21, Code of Federal 
Regulations within 180 days from the date of enactment of this 
Act. The FDA should issue guidance to industry on how to 
implement the standard of identity, including how this standard 
will be enforced.
    Duchenne Muscular Dystrophy.--The Committee is encouraged 
by FDA's recent approvals of therapies to treat Duchenne 
Muscular Dystrophy and is aware of the authorities within the 
21st Century Cures Act that clarify the agency's ability to 
allow sponsors of targeted rare disease therapies to use data 
from previously approved applications. The Committee is aware 
of the relevance of this policy to Duchenne and other rare 
disease therapy development and of the agency's work to 
implement the law. The Committee requests an update on these 
efforts within 180 days of enactment of this Act, including a 
description of any challenges or impediments faced by the 
agency in implementing these new authorities.
    Expedited Programs.--The Committee directs the FDA to 
exercise its current law authorities, as provided under the FDA 
Safety and Innovation Act (FDASIA) and the 21st Century Cures 
Act, when reviewing new drug applications for patients with 100 
percent fatal and debilitating diseases. FDASIA expanded FDA's 
authorities and strengthened the agency's focus on accelerating 
the approval of drugs that treat unmet medical needs, 
prioritizing the patient perspective in evaluating new drugs 
and treatments and providing reviewers with flexibility when 
evaluating drugs for a life-threatening illness.
    FDA Partnerships under FSMA.--The purpose of FSMA is to 
reform the nation's food safety laws to ensure a safe public 
food supply. As FDA continues implementation of FSMA, the 
Committee encourages FDA to work in partnership with existing 
government food safety programs through MOUs to verify 
compliance with FSMA to rules once they are finalized as a way 
to eliminate duplication of activities under the law. In 
addition, the Committee continues to provide $5,000,000 for the 
Food Safety Outreach Program under NIFA and expects that NIFA 
will serve as the sole agency providing food safety training, 
education, outreach, and technical assistance at the farm 
level.
    Federal Employee Conduct.--Public service is a public trust 
that requires federal employees to place ethical principles 
above private gain. Federal employees are reminded that they 
shall not advance a personal agenda or give preferential 
treatment to any outside organization or individual within the 
government programs which they administer. Information that is 
received by the employee, including information from other 
employees, offices, or Congress should be handled in a 
professional and confidential manner in accordance with Code of 
Federal Regulations regarding the basic obligation of public 
service (5 CFR 2635.101).
    Feminine Hygiene Cosmetics.--The Committee is concerned 
about the use of unsafe colorants by manufacturers of feminine 
hygiene cosmetic products. The Committee strongly encourages 
the FDA to issue appropriate guidance on the use of colorants 
in such products, and expects a prompt final response to the 
citizen petition submitted by Women's Voices for the Earth on 
August 18, 2015.
    Fish Decomposition Standards and Testing.--The Committee is 
concerned with particular methods FDA utilizes for seafood 
inspections. While food safety remains the top priority, the 
methodology used to determine whether any size shipment 
receives a pass or rejection for seafood needs clarification. 
The Committee directs the FDA to provide a report to the 
Committee on the process and criteria used to reject seafood 
import shipments. In addition, FDA should inform the Committee 
on the scientific tools available to the agency in determining 
decomposition and what field-deployable, technology-based tools 
may still be developed to minimize the current subjectivity in 
the decomposition decision-making process. The Committee 
provides $2,800,000 to support intramural work and extramural 
collaborations necessary to begin developing the appropriate 
lab methods to detect evidence of seafood decomposition.
    Food Contact Notification User Fees.--The funds made 
available by this Act include sufficient monies to fund the 
FDA's Food Contact Notification Program and shall be deemed to 
satisfy the requirements of 21 U.S.C. 348(h)(5)(A). The 
Committee recommendation does not include proposed user fees.
    Foreign High Risk Verifications.--The bill maintains the 
fiscal year 2017 funding level of $7,500,000 for the FDA's 
Office of Global Regulatory Operations and Policy to enhance 
the compliance of foreign manufacturers and exporters of food, 
medical devices and pharmaceuticals through the use of business 
date and on-premises site verification.
    Genomic Editing.--The Committee understands the potential 
benefits to society in the genetic modification of living 
organisms. However, researchers do not yet fully understand all 
the possible side effects of editing the genes of a human 
embryo. Editing of the human germ line may involve serious and 
unquantifiable safety and ethical issues. Federal and non-
federal organizations such as the National Academy of Sciences 
and National Academy of Medicine continue to understand the 
potential risks of genome editing and a broader public 
discussion of the societal and ethical implications of this 
technique is still ongoing. In accordance with the current 
policy at the National Institutes of Health, the Committee 
includes bill language that places a prohibition on the FDA's 
use of funds involving the genetic modification of a human 
embryo. The Committee continues to support a wide range of 
innovations in biomedical research, but will do so in a fashion 
that reflects well-established scientific and ethical 
principles.
    Grape Varietals.--The Committee is aware that the FDA has 
excluded certain produce that is rarely consumed raw from 
having to comply with the FSMA Produce Safety Final Rule 
entitled ``Standards for Growing, Harvesting, Packing, and 
Holding of Produce for Human Consumption.'' There is concern 
that the FDA has not been able to distinguish between grape 
varietals that are consumed raw and those that are grown, 
harvested and used for wine and further processing. The 
Committee directs the FDA to initiate a process within 30 days 
of enactment of this Act that makes a distinction between grape 
varietals so that wine grape varietals may be included on the 
list of produce that is rarely consumed raw.
    Harm Reduction.--It is the Committee recommendation that 
the FDA consider the benefits of harm reduction as part of 
evaluations under the Deeming regulations for tobacco products.
    Hereditary Angioedema Research.--The Committee is concerned 
that FDA's funding of studies regarding the Evaluation of 
Thromboembolic Events Following C1-Inhibitor Therapy may cause 
access issues for patient communities that have safely used C1-
Inhibitor for many years to treat life-threatening conditions, 
including hereditary angioedema. FDA is encouraged to clarify 
its intentions for this area of inquiry to the Committee within 
90 days.
    Human Drug Compounding--Permissible ``Office Use''.--The 
Committee continues to believe that patient access to the right 
drug at the right time is of utmost importance. In instances 
where a commercially manufactured drug is not appropriate for a 
patient for a specific reason, a compounded drug may be the 
difference between life and death. Since passage of the Drug 
Quality and Security Act (DQSA) of 2013, the Committee has had 
concerns that the FDA interpreted provisions of Section 503A of 
the FDCA in a manner that might jeopardize the availability of 
compounded medications for ``office use''. The practice of 
``office use'' occurs when a compounder will compound a batch 
of drugs in anticipation of receiving patient-specific 
prescriptions at a later time. It may also be the case of a 
doctor in his or her office maintaining compounded drugs on 
site because it is unsafe or impractical to issue a traditional 
prescription. This practice is authorized in the vast majority 
of states and was intended to be allowable under DQSA. The 
Committee directed the FDA to issue a Final Guidance that 
provides for ``office-use'' compounding of drugs, in 
appropriate circumstances as well as including drugs compounded 
in anticipation of a prescription for an identified individual 
patient. Such ``anticipatory'' compounded drugs is based on the 
history of previous valid compound prescription orders, and on 
an established history between prescriber, patient and 
compounder. Despite clear directives in previous reports 
accompanying FDA's appropriations bills for the agency to 
finalize guidance that authorizes office-use compounding, in 
December of 2016, the FDA finalized a Guidance for Industry 
(GFI) entitled ``Prescription Requirement Under Section 503A of 
the FDCA,'' which expressly prohibits office-use compounding. 
The Committee directs the FDA to rescind this GFI and issue a 
proposed rule, subject to the notice and comment provisions in 
the Administrative Procedure Act. The proposed rule should be 
consistent with Congressional intent as stated in both 
Appropriations Reports and the DQSA, and that also allows for 
office-use compounding as authorized by state law. In the 
proposed rule, FDA should lay out the means by which office use 
is permissible while addressing such critical safety matters, 
such as maintaining controls on quantity and safety issues such 
as those related to office stock shelf life. Lastly, FDA's 
clarification on the line between traditional compounding and 
outsourced compounding will support state regulators, 
outsourcing facilities, and traditional compounders in their 
efforts to ensure that patients have access to safe compounded 
drugs while reducing the risks associated with sterile drugs 
produced in bulk.
    Human Drug Compounding--Draft MOU.--The Committee is also 
very concerned with the draft MOU issued February 13, 2015, 
entitled ``Draft Memorandum of Understanding Addressing Certain 
Distributions of Compounded Human Drug Products Between the 
State of (  ) and the Food and Drug Administration'' as it 
applied to Section 503A of the FDCA. The proposed MOU would 
complicate patient and prescriber access to compounded 
medications, and may have a deleterious effect on small 
pharmacies. Under the draft MOU, the FDA attempts to describe 
``distribution'' as occurring when ``a compounded human drug 
product has left the facility in which the drug was 
compounded.'' In the DQSA, Congress only allowed the FDA to 
regulate ``distribution.'' But the MOU appears to exceed the 
authority granted in the statute by redefining ``distribution'' 
in a manner that includes dispensing--something unprecedented. 
This overreach could generate exactly the kind of costly and 
confusing litigation that Congress intended to avoid when it 
amended and reinstated Section 503A. The Committee expects 
that, when a final MOU is proposed as a model agreement for the 
states to consider, that distribution and dispensing are 
treated as the different and separate activities that they 
actually are.
    Human Drug Compounding--Compound Pharmacist on Pharmacy 
Compounding Advisory Committee.--The Committee is concerned 
that the Pharmacy Compounding Advisory Committee (PCAC) 
established under the DQSA does not adequately represent the 
interests and needs of providers and patients who use and 
depend on compounded medications. The Committee expects that, 
at the earliest possible date, whether filling open positions 
or replacing existing members, the FDA shall appoint voting 
members with recent, actual, and diverse experience in the 
preparation, prescribing, and use of compounded medications.
    Infant Formula.--The Committee requests a report on what 
processes and controls are in place to monitor the water used 
in the manufacture of liquid infant formula, including what 
steps FDA takes to work with the Environmental Protection 
Agency as part of their regulatory responsibility for the 
primary drinking water used in infant formula.
    In Silico Clinical Trials.--In Silico clinical trials use 
computer models and simulations to develop and assess devices 
and drugs, including their potential risk to the public, before 
being tested in live clinical trials. Advanced computer 
modeling can also be used to predict how a drug or device will 
behave when deployed in the general population, thereby 
protecting the public from the unintended consequences of side 
effects and drug interactions. In Silico trials protect public 
health, advance personalized treatment, and can be executed 
quickly and for a fraction of the cost of a full scale live 
trial. By understanding the impact a drug or device will have 
on the human body immediately and over time, as well as within 
different populations, millions of dollars in development costs 
can be saved. A mere ten percent improvement in predicting 
failures before a clinical trial could save $100,000,000 in 
development costs per drug. As such, the Committee directs the 
FDA to expand its use of in silico clinical models through a 
pilot project aimed at creation of a full human in silico model 
able to test drugs and devices across the entire body, 
including long-term effects and among distinct populations. If 
necessary to enact this project, the FDA shall issue a unified 
guidance to allow the model to be used to test both drugs and 
devices. The Committee requests a written report outlining the 
FDA's plans for development of the model within 120 days of 
enactment of this act.
    Laboratory Developed Tests.--The FDA's draft guidance 
issued on October 3, 2014, titled ``Framework for Regulatory 
Oversight of Laboratory Developed Tests'' (LDTs), puts forth a 
proposed regulatory framework that is a significant shift in 
the way LDTs are regulated. Such a shift deserves input from 
the public, and Congress has been working with stakeholders, 
constituencies, and the FDA to find common ground on regulating 
LDTs. The FDA's guidance circumvents the normal rulemaking 
process and changes expectations for patients, doctors, and 
laboratories for the first time since the Clinical Laboratory 
Improvement Amendments Act was passed in 1988. The Committee 
maintains its position that FDA should suspend further efforts 
to finalize the LDT guidance and continue working with Congress 
to pass legislation that addresses a new pathway for regulation 
of LDTs in a transparent manner.
    Laboratories Near High Volume Ports.--The Committee directs 
the FDA to submit a report within 90 days of enactment of this 
Act on the potential for implementing pilot programs which will 
allow for public-private partnerships at high volume ports of 
entry in an effort to increase the number of FDA-certified 
public or private labs located near major ports of entry to 
provide services on weekends and holidays, reduce the risk of 
food borne illnesses, and enhance the capacity of local 
officials in dealing with foodborne threats.
    Local Port Cooperation.--The Committee directs the FDA to 
work with local governments at high volume ports of entry to 
explore activities which reduce the risk of food borne 
illnesses and enhance the capacity of local officials in 
dealing with food borne threats and report back to the 
Committee within 90 days of enactment of this Act on its 
efforts.
    Mammography Exam Reports.--More than five years ago, in 
November 2011, the National Mammography Quality Assurance 
Advisory Committee approved a change to the mammogram patient 
report and physician report to include information regarding an 
individual's breast density. This process has not been 
completed. The Committee again urges the FDA to implement this 
change in an expedited manner and must report to Congress on 
the status of this change no more than 60 days from the 
enactment of this Act.
    Medical Countermeasures.--The Committee directs that not 
less than $24,552,000 shall be available for the FDA's Medical 
Countermeasures Initiative. This total is in addition to the 
unobligated funds remaining to support the FDA's emergency 
response to Zika, Ebola, and related disease outbreaks.
    Medical Gas Rulemaking.--The Committee is concerned that 
the FDA has not initiated a rulemaking on medical air labeling, 
adverse event reporting, or the numerous longstanding medical 
gas regulatory issues identified at the December 6, 2013 public 
meeting. While Section 1112 of Food and Drug Administration 
Safety and Innovation Act (FDASIA) required the Secretary to 
make a determination on whether to propose new regulations for 
medical gases, the fiscal year 2017 appropriations Act required 
the Secretary to issue new regulations by July 15, 2017. 
Congress has twice enacted laws on this issue and expects the 
FDA to reach a consensus with industry by incorporating general 
concerns, either through reference or principle-based 
regulation, into regulation at the discretion of the agency. 
FDA's role as a regulator is to vet and propose regulations, 
especially when directed to do so by Congress. Resources have 
been provided to the FDA through discretionary appropriations 
and user fees to accomplish its mission. FDA is directed to 
convene with stakeholders in a public meeting on the regulation 
of medical gases, provide a written report to Congress 
including a description of the section of the Code of Federal 
Regulations that will be updated no later than December 31, 
2017 and issue the final regulations required by Public Law 
115-31 no later than July 15, 2018.
    Medical Product Shipment Delays.--The Committee 
acknowledges FDA's vital responsibility to conduct risk-based 
screening of imported products under its jurisdiction at ports 
and distribution hubs across the country. However, any delay of 
critically important medical products places risks to patients 
and can unnecessarily disrupt medical services. The Committee 
directs FDA to examine trends in possible delays of medical 
product shipments, report back to the Committees on 
Appropriations of the House and Senate within 90 days of 
enactment, and, if necessary, allocate existing resources to 
adequately staff centralized points of entry for imported, 
time-sensitive medical products so that commerce and critical 
medical care is not unduly delayed. The Committee provides the 
agency with an increase of $300,000 to help expedite the 
clearance of these products.
    Menu Labeling.--The FDA extended the compliance date for 
menu labeling requirements until May 7, 2018, stating that, 
``This extension allows for further consideration of what 
opportunities there may be to reduce costs and enhance the 
flexibility of these requirements beyond those reflected in the 
final rule.'' In providing flexibility, the Committee urges FDA 
to consider provisions of H.R. 772 as well as other proposals 
that reduce burden and add flexibility for businesses to 
implement the rule and provide consumers with certain nutrition 
information. FDA should ensure that businesses are protected 
from regulatory enforcement from federal, state, municipal or 
other oversight agencies until after a potential revised rule 
is promulgated and effective.
    Natural Definition.--The Committee commends the FDA for 
taking the first step towards defining the term ``natural'' and 
regulating its use on food labeling by requesting public 
comment on a number of relevant questions in a November 2015 
Federal Register notice. The Committee directs FDA to provide a 
report within 60 days of enactment of this Act on the actions 
and timeframe for defining ``natural'' so that there is a 
uniform national standard for the labeling claims and consumers 
and food producers have certainty about the meaning of the 
term.
    New Technologies to Promote Food Safety.--The Committee 
encourages the National Academies of Sciences, Engineering, and 
Medicine to conduct a study on new technologies to promote 
microbiological food safety and prevent foodborne illnesses. 
The study should review methods that have been developed but 
not implemented, are in development, or have been proposed but 
not well developed. The study also should identify any 
regulatory, economic, or other barriers to implementing 
technologies. The review should encompass methods that could be 
applied on farms and feedlots, in feed- and food-production and 
processing facilities, restaurants and supermarkets, and 
elsewhere in the food supply chain. The various methods should 
be applicable to meat and poultry products, dairy foods, 
seafood, plant products, processed and packaged foods, and 
other foods.
    Nutrient Value of Fish during Pregnancy.--The Committee 
understands the FDA and EPA issued final advice regarding fish 
consumption in January 2017 as a follow up to draft advice 
issued in June 2014. The Committee directs the FDA to 
incorporate the specific nutrient value of fish consumption in 
pregnancy on the FDA website ``Eating Fish: What Pregnant Women 
and Parents Should Know.'' The information on the nutrient 
value of fish should focus on the specific benefits of seafood 
consumption for pregnancy and fetal development. The Committee 
requests a report within 120 days of enactment of this Act on 
the FDA's plan to add information on the nutrient value of fish 
and to develop a plan to assess the efficacy of this change on 
women's dietary choices related to seafood consumption, 
particularly during pregnancy. This update should be published 
on the current FDA fish advice website and in other materials 
developed by the FDA.
    Nutrition Facts Label.--On June 13, 2017, the FDA announced 
that it would extend the compliance date for the final rule 
entitled ``Food Labeling: Revision of the Nutrition and 
Supplemental Facts Labels'' and that details of the extension 
would be provided through a Federal Register notice at a later 
time. Food manufacturers are facing different compliance dates 
with multiple food labeling changes, such as those required 
under the National Bioengineered Food Disclosure Standard (Pub. 
L. 114-216). The Committee encourages the Commissioner of FDA 
and the Secretary of USDA to harmonize the labeling compliance 
dates to allow food manufacturers to update labels after clear 
guidance has been provided and in a manner that is cost 
effective and avoids consumer confusion.
    The Committee also notes that the FDA has not issued final 
guidance regarding the definition of dietary fiber and labeling 
of added sugars. The Committee encourages the FDA to issue 
these final guidance documents and provide sufficient time for 
food manufacturers to comply.
    Office of Cosmetics and Colors.--The Committee 
recommendation includes not less than $11,700,000 for cosmetics 
activities, including not less than $7,200,000 for the Office 
of Colors and Cosmetics (OCAC). Funding provided for OCAC is 
for direct support of the operation, staffing, compliance, 
research and international activities performed by this office. 
The Committee welcomes FDA's support of the Cosmetic Ingredient 
Review and FDA's participation in that program as an ex officio 
member, as well as the FDA efforts in maintaining the Voluntary 
Cosmetic Reporting Program and the CFSAN Adverse Event 
Reporting System (CAERS). The Committee appreciated OCAC's 
willingness to engage with China in May 2016 for a cosmetics 
regulatory dialogue. In light of China's interaction with U.S.-
based manufacturers and consumers, the Committee directs FDA to 
seek ways to continually enhance engagement with Chinese 
regulators on cosmetic technical and regulatory issues. The 
Committee directs FDA to promote international regulatory 
harmonization in cosmetic products by continued support to the 
International Cooperation on Cosmetics Regulation (ICCR) 
initiative, participation in ISO Technical Committee 217--
Cosmetics and supporting trade through other bilateral and 
multilateral trade agreements.
    Olive Oil.--In H. Rept. 114-531, the Committee directed FDA 
to sample imported olive oil products for potential 
adulteration or misbranding and report to Congress. The 
Committee commends FDA in its response for committing to 
developing better methods to detect adulteration of olive oil 
and to increasing monitoring of the marketplace for adulterated 
olive oil products. However, in FDA's report to Congress, the 
agency's findings were based on a survey of olive oil products 
conducted in 2014. The Committee directs FDA to update its 2014 
survey and report on its findings within 180 days of enactment 
of this Act.
    Oncology Clinical Trials.--The Committee recognizes the 
value of clinical trials in the development of innovative 
procedures, diagnostics, and drugs to prevent, detect, and 
treat cancer. The Committee understands that the percentage of 
cancer patients who participate in oncology clinical trials 
remains low, especially among minorities and those 
socioeconomically disadvantaged, and barriers to participation 
include ancillary financial costs, such as travel and lodging 
expenses. Many clinical sites and sponsors of clinical trials 
are wary of working with independent third parties to provide 
even ancillary financial support given current guidance warning 
against anticipated financial benefits that may create 
``coercion or undue influence'' to research participants under 
21 CFR 50.20. The Committee believes that the reimbursement of 
ancillary costs by independent third parties does not 
constitute coercion or undue influence and instead helps 
improve access to cancer clinical trials. As noted in FDA's 
draft guidance entitled ``Informed Consent Information Sheet: 
Guidance for IRBs, Clinical Investigators, and Sponsors,'' the 
FDA considers payment to clinical trial subjects to be 
compensation for ``expenses and inconveniences'' and not a 
benefit of participation. Therefore, the Committee encourages 
the FDA to develop more precise guidance regarding the meaning 
of ``coercion or undue influence'' as it relates to the 
reimbursement of ancillary expenses to research participants 
under 21 CFR 50.20 in finalizing the draft guidance on informed 
consent content and the informed consent process (``Informed 
Consent Information Sheet: Guidance for IRBs, Clinical 
Investigators, and Sponsors''') so as to increase enrollment, 
retention, minority participation, and equitable access to 
oncology clinical trials.
    Opioid Abuse.--The abuse, misuse, and diversion of opioid 
painkillers has precipitated an epidemic in the United States. 
The CDC indicates that one American loses his or her battle 
with addiction every twenty minutes. For years, the Committee 
has encouraged the FDA to utilize the full breadth of its 
regulatory authority to address this challenge. The Committee 
is pleased that, with the Opioids Action Plan and Opioid Policy 
Steering Committee, the FDA has acknowledged that the agency 
shoulders some responsibility for turning the tide of abuse. 
The FDA's recent regulatory changes related to scheduling and 
labeling of opioids are positive developments, as are efforts 
to encourage the development of abuse-deterrent formulations 
(ADF) and new evidence-based medication-assisted therapies 
(MAT). The use of opioids as first-line therapies for any form 
of pain has led to over-prescribing, and the CDC has made clear 
that clinicians should consider opioid therapy only if expected 
benefits for both pain and function are anticipated to outweigh 
the risks to the patient. With respect to prescribing patterns, 
the Committee supports efforts to incentivize ADF use by 
clinicians and to increase the number of prescribers who 
receive training on pain management and safe prescribing of 
opioid drugs in order to decrease inappropriate opioid 
prescribing. The Committee notes that treatment is not a ``one 
size, fits all'' enterprise and that every patient's treatment 
regimen should be tailored by his or her doctor to his or her 
unique needs. The federal government, therefore, should be 
promoting the full suite of available treatment options, 
including abstinence-based models and non-opioid medications, 
rather than picking winners and losers. The Committee supports 
efforts at the FDA and elsewhere to develop MATs that improve 
the efficacy of daily administration, are resistant to 
diversion and misuse, and/or help patients on a path to 
recovery. Finally, the Committee has been supportive of 
naloxone distribution among trained licensed healthcare 
professionals and emergency responders. When considering the 
appropriateness of providing naloxone over-the-counter, the 
Committee directs the FDA to ensure that the administration of 
naloxone serves as a point of intervention to spur an honest 
conversation between the patient and his doctor about addiction 
and treatment.
    Packaged Ice.--The Committee recognizes that packaged ice 
is produced in the U.S., traded internationally, and consumed 
as both a packaged food and a food ingredient. The FDA has had 
a citizen petition regarding a proposed standard of identity 
for packaged ice for a significant and unacceptable length of 
time and is directed to provide quarterly status reports to the 
Committee on this effort until the agency responds to the 
petition. Further, the Conference for Food Protection recently 
reviewed issues related to commercial ice machines in the 
retail environment and found that research is needed to 
identify the type of microbial growth and locations of concern 
within these machines. Therefore, the FDA is directed to study 
the issue more carefully and establish a cleaning and 
sanitizing frequency standard for commercial ice machines.
    Pediatric Devices.--The Committee directs the agency to 
spend no less than $6,000,000, the same level provided in 
fiscal year 2017, for the development of pediatric medical 
devices through the Pediatric Device Consortia. The program 
funds consortia to assist innovators in developing medical and 
surgical devices designed for the unique needs of children that 
often go unmet by devices currently available on the market.
    Performance Measures.--The Committee directs FDA to comply 
with title 31 of the United States Code, including the 
development of their organizational priority goals and outcomes 
such as performance outcome measures, output measures, 
efficiency measures, and customer service measures.
    Pet Food Imports.--As of December 31, 2015, the FDA had 
received approximately 5,200 complaints of illness related to 
consumption of chicken, duck, or sweet potato jerky treats, 
nearly all of which are imported from China. The reports 
involve more than 6,200 dogs, 26 cats, three humans and include 
more than 1,140 canine deaths. These incidents date back to 
2007. The Committee requests that the FDA provide it with a 
timeline of all activities associated with the investigation 
into the pet illnesses associated with these products, 
including any import alerts and import refusals, within 60 days 
of the enactment of this Act. In addition, the Committee 
requests that the agency provide it with semi-annual reports on 
the status of the investigation into these illnesses beginning 
in July 2017 and continuing until the issue has been resolved.
    Premium Cigars.--The Committee includes statutory language 
exempting premium and traditional large cigars, in keeping with 
FDA's intent under Option 2 of its proposed rule ``Deeming 
Tobacco Products To Be Subject to the Federal Food, Drug, and 
Cosmetic Act, as Amended by the Family Smoking Prevention and 
Tobacco Control Act (TCA); Regulations on the Sale and 
Distribution of Tobacco Products and Required Warning 
Statements for Tobacco Products'' (Docket No. FDA-2014-N-0189). 
The Committee notes that premium cigars are shown to be 
distinct from other tobacco products in their effects on youth 
initiation, the frequency of their use by youth and young 
adults, and other such behavioral and economic factors. Lastly, 
a large number of participants in this unique business are 
small and very small operations that might not be able to 
maintain jobs and a physical presence in the United States due 
to the financial impact of this pending regulatory burden. 
Given that there is very little mention of cigars throughout 
the TCA, it is clear Congress did not intend to focus on the 
unique subset of premium cigars.
    Prescription Drug Labeling Inserts.--The Committee is aware 
of FDA's previous proposal that would subvert repeatedly 
expressed Congressional intent by permitting the distribution 
of prescription drugs without printed prescribing information 
on or within the packages from which such drugs are to be 
dispensed. The FDA intends to replace such printed labeling 
with an electronic labeling system for the majority of 
prescription drugs. On several occasions Congress has expressly 
declined to provide the FDA the necessary statutory authority 
to implement this change. As recently as 2012, Congress 
commissioned a GAO report (GAO-13-592) discussing this issue. 
The GAO report concluded that such a change could adversely 
impact public health. Thus, the Committee is very concerned 
that the FDA is moving to promulgate a regulation that would 
generally eliminate printed prescribing information inserts for 
prescription drugs. Therefore, the Committee has included a 
provision prohibiting the FDA from utilizing any funds to 
propose or otherwise promulgate any rule that requires or 
permits any prescription drug or biologic products to be 
distributed without printed prescribing information on or 
within the packaging from which such products are to be 
dispensed, unless such actions are expressly provided by an 
amendment to the FDCA.
    Product Standards.--The Committee is concerned about the 
feasibility of achieving a 1 parts per million level for N-
nitrosonornicotine levels as established in the proposed 
product standard rule dated January 23, 2017 (82 Fed. Reg. 
8004). The Committee encourages FDA to work with stakeholders 
involved in the production and growth of these products to 
determine reasonable level while fulfilling its statutory 
mission to protect public health.
    Radiation Safety.--The Committee urges the agency to review 
and update its current regulations on fluoroscopy radiation 
safety. The current regulations do not adequately address all 
available options to protect surgical and interventional health 
care personnel and patients from radiation exposure. The FDA 
should issue new regulations that include the use of sterile, 
disposable, lead-free shields to protect against radiation 
exposure.
    Spent Grains.--The Committee recognizes that the FDA took 
into consideration public comments and revised some of its 
proposed regulations on spent grains used for animal food. 
Processors already complying with FDA human food safety 
requirements would not need to implement additional preventive 
controls when supplying a by-product like wet spent grains for 
animal food. However, further processing a by-product for use 
as animal food such as drying spent grains, would require 
additional compliance under the proposed rule. The FDA has said 
that potential hazards associated with spent grains are minimal 
and steps to prevent contamination are likely already in place. 
The Committee includes bill language to ensure dry and wet 
spent grains used for animal food are regulated equally.
    Staffing at Land Ports of Entry.--The Committee is 
concerned that USDA, FDA, and Customs and Border Protection are 
relying on historical data in determining their staffing models 
at Land Ports of Entry. Recent reports on agricultural imports 
show steep increases in the future, especially along the 
Southwest border and South Texas in particular. It is the sense 
of the Committee that these agencies should be utilizing 
forward-looking data for their staffig models to ensure we have 
the appropriate workforce available in the future to inspect 
and certify this growth in agricultural imports as efficiently, 
safely, and expeditiously as possible.
    State Inspections.--The Committee is aware of the December 
2011 OIG report that outlined vulnerabilities in the agency's 
oversight of non-FDA food inspections and the agency's 
intention to further rely on state inspections. The Committee 
understands that both the federal government and states share 
authority and responsibility for domestic food facilities and 
that the FDA will continue to contract with the states to 
conduct inspections on its behalf, which is critical to 
performing its mission in an efficient and effective manner. 
The agency must assure it has strong federal inspection 
standards that are met by both federal investigators and state 
inspectors. The FDA must continue its progress in improving 
federal oversight and monitoring of state inspection programs, 
reviewing and strengthening internal directives and processes, 
and identifying new methods to improve oversight capabilities.
    The Committee is aware of the FDA's continuing progress to 
modernize existing IT systems and infrastructure, allowing for 
the secure and efficient exchange of data between the FDA and 
the states, in addition to efforts to add capabilities 
supporting mobile inspection applications. The FDA should 
continue work with state partners toward promoting data 
standards and developing shared database schemas to facilitate 
secure electronic information sharing.
    Sunscreen Ingredients.--The Committee is significantly 
concerned that despite the increase in incidence of skin cancer 
in the United States, the Surgeon General's 2014 Call to Action 
to Prevent Skin Cancer, unanimous passage of the Sunscreen 
Innovation Act (SIA) in Congress and the support of the Cancer 
Moonshot Initiative in the 21st Century Cures Act to prevent 
and cure cancer, the FDA has still not approved a new OTC 
sunscreen ingredient through the process created by the SIA. 
While the FDA published the final guidance in November 2016 
entitled ``Nonprescription Sunscreen Drug Products--Safety and 
Effectiveness Data'', there is still confusion in how the 
regulated industry can comply with FDA's current approach to 
the toxicological risk assessment. The Committee directs the 
FDA to work with stakeholders and help manufacturers understand 
what they need to do to achieve approval for sunscreen products 
in order to lower the risk of skin cancer to the 5 million 
Americans that will be diagnosed with the condition this year. 
The funding level for the FDA includes the $700,000 originally 
provided in fiscal year 2016 to help address the critical 
public health threat resulting from no new sunscreen 
ingredients being available to the public.
    Tobacco Product User Fees.--The Committee directs the FDA 
to submit a report on the planned expenditure and obligation of 
user fees for the current fiscal year within 60 days of 
enactment of this Act. The report shall include the amount of 
carryover and unobligated balances from the prior fiscal year 
and planned obligations and expenditures for the current fiscal 
year based upon the total of the new and existing amounts 
available. The report shall identify the type and amount of 
activities, contracts, and objectives to be implemented, 
including but not limited to public education campaigns, 
scientific research, communications, and product application 
processing and review for the current and prior fiscal year. 
The report shall also include a status of submitted, pending, 
and approved tobacco product applications per each regulatory 
pathway and class as defined by the Tobacco Control Act, and 
subsequent regulations, for the past three fiscal years and 
planned for the current fiscal year.
    User Fee Collections/Obligations.--The Committee continues 
to be concerned about the financial management of the FDA's 
user fee programs. At the end of fiscal year 2016, FDA had a 
carryover balance of $1,710,000,000. Of this amount, the PDUFA 
account showed a balance of nearly $844 million and the GDUFA 
account showed a balance of $342 million. Such balances 
indicate that FDA has additional resources for hiring more 
review staff and support for the review of innovator and 
generic drugs--pharmaceuticals that have the potential to save 
lives, enhance the quality of life for patients, and lower the 
cost of healthcare. The Committee directs that not later than 
30 days after enactment of this Act, and each month thereafter 
through the months covered by this Act, the Commissioner submit 
to the Committees on Appropriations of the House and Senate a 
report on user fees collected for each user fee program 
included in the Act. The report shall also include monthly 
obligations incurred against such fee collections. The report 
shall include a distinct categorization of the user fee 
balances that are being carried forward into fiscal year 2018 
for each user fee account as well as a detailed explanation of 
what accounts for the balance and what the balance will be used 
for.

                        BUILDINGS AND FACILITIES

 
 
 
2017 appropriation....................................       $11,788,000
2018 budget estimate..................................         8,771,000
Provided in the bill..................................         8,771,000
Comparison:
    2017 appropriation................................        -3,017,000
    2018 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Buildings and Facilities of the Food and Drug 
Administration, the Committee provides $8,771,000.

                          INDEPENDENT AGENCIES


                  Commodity Futures Trading Commission


 
 
 
2017 appropriation....................................      $250,000,000
2018 budget estimate..................................       250,000,000
Provided in the bill..................................       248,000,000
Comparison:
    2017 appropriation................................        -2,000,000
    2018 budget estimate..............................        -2,000,000
 

                          COMMITTEE PROVISIONS

    For the Commodity Futures Trading Commission, the Committee 
provides an appropriation of $248,000,000, of which $49,000,000 
is for the purchase of IT and $2,700,000 is for the Inspector 
General. Overhead for the Inspector General shall not exceed 
$350,000.
    Agency Direction.--The Committee supports the Commission's 
efforts to proactively engage in new areas of market activity, 
including the financial technology sector. The Committee also 
supports the use of resources for robust cost-benefit analysis 
in the Office of the Chief Economist.
    Budgetary Reduction.--The Committee's allocation is reduced 
from FY 2017 in line with the reductions to nearly every agency 
in the bill. The Commission is not exempt. In addition, the 
Committee notes the growth in administrative management and 
support functions under level funding. This includes an 
eighteen percent increase in contractors and thirteen percent 
growth in FTE, during an eight percent decrease in overall 
staffing. The Commission is directed to examine overhead costs 
and find efficiencies where feasible. The Committee directs 
CFTC to prioritize resources in the Division of Enforcement, 
Market Oversight, Swap Dealer and Intermediary oversight, and 
other areas critical to market integrity.
    Collective Bargaining Agreements.--The bill includes 
language allowing the CFTC Chairman to adjust personnel 
compensation and benefits upon a determination that a 
collective bargaining agreement could result in the furlough or 
reduction-in-force (RIF) of employees. This language is the 
result of numerous attempts by the Commission to impose a 
coercive deficiency upon Congress by threatening furloughs or 
RIFs or by furloughing its own employees. The Chairman is 
directed to provide regular updates to the Committee regarding 
the status of union negotiations. The Commission is further 
directed to avoid any negotiation or financial situation that 
would impose such a deficiency upon Congress.
    Internal Risk Management Transactions.--The Committee 
supports efforts to provide regulatory relief on transactions 
between inter-affiliated parties and counterparties. These 
affiliated entities include majority interest of one party by a 
counterparty or when both parties to a transaction have a 
majority interest by a third party. This relief includes 
requiring the use of variation margin and centralized risk 
management practices. The Committee encourages the Commission 
to engage on this issue with stakeholders.
    Swap Dealer de Minimis.--Within 60 days of enactment of 
this Act, the Committee directs the Commission to promulgate a 
rulemaking setting the Swap Dealer de Minimis threshold at not 
less than $8,000,000,000.

                       Farm Credit Administration


                 LIMITATION ON ADMINISTRATIVE EXPENSES

 
 
 
2017 limitation.......................................     ($68,600,000)
2018 budget estimate..................................      (72,600,000)
Provided in the bill..................................      (68,600,000)
Comparison:
    2017 limitation...................................             - - -
    2018 budget estimate..............................        -4,000,000
 

                          COMMITTEE PROVISIONS

    For a limitation on the expenses of the Farm Credit 
Administration (FCA), the Committee provides $68,600,000.
    Farm Economy.--FCA is encouraged to explore and leverage 
its existing partnership with USDA in providing access to 
credit during the current downturn in the farm and rural 
economy. FCA is directed to ensure that Farm Credit System 
institutions and associations operate within existing 
authorities. In addition, FCA is encouraged to review and 
report back to the Committee within 60 days of enactment of 
this Act on establishing new procedures for public-private 
partnerships to support rural community facilities.

                               TITLE VII


                           GENERAL PROVISIONS


             (INCLUDING RESCISSIONS AND TRANSFERS OF FUNDS)

    The General Provisions contained in the accompanying bill 
for fiscal year 2018 are fundamentally the same as those 
included in last year's appropriations bill.
    The following general provisions are included in the bill:
    Section 701: Limitation on the purchase of passenger motor 
vehicles.
    Section 702: Transfer authority regarding the Working 
Capital Fund.
    Section 703: Limitation on certain obligations.
    Section 704: Indirect cost rates for cooperative agreements 
with nonprofit institutions.
    Section 705: Disbursement of rural development loans.
    Section 706: Authority of the Chief Information Officer 
relating to new IT systems.
    Section 707: Availability of mandatory conservation program 
funding.
    Section 708: Rural Utility Service borrower eligibility.
    Section 709: Rescission of certain unobligated balances.
    Section 710: Prohibition on first-class airline travel.
    Section 711: Use of funds authorized by the Commodity 
Credit Corporation Charter Act.
    Section 712: Funding for advisory committees.
    Section 713: Indirect costs for competitive agricultural 
research grants.
    Section 714: Limitation on certain funds.
    Section 715: Limitation on certain funds.
    Section 716: Language on user fee proposals without 
offsets.
    Section 717: Language on reprogramming.
    Section 718: Language on fees for the business and industry 
guaranteed loan program.
    Section 719: Language on questions for the record.
    Section 720: Language regarding prepackaged news stories.
    Section 721: Language on prohibition on paid details in 
excess of 60 days.
    Section 722: Language regarding grant notifications.
    Section 723: Language regarding spending plans.
    Section 724: Language on controls over humanitarian food 
assistance.
    Section 725: Language regarding Single Family Housing 
Direct Loan Program.
    Section 726: Language regarding USDA loan programs.
    Section 727: Transfer authority regarding the Working 
Capital Fund.
    Section 728: Language regarding purchases made through 
Child Nutrition Programs.
    Section 729: Language regarding potable water supplies.
    Section 730: Language regarding research programs.
    Section 731: Language regarding nutrition research.
    Section 732: Language regarding housing loan programs.
    Section 733: Language regarding consumer information.
    Section 734: Language regarding tissue regulation.
    Section 735: Language regarding animal feed.
    Section 736: Language regarding APHIS regulation.
    Section 737: Language regarding animal research.
    Section 738: Language regarding FDA regulation.
    Section 739: Language regarding rural housing lender fees.
    Section 740: Language regarding IT systems.
    Section 741: Language regarding a rescission of funds.
    Section 742: Language regarding domestic preference.
    Section 743: Language regarding child nutrition programs.
    Section 744: Language regarding persistent poverty.
    Section 745: Language regarding community eligibility.
    Section 746: Language regarding lobbying.
    Section 747: Language regarding SNAP regulations.
    Section 748: Language regarding FDA regulation.
    Section 749: Language regarding housing programs.
    Section 750: Language regarding a rescission of funds.
    Section 751: Language regarding CFTC regulation.
    Section 752: Language regarding FDA regulation.
    Section 753: Language regarding FDA regulation.
    Section 754: Language regarding FSIS regulation.
    Section 755: Language regarding the Commodity Credit 
Corporation.
    Section 756: Language regarding the National Ocean Policy.
    Section 757: Language regarding the 21st Century Cures Act.
    Section 758: Language regarding citrus greening.
    Section 759: Language regarding healthy food financing.
    Section 760: Language regarding CFTC regulation.
    Section 761: Language regarding the Spending Reduction 
Account.

              HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS



         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

                              Rescissions

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following lists the rescissions 
of unexpended balances included in the accompanying bill:

------------------------------------------------------------------------
                 Program or Activity                         Amount
------------------------------------------------------------------------
USDA Cushion of Credit...............................       $196,000,000
USDA AMS (prior year balances).......................        263,000,000
USDA FNS (prior year balances).......................        600,000,000
USDA Rural Energy Savings Program....................          8,000,000
------------------------------------------------------------------------

                           Transfers of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following list includes the 
transfers of unexpended balances included in the accompanying 
bill:
    1. Departmental Administration.--The bill requires 
reimbursement for expenses related to certain hearings.
    2. Office of the Assistant Secretary for Congressional 
Relations.--The bill allows a portion of the funds appropriated 
to the Office of the Assistant Secretary to be transferred to 
agencies.
    3. Hazardous Materials Management.--The bill allows the 
funds appropriated to the Department for hazardous materials 
management to be transferred to agencies of the Department as 
required.
    4. Animal and Plant Health Inspection Service.--Authority 
is included to enable the Secretary of Agriculture to transfer 
from other appropriations or funds of the Department such sums 
as may be necessary to combat emergency outbreaks of certain 
diseases of animals, plants, and poultry.
    5. Funds for Strengthening Markets, Income, and Supply.--
The bill limits the transfer of section 32 funds to purposes 
specified in the bill.
    6. Farm Service Agency Salaries and Expenses.--The bill 
provides that funds provided to other accounts in the agency 
may be merged with the salaries and expenses account of the 
Farm Service Agency.
    7. Dairy Indemnity Program.--The bill authorizes the 
transfer of funds to the Commodity Credit Corporation, by 
reference.
    8. Agricultural Credit Insurance Fund Program Account.--The 
bill provides funds to be transferred to the Farm Service 
Agency.
    9. Commodity Credit Corporation.--The bill includes 
language allowing certain funds to be transferred to the 
Foreign Agricultural Service for information resource 
management activities.
    10. Rural Development Salaries and Expenses.--The bill 
provides that prior year balances from certain accounts shall 
be transferred to and merged with this account.
    11. Rural Housing Insurance Fund Program Account, 
Intermediary Relending Program Fund Account, and Rural 
Electrification and Telecommunications Program Account.--The 
bill provides funds in this account shall be transferred to the 
salaries and expenses of Rural Development.
    12. Child Nutrition Programs.--The bill includes authority 
to transfer section 32 funds to these programs.
    13. Foreign Agricultural Service, Salaries and Expenses.--
The bill allows for the transfer of funds from the Commodity 
Credit Corporation Export Loan Program Account.
    14. Food for Peace Title I Direct Credit and Food for 
Progress Program Account.--The bill allows funds to be 
transferred to the Farm Service Agency, Salaries and Expenses 
account. The bill also provides that funds made available for 
the cost of title I agreements and for title I ocean freight 
differential may be used interchangeably.
    15. Commodity Credit Corporation Export Loans Program.--The 
bill provides for transfer of funds to the Foreign Agricultural 
Service and to the Farm Service Agency for overhead expenses 
associated with credit reform.
    16. Food and Drug Administration, Salaries and Expenses.--
The bill allows funds to be transferred among activities.
    17. General Provisions.--The bill allows unobligated 
balances of discretionary funds to be transferred to the 
Working Capital Fund.

   Disclosure of Earmarks and Congressionally Directed Spending Items

    Neither the bill nor this report contain any congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman:

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

              RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT



           *       *       *       *       *       *       *
               NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS

  Sec. 9. (a)(1)(A) Lunches served by schools participating in 
the school lunch program under this Act shall meet minimum 
nutritional requirements prescribed by the Secretary on the 
basis of tested nutritional research, except that the minimum 
nutritional requirements--
          (i) shall not be construed to prohibit the 
        substitution of foods to accommodate the medical or 
        other special dietary needs of individual students; and
          (ii) shall, at a minimum, be based on the weekly 
        average of the nutrient content of school lunches.
  (B) The Secretary shall provide technical assistance and 
training, including technical assistance and training in the 
preparation of lower-fat versions of foods commonly used in the 
school lunch program under this Act, to schools participating 
in the school lunch program to assist the schools in complying 
with the nutritional requirements prescribed by the Secretary 
pursuant to subparagraph (A) and in providing appropriate meals 
to children with medically certified special dietary needs. The 
Secretary shall provide additional technical assistance to 
schools that are having difficulty maintaining compliance with 
the requirements.
          (2) Fluid milk.--
                  (A) In general.--Lunches served by schools 
                participating in the school lunch program under 
                this Act--
                          (i) shall offer students a variety of 
                        fluid milk. Such milk shall be 
                        consistent with the most recent Dietary 
                        Guidelines for Americans published 
                        under section 301 of the National 
                        Nutrition Monitoring and Related 
                        Research Act of 1990 (7 U.S.C. 5341);
                          (ii) may offer students flavored and 
                        unflavored fluid milk and lactose-free 
                        fluid milk; and
                          (iii) shall provide a substitute for 
                        fluid milk for students whose 
                        disability restricts their diet, on 
                        receipt of a written statement from a 
                        licensed physician that identifies the 
                        disability that restricts the student's 
                        diet and that specifies the substitute 
                        for fluid milk.
                  (B) Substitutes.--
                          (i) Standards for substitution.--A 
                        school may substitute for the fluid 
                        milk provided under subparagraph (A), a 
                        nondairy beverage that is nutritionally 
                        equivalent to fluid milk and meets 
                        nutritional standards established by 
                        the Secretary (which shall, among other 
                        requirements to be determined by the 
                        Secretary, include fortification of 
                        calcium, protein, vitamin A, and 
                        vitamin D to levels found in cow's 
                        milk) for students who cannot consume 
                        fluid milk because of a medical or 
                        other special dietary need other than a 
                        disability described in subparagraph 
                        (A)(iii).
                          (ii) Notice.--The substitutions may 
                        be made if the school notifies the 
                        State agency that the school is 
                        implementing a variation allowed under 
                        this subparagraph, and if the 
                        substitution is requested by written 
                        statement of a medical authority or by 
                        a student's parent or legal guardian 
                        that identifies the medical or other 
                        special dietary need that restricts the 
                        student's diet, except that the school 
                        shall not be required to provide 
                        beverages other than beverages the 
                        school has identified as acceptable 
                        substitutes.
                          (iii) Excess expenses borne by school 
                        food authority.--Expenses incurred in 
                        providing substitutions under this 
                        subparagraph that are in excess of 
                        expenses covered by reimbursements 
                        under this Act shall be paid by the 
                        school food authority.
                  (C) Restrictions on sale of milk 
                prohibited.--A school that participates in the 
                school lunch program under this Act shall not 
                directly or indirectly restrict the sale or 
                marketing of fluid milk products by the school 
                (or by a person approved by the school) at any 
                time or any place--
                          (i) on the school premises; or
                          (ii) at any school-sponsored event.
  (3) Students in senior high schools that participate in the 
school lunch program under this Act (and, when approved by the 
local school district or nonprofit private schools, students in 
any other grade level) shall not be required to accept offered 
foods they do not intend to consume, and any such failure to 
accept offered foods shall not affect the full charge to the 
student for a lunch meeting the requirements of this subsection 
or the amount of payments made under this Act to any such 
school for such lunch.
          (4) Provision of information.--
                  (A) Guidance.--Prior to the beginning of the 
                school year beginning July 2004, the Secretary 
                shall issue guidance to States and school food 
                authorities to increase the consumption of 
                foods and food ingredients that are recommended 
                for increased serving consumption in the most 
                recent Dietary Guidelines for Americans 
                published under section 301 of the National 
                Nutrition Monitoring and Related Research Act 
                of 1990 (7 U.S.C. 5341).
                  (B) Rules.--Not later than 2 years after the 
                date of enactment of this paragraph, the 
                Secretary shall promulgate rules, based on the 
                most recent Dietary Guidelines for Americans, 
                that reflect specific recommendations, 
                expressed in serving recommendations, for 
                increased consumption of foods and food 
                ingredients offered in school nutrition 
                programs under this Act and the Child Nutrition 
                Act of 1966 (42 U.S.C. 1771 et seq.).
                  (C) Procurement and processing of food 
                service products and commodities.--The 
                Secretary shall--
                          (i) identify, develop, and 
                        disseminate to State departments of 
                        agriculture and education, school food 
                        authorities, local educational 
                        agencies, and local processing 
                        entities, model product specifications 
                        and practices for foods offered in 
                        school nutrition programs under this 
                        Act and the Child Nutrition Act of 1966 
                        (42 U.S.C. 1771 et seq.) to ensure that 
                        the foods reflect the most recent 
                        Dietary Guidelines for Americans 
                        published under section 301 of the 
                        National Nutrition Monitoring and 
                        Related Research Act of 1990 (7 U.S.C. 
                        5341);
                          (ii) not later than 1 year after the 
                        date of enactment of this 
                        subparagraph--
                                  (I) carry out a study to 
                                analyze the quantity and 
                                quality of nutritional 
                                information available to school 
                                food authorities about food 
                                service products and 
                                commodities; and
                                  (II) submit to Congress a 
                                report on the results of the 
                                study that contains such 
                                legislative recommendations as 
                                the Secretary considers 
                                necessary to ensure that school 
                                food authorities have access to 
                                the nutritional information 
                                needed for menu planning and 
                                compliance assessments; and
                          (iii) to the maximum extent 
                        practicable, in purchasing and 
                        processing commodities for use in 
                        school nutrition programs under this 
                        Act and the Child Nutrition Act of 1966 
                        (42 U.S.C. 1771 et seq.), purchase the 
                        widest variety of healthful foods that 
                        reflect the most recent Dietary 
                        Guidelines for Americans.
          (5) Water.--Schools participating in the school lunch 
        program under this Act shall make available to children 
        free of charge, as nutritionally appropriate, potable 
        water for consumption in the place where meals are 
        served during meal service.
  (b)(1)(A) Not later than June 1 of each fiscal year, the 
Secretary shall prescribe income guidelines for determining 
eligibility for free and reduced price lunches during the 12-
month period beginning July 1 of such fiscal year and ending 
June 30 of the following fiscal year. The income guidelines for 
determining eligibility for free lunches shall be 130 percent 
of the applicable family size income levels contained in the 
nonfarm income poverty guidelines prescribed by the Office of 
Management and Budget, as adjusted annually in accordance with 
subparagraph (B). The income guidelines for determining 
eligibility for reduced price lunches for any school year shall 
be 185 percent of the applicable family size income levels 
contained in the nonfarm income poverty guidelines prescribed 
by the Office of Management and Budget, as adjusted annually in 
accordance with subparagraph (B). The Office of Management and 
Budget guidelines shall be revised at annual intervals, or at 
any shorter interval deemed feasible and desirable.
  (B) The revision required by subparagraph (A) of this 
paragraph shall be made by multiplying--
          (i) the official poverty line (as defined by the 
        Office of Management and Budget); by
          (ii) the percentage change in the Consumer Price 
        Index during the annual or other interval immediately 
        preceding the time at which the adjustment is made.
Revisions under this subparagraph shall be made not more than 
30 days after the date on which the consumer price index data 
required to compute the adjustment becomes available.
  (2)(A) Following the determination by the Secretary under 
paragraph (1) of this subsection of the income eligibility 
guidelines for each school year, each State educational agency 
shall announce the income eligibility guidelines, by family 
size, to be used by schools in the State in making 
determinations of eligibility for free and reduced price 
lunches. Local school authorities shall, each year, publicly 
announce the income eligibility guidelines for free and reduced 
price lunches on or before the opening of school.
          (B) Applications and descriptive material.--
                  (i) In general.--Applications for free and 
                reduced price lunches, in such form as the 
                Secretary may prescribe or approve, and any 
                descriptive material, shall be distributed to 
                the parents or guardians of children in 
                attendance at the school, and shall contain 
                only the family size income levels for reduced 
                price meal eligibility with the explanation 
                that households with incomes less than or equal 
                to these values would be eligible for free or 
                reduced price lunches.
                  (ii) Income eligibility guidelines.--Forms 
                and descriptive material distributed in 
                accordance with clause (i) may not contain the 
                income eligibility guidelines for free lunches.
                  (iii) Contents of descriptive material.--
                          (I) In general.--Descriptive material 
                        distributed in accordance with clause 
                        (i) shall contain a notification that--
                                  (aa) participants in the 
                                programs listed in subclause 
                                (II) may be eligible for free 
                                or reduced price meals; and
                                  (bb) documentation may be 
                                requested for verification of 
                                eligibility for free or reduced 
                                price meals.
                          (II) Programs.--The programs referred 
                        to in subclause (I)(aa) are--
                                  (aa) the special supplemental 
                                nutrition program for women, 
                                infants, and children 
                                established by section 17 of 
                                the Child Nutrition Act of 1966 
                                (42 U.S.C. 1786);
                                  (bb) the supplemental 
                                nutrition assistance program 
                                established under the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 
                                2011 et seq.);
                                  (cc) the food distribution 
                                program on Indian reservations 
                                established under section 4(b) 
                                of the Food and Nutrition Act 
                                of 2008 (7 U.S.C. 2013(b)); and
                                  (dd) a State program funded 
                                under the program of block 
                                grants to States for temporary 
                                assistance for needy families 
                                established under part A of 
                                title IV of the Social Security 
                                Act (42 U.S.C. 601 et seq.).
          (3) Household applications.--
                  (A) Definition of household application.--In 
                this paragraph, the term ``household 
                application'' means an application for a child 
                of a household to receive free or reduced price 
                school lunches under this Act, or free or 
                reduced price school breakfasts under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
                for which an eligibility determination is made 
                other than under paragraph (4) or (5).
                  (B) Eligibility determination.--
                          (i) In general.--An eligibility 
                        determination shall be made on the 
                        basis of a complete household 
                        application executed by an adult member 
                        of the household or in accordance with 
                        guidance issued by the Secretary.
                          (ii) Electronic signatures and 
                        applications.--A household application 
                        may be executed using an electronic 
                        signature if--
                                  (I) the application is 
                                submitted electronically; and
                                  (II) the electronic 
                                application filing system meets 
                                confidentiality standards 
                                established by the Secretary.
                  (C) Children in household.--
                          (i) In general.--The household 
                        application shall identify the names of 
                        each child in the household for whom 
                        meal benefits are requested.
                          (ii) Separate applications.--A State 
                        educational agency or local educational 
                        agency may not request a separate 
                        application for each child in the 
                        household that attends schools under 
                        the same local educational agency.
                  (D) Verification of sample.--
                          (i) Definitions.--In this 
                        subparagraph:
                                  (I) Error prone 
                                application.--The term ``error 
                                prone application'' means an 
                                approved household application 
                                that--
                                          (aa) indicates 
                                        monthly income that is 
                                        within $100, or an 
                                        annual income that is 
                                        within $1,200, of the 
                                        income eligibility 
                                        limitation for free or 
                                        reduced price meals; or
                                          (bb) in lieu of the 
                                        criteria established 
                                        under item (aa), meets 
                                        criteria established by 
                                        the Secretary.
                                  (II) Non-response rate.--The 
                                term ``non-response rate'' 
                                means (in accordance with 
                                guidelines established by the 
                                Secretary) the percentage of 
                                approved household applications 
                                for which verification 
                                information has not been 
                                obtained by a local educational 
                                agency after attempted 
                                verification under 
                                subparagraphs (F) and (G).
                          (ii) Verification of sample.--Each 
                        school year, a local educational agency 
                        shall verify eligibility of the 
                        children in a sample of household 
                        applications approved for the school 
                        year by the local educational agency, 
                        as determined by the Secretary in 
                        accordance with this subsection.
                          (iii) Sample size.--Except as 
                        otherwise provided in this paragraph, 
                        the sample for a local educational 
                        agency for a school year shall equal 
                        the lesser of--
                                  (I) 3 percent of all 
                                applications approved by the 
                                local educational agency for 
                                the school year, as of October 
                                1 of the school year, selected 
                                from error prone applications; 
                                or
                                  (II) 3,000 error prone 
                                applications approved by the 
                                local educational agency for 
                                the school year, as of October 
                                1 of the school year.
                          (iv) Alternative sample size.--
                                  (I) In general.--If the 
                                conditions described in 
                                subclause (IV) are met, the 
                                verification sample size for a 
                                local educational agency shall 
                                be the sample size described in 
                                subclause (II) or (III), as 
                                determined by the local 
                                educational agency.
                                  (II)  3,000/3 percent 
                                option.--The sample size 
                                described in this subclause 
                                shall be the lesser of 3,000, 
                                or 3 percent of, applications 
                                selected at random from 
                                applications approved by the 
                                local educational agency for 
                                the school year, as of October 
                                1 of the school year.
                                  (III)  1,000/1 percent plus 
                                option.--
                                          (aa) In general.--The 
                                        sample size described 
                                        in this subclause shall 
                                        be the sum of--
                                                  (AA) the 
                                                lesser of 
                                                1,000, or 1 
                                                percent of, all 
                                                applications 
                                                approved by the 
                                                local 
                                                educational 
                                                agency for the 
                                                school year, as 
                                                of October 1 of 
                                                the school 
                                                year, selected 
                                                from error 
                                                prone 
                                                applications; 
                                                and
                                                  (BB) the 
                                                lesser of 500, 
                                                or \1/2\ of 1 
                                                percent of, 
                                                applications 
                                                approved by the 
                                                local 
                                                educational 
                                                agency for the 
                                                school year, as 
                                                of October 1 of 
                                                the school 
                                                year, that 
                                                provide a case 
                                                number (in lieu 
                                                of income 
                                                information) 
                                                showing 
                                                participation 
                                                in a program 
                                                described in 
                                                item (bb) 
                                                selected from 
                                                those approved 
                                                applications 
                                                that provide a 
                                                case number (in 
                                                lieu of income 
                                                information) 
                                                verifying the 
                                                participation.
                                          (bb) Programs.--The 
                                        programs described in 
                                        this item are--
                                                  (AA) the 
                                                supplemental 
                                                nutrition 
                                                assistance 
                                                program 
                                                established 
                                                under the Food 
                                                and Nutrition 
                                                Act of 2008 (7 
                                                U.S.C. 2011 et 
                                                seq.);
                                                  (BB) the food 
                                                distribution 
                                                program on 
                                                Indian 
                                                reservations 
                                                established 
                                                under section 
                                                4(b) of the 
                                                Food and 
                                                Nutrition Act 
                                                of 2008 (7 
                                                U.S.C. 
                                                2013(b)); and
                                                  (CC) a State 
                                                program funded 
                                                under the 
                                                program of 
                                                block grants to 
                                                States for 
                                                temporary 
                                                assistance for 
                                                needy families 
                                                established 
                                                under part A of 
                                                title IV of the 
                                                Social Security 
                                                Act (42 U.S.C. 
                                                601 et seq.) 
                                                that the 
                                                Secretary 
                                                determines 
                                                complies with 
                                                standards 
                                                established by 
                                                the Secretary 
                                                that ensure 
                                                that the 
                                                standards under 
                                                the State 
                                                program are 
                                                comparable to 
                                                or more 
                                                restrictive 
                                                than those in 
                                                effect on June 
                                                1, 1995.
                                  (IV) Conditions.--The 
                                conditions referred to in 
                                subclause (I) shall be met for 
                                a local educational agency for 
                                a school year if--
                                          (aa) the nonresponse 
                                        rate for the local 
                                        educational agency for 
                                        the preceding school 
                                        year is less than 20 
                                        percent; or
                                          (bb) the local 
                                        educational agency has 
                                        more than 20,000 
                                        children approved by 
                                        application by the 
                                        local educational 
                                        agency as eligible for 
                                        free or reduced price 
                                        meals for the school 
                                        year, as of October 1 
                                        of the school year, 
                                        and--
                                                  (AA) the 
                                                nonresponse 
                                                rate for the 
                                                preceding 
                                                school year is 
                                                at least 10 
                                                percent below 
                                                the nonresponse 
                                                rate for the 
                                                second 
                                                preceding 
                                                school year; or
                                                  (BB) in the 
                                                case of the 
                                                school year 
                                                beginning July 
                                                2005, the local 
                                                educational 
                                                agency attempts 
                                                to verify all 
                                                approved 
                                                household 
                                                applications 
                                                selected for 
                                                verification 
                                                through use of 
                                                public agency 
                                                records from at 
                                                least 2 of the 
                                                programs or 
                                                sources of 
                                                information 
                                                described in 
                                                subparagraph 
                                                (F)(i).
                          (v) Additional selected 
                        applications.--A sample for a local 
                        educational agency for a school year 
                        under clauses (iii) and (iv)(III)(AA) 
                        shall include the number of additional 
                        randomly selected approved household 
                        applications that are required to 
                        comply with the sample size 
                        requirements in those clauses.
                  (E) Preliminary review.--
                          (i) Review for accuracy.--
                                  (I) In general.--Prior to 
                                conducting any other 
                                verification activity for 
                                approved household applications 
                                selected for verification, the 
                                local educational agency shall 
                                ensure that the initial 
                                eligibility determination for 
                                each approved household 
                                application is reviewed for 
                                accuracy by an individual other 
                                than the individual making the 
                                initial eligibility 
                                determination, unless otherwise 
                                determined by the Secretary.
                                  (II) Waiver.--The 
                                requirements of subclause (I) 
                                shall be waived for a local 
                                educational agency if the local 
                                educational agency is using a 
                                technology-based solution that 
                                demonstrates a high level of 
                                accuracy, to the satisfaction 
                                of the Secretary, in processing 
                                an initial eligibility 
                                determination in accordance 
                                with the income eligibility 
                                guidelines of the school lunch 
                                program.
                          (ii) Correct eligibility 
                        determination.--If the review indicates 
                        that the initial eligibility 
                        determination is correct, the local 
                        educational agency shall verify the 
                        approved household application.
                          (iii) Incorrect eligibility 
                        determination.--If the review indicates 
                        that the initial eligibility 
                        determination is incorrect, the local 
                        educational agency shall (as determined 
                        by the Secretary)--
                                  (I) correct the eligibility 
                                status of the household;
                                  (II) notify the household of 
                                the change;
                                  (III) in any case in which 
                                the review indicates that the 
                                household is not eligible for 
                                free or reduced-price meals, 
                                notify the household of the 
                                reason for the ineligibility 
                                and that the household may 
                                reapply with income 
                                documentation for free or 
                                reduced-price meals; and
                                  (IV) in any case in which the 
                                review indicates that the 
                                household is eligible for free 
                                or reduced-price meals, verify 
                                the approved household 
                                application.
                  (F) Direct verification.--
                          (i) In general.--Subject to clauses 
                        (ii) and (iii), to verify eligibility 
                        for free or reduced price meals for 
                        approved household applications 
                        selected for verification, the local 
                        educational agency may (in accordance 
                        with criteria established by the 
                        Secretary) first obtain and use income 
                        and program participation information 
                        from a public agency administering--
                                  (I) the supplemental 
                                nutrition assistance program 
                                established under the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 
                                2011 et seq.);
                                  (II) the food distribution 
                                program on Indian reservations 
                                established under section 4(b) 
                                of the Food and Nutrition Act 
                                of 2008 (7 U.S.C. 2013(b));
                                  (III) the temporary 
                                assistance for needy families 
                                program funded under part A of 
                                title IV of the Social Security 
                                Act (42 U.S.C. 601 et seq.);
                                  (IV) the State medicaid 
                                program under title XIX of the 
                                Social Security Act (42 U.S.C. 
                                1396 et seq.); or
                                  (V) a similar income-tested 
                                program or other source of 
                                information, as determined by 
                                the Secretary.
                          (ii) Free meals.--Public agency 
                        records that may be obtained and used 
                        under clause (i) to verify eligibility 
                        for free meals for approved household 
                        applications selected for verification 
                        shall include the most recent available 
                        information (other than information 
                        reflecting program participation or 
                        income before the 180-day period ending 
                        on the date of application for free 
                        meals) that is relied on to 
                        administer--
                                  (I) a program or source of 
                                information described in clause 
                                (i) (other than clause 
                                (i)(IV)); or
                                  (II) the State plan for 
                                medical assistance under title 
                                XIX of the Social Security Act 
                                (42 U.S.C. 1396 et seq.) in--
                                          (aa) a State in which 
                                        the income eligibility 
                                        limit applied under 
                                        section 1902(l)(2)(C) 
                                        of that Act (42 U.S.C. 
                                        1396a(l)(2)(C)) is not 
                                        more than 133 percent 
                                        of the official poverty 
                                        line described in 
                                        section 1902(l)(2)(A) 
                                        of that Act (42 U.S.C. 
                                        1396a(l)(2)(A)); or
                                          (bb) a State that 
                                        otherwise identifies 
                                        households that have 
                                        income that is not more 
                                        than 133 percent of the 
                                        official poverty line 
                                        described in section 
                                        1902(l)(2)(A) of that 
                                        Act (42 U.S.C. 
                                        1396a(l)(2)(A)).
                          (iii) Reduced price meals.--Public 
                        agency records that may be obtained and 
                        used under clause (i) to verify 
                        eligibility for reduced price meals for 
                        approved household applications 
                        selected for verification shall include 
                        the most recent available information 
                        (other than information reflecting 
                        program participation or income before 
                        the 180-day period ending on the date 
                        of application for reduced price meals) 
                        that is relied on to administer--
                                  (I) a program or source of 
                                information described in clause 
                                (i) (other than clause 
                                (i)(IV)); or
                                  (II) the State plan for 
                                medical assistance under title 
                                XIX of the Social Security Act 
                                (42 U.S.C. 1396 et seq.) in--
                                          (aa) a State in which 
                                        the income eligibility 
                                        limit applied under 
                                        section 1902(l)(2)(C) 
                                        of that Act (42 U.S.C. 
                                        1396a(l)(2)(C)) is not 
                                        more than 185 percent 
                                        of the official poverty 
                                        line described in 
                                        section 1902(l)(2)(A) 
                                        of that Act (42 U.S.C. 
                                        1396a(l)(2)(A)); or
                                          (bb) a State that 
                                        otherwise identifies 
                                        households that have 
                                        income that is not more 
                                        than 185 percent of the 
                                        official poverty line 
                                        described in section 
                                        1902(l)(2)(A) of that 
                                        Act (42 U.S.C. 
                                        1396a(l)(2)(A)).
                          (iv) Evaluation.--Not later than 3 
                        years after the date of enactment of 
                        this subparagraph, the Secretary shall 
                        complete an evaluation of--
                                  (I) the effectiveness of 
                                direct verification carried out 
                                under this subparagraph in 
                                decreasing the portion of the 
                                verification sample that must 
                                be verified under subparagraph 
                                (G) while ensuring that 
                                adequate verification 
                                information is obtained; and
                                  (II) the feasibility of 
                                direct verification by State 
                                agencies and local educational 
                                agencies.
                          (v) Expanded use of direct 
                        verification.--If the Secretary 
                        determines that direct verification 
                        significantly decreases the portion of 
                        the verification sample that must be 
                        verified under subparagraph (G), while 
                        ensuring that adequate verification 
                        information is obtained, and can be 
                        conducted by most State agencies and 
                        local educational agencies, the 
                        Secretary may require a State agency or 
                        local educational agency to implement 
                        direct verification through 1 or more 
                        of the programs described in clause 
                        (i), as determined by the Secretary, 
                        unless the State agency or local 
                        educational agency demonstrates (under 
                        criteria established by the Secretary) 
                        that the State agency or local 
                        educational agency lacks the capacity 
                        to conduct, or is unable to implement, 
                        direct verification.
                  (G) Household verification.--
                          (i) In general.--If an approved 
                        household application is not verified 
                        through the use of public agency 
                        records, a local educational agency 
                        shall provide to the household written 
                        notice that--
                                  (I) the approved household 
                                application has been selected 
                                for verification; and
                                  (II) the household is 
                                required to submit verification 
                                information to confirm 
                                eligibility for free or reduced 
                                price meals.
                          (ii) Phone number.--The written 
                        notice in clause (i) shall include a 
                        toll-free phone number that parents and 
                        legal guardians in households selected 
                        for verification can call for 
                        assistance with the verification 
                        process.
                          (iii) Followup activities.--If a 
                        household does not respond to a 
                        verification request, a local 
                        educational agency shall make at least 
                        1 attempt to obtain the necessary 
                        verification from the household in 
                        accordance with guidelines and 
                        regulations promulgated by the 
                        Secretary.
                          (iv) Contract authority for school 
                        food authorities.--A local educational 
                        agency may contract (under standards 
                        established by the Secretary) with a 
                        third party to assist the local 
                        educational agency in carrying out 
                        clause (iii).
                  (H) Verification deadline.--
                          (i) General deadline.--
                                  (I) In general.--Subject to 
                                subclause (II), not later than 
                                November 15 of each school 
                                year, a local educational 
                                agency shall complete the 
                                verification activities 
                                required for the school year 
                                (including followup 
                                activities).
                                  (II) Extension.--Under 
                                criteria established by the 
                                Secretary, a State may extend 
                                the deadline established under 
                                subclause (I) for a school year 
                                for a local educational agency 
                                to December 15 of the school 
                                year.
                          (ii) Eligibility changes.--Based on 
                        the verification activities, the local 
                        educational agency shall make 
                        appropriate modifications to the 
                        eligibility determinations made for 
                        household applications in accordance 
                        with criteria established by the 
                        Secretary.
                  (I) Local conditions.--In the case of a 
                natural disaster, civil disorder, strike, or 
                other local condition (as determined by the 
                Secretary), the Secretary may substitute 
                alternatives for--
                          (i) the sample size and sample 
                        selection criteria established under 
                        subparagraph (D); and
                          (ii) the verification deadline 
                        established under subparagraph (H).
                  (J) Individual review.--In accordance with 
                criteria established by the Secretary, the 
                local educational agency may, on individual 
                review--
                          (i) decline to verify no more than 5 
                        percent of approved household 
                        applications selected under 
                        subparagraph (D); and
                          (ii) replace the approved household 
                        applications with other approved 
                        household applications to be verified.
                  (K) Feasibility study.--
                          (i) In general.--The Secretary shall 
                        conduct a study of the feasibility of 
                        using computer technology (including 
                        data mining) to reduce--
                                  (I) overcertification errors 
                                in the school lunch program 
                                under this Act;
                                  (II) waste, fraud, and abuse 
                                in connection with this 
                                paragraph; and
                                  (III) errors, waste, fraud, 
                                and abuse in other nutrition 
                                programs, as determined to be 
                                appropriate by the Secretary.
                          (ii) Report.--Not later than 180 days 
                        after the date of enactment of this 
                        paragraph, the Secretary shall submit 
                        to the Committee on Education and the 
                        Workforce of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate a report describing--
                                  (I) the results of the 
                                feasibility study conducted 
                                under this subsection;
                                  (II) how a computer system 
                                using technology described in 
                                clause (i) could be 
                                implemented;
                                  (III) a plan for 
                                implementation; and
                                  (IV) proposed legislation, if 
                                necessary, to implement the 
                                system.
          (4) Direct certification for children in supplemental 
        nutrition assistance program households.--
                  (A) In general.--Subject to subparagraph (D), 
                each State agency shall enter into an agreement 
                with the State agency conducting eligibility 
                determinations for the supplemental nutrition 
                assistance program established under the Food 
                and Nutrition Act of 2008 (7 U.S.C. 2011 et 
                seq.).
                  (B) Procedures.--Subject to paragraph (6), 
                the agreement shall establish procedures under 
                which a child who is a member of a household 
                receiving assistance under the supplemental 
                nutrition assistance program shall be certified 
                as eligible for free lunches under this Act and 
                free breakfasts under the Child Nutrition Act 
                of 1966 (42 U.S.C. 1771 et seq.), without 
                further application.
                  (C) Certification.--Subject to paragraph (6), 
                under the agreement, the local educational 
                agency conducting eligibility determinations 
                for a school lunch program under this Act and a 
                school breakfast program under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
                shall certify a child who is a member of a 
                household receiving assistance under the 
                supplemental nutrition assistance program as 
                eligible for free lunches under this Act and 
                free breakfasts under the Child Nutrition Act 
                of 1966 (42 U.S.C. 1771 et seq.), without 
                further application.
                  (D) Applicability.--This paragraph applies 
                to--
                          (i) in the case of the school year 
                        beginning July 2006, a school district 
                        that had an enrollment of 25,000 
                        students or more in the preceding 
                        school year;
                          (ii) in the case of the school year 
                        beginning July 2007, a school district 
                        that had an enrollment of 10,000 
                        students or more in the preceding 
                        school year; and
                          (iii) in the case of the school year 
                        beginning July 2008 and each subsequent 
                        school year, each local educational 
                        agency.
                  (E) Performance awards.--
                          (i) In general.--Effective for each 
                        of the school years beginning July 1, 
                        2011, July 1, 2012, and July 1, 2013, 
                        the Secretary shall offer performance 
                        awards to States to encourage the 
                        States to ensure that all children 
                        eligible for direct certification under 
                        this paragraph are certified in 
                        accordance with this paragraph.
                          (ii) Requirements.--For each school 
                        year described in clause (i), the 
                        Secretary shall--
                                  (I) consider State data from 
                                the prior school year, 
                                including estimates contained 
                                in the report required under 
                                section 4301 of the Food, 
                                Conservation, and Energy Act of 
                                2008 (42 U.S.C. 1758a); and
                                  (II) make performance awards 
                                to not more than 15 States that 
                                demonstrate, as determined by 
                                the Secretary--
                                          (aa) outstanding 
                                        performance; and
                                          (bb) substantial 
                                        improvement.
                          (iii) Use of funds.--A State agency 
                        that receives a performance award under 
                        clause (i)--
                                  (I) shall treat the funds as 
                                program income; and
                                  (II) may transfer the funds 
                                to school food authorities for 
                                use in carrying out the 
                                program.
                          (iv) Funding.--
                                  (I) In general.--On October 
                                1, 2011, and each subsequent 
                                October 1 through October 1, 
                                2013, out of any funds in the 
                                Treasury not otherwise 
                                appropriated, the Secretary of 
                                the Treasury shall transfer to 
                                the Secretary--
                                          (aa) $2,000,000 to 
                                        carry out clause 
                                        (ii)(II)(aa); and
                                          (bb) $2,000,000 to 
                                        carry out clause 
                                        (ii)(II)(bb).
                                  (II) Receipt and 
                                acceptance.--The Secretary 
                                shall be entitled to receive, 
                                shall accept, and shall use to 
                                carry out this clause the funds 
                                transferred under subclause 
                                (I), without further 
                                appropriation.
                          (v) Payments not subject to judicial 
                        review.--A determination by the 
                        Secretary whether, and in what amount, 
                        to make a performance award under this 
                        subparagraph shall not be subject to 
                        administrative or judicial review.
                  (F) Continuous improvement plans.--
                          (i) Definition of required 
                        percentage.--In this subparagraph, the 
                        term ``required percentage'' means--
                                  (I) for the school year 
                                beginning July 1, 2011, 80 
                                percent;
                                  (II) for the school year 
                                beginning July 1, 2012, 90 
                                percent; and
                                  (III) for the school year 
                                beginning July 1, 2013, and 
                                each school year thereafter, 95 
                                percent.
                          (ii) Requirements.--Each school year, 
                        the Secretary shall--
                                  (I) identify, using data from 
                                the prior year, including 
                                estimates contained in the 
                                report required under section 
                                4301 of the Food, Conservation, 
                                and Energy Act of 2008 (42 
                                U.S.C. 1758a), States that 
                                directly certify less than the 
                                required percentage of the 
                                total number of children in the 
                                State who are eligible for 
                                direct certification under this 
                                paragraph;
                                  (II) require the States 
                                identified under subclause (I) 
                                to implement a continuous 
                                improvement plan to fully meet 
                                the requirements of this 
                                paragraph, which shall include 
                                a plan to improve direct 
                                certification for the following 
                                school year; and
                                  (III) assist the States 
                                identified under subclause (I) 
                                to develop and implement a 
                                continuous improvement plan in 
                                accordance with subclause (II).
                          (iii) Failure to meet performance 
                        standard.--
                                  (I) In general.--A State that 
                                is required to develop and 
                                implement a continuous 
                                improvement plan under clause 
                                (ii)(II) shall be required to 
                                submit the continuous 
                                improvement plan to the 
                                Secretary, for the approval of 
                                the Secretary.
                                  (II) Requirements.--At a 
                                minimum, a continuous 
                                improvement plan under 
                                subclause (I) shall include--
                                          (aa) specific 
                                        measures that the State 
                                        will use to identify 
                                        more children who are 
                                        eligible for direct 
                                        certification, 
                                        including improvements 
                                        or modifications to 
                                        technology, information 
                                        systems, or databases;
                                          (bb) a timeline for 
                                        the State to implement 
                                        those measures; and
                                          (cc) goals for the 
                                        State to improve direct 
                                        certification results.
                  (G) Without further application.--
                          (i) In general.--In this paragraph, 
                        the term ``without further 
                        application'' means that no action is 
                        required by the household of the child.
                          (ii) Clarification.--A requirement 
                        that a household return a letter 
                        notifying the household of eligibility 
                        for direct certification or eligibility 
                        for free school meals does not meet the 
                        requirements of clause (i).
          (5) Discretionary certification.--Subject to 
        paragraph (6), any local educational agency may certify 
        any child as eligible for free lunches or breakfasts, 
        without further application, by directly communicating 
        with the appropriate State or local agency to obtain 
        documentation of the status of the child as--
                  (A) a member of a family that is receiving 
                assistance under the temporary assistance for 
                needy families program funded under part A of 
                title IV of the Social Security Act (42 U.S.C. 
                601 et seq.) that the Secretary determines 
                complies with standards established by the 
                Secretary that ensure that the standards under 
                the State program are comparable to or more 
                restrictive than those in effect on June 1, 
                1995;
                  (B) a homeless child or youth (defined as 1 
                of the individuals described in section 725(2) 
                of the McKinney-Vento Homeless Assistance Act 
                (42 U.S.C. 11434a(2));
                  (C) served by the runaway and homeless youth 
                grant program established under the Runaway and 
                Homeless Youth Act (42 U.S.C. 5701 et seq.);
                  (D) a migratory child (as defined in section 
                1309 of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 6399)); or
                  (E)(i) a foster child whose care and 
                placement is the responsibility of an agency 
                that administers a State plan under part B or E 
                of title IV of the Social Security Act (42 
                U.S.C. 621 et seq.); or
                  (ii) a foster child who a court has placed 
                with a caretaker household.
          (6) Use or disclosure of information.--
                  (A) In general.--The use or disclosure of any 
                information obtained from an application for 
                free or reduced price meals, or from a State or 
                local agency referred to in paragraph (3)(F), 
                (4), or (5), shall be limited to--
                          (i) a person directly connected with 
                        the administration or enforcement of 
                        this Act or the Child Nutrition Act of 
                        1966 (42 U.S.C. 1771 et seq.) 
                        (including a regulation promulgated 
                        under either Act);
                          (ii) a person directly connected with 
                        the administration or enforcement of--
                                  (I) a Federal education 
                                program;
                                  (II) a State health or 
                                education program administered 
                                by the State or local 
                                educational agency (other than 
                                a program carried out under 
                                title XIX or XXI of the Social 
                                Security Act (42 U.S.C. 1396 et 
                                seq.; 42 U.S.C. 1397aa et 
                                seq.)); or
                                  (III) a Federal, State, or 
                                local means-tested nutrition 
                                program with eligibility 
                                standards comparable to the 
                                school lunch program under this 
                                Act;
                          (iii)(I) the Comptroller General of 
                        the United States for audit and 
                        examination authorized by any other 
                        provision of law; and
                          (II) notwithstanding any other 
                        provision of law, a Federal, State, or 
                        local law enforcement official for the 
                        purpose of investigating an alleged 
                        violation of any program covered by 
                        this paragraph or paragraph (3)(F), 
                        (4), or (5);
                          (iv) a person directly connected with 
                        the administration of the State 
                        medicaid program under title XIX of the 
                        Social Security Act (42 U.S.C. 1396 et 
                        seq.) or the State children's health 
                        insurance program under title XXI of 
                        that Act (42 U.S.C. 1397aa et seq.) 
                        solely for the purposes of--
                                  (I) identifying children 
                                eligible for benefits under, 
                                and enrolling children in, 
                                those programs, except that 
                                this subclause shall apply only 
                                to the extent that the State 
                                and the local educational 
                                agency or school food authority 
                                so elect; and
                                  (II) verifying the 
                                eligibility of children for 
                                programs under this Act or the 
                                Child Nutrition Act of 1966 (42 
                                U.S.C. 1771 et seq.); and
                          (v) a third party contractor 
                        described in paragraph (3)(G)(iv).
                  (B) Limitation on information provided.--
                Information provided under clause (ii) or (v) 
                of subparagraph (A) shall be limited to the 
                income eligibility status of the child for whom 
                application for free or reduced price meal 
                benefits is made or for whom eligibility 
                information is provided under paragraph (3)(F), 
                (4), or (5), unless the consent of the parent 
                or guardian of the child for whom application 
                for benefits was made is obtained.
                  (C) Criminal penalty.--A person described in 
                subparagraph (A) who publishes, divulges, 
                discloses, or makes known in any manner, or to 
                any extent not authorized by Federal law 
                (including a regulation), any information 
                obtained under this subsection shall be fined 
                not more than $1,000 or imprisoned not more 
                than 1 year, or both.
                  (D) Requirements for waiver of 
                confidentiality.--A State that elects to 
                exercise the option described in subparagraph 
                (A)(iv)(I) shall ensure that any local 
                educational agency or school food authority 
                acting in accordance with that option--
                          (i) has a written agreement with 1 or 
                        more State or local agencies 
                        administering health programs for 
                        children under titles XIX and XXI of 
                        the Social Security Act (42 U.S.C. 1396 
                        et seq. and 1397aa et seq.) that 
                        requires the health agencies to use the 
                        information obtained under subparagraph 
                        (A) to seek to enroll children in those 
                        health programs; and
                          (ii)(I) notifies each household, the 
                        information of which shall be disclosed 
                        under subparagraph (A), that the 
                        information disclosed will be used only 
                        to enroll children in health programs 
                        referred to in subparagraph (A)(iv); 
                        and
                          (II) provides each parent or guardian 
                        of a child in the household with an 
                        opportunity to elect not to have the 
                        information disclosed.
                  (E) Use of disclosed information.--A person 
                to which information is disclosed under 
                subparagraph (A)(iv)(I) shall use or disclose 
                the information only as necessary for the 
                purpose of enrolling children in health 
                programs referred to in subparagraph (A)(iv).
          (7) Free and reduced price policy statement.--
                  (A) In general.--After the initial 
                submission, a local educational agency shall 
                not be required to submit a free and reduced 
                price policy statement to a State educational 
                agency under this Act unless there is a 
                substantive change in the free and reduced 
                price policy of the local educational agency.
                  (B) Routine change.--A routine change in the 
                policy of a local educational agency (such as 
                an annual adjustment of the income eligibility 
                guidelines for free and reduced price meals) 
                shall not be sufficient cause for requiring the 
                local educational agency to submit a policy 
                statement.
          (8) Communications.--
                  (A) In general.--Any communication with a 
                household under this subsection or subsection 
                (d) shall be in an understandable and uniform 
                format and, to the maximum extent practicable, 
                in a language that parents and legal guardians 
                can understand.
                  (B) Electronic availability.--In addition to 
                the distribution of applications and 
                descriptive material in paper form as provided 
                for in this paragraph, the applications and 
                material may be made available electronically 
                via the Internet.
          (9) Eligibility for free and reduced price lunches.--
                  (A) Free lunches.--Any child who is a member 
                of a household whose income, at the time the 
                application is submitted, is at an annual rate 
                which does not exceed the applicable family 
                size income level of the income eligibility 
                guidelines for free lunches, as determined 
                under paragraph (1), shall be served a free 
                lunch.
                  (B) Reduced price lunches.--
                          (i) In general.--Any child who is a 
                        member of a household whose income, at 
                        the time the application is submitted, 
                        is at an annual rate greater than the 
                        applicable family size income level of 
                        the income eligibility guidelines for 
                        free lunches, as determined under 
                        paragraph (1), but less than or equal 
                        to the applicable family size income 
                        level of the income eligibility 
                        guidelines for reduced price lunches, 
                        as determined under paragraph (1), 
                        shall be served a reduced price lunch.
                          (ii) Maximum price.--The price 
                        charged for a reduced price lunch shall 
                        not exceed 40 cents.
                  (C) Duration.--Except as otherwise specified 
                in paragraph (3)(E), (3)(H)(ii), and section 
                11(a), eligibility for free or reduced price 
                meals for any school year shall remain in 
                effect--
                          (i) beginning on the date of 
                        eligibility approval for the current 
                        school year; and
                          (ii) ending on a date during the 
                        subsequent school year determined by 
                        the Secretary.
  (10) No physical segregation of or other discrimination 
against any child eligible for a free lunch or a reduced price 
lunch under this subsection shall be made by the school nor 
shall there be any overt identification of any child by special 
tokens or tickets, announced or published list of names, or by 
other means.
  (11) Any child who has a parent or guardian who (A) is 
responsible for the principal support of such child and (B) is 
unemployed shall be served a free or reduced price lunch, 
respectively, during any period (i) in which such child's 
parent or guardian continues to be unemployed and (ii) the 
income of the child's parents or guardians during such period 
of unemployment falls within the income eligibility criteria 
for free lunches or reduced price lunches, respectively, based 
on the current rate of income of such parents or guardians. 
Local educational agencies shall publicly announce that such 
children are eligible for free or reduced price lunch, and 
shall make determinations with respect to the status of any 
parent or guardian of any child under clauses (A) and (B) of 
the preceding sentence on the basis of a statement executed in 
such form as the Secretary may prescribe by such parent or 
guardian. No physical segregation of, or other discrimination 
against, any child eligible for a free or reduced price lunch 
under this paragraph shall be made by the school nor shall 
there be any overt identification of any such child by special 
tokens or tickets, announced or published lists of names, or by 
any other means.
  (12)(A) A child shall be considered automatically eligible 
for a free lunch and breakfast under this Act and the Child 
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), respectively, 
without further application or eligibility determination, if 
the child is--
          (i) a member of a household receiving assistance 
        under the supplemental nutrition assistance program 
        authorized under the Food and Nutrition Act of 2008 (7 
        U.S.C. 2011 et seq.);
          (ii) a member of a family (under the State program 
        funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.)) that the Secretary 
        determines complies with standards established by the 
        Secretary that ensure that the standards under the 
        State program are comparable to or more restrictive 
        than those in effect on June 1, 1995;
          (iii) enrolled as a participant in a Head Start 
        program authorized under the Head Start Act (42 U.S.C. 
        9831 et seq.), on the basis of a determination that the 
        child meets the eligibility criteria prescribed under 
        section 645(a)(1)(B) of the Head Start Act (42 U.S.C. 
        9840(a)(1)(B));
                  (iv) a homeless child or youth (defined as 1 
                of the individuals described in section 725(2) 
                of the McKinney-Vento Homeless Assistance Act 
                (42 U.S.C. 11434a(2)));
                  (v) served by the runaway and homeless youth 
                grant program established under the Runaway and 
                Homeless Youth Act (42 U.S.C. 5701 et seq.);
                  (vi) a migratory child (as defined in section 
                1309 of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 6399)); or
                  (vii)(I) a foster child whose care and 
                placement is the responsibility of an agency 
                that administers a State plan under part B or E 
                of title IV of the Social Security Act (42 
                U.S.C. 621 et seq.); or
                          (II) a foster child who a court has 
                        placed with a caretaker household.
  (B) Proof of receipt of supplemental nutrition assistance 
program benefits or assistance under the State program funded 
under part A of title IV of the Social Security Act (42 U.S.C. 
601 et seq.) that the Secretary determines complies with 
standards established by the Secretary that ensure that the 
standards under the State program are comparable to or more 
restrictive than those in effect on June 1, 1995, or of 
enrollment or participation in a Head Start program on the 
basis described in subparagraph (A)(iii), shall be sufficient 
to satisfy any verification requirement imposed under this 
subsection.
          (13) Exclusion of certain military housing 
        allowances.--The amount of a basic allowance provided 
        under section 403 of title 37, United States Code, on 
        behalf of a member of a uniformed service for housing 
        that is acquired or constructed under subchapter IV of 
        chapter 169 of title 10, United States Code, or any 
        related provision of law, shall not be considered to be 
        income for the purpose of determining the eligibility 
        of a child who is a member of the household of the 
        member of a uniformed service for free or reduced price 
        lunches under this Act.
          (14) Combat pay.--
                  (A) Definition of combat pay.--In this 
                paragraph, the term ``combat pay'' means any 
                additional payment under chapter 5 of title 37, 
                United States Code, or otherwise designated by 
                the Secretary to be appropriate for exclusion 
                under this paragraph, that is received by or 
                from a member of the United States Armed Forces 
                deployed to a designated combat zone, if the 
                additional pay--
                          (i) is the result of deployment to or 
                        service in a combat zone; and
                          (ii) was not received immediately 
                        prior to serving in a combat zone.
                  (B) Exclusion.--Combat pay shall not be 
                considered to be income for the purpose of 
                determining the eligibility for free or reduced 
                price meals of a child who is a member of the 
                household of a member of the United States 
                Armed Forces.
          (15) Direct certification for children receiving 
        medicaid benefits.--
                  (A) Definitions.--In this paragraph:
                          (i) Eligible child.--The term 
                        ``eligible child'' means a child--
                                  (I)(aa) who is eligible for 
                                and receiving medical 
                                assistance under the Medicaid 
                                program; and
                                  (bb) who is a member of a 
                                family with an income as 
                                measured by the Medicaid 
                                program before the application 
                                of any expense, block, or other 
                                income disregard, that does not 
                                exceed 133 percent of the 
                                poverty line (as defined in 
                                section 673(2) of the Community 
                                Services Block Grant Act (42 
                                U.S.C. 9902(2), including any 
                                revision required by such 
                                section)) applicable to a 
                                family of the size used for 
                                purposes of determining 
                                eligibility for the Medicaid 
                                program; or
                                  (II) who is a member of a 
                                household (as that term is 
                                defined in section 245.2 of 
                                title 7, Code of Federal 
                                Regulations (or successor 
                                regulations) with a child 
                                described in subclause (I).
                          (ii) Medicaid program.--The term 
                        ``Medicaid program'' means the program 
                        of medical assistance established under 
                        title XIX of the Social Security Act 
                        (42 U.S.C. 1396 et seq.).
                  (B) Demonstration project.--
                          (i) In general.--The Secretary, 
                        acting through the Administrator of the 
                        Food and Nutrition Service and in 
                        cooperation with selected State 
                        agencies, shall conduct a demonstration 
                        project in selected local educational 
                        agencies to determine whether direct 
                        certification of eligible children is 
                        an effective method of certifying 
                        children for free lunches and 
                        breakfasts under section 9(b)(1)(A) of 
                        this Act and section 4(e)(1)(A) of the 
                        Child Nutrition Act of 1966 (42 U.S.C. 
                        1773(e)(1)(A)).
                          (ii) Scope of project.--The Secretary 
                        shall carry out the demonstration 
                        project under this subparagraph--
                                  (I) for the school year 
                                beginning July 1, 2012, in 
                                selected local educational 
                                agencies that collectively 
                                serve 2.5 percent of students 
                                certified for free and reduced 
                                price meals nationwide, based 
                                on the most recent available 
                                data;
                                  (II) for the school year 
                                beginning July 1, 2013, in 
                                selected local educational 
                                agencies that collectively 
                                serve 5 percent of students 
                                certified for free and reduced 
                                price meals nationwide, based 
                                on the most recent available 
                                data; and
                                  (III) for the school year 
                                beginning July 1, 2014, and 
                                each subsequent school year, in 
                                selected local educational 
                                agencies that collectively 
                                serve 10 percent of students 
                                certified for free and reduced 
                                price meals nationwide, based 
                                on the most recent available 
                                data.
                          (iii) Purposes of the project.--At a 
                        minimum, the purposes of the 
                        demonstration project shall be--
                                  (I) to determine the 
                                potential of direct 
                                certification with the Medicaid 
                                program to reach children who 
                                are eligible for free meals but 
                                not certified to receive the 
                                meals;
                                  (II) to determine the 
                                potential of direct 
                                certification with the Medicaid 
                                program to directly certify 
                                children who are enrolled for 
                                free meals based on a household 
                                application; and
                                  (III) to provide an estimate 
                                of the effect on Federal costs 
                                and on participation in the 
                                school lunch program under this 
                                Act and the school breakfast 
                                program established by section 
                                4 of the Child Nutrition Act of 
                                1966 (42 U.S.C. 1773) of direct 
                                certification with the Medicaid 
                                program.
                          (iv) Cost estimate.--For each of 2 
                        school years of the demonstration 
                        project, the Secretary shall estimate 
                        the cost of the direct certification of 
                        eligible children for free school meals 
                        through data derived from--
                                  (I) the school meal programs 
                                authorized under this Act and 
                                the Child Nutrition Act of 1966 
                                (42 U.S.C. 1771 et seq.);
                                  (II) the Medicaid program; 
                                and
                                  (III) interviews with a 
                                statistically representative 
                                sample of households.
                  (C) Agreement.--
                          (i) In general.--Not later than July 
                        1 of the first school year during which 
                        a State agency will participate in the 
                        demonstration project, the State agency 
                        shall enter into an agreement with the 
                        1 or more State agencies conducting 
                        eligibility determinations for the 
                        Medicaid program.
                          (ii) Without further application.--
                        Subject to paragraph (6), the agreement 
                        described in subparagraph (D) shall 
                        establish procedures under which an 
                        eligible child shall be certified for 
                        free lunches under this Act and free 
                        breakfasts under section 4 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1773), 
                        without further application (as defined 
                        in paragraph (4)(G)).
                  (D) Certification.--For the school year 
                beginning on July 1, 2012, and each subsequent 
                school year, subject to paragraph (6), the 
                local educational agencies participating in the 
                demonstration project shall certify an eligible 
                child as eligible for free lunches under this 
                Act and free breakfasts under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
                without further application (as defined in 
                paragraph (4)(G)).
                  (E) Site selection.--
                          (i) In general.--To be eligible to 
                        participate in the demonstration 
                        project under this subsection, a State 
                        agency shall submit to the Secretary an 
                        application at such time, in such 
                        manner, and containing such information 
                        as the Secretary may require.
                          (ii) Considerations.--In selecting 
                        States and local educational agencies 
                        for participation in the demonstration 
                        project, the Secretary may take into 
                        consideration such factors as the 
                        Secretary considers to be appropriate, 
                        which may include--
                                  (I) the rate of direct 
                                certification;
                                  (II) the share of individuals 
                                who are eligible for benefits 
                                under the supplemental 
                                nutrition assistance program 
                                established under the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 
                                2011 et seq.) who participate 
                                in the program, as determined 
                                by the Secretary;
                                  (III) the income eligibility 
                                limit for the Medicaid program;
                                  (IV) the feasibility of 
                                matching data between local 
                                educational agencies and the 
                                Medicaid program;
                                  (V) the socioeconomic profile 
                                of the State or local 
                                educational agencies; and
                                  (VI) the willingness of the 
                                State and local educational 
                                agencies to comply with the 
                                requirements of the 
                                demonstration project.
                  (F) Access to data.--For purposes of 
                conducting the demonstration project under this 
                paragraph, the Secretary shall have access to--
                          (i) educational and other records of 
                        State and local educational and other 
                        agencies and institutions receiving 
                        funding or providing benefits for 1 or 
                        more programs authorized under this Act 
                        or the Child Nutrition Act of 1966 (42 
                        U.S.C. 1771 et seq.); and
                          (ii) income and program participation 
                        information from public agencies 
                        administering the Medicaid program.
                  (G) Report to congress.--
                          (i) In general.--Not later than 
                        October 1, 2014, the Secretary shall 
                        submit to the Committee on Education 
                        and Labor of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate, an interim report that 
                        describes the results of the 
                        demonstration project required under 
                        this paragraph.
                          (ii) Final report.--Not later than 
                        October 1, 2015, the Secretary shall 
                        submit a final report to the committees 
                        described in clause (i).
                  (H) Funding.--
                          (i) In general.--On October 1, 2010, 
                        out of any funds in the Treasury not 
                        otherwise appropriated, the Secretary 
                        of the Treasury shall transfer to the 
                        Secretary to carry out subparagraph (G) 
                        $5,000,000, to remain available until 
                        expended.
                          (ii) Receipt and acceptance.--The 
                        Secretary shall be entitled to receive, 
                        shall accept, and shall use to carry 
                        out subparagraph (G) the funds 
                        transferred under clause (i), without 
                        further appropriation.
  (c) School lunch programs under this Act shall be operated on 
a nonprofit basis. Commodities purchased under the authority of 
section 32 of the Act of August 24, 1935, may be donated by the 
Secretary to schools, in accordance with the needs as 
determined by local school authorities, for utilization in the 
school lunch program under this Act as well as to other schools 
carrying out nonprofit school lunch programs and institutions 
authorized to receive such commodities. The requirements of 
this section relating to the service of meals without cost or 
at a reduced cost shall apply to the lunch program of any 
school utilizing commodities donated under any provision of 
law.
  (d)(1) The Secretary shall require as a condition of 
eligibility for receipt of free or reduced price lunches that 
the member of the household who executes the application 
furnish the last 4 digits of the social security account number 
of the parent or guardian who is the primary wage earner 
responsible for the care of the child for whom the application 
is made, or that of another appropriate adult member of the 
child's household, as determined by the Secretary.
  (2) No member of a household may be provided a free or 
reduced price lunch under this Act unless--
          (A) appropriate documentation relating to the income 
        of such household (as prescribed by the Secretary) has 
        been provided to the appropriate local educational 
        agency so that the local educational agency may 
        calculate the total income of such household;
          (B) documentation showing that the household is 
        participating in the supplemental nutrition assistance 
        program under the Food and Nutrition Act of 2008 has 
        been provided to the appropriate local educational 
        agency;
          (C) documentation has been provided to the 
        appropriate local educational agency showing that the 
        family is receiving assistance under the State program 
        funded under part A of title IV of the Social Security 
        Act that the Secretary determines complies with 
        standards established by the Secretary that ensure that 
        the standards under the State program are comparable to 
        or more restrictive than those in effect on June 1, 
        1995;
          (D) documentation has been provided to the 
        appropriate local educational agency showing that the 
        child meets the criteria specified in clauses (iv) or 
        (v) of subsection (b)(12)(A);
          (E) documentation has been provided to the 
        appropriate local educational agency showing the status 
        of the child as a migratory child (as defined in 
        section 1309 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 6399));
          (F)(i) documentation has been provided to the 
        appropriate local educational agency showing the status 
        of the child as a foster child whose care and placement 
        is the responsibility of an agency that administers a 
        State plan under part B or E of title IV of the Social 
        Security Act (42 U.S.C. 621 et seq.); or
                  (ii) documentation has been provided to the 
                appropriate local educational agency showing 
                the status of the child as a foster child who a 
                court has placed with a caretaker household; or
          (G) documentation has been provided to the 
        appropriate local educational agency showing the status 
        of the child as an eligible child (as defined in 
        subsection (b)(15)(A)).
  (e) A school or school food authority participating in a 
program under this Act may not contract with a food service 
company to provide a la carte food service unless the company 
agrees to offer free, reduced price, and full-price 
reimbursable meals to all eligible children.
  (f) Nutritional Requirements.--
          (1) In general.--Schools that are participating in 
        the school lunch program or school breakfast program 
        shall serve lunches and breakfasts that--
                  (A) are consistent with the goals of the most 
                recent Dietary Guidelines for Americans 
                published under section 301 of the National 
                Nutrition Monitoring and Related Research Act 
                of 1990 (7 U.S.C. 5341); and
                  (B) consider the nutrient needs of children 
                who may be at risk for inadequate food intake 
                and food insecurity.
  (2) To assist schools in meeting the requirements of this 
subsection, the Secretary--
          (A) shall--
                  (i) develop, and provide to schools, 
                standardized recipes, menu cycles, and food 
                product specification and preparation 
                techniques; and
                  (ii) provide to schools information regarding 
                nutrient standard menu planning, assisted 
                nutrient standard menu planning, and food-based 
                menu systems; and
          (B) may provide to schools information regarding 
        other approaches, as determined by the Secretary.
  (3) Use of any reasonable approach.--
          (A) In general.--A school food service authority may 
        use any reasonable approach, within guidelines 
        established by the Secretary in a timely manner, to 
        meet the requirements of this subsection, including--
                  (i) using the school nutrition meal pattern 
                in effect for the 1994-1995 school year; and
                  (ii) using any of the approaches described in 
                paragraph (3).
          (B) Nutrient analysis.--The Secretary may not require 
        a school to conduct or use a nutrient analysis to meet 
        the requirements of this subsection.
          (4) Waiver of requirement for weighted averages for 
        nutrient analysis.--During the period ending on 
        September 30, 2010, the Secretary shall not require the 
        use of weighted averages for nutrient analysis of menu 
        items and foods offered or served as part of a meal 
        offered or served under the school lunch program under 
        this Act or the school breakfast program under section 
        4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
  (g) Not later than 1 year after the date of enactment of this 
subsection, the Secretary shall provide a notification to 
Congress that justifies the need for production records 
required under section 210.10(b) of title 7, Code of Federal 
Regulations, and describes how the Secretary has reduced 
paperwork relating to the school lunch and school breakfast 
programs.
  (h) Food Safety.--
          (1) In general.--A school participating in the school 
        lunch program under this Act or the school breakfast 
        program under section 4 of the Child Nutrition Act of 
        1966 (42 U.S.C. 1773) shall--
                  (A) at least twice during each school year, 
                obtain a food safety inspection conducted by a 
                State or local governmental agency responsible 
                for food safety inspections;
                  (B) post in a publicly visible location a 
                report on the most recent inspection conducted 
                under subparagraph (A); and
                  (C) on request, provide a copy of the report 
                to a member of the public.
          (2) State and local government inspections.--Nothing 
        in paragraph (1) prevents any State or local government 
        from adopting or enforcing any requirement for more 
        frequent food safety inspections of schools.
          (3) Audits and reports by states.--For fiscal year 
        [2017] 2018, each State shall annually--
                  (A) audit food safety inspections of schools 
                conducted under paragraphs (1) and (2); and
                  (B) submit to the Secretary a report of the 
                results of the audit.
          (4) Audit by the secretary.--For fiscal year [2017] 
        2018, the Secretary shall annually audit State reports 
        of food safety inspections of schools submitted under 
        paragraph (3).
          (5) School food safety program.--
                  (A) In general.--Each school food authority 
                shall implement a school food safety program, 
                in the preparation and service of each meal 
                served to children, that complies with any 
                hazard analysis and critical control point 
                system established by the Secretary.
                  (B) Applicability.--Subparagraph (A) shall 
                apply to any facility or part of a facility in 
                which food is stored, prepared, or served for 
                the purposes of the school nutrition programs 
                under this Act or section 4 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1773).
  (i) Single Permanent Agreement Between State Agency and 
School Food Authority; Common Claims Form.--
          (1) In general.--If a single State agency administers 
        any combination of the school lunch program under this 
        Act, the school breakfast program under section 4 of 
        the Child Nutrition Act of 1966 (42 U.S.C. 1773), the 
        summer food service program for children under section 
        13 of this Act, or the child and adult care food 
        program under section 17 of this Act, the agency 
        shall--
                  (A) require each school food authority to 
                submit to the State agency a single agreement 
                with respect to the operation by the authority 
                of the programs administered by the State 
                agency; and
                  (B) use a common claims form with respect to 
                meals and supplements served under the programs 
                administered by the State agency.
          (2) Additional requirement.--The agreement described 
        in paragraph (1)(A) shall be a permanent agreement that 
        may be amended as necessary.
  (j) Purchases of Locally Produced Foods.--The Secretary 
shall--
          (1) encourage institutions receiving funds under this 
        Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 
        et seq.) to purchase unprocessed agricultural products, 
        both locally grown and locally raised, to the maximum 
        extent practicable and appropriate;
          (2) advise institutions participating in a program 
        described in paragraph (1) of the policy described in 
        that paragraph and paragraph (3) and post information 
        concerning the policy on the website maintained by the 
        Secretary; and
          (3) allow institutions receiving funds under this Act 
        and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.), including the Department of Defense Fresh Fruit 
        and Vegetable Program, to use a geographic preference 
        for the procurement of unprocessed agricultural 
        products, both locally grown and locally raised.
  (k) Information on the School Nutrition Environment.--
          (1) In general.--The Secretary shall--
                  (A) establish requirements for local 
                educational agencies participating in the 
                school lunch program under this Act and the 
                school breakfast program established by section 
                4 of the Child Nutrition Act of 1966 (42 U.S.C. 
                1773) to report information about the school 
                nutrition environment, for all schools under 
                the jurisdiction of the local educational 
                agencies, to the Secretary and to the public in 
                the State on a periodic basis; and
                  (B) provide training and technical assistance 
                to States and local educational agencies on the 
                assessment and reporting of the school 
                nutrition environment, including the use of any 
                assessment materials developed by the 
                Secretary.
          (2) Requirements.--In establishing the requirements 
        for reporting on the school nutrition environment under 
        paragraph (1), the Secretary shall--
                  (A) include information pertaining to food 
                safety inspections, local wellness policies, 
                meal program participation, the nutritional 
                quality of program meals, and other information 
                as determined by the Secretary; and
                  (B) ensure that information is made available 
                to the public by local educational agencies in 
                an accessible, easily understood manner in 
                accordance with guidelines established by the 
                Secretary.
          (3) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection such sums as are necessary for each of 
        fiscal years 2011 through 2015.
  (l) Food Donation Program.--
          (1) In general.--Each school and local educational 
        agency participating in the school lunch program under 
        this Act may donate any food not consumed under such 
        program to eligible local food banks or charitable 
        organizations.
          (2) Guidance.--
                  (A) In general.--Not later than 180 days 
                after the date of the enactment of this 
                subsection, the Secretary shall develop and 
                publish guidance to schools and local 
                educational agencies participating in the 
                school lunch program under this Act to assist 
                such schools and local educational agencies in 
                donating food under this subsection.
                  (B) Updates.--The Secretary shall update such 
                guidance as necessary.
          (3) Liability.--Any school or local educational 
        agency making donations pursuant to this subsection 
        shall be exempt from civil and criminal liability to 
        the extent provided under the Bill Emerson Good 
        Samaritan Food Donation Act (42 U.S.C. 1791).
          (4) Definition.--In this subsection, the term 
        ``eligible local food banks or charitable 
        organizations'' means any food bank or charitable 
        organization which is exempt from tax under section 
        501(c)(3) of the Internal Revenue Code of 1986 (26 
        U.S.C. 501(c)(3)).

           *       *       *       *       *       *       *


SEC. 26. INFORMATION CLEARINGHOUSE.

  (a) In General.--The Secretary shall enter into a contract 
with a nongovernmental organization described in subsection (b) 
to establish and maintain a clearinghouse to provide 
information to nongovernmental groups located throughout the 
United States that assist low-income individuals or communities 
regarding food assistance, self-help activities to aid 
individuals in becoming self-reliant, and other activities that 
empower low-income individuals or communities to improve the 
lives of low-income individuals and reduce reliance on Federal, 
State, or local governmental agencies for food or other 
assistance.
  (b) Nongovernmental Organization.--The nongovernmental 
organization referred to in subsection (a) shall be selected on 
a competitive basis and shall--
          (1) be experienced in the gathering of first-hand 
        information in all the States through onsite visits to 
        grassroots organizations in each State that fight 
        hunger and poverty or that assist individuals in 
        becoming self-reliant;
          (2) be experienced in the establishment of a 
        clearinghouse similar to the clearinghouse described in 
        subsection (a);
          (3) agree to contribute in-kind resources towards the 
        establishment and maintenance of the clearinghouse and 
        agree to provide clearinghouse information, free of 
        charge, to the Secretary, States, counties, cities, 
        antihunger groups, and grassroots organizations that 
        assist individuals in becoming self-sufficient and 
        self-reliant;
          (4) be sponsored by an organization, or be an 
        organization, that--
                  (A) has helped combat hunger for at least 10 
                years;
                  (B) is committed to reinvesting in the United 
                States; and
                  (C) is knowledgeable regarding Federal 
                nutrition programs;
          (5) be experienced in communicating the purpose of 
        the clearinghouse through the media, including the 
        radio and print media, and be able to provide access to 
        the clearinghouse information through computer or 
        telecommunications technology, as well as through the 
        mails; and
          (6) be able to provide examples, advice, and guidance 
        to States, counties, cities, communities, antihunger 
        groups, and local organizations regarding means of 
        assisting individuals and communities to reduce 
        reliance on government programs, reduce hunger, improve 
        nutrition, and otherwise assist low-income individuals 
        and communities become more self-sufficient.
  (c) Audits.--The Secretary shall establish fair and 
reasonable auditing procedures regarding the expenditures of 
funds to carry out this section.
  (d) Funding.--Out of any moneys in the Treasury not otherwise 
appropriated, the Secretary of the Treasury shall pay to the 
Secretary to provide to the organization selected under this 
section, to establish and maintain the information 
clearinghouse, $200,000 for each of fiscal years 1995 and 1996, 
$150,000 for fiscal year 1997, $100,000 for fiscal year 1998, 
$166,000 for each of fiscal years 1999 through 2004, and 
$250,000 for each of fiscal years [2010 through 2017] 2010 
through 2018. The Secretary shall be entitled to receive the 
funds and shall accept the funds, without further 
appropriation.

           *       *       *       *       *       *       *

                              ----------                              


                 SECTION 514 OF THE HOUSING ACT OF 1949

insurance of loans for the provision of housing and related facilities 
                        for domestic farm labor

  Sec. 514. (a) The Secretary is authorized to insure and make 
commitments to insure loans made by lenders other than the 
United States to the owner of any farm or any association of 
farmers for the purpose of providing housing and related 
facilities for domestic farm labor, or to any Indian tribe for 
such purpose, or to any State (or political subdivision 
thereof), or any broad-based public or private nonprofit 
organization, or any limited partnership in which the general 
partner is a nonprofit entity, or any nonprofit organization of 
farm workers incorporated within the State for the purpose of 
providing housing and related facilities for domestic farm 
labor any place within the State where a need exists. All such 
loans shall be made in accordance with terms and conditions 
substantially identical with those specified in section 502, 
except that--
          (1) no such loan shall be insured in an amount in 
        excess of the value of the farm involved less any prior 
        liens in the case of a loan to an individual owner of a 
        farm, or the total estimated value of the structures 
        and facilities with respect to which the loan is made 
        in the case of any other loan;
          (2) no such loan shall be insured if it bears 
        interest at a rate in excess of 1 per centum per annum;
          (3) out of interest payments by the borrower the 
        Secretary shall retain a charge in an amount not less 
        than one-half of 1 per centum per annum of the unpaid 
        principal balance of the loan;
          (4) the insurance contracts and agreements with 
        respect to any loan may contain provisions for 
        servicing the loan by the Secretary or by the lender, 
        and for the purchase by the Secretary of the loan if it 
        is not in default, on such terms and conditions as the 
        Secretary may prescribe; and
          (5) the Secretary may take mortgages creating a lien 
        running to the United States for the benefit of the 
        insurance fund referred to in subsection (b) 
        notwithstanding the fact that the note may be held by 
        the lender or his assignee.
  (b) The Secretary shall utilize the insurance fund created by 
section 11 of the Bankhead Jones Farm Tenant Act (7 U.S.C. 
1005a) and the provisions of section 13 (a), (b), and (c) of 
such Act (7 U.S.C. 1005c (a), (b), and (c)) to discharge 
obligations under insurance contracts made pursuant to this 
section, and
          (1) the Secretary may utilize the insurance fund to 
        pay taxes, insurance, prior liens, and other expenses 
        to protect the security for loans which have been 
        insured hereunder and to acquire such security property 
        at foreclosure sales or otherwise;
          (2) the notes and security therefor acquired by the 
        Secretary under insurance contracts made pursuant to 
        this section shall become a part of the insurance fund. 
        Loans insured under this section may be held in the 
        fund and collected in accordance with their terms or 
        may be sold and reinsured. All proceeds from such 
        collections, including the liquidation of security and 
        the proceeds of sales, shall become a part of the 
        insurance fund; and
          (3) of the charges retained by the Secretary out of 
        interest payments by the borrower, amounts not less 
        than one-half of 1 per centum per annum of the unpaid 
        principal balance of the loan shall be deposited in and 
        become a part of the insurance fund. The remainder of 
        such charges shall be deposited in the Treasury of the 
        United States and shall be available for administrative 
        expenses of the Farmers Home Administration, to be 
        transferred annually to and become merged with any 
        appropriation for such expenses.
  (c) Any contract of insurance executed by the Secretary under 
this section shall be an obligation of the United States and 
incontestable except for fraud or misrepresentation of which 
the holder of the contract has actual knowledge.
  (e) Amounts made available pursuant to section 513 of this 
Act shall be available for administrative expenses incurred 
under this section.
  (f) As used in this section--
          (1) the term ``housing'' means (A) new structures 
        (including household furnishings) suitable for dwelling 
        use by domestic farm labor, and (B) existing structures 
        (including household furnishings) which can be made 
        suitable for dwelling use by domestic farm labor by 
        rehabilitation, alteration, conversion, or 
        improvements;
          (2) the term ``related facilities'' means (A) new 
        stuctures (including household furnishings) suitable 
        for use as dining halls, community rooms or buildings, 
        or infirmaries, or for other essential services 
        facilities, (B) existing structures (including 
        household furnishings) which can be made suitable for 
        the above uses by rehabilitation, alteration, 
        conversion, or improvement and (C) necessary for an 
        adequate site; and
          (3) the term ``domestic farm labor'' means any person 
        (and the family of such person) who receives a 
        substantial portion of his or her income from primary 
        production of agricultural or aquacultural commodities, 
        the handling of agricultural or aquacultural 
        commodities in the unprocessed stage, or the processing 
        of agricultural or aquacultural commodities, without 
        respect to the source of employment, except that--
                  (A) such person shall be a citizen of the 
                United States, or a person legally admitted for 
                permanent residence, or a person legally 
                admitted to the United States and authorized to 
                work in agriculture;
                  (B) such term includes any person (and the 
                family of such person) who is retired or 
                disabled, but who was domestic farm labor at 
                the time of retirement or becoming disabled; 
                and
                  (C) in applying this paragraph with respect 
                to vacant units in farm labor housing, the 
                Secretary shall make units available for 
                occupancy in the following order of priority:
                          (i) to active farm laborers (and 
                        their families);
                          (ii) to retired or disabled farm 
                        laborers (and their families) who were 
                        active in the local farm labor market 
                        at the time of retiring or becoming 
                        disabled; and
                          (iii) to other retired or disabled 
                        farm laborers (and their families).
  (g) The Secretary may waive the interest rate limitation 
contained in subsection (a)(2) and the requirement of section 
501(c)(3) in any case in which the Secretary determines that 
qualified public or private nonprofit sponsors are not 
currently available and are not likely to become available 
within a reasonable period of time and such waiver is necessary 
to permit farmers to provide housing and related facilities for 
migrant domestic farm laborers, except that the benefits 
resulting from such waiver shall accrue to the tenants, and the 
interest rate on a loan insured under this section and for 
which the Secretary permits such waiver shall be no less than 
one-eighth of 1 per centum above the average interest rate on 
notes or other obligations which are issued under section 511 
and have maturities comparable to such a loan.
  (h) In making available assistance in any area under this 
section or section 516, the Secretary shall--
          (1) in determining the need for the assistance, take 
        into consideration the housing needs only of domestic 
        farm labor, including migrant farmworkers, in the area; 
        and
          (2) in determining whether to provide such 
        assistance, make such determination without regard to 
        the extent or nature of other housing needs in the 
        area.
  (i) Housing and related facilities constructed with loans 
under this section may be used for tenants eligible for 
occupancy under section 515 if the Secretary determines that--
          (1) there is no longer a need in the area for farm 
        labor housing; or
          (2) the need for such housing in the area has 
        diminished to the extent that the purpose of the loan, 
        providing housing for domestic farm labor, can no 
        longer be met.
                              ----------                              


                         COMMODITY EXCHANGE ACT



           *       *       *       *       *       *       *
  [Section 760 of the Agriculture, Rural Development, Food and 
Drug Administration, and Related Agencies Appropriations Act, 
2018 provides: ``[t]he provisions of sections 202 and 320 of 
H.R. 238, One Hundred Fifteenth Congress (the `Commodity End-
User Relief Act'), as passed by the House of Representatives on 
January 12, 2017, are hereby enacted into law''. The following 
provisions reflect the proposed amendments from the version of 
H.R. 238, One Hundred Fifteenth Congress, as passed the House 
of Representatives on January 12, 2017.]

SEC. 1A. DEFINITIONS.

   As used in this Act:
          (1) Alternative trading system.--The term 
        ``alternative trading system'' means an organization, 
        association, or group of persons that--
                  (A) is registered as a broker or dealer 
                pursuant to section 15(b) of the Securities 
                Exchange Act of 1934 (except paragraph (11) 
                thereof);
                  (B) performs the functions commonly performed 
                by an exchange (as defined in section 3(a)(1) 
                of the Securities Exchange Act of 1934);
                  (C) does not--
                          (i) set rules governing the conduct 
                        of subscribers other than the conduct 
                        of such subscribers' trading on the 
                        alternative trading system; or
                          (ii) discipline subscribers other 
                        than by exclusion from trading; and
                  (D) is exempt from the definition of the term 
                ``exchange'' under such section 3(a)(1) by rule 
                or regulation of the Securities and Exchange 
                Commission on terms that require compliance 
                with regulations of its trading functions.
          (2) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency''--
                  (A) has the meaning given the term in section 
                3 of the Federal Deposit Insurance Act (12 
                U.S.C. 1813);
                  (B) means the Board in the case of a 
                noninsured State bank; and
                  (C) is the Farm Credit Administration for 
                farm credit system institutions.
          (3) Associated person of a security-based swap dealer 
        or major security-based swap participant.--The term 
        ``associated person of a security-based swap dealer or 
        major security-based swap participant'' has the meaning 
        given the term in section 3(a) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78c(a)).
          (4) Associated person of a swap dealer or major swap 
        participant.--
                  (A) In general.--The term ``associated person 
                of a swap dealer or major swap participant'' 
                means a person who is associated with a swap 
                dealer or major swap participant as a partner, 
                officer, employee, or agent (or any person 
                occupying a similar status or performing 
                similar functions), in any capacity that 
                involves--
                          (i) the solicitation or acceptance of 
                        swaps; or
                          (ii) the supervision of any person or 
                        persons so engaged.
                  (B) Exclusion.--Other than for purposes of 
                section 4s(b)(6), the term ``associated person 
                of a swap dealer or major swap participant'' 
                does not include any person associated with a 
                swap dealer or major swap participant the 
                functions of which are solely clerical or 
                ministerial.
          (5) Board.--The term ``Board'' means the Board of 
        Governors of the Federal Reserve System.
          (6) Board of trade.--The term ``board of trade'' 
        means any organized exchange or other trading facility.
          (7) Cleared swap.--The term ``cleared swap'' means 
        any swap that is, directly or indirectly, submitted to 
        and cleared by a derivatives clearing organization 
        registered with the Commission.
          (8) Commission.--The term ``Commission'' means the 
        Commodity Futures Trading Commission established under 
        section 2(a)(2).
          (9) Commodity.--The term ``commodity'' means wheat, 
        cotton, rice, corn, oats, barley, rye, flaxseed, grain 
        sorghums, mill feeds, butter, eggs, Solanum tuberosum 
        (Irish potatoes), wool, wool tops, fats and oils 
        (including lard, tallow, cottonseed oil, peanut oil, 
        soybean oil, and all other fats and oils), cottonseed 
        meal, cottonseed, peanuts, soybeans, soybean meal, 
        livestock, livestock products, and frozen concentrated 
        orange juice, and all other goods and articles, except 
        onions (as provided by the first section of Public Law 
        85-839 (7 U.S.C. 13-1)) and motion picture box office 
        receipts (or any index, measure, value, or data related 
        to such receipts), and all services, rights, and 
        interests (except motion picture box office receipts, 
        or any index, measure, value or data related to such 
        receipts) in which contracts for future delivery are 
        presently or in the future dealt in.
          (10) Commodity pool.--
                  (A) In general.--The term ``commodity pool'' 
                means any investment trust, syndicate, or 
                similar form of enterprise operated for the 
                purpose of trading in commodity interests, 
                including any--
                          (i) commodity for future delivery, 
                        security futures product, or swap;
                          (ii) agreement, contract, or 
                        transaction described in section 
                        2(c)(2)(C)(i) or section 2(c)(2)(D)(i);
                          (iii) commodity option authorized 
                        under section 4c; or
                          (iv) leverage transaction authorized 
                        under section 19.
                  (B) Further definition.--The Commission, by 
                rule or regulation, may include within, or 
                exclude from, the term ``commodity pool'' any 
                investment trust, syndicate, or similar form of 
                enterprise if the Commission determines that 
                the rule or regulation will effectuate the 
                purposes of this Act.
          (11) Commodity pool operator.--
                  (A) In general.--The term ``commodity pool 
                operator'' means any person--
                          (i) engaged in a business that is of 
                        the nature of a commodity pool, 
                        investment trust, syndicate, or similar 
                        form of enterprise, and who, in 
                        connection therewith, solicits, 
                        accepts, or receives from others, 
                        funds, securities, or property, either 
                        directly or through capital 
                        contributions, the sale of stock or 
                        other forms of securities, or 
                        otherwise, for the purpose of trading 
                        in commodity interests, including any--
                                  (I) commodity for future 
                                delivery, security futures 
                                product, or swap;
                                  (II) agreement, contract, or 
                                transaction described in 
                                section 2(c)(2)(C)(i) or 
                                section 2(c)(2)(D)(i);
                                  (III) commodity option 
                                authorized under section 4c; or
                                  (IV) leverage transaction 
                                authorized under section 19; or
                          (ii) who is registered with the 
                        Commission as a commodity pool 
                        operator.
                  (B) Further definition.--The Commission, by 
                rule or regulation, may include within, or 
                exclude from, the term ``commodity pool 
                operator'' any person engaged in a business 
                that is of the nature of a commodity pool, 
                investment trust, syndicate, or similar form of 
                enterprise if the Commission determines that 
                the rule or regulation will effectuate the 
                purposes of this Act.
          (12) Commodity trading advisor.--
                  (A) In general.--Except as otherwise provided 
                in this paragraph, the term ``commodity trading 
                advisor'' means any person who--
                          (i) for compensation or profit, 
                        engages in the business of advising 
                        others, either directly or through 
                        publications, writings, or electronic 
                        media, as to the value of or the 
                        advisability of trading in--
                                  (I) any contract of sale of a 
                                commodity for future delivery, 
                                security futures product, or 
                                swap;
                                  (II) any agreement, contract, 
                                or transaction described in 
                                section 2(c)(2)(C)(i) or 
                                section 2(c)(2)(D)(i)
                                  (III) any commodity option 
                                authorized under section 4c; or
                                  (IV) any leverage transaction 
                                authorized under section 19;
                          (ii) for compensation or profit, and 
                        as part of a regular business, issues 
                        or promulgates analyses or reports 
                        concerning any of the activities 
                        referred to in clause (i);
                          (iii) is registered with the 
                        Commission as a commodity trading 
                        advisor; or
                          (iv) the Commission, by rule or 
                        regulation, may include if the 
                        Commission determines that the rule or 
                        regulation will effectuate the purposes 
                        of this Act.
                  (B) Exclusions.--Subject to subparagraph (C), 
                the term ``commodity trading advisor'' does not 
                include--
                          (i) any bank or trust company or any 
                        person acting as an employee thereof;
                          (ii) any news reporter, news 
                        columnist, or news editor of the print 
                        or electronic media, or any lawyer, 
                        accountant, or teacher;
                          (iii) any floor broker or futures 
                        commission merchant;
                          (iv) the publisher or producer of any 
                        print or electronic data of general and 
                        regular dissemination, including its 
                        employees;
                          (v) the fiduciary of any defined 
                        benefit plan that is subject to the 
                        Employee Retirement Income Security Act 
                        of 1974 (29 U.S.C. 1001 et seq.);
                          (vi) any contract market or 
                        derivatives transaction execution 
                        facility; and
                          (vii) such other persons not within 
                        the intent of this paragraph as the 
                        Commission may specify by rule, 
                        regulation, or order.
                  (C) Incidental services.--Subparagraph (B) 
                shall apply only if the furnishing of such 
                services by persons referred to in subparagraph 
                (B) is solely incidental to the conduct of 
                their business or profession.
                  (D) Advisors.--The Commission, by rule or 
                regulation, may include within the term 
                ``commodity trading advisor'', any person 
                advising as to the value of commodities or 
                issuing reports or analyses concerning 
                commodities if the Commission determines that 
                the rule or regulation will effectuate the 
                purposes of this paragraph.
          (13) Contract of sale.--The term ``contract of sale'' 
        includes sales, agreements of sale, and agreements to 
        sell.
          (14) Cooperative association of producers.--The term 
        ``cooperative association of producers'' means any 
        cooperative association, corporate, or otherwise, not 
        less than 75 percent in good faith owned or controlled, 
        directly or indirectly, by producers of agricultural 
        products and otherwise complying with the Act of 
        February 18, 1922 (42 Stat. 388, chapter 57; 7 U.S.C. 
        291 and 292), including any organization acting for a 
        group of such associations and owned or controlled by 
        such associations, except that business done for or 
        with the United States, or any agency thereof, shall 
        not be considered either member or nonmember business 
        in determining the compliance of any such association 
        with this Act.
          (15) Derivatives clearing organization.--
                  (A) In general.--The term ``derivatives 
                clearing organization'' means a clearinghouse, 
                clearing association, clearing corporation, or 
                similar entity, facility, system, or 
                organization that, with respect to an 
                agreement, contract, or transaction--
                          (i) enables each party to the 
                        agreement, contract, or transaction to 
                        substitute, through novation or 
                        otherwise, the credit of the 
                        derivatives clearing organization for 
                        the credit of the parties;
                          (ii) arranges or provides, on a 
                        multilateral basis, for the settlement 
                        or netting of obligations resulting 
                        from such agreements, contracts, or 
                        transactions executed by participants 
                        in the derivatives clearing 
                        organization; or
                          (iii) otherwise provides clearing 
                        services or arrangements that mutualize 
                        or transfer among participants in the 
                        derivatives clearing organization the 
                        credit risk arising from such 
                        agreements, contracts, or transactions 
                        executed by the participants.
                  (B) Exclusions.--The term ``derivatives 
                clearing organization'' does not include an 
                entity, facility, system, or organization 
                solely because it arranges or provides for--
                          (i) settlement, netting, or novation 
                        of obligations resulting from 
                        agreements, contracts, or transactions, 
                        on a bilateral basis and without a 
                        central counterparty;
                          (ii) settlement or netting of cash 
                        payments through an interbank payment 
                        system; or
                          (iii) settlement, netting, or 
                        novation of obligations resulting from 
                        a sale of a commodity in a transaction 
                        in the spot market for the commodity.
          (16) Electronic trading facility.--The term 
        ``electronic trading facility'' means a trading 
        facility that--
                  (A) operates by means of an electronic or 
                telecommunications network; and
                  (B) maintains an automated audit trail of 
                bids, offers, and the matching of orders or the 
                execution of transactions on the facility.
          (17) Eligible commercial entity.--The term ``eligible 
        commercial entity'' means, with respect to an 
        agreement, contract or transaction in a commodity--
                  (A) an eligible contract participant 
                described in clause (i), (ii), (v), (vii), 
                (viii), or (ix) of paragraph (18)(A) that, in 
                connection with its business--
                          (i) has a demonstrable ability, 
                        directly or through separate 
                        contractual arrangements, to make or 
                        take delivery of the underlying 
                        commodity;
                          (ii) incurs risks, in addition to 
                        price risk, related to the commodity; 
                        or
                          (iii) is a dealer that regularly 
                        provides risk management or hedging 
                        services to, or engages in market-
                        making activities with, the foregoing 
                        entities involving transactions to 
                        purchase or sell the commodity or 
                        derivative agreements, contracts, or 
                        transactions in the commodity;
                  (B) an eligible contract participant, other 
                than a natural person or an instrumentality, 
                department, or agency of a State or local 
                governmental entity, that--
                          (i) regularly enters into 
                        transactions to purchase or sell the 
                        commodity or derivative agreements, 
                        contracts, or transactions in the 
                        commodity; and
                          (ii) either--
                                  (I) in the case of a 
                                collective investment vehicle 
                                whose participants include 
                                persons other than--
                                          (aa) qualified 
                                        eligible persons, as 
                                        defined in Commission 
                                        rule 4.7(a) (17 CFR 
                                        4.7(a));
                                          (bb) accredited 
                                        investors, as defined 
                                        in Regulation D of the 
                                        Securities and Exchange 
                                        Commission under the 
                                        Securities Act of 1933 
                                        (17 CFR 230.501(a)), 
                                        with total assets of 
                                        $2,000,000; or
                                          (cc) qualified 
                                        purchasers, as defined 
                                        in section 2(a)(51)(A) 
                                        of the Investment 
                                        Company Act of 1940;
                                in each case as in effect on 
                                the date of the enactment of 
                                the Commodity Futures 
                                Modernization Act of 2000, has, 
                                or is one of a group of 
                                vehicles under common control 
                                or management having in the 
                                aggregate, $1,000,000,000 in 
                                total assets; or
                                  (II) in the case of other 
                                persons, has, or is one of a 
                                group of persons under common 
                                control or management having in 
                                the aggregate, $100,000,000 in 
                                total assets; or
                  (C) such other persons as the Commission 
                shall determine appropriate and shall designate 
                by rule, regulation, or order.
          (18) Eligible contract participant.--The term 
        ``eligible contract participant'' means--
                  (A) acting for its own account--
                          (i) a financial institution;
                          (ii) an insurance company that is 
                        regulated by a State, or that is 
                        regulated by a foreign government and 
                        is subject to comparable regulation as 
                        determined by the Commission, including 
                        a regulated subsidiary or affiliate of 
                        such an insurance company;
                          (iii) an investment company subject 
                        to regulation under the Investment 
                        Company Act of 1940 (15 U.S.C. 80a-1 et 
                        seq.) or a foreign person performing a 
                        similar role or function subject as 
                        such to foreign regulation (regardless 
                        of whether each investor in the 
                        investment company or the foreign 
                        person is itself an eligible contract 
                        participant);
                          (iv) a commodity pool that--
                                  (I) has total assets 
                                exceeding $5,000,000; and
                                  (II) is formed and operated 
                                by a person subject to 
                                regulation under this Act or a 
                                foreign person performing a 
                                similar role or function 
                                subject as such to foreign 
                                regulation (regardless of 
                                whether each investor in the 
                                commodity pool or the foreign 
                                person is itself an eligible 
                                contract participant) provided, 
                                however, that for purposes of 
                                section 2(c)(2)(B)(vi) and 
                                section 2(c)(2)(C)(vii), the 
                                term ``eligible contract 
                                participant'' shall not include 
                                a commodity pool in which any 
                                participant is not otherwise an 
                                eligible contract participant;
                          (v) a corporation, partnership, 
                        proprietorship, organization, trust, or 
                        other entity--
                                  (I) that has total assets 
                                exceeding $10,000,000;
                                  (II) the obligations of which 
                                under an agreement, contract, 
                                or transaction are guaranteed 
                                or otherwise supported by a 
                                letter of credit or keepwell, 
                                support, or other agreement by 
                                an entity described in 
                                subclause (I), in clause (i), 
                                (ii), (iii), (iv), or (vii), or 
                                in subparagraph (C); or
                                  (III) that--
                                          (aa) has a net worth 
                                        exceeding $1,000,000; 
                                        and
                                          (bb) enters into an 
                                        agreement, contract, or 
                                        transaction in 
                                        connection with the 
                                        conduct of the entity's 
                                        business or to manage 
                                        the risk associated 
                                        with an asset or 
                                        liability owned or 
                                        incurred or reasonably 
                                        likely to be owned or 
                                        incurred by the entity 
                                        in the conduct of the 
                                        entity's business;
                          (vi) an employee benefit plan subject 
                        to the Employee Retirement Income 
                        Security Act of 1974 (29 U.S.C. 1001 et 
                        seq.), a governmental employee benefit 
                        plan, or a foreign person performing a 
                        similar role or function subject as 
                        such to foreign regulation--
                                  (I) that has total assets 
                                exceeding $5,000,000; or
                                  (II) the investment decisions 
                                of which are made by--
                                          (aa) an investment 
                                        adviser or commodity 
                                        trading advisor subject 
                                        to regulation under the 
                                        Investment Advisers Act 
                                        of 1940 (15 U.S.C. 80b-
                                        1 et seq.) or this Act;
                                          (bb) a foreign person 
                                        performing a similar 
                                        role or function 
                                        subject as such to 
                                        foreign regulation;
                                          (cc) a financial 
                                        institution; or
                                          (dd) an insurance 
                                        company described in 
                                        clause (ii), or a 
                                        regulated subsidiary or 
                                        affiliate of such an 
                                        insurance company;
                          (vii)(I) a governmental entity 
                        (including the United States, a State, 
                        or a foreign government) or political 
                        subdivision of a governmental entity;
                          (II) a multinational or supranational 
                        government entity; or
                          (III) an instrumentality, agency, or 
                        department of an entity described in 
                        subclause (I) or (II);
                        except that such term does not include 
                        an entity, instrumentality, agency, or 
                        department referred to in subclause (I) 
                        or (III) of this clause unless (aa) the 
                        entity, instrumentality, agency, or 
                        department is a person described in 
                        clause (i), (ii), or (iii) of paragraph 
                        (17)(A); (bb) the entity, 
                        instrumentality, agency, or department 
                        owns and invests on a discretionary 
                        basis $50,000,000 or more in 
                        investments; or (cc) the agreement, 
                        contract, or transaction is offered by, 
                        and entered into with, an entity that 
                        is listed in any of subclauses (I) 
                        through (VI) of section 2(c)(2)(B)(ii);
                          (viii)(I) a broker or dealer subject 
                        to regulation under the Securities 
                        Exchange Act of 1934 (15 U.S.C. 78a et 
                        seq.) or a foreign person performing a 
                        similar role or function subject as 
                        such to foreign regulation, except 
                        that, if the broker or dealer or 
                        foreign person is a natural person or 
                        proprietorship, the broker or dealer or 
                        foreign person shall not be considered 
                        to be an eligible contract participant 
                        unless the broker or dealer or foreign 
                        person also meets the requirements of 
                        clause (v) or (xi);
                          (II) an associated person of a 
                        registered broker or dealer concerning 
                        the financial or securities activities 
                        of which the registered person makes 
                        and keeps records under section 15C(b) 
                        or 17(h) of the Securities Exchange Act 
                        of 1934 (15 U.S.C. 78o-5(b), 78q(h));
                          (III) an investment bank holding 
                        company (as defined in section 17(i) of 
                        the Securities Exchange Act of 1934 (15 
                        U.S.C. 78q(i));
                          (ix) a futures commission merchant 
                        subject to regulation under this Act or 
                        a foreign person performing a similar 
                        role or function subject as such to 
                        foreign regulation, except that, if the 
                        futures commission merchant or foreign 
                        person is a natural person or 
                        proprietorship, the futures commission 
                        merchant or foreign person shall not be 
                        considered to be an eligible contract 
                        participant unless the futures 
                        commission merchant or foreign person 
                        also meets the requirements of clause 
                        (v) or (xi);
                          (x) a floor broker or floor trader 
                        subject to regulation under this Act in 
                        connection with any transaction that 
                        takes place on or through the 
                        facilities of a registered entity 
                        (other than an electronic trading 
                        facility with respect to a significant 
                        price discovery contract) or an exempt 
                        board of trade, or any affiliate 
                        thereof, on which such person regularly 
                        trades; or
                          (xi) an individual who has amounts 
                        invested on a discretionary basis, the 
                        aggregate of which is in excess of--
                                  (I) $10,000,000; or
                                  (II) $5,000,000 and who 
                                enters into the agreement, 
                                contract, or transaction in 
                                order to manage the risk 
                                associated with an asset owned 
                                or liability incurred, or 
                                reasonably likely to be owned 
                                or incurred, by the individual;
                  (B)(i) a person described in clause (i), 
                (ii), (iv), (v), (viii), (ix), or (x) of 
                subparagraph (A) or in subparagraph (C), acting 
                as broker or performing an equivalent agency 
                function on behalf of another person described 
                in subparagraph (A) or (C); or
                  (ii) an investment adviser subject to 
                regulation under the Investment Advisers Act of 
                1940, a commodity trading advisor subject to 
                regulation under this Act, a foreign person 
                performing a similar role or function subject 
                as such to foreign regulation, or a person 
                described in clause (i), (ii), (iv), (v), 
                (viii), (ix), or (x) of subparagraph (A) or in 
                subparagraph (C), in any such case acting as 
                investment manager or fiduciary (but excluding 
                a person acting as broker or performing an 
                equivalent agency function) for another person 
                described in subparagraph (A) or (C) and who is 
                authorized by such person to commit such person 
                to the transaction; or
                  (C) any other person that the Commission 
                determines to be eligible in light of the 
                financial or other qualifications of the 
                person.
          (19) Excluded commodity.--The term ``excluded 
        commodity'' means--
                  
                          (i) an interest rate, exchange rate, 
                        currency, security, security index, 
                        credit risk or measure, debt or equity 
                        instrument, index or measure of 
                        inflation, or other macroeconomic index 
                        or measure;
                          (ii) any other rate, differential, 
                        index, or measure of economic or 
                        commercial risk, return, or value that 
                        is--
                                  (I) not based in substantial 
                                part on the value of a narrow 
                                group of commodities not 
                                described in clause (i); or
                                  (II) based solely on one or 
                                more commodities that have no 
                                cash market;
                          (iii) any economic or commercial 
                        index based on prices, rates, values, 
                        or levels that are not within the 
                        control of any party to the relevant 
                        contract, agreement, or transaction; or
                          (iv) an occurrence, extent of an 
                        occurrence, or contingency (other than 
                        a change in the price, rate, value, or 
                        level of a commodity not described in 
                        clause (i)) that is--
                                  (I) beyond the control of the 
                                parties to the relevant 
                                contract, agreement, or 
                                transaction; and
                                  (II) associated with a 
                                financial, commercial, or 
                                economic consequence.
          (20) Exempt commodity.--The term ``exempt commodity'' 
        means a commodity that is not an excluded commodity or 
        an agricultural commodity.
          (21) Financial institution.--The term ``financial 
        institution'' means--
                  (A) a corporation operating under the fifth 
                undesignated paragraph of section 25 of the 
                Federal Reserve Act (12 U.S.C. 603), commonly 
                known as ``an agreement corporation'';
                  (B) a corporation organized under section 25A 
                of the Federal Reserve Act (12 U.S.C. 611 et 
                seq.), commonly known as an ``Edge Act 
                corporation'';
                  (C) an institution that is regulated by the 
                Farm Credit Administration;
                  (D) a Federal credit union or State credit 
                union (as defined in section 101 of the Federal 
                Credit Union Act (12 U.S.C. 1752));
                  (E) a depository institution (as defined in 
                section 3 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1813));
                  (F) a foreign bank or a branch or agency of a 
                foreign bank (each as defined in section 1(b) 
                of the International Banking Act of 1978 (12 
                U.S.C. 3101(b)));
                  (G) any financial holding company (as defined 
                in section 2 of the Bank Holding Company Act of 
                1956);
                  (H) a trust company; or
                  (I) a similarly regulated subsidiary or 
                affiliate of an entity described in any of 
                subparagraphs (A) through (H).
          (22) Floor broker.--
                  (A) In general.--The term ``floor broker'' 
                means any person--
                          (i) who, in or surrounding any pit, 
                        ring, post, or other place provided by 
                        a contract market for the meeting of 
                        persons similarly engaged, shall 
                        purchase or sell for any other person--
                                  (I) any commodity for future 
                                delivery, security futures 
                                product, or swap; or
                                  (II) any commodity option 
                                authorized under section 4c; or
                          (ii) who is registered with the 
                        Commission as a floor broker.
                  (B) Further definition.--The Commission, by 
                rule or regulation, may include within, or 
                exclude from, the term ``floor broker'' any 
                person in or surrounding any pit, ring, post, 
                or other place provided by a contract market 
                for the meeting of persons similarly engaged 
                who trades for any other person if the 
                Commission determines that the rule or 
                regulation will effectuate the purposes of this 
                Act.
          (23) Floor trader.--
                  (A) In general.--The term ``floor trader'' 
                means any person--
                          (i) who, in or surrounding any pit, 
                        ring, post, or other place provided by 
                        a contract market for the meeting of 
                        persons similarly engaged, purchases, 
                        or sells solely for such person's own 
                        account--
                                  (I) any commodity for future 
                                delivery, security futures 
                                product, or swap; or
                                  (II) any commodity option 
                                authorized under section 4c; or
                          (ii) who is registered with the 
                        Commission as a floor trader.
                  (B) Further definition.--The Commission, by 
                rule or regulation, may include within, or 
                exclude from, the term ``floor trader'' any 
                person in or surrounding any pit, ring, post, 
                or other place provided by a contract market 
                for the meeting of persons similarly engaged 
                who trades solely for such person's own account 
                if the Commission determines that the rule or 
                regulation will effectuate the purposes of this 
                Act.
          (24) Foreign exchange forward.--The term ``foreign 
        exchange forward'' means a transaction that solely 
        involves the exchange of 2 different currencies on a 
        specific future date at a fixed rate agreed upon on the 
        inception of the contract covering the exchange.
          (25) Foreign exchange swap.--The term ``foreign 
        exchange swap'' means a transaction that solely 
        involves--
                  (A) an exchange of 2 different currencies on 
                a specific date at a fixed rate that is agreed 
                upon on the inception of the contract covering 
                the exchange; and
                  (B) a reverse exchange of the 2 currencies 
                described in subparagraph (A) at a later date 
                and at a fixed rate that is agreed upon on the 
                inception of the contract covering the 
                exchange.
          (26) Foreign futures authority.--The term ``foreign 
        futures authority'' means any foreign government, or 
        any department, agency, governmental body, or 
        regulatory organization empowered by a foreign 
        government to administer or enforce a law, rule, or 
        regulation as it relates to a futures or options 
        matter, or any department or agency of a political 
        subdivision of a foreign government empowered to 
        administer or enforce a law, rule, or regulation as it 
        relates to a futures or options matter.
          (27) Future delivery.--The term ``future delivery'' 
        does not include any sale of any cash commodity for 
        deferred shipment or delivery.
          (28) Futures commission merchant.--
                  (A) In general.--The term ``futures 
                commission merchant'' means an individual, 
                association, partnership, corporation, or 
                trust--
                          (i) that--
                                  (I) is--
                                          (aa) engaged in 
                                        soliciting or in 
                                        accepting orders for--
                                                  (AA) the 
                                                purchase or 
                                                sale of a 
                                                commodity for 
                                                future 
                                                delivery;
                                                  (BB) a 
                                                security 
                                                futures 
                                                product;
                                                  (CC) a swap;
                                                  (DD) any 
                                                agreement, 
                                                contract, or 
                                                transaction 
                                                described in 
                                                section 
                                                2(c)(2)(C)(i) 
                                                or section 
                                                2(c)(2)(D)(i);
                                                  (EE) any 
                                                commodity 
                                                option 
                                                authorized 
                                                under section 
                                                4c; or
                                                  (FF) any 
                                                leverage 
                                                transaction 
                                                authorized 
                                                under section 
                                                19; or
                                          (bb) acting as a 
                                        counterparty in any 
                                        agreement, contract, or 
                                        transaction described 
                                        in section 
                                        2(c)(2)(C)(i) or 
                                        section 2(c)(2)(D)(i); 
                                        and
                                  (II) in or in connection with 
                                the activities described in 
                                items (aa) or (bb) of subclause 
                                (I), accepts any money, 
                                securities, or property (or 
                                extends credit in lieu thereof) 
                                to margin, guarantee, or secure 
                                any trades or contracts that 
                                result or may result therefrom; 
                                or
                          (ii) that is registered with the 
                        Commission as a futures commission 
                        merchant.
                  (B) Further definition.--The Commission, by 
                rule or regulation, may include within, or 
                exclude from, the term ``futures commission 
                merchant'' any person who engages in soliciting 
                or accepting orders for, or acting as a 
                counterparty in, any agreement, contract, or 
                transaction subject to this Act, and who 
                accepts any money, securities, or property (or 
                extends credit in lieu thereof) to margin, 
                guarantee, or secure any trades or contracts 
                that result or may result therefrom, if the 
                Commission determines that the rule or 
                regulation will effectuate the purposes of this 
                Act.
          (29) Hybrid instrument.--The term ``hybrid 
        instrument'' means a security having one or more 
        payments indexed to the value, level, or rate of, or 
        providing for the delivery of, one or more commodities.
          (30) Interstate commerce.--The term ``interstate 
        commerce'' means commerce--
                  (A) between any State, territory, or 
                possession, or the District of Columbia, and 
                any place outside thereof; or
                  (B) between points within the same State, 
                territory, or possession, or the District of 
                Columbia, but through any place outside 
                thereof, or within any territory or possession, 
                or the District of Columbia.
          (31) Introducing broker.--
                  (A) In general.--The term ``introducing 
                broker'' means any person (except an individual 
                who elects to be and is registered as an 
                associated person of a futures commission 
                merchant)--
                          (i) who--
                                  (I) is engaged in soliciting 
                                or in accepting orders for--
                                          (aa) the purchase or 
                                        sale of any commodity 
                                        for future delivery, 
                                        security futures 
                                        product, or swap;
                                          (bb) any agreement, 
                                        contract, or 
                                        transaction described 
                                        in section 
                                        2(c)(2)(C)(i) or 
                                        section 2(c)(2)(D)(i);
                                          (cc) any commodity 
                                        option authorized under 
                                        section 4c; or
                                          (dd) any leverage 
                                        transaction authorized 
                                        under section 19; and
                                  (II) does not accept any 
                                money, securities, or property 
                                (or extend credit in lieu 
                                thereof) to margin, guarantee, 
                                or secure any trades or 
                                contracts that result or may 
                                result therefrom; or
                          (ii) who is registered with the 
                        Commission as an introducing broker.
                  (B) Further definition.--The Commission, by 
                rule or regulation, may include within, or 
                exclude from, the term ``introducing broker'' 
                any person who engages in soliciting or 
                accepting orders for any agreement, contract, 
                or transaction subject to this Act, and who 
                does not accept any money, securities, or 
                property (or extend credit in lieu thereof) to 
                margin, guarantee, or secure any trades or 
                contracts that result or may result therefrom, 
                if the Commission determines that the rule or 
                regulation will effectuate the purposes of this 
                Act.
          (32) Major security-based swap participant.--The term 
        ``major security-based swap participant'' has the 
        meaning given the term in section 3(a) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).
          (33) Major swap participant.--
                  (A) In general.--The term ``major swap 
                participant'' means any person who is not a 
                swap dealer, and--
                          (i) maintains a substantial position 
                        in swaps for any of the major swap 
                        categories as determined by the 
                        Commission, excluding--
                                  (I) positions held for 
                                hedging or mitigating 
                                commercial risk; and
                                  (II) positions maintained by 
                                any employee benefit plan (or 
                                any contract held by such a 
                                plan) as defined in paragraphs 
                                (3) and (32) of section 3 of 
                                the Employee Retirement Income 
                                Security Act of 1974 (29 U.S.C. 
                                1002) for the primary purpose 
                                of hedging or mitigating any 
                                risk directly associated with 
                                the operation of the plan;
                          (ii) whose outstanding swaps create 
                        substantial counterparty exposure that 
                        could have serious adverse effects on 
                        the financial stability of the United 
                        States banking system or financial 
                        markets; or
                          (iii)(I) is a financial entity that 
                        is highly leveraged relative to the 
                        amount of capital it holds and that is 
                        not subject to capital requirements 
                        established by an appropriate Federal 
                        banking agency; and
                          (II) maintains a substantial position 
                        in outstanding swaps in any major swap 
                        category as determined by the 
                        Commission.
                  (B) Definition of substantial position.--For 
                purposes of subparagraph (A), the Commission 
                shall define by rule or regulation the term 
                ``substantial position'' at the threshold that 
                the Commission determines to be prudent for the 
                effective monitoring, management, and oversight 
                of entities that are systemically important or 
                can significantly impact the financial system 
                of the United States. In setting the definition 
                under this subparagraph, the Commission shall 
                consider the person's relative position in 
                uncleared as opposed to cleared swaps and may 
                take into consideration the value and quality 
                of collateral held against counterparty 
                exposures.
                  (C) Scope of designation.--For purposes of 
                subparagraph (A), a person may be designated as 
                a major swap participant for 1 or more 
                categories of swaps without being classified as 
                a major swap participant for all classes of 
                swaps.
                  (D) Exclusions.--The definition under this 
                paragraph shall not include an entity whose 
                primary business is providing financing, and 
                uses derivatives for the purpose of hedging 
                underlying commercial risks related to interest 
                rate and foreign currency exposures, 90 percent 
                or more of which arise from financing that 
                facilitates the purchase or lease of products, 
                90 percent or more of which are manufactured by 
                the parent company or another subsidiary of the 
                parent company.
          (34) Member of a registered entity; member of a 
        derivatives transaction execution facility.--The term 
        ``member'' means, with respect to a registered entity 
        or derivatives transaction execution facility, an 
        individual, association, partnership, corporation, or 
        trust--
                  (A) owning or holding membership in, or 
                admitted to membership representation on, the 
                registered entity or derivatives transaction 
                execution facility; or
                  (B) having trading privileges on the 
                registered entity or derivatives transaction 
                execution facility.
        A participant in an alternative trading system that is 
        designated as a contract market pursuant to section 5f 
        is deemed a member of the contract market for purposes 
        of transactions in security futures products through 
        the contract market.
          (35) Narrow-based security index.--
                  (A) The term ``narrow-based security index'' 
                means an index--
                          (i) that has 9 or fewer component 
                        securities;
                          (ii) in which a component security 
                        comprises more than 30 percent of the 
                        index's weighting;
                          (iii) in which the five highest 
                        weighted component securities in the 
                        aggregate comprise more than 60 percent 
                        of the index's weighting; or
                          (iv) in which the lowest weighted 
                        component securities comprising, in the 
                        aggregate, 25 percent of the index's 
                        weighting have an aggregate dollar 
                        value of average daily trading volume 
                        of less than $50,000,000 (or in the 
                        case of an index with 15 or more 
                        component securities, $30,000,000), 
                        except that if there are two or more 
                        securities with equal weighting that 
                        could be included in the calculation of 
                        the lowest weighted component 
                        securities comprising, in the 
                        aggregate, 25 percent of the index's 
                        weighting, such securities shall be 
                        ranked from lowest to highest dollar 
                        value of average daily trading volume 
                        and shall be included in the 
                        calculation based on their ranking 
                        starting with the lowest ranked 
                        security.
                  (B) Notwithstanding subparagraph (A), an 
                index is not a narrow-based security index if--
                          (i)(I) it has at least 9 component 
                        securities;
                          (II) no component security comprises 
                        more than 30 percent of the index's 
                        weighting; and
                          (III) each component security is--
                                  (aa) registered pursuant to 
                                section 12 of the Securities 
                                Exchange Act of 1934;
                                  (bb) one of 750 securities 
                                with the largest market 
                                capitalization; and
                                  (cc) one of 675 securities 
                                with the largest dollar value 
                                of average daily trading 
                                volume;
                          (ii) a board of trade was designated 
                        as a contract market by the Commodity 
                        Futures Trading Commission with respect 
                        to a contract of sale for future 
                        delivery on the index, before the date 
                        of the enactment of the Commodity 
                        Futures Modernization Act of 2000;
                          (iii)(I) a contract of sale for 
                        future delivery on the index traded on 
                        a designated contract market or 
                        registered derivatives transaction 
                        execution facility for at least 30 days 
                        as a contract of sale for future 
                        delivery on an index that was not a 
                        narrow-based security index; and
                          (II) it has been a narrow-based 
                        security index for no more than 45 
                        business days over 3 consecutive 
                        calendar months;
                          (iv) a contract of sale for future 
                        delivery on the index is traded on or 
                        subject to the rules of a foreign board 
                        of trade and meets such requirements as 
                        are jointly established by rule or 
                        regulation by the Commission and the 
                        Securities and Exchange Commission;
                          (v) no more than 18 months have 
                        passed since the date of the enactment 
                        of the Commodity Futures Modernization 
                        Act of 2000 and--
                                  (I) it is traded on or 
                                subject to the rules of a 
                                foreign board of trade;
                                  (II) the offer and sale in 
                                the United States of a contract 
                                of sale for future delivery on 
                                the index was authorized before 
                                the date of the enactment of 
                                the Commodity Futures 
                                Modernization Act of 2000; and
                                  (III) the conditions of such 
                                authorization continue to be 
                                met; or
                          (vi) a contract of sale for future 
                        delivery on the index is traded on or 
                        subject to the rules of a board of 
                        trade and meets such requirements as 
                        are jointly established by rule, 
                        regulation, or order by the Commission 
                        and the Securities and Exchange 
                        Commission.
                  (C) Within 1 year after the date of the 
                enactment of the Commodity Futures 
                Modernization Act of 2000, the Commission and 
                the Securities and Exchange Commission jointly 
                shall adopt rules or regulations that set forth 
                the requirements under subparagraph (B)(iv).
                  (D) An index that is a narrow-based security 
                index solely because it was a narrow-based 
                security index for more than 45 business days 
                over 3 consecutive calendar months pursuant to 
                clause (iii) of subparagraph (B) shall not be a 
                narrow-based security index for the 3 following 
                calendar months.
                  (E) For purposes of subparagraphs (A) and 
                (B)--
                          (i) the dollar value of average daily 
                        trading volume and the market 
                        capitalization shall be calculated as 
                        of the preceding 6 full calendar 
                        months; and
                          (ii) the Commission and the 
                        Securities and Exchange Commission 
                        shall, by rule or regulation, jointly 
                        specify the method to be used to 
                        determine market capitalization and 
                        dollar value of average daily trading 
                        volume.
          (36) Option.--The term ``option'' means an agreement, 
        contract, or transaction that is of the character of, 
        or is commonly known to the trade as, an ``option'', 
        ``privilege'', ``indemnity'', ``bid'', ``offer'', 
        ``put'', ``call'', ``advance guaranty'', or ``decline 
        guaranty''.
          (37) Organized exchange.--The term ``organized 
        exchange'' means a trading facility that--
                  (A) permits trading--
                          (i) by or on behalf of a person that 
                        is not an eligible contract 
                        participant; or
                          (ii) by persons other than on a 
                        principal-to-principal basis; or
                  (B) has adopted (directly or through another 
                nongovernmental entity) rules that--
                          (i) govern the conduct of 
                        participants, other than rules that 
                        govern the submission of orders or 
                        execution of transactions on the 
                        trading facility; and
                          (ii) include disciplinary sanctions 
                        other than the exclusion of 
                        participants from trading.
          (38) Person.--The term ``person'' imports the plural 
        or singular, and includes individuals, associations, 
        partnerships, corporations, and trusts.
          (39) Prudential regulator.--The term ``prudential 
        regulator'' means--
                  (A) the Board in the case of a swap dealer, 
                major swap participant, security-based swap 
                dealer, or major security-based swap 
                participant that is--
                          (i) a State-chartered bank that is a 
                        member of the Federal Reserve System;
                          (ii) a State-chartered branch or 
                        agency of a foreign bank;
                          (iii) any foreign bank which does not 
                        operate an insured branch;
                          (iv) any organization operating under 
                        section 25A of the Federal Reserve Act 
                        or having an agreement with the Board 
                        under section 225 of the Federal 
                        Reserve Act;
                          (v) any bank holding company (as 
                        defined in section 2 of the Bank 
                        Holding Company Act of 1965 (12 U.S.C. 
                        1841)), any foreign bank (as defined in 
                        section 1(b)(7) of the International 
                        Banking Act of 1978 (12 U.S.C. 
                        3101(b)(7)) that is treated as a bank 
                        holding company under section 8(a) of 
                        the International Banking Act of 1978 
                        (12 U.S.C. 3106(a)), and any subsidiary 
                        of such a company or foreign bank 
                        (other than a subsidiary that is 
                        described in subparagraph (A) or (B) or 
                        that is required to be registered with 
                        the Commission as a swap dealer or 
                        major swap participant under this Act 
                        or with the Securities and Exchange 
                        Commission as a security-based swap 
                        dealer or major security-based swap 
                        participant);
                          (vi) after the transfer date (as 
                        defined in section 311 of the Dodd-
                        Frank Wall Street Reform and Consumer 
                        Protection Act), any savings and loan 
                        holding company (as defined in section 
                        10 of the Home Owners' Loan Act (12 
                        U.S.C. 1467a)) and any subsidiary of 
                        such company (other than a subsidiary 
                        that is described in subparagraph (A) 
                        or (B) or that is required to be 
                        registered as a swap dealer or major 
                        swap participant with the Commission 
                        under this Act or with the Securities 
                        and Exchange Commission as a security-
                        based swap dealer or major security-
                        based swap participant); or
                          (vii) any organization operating 
                        under section 25A of the Federal 
                        Reserve Act (12U.S.C. 611 et seq.) or 
                        having an agreement with the Board 
                        under section 25 of the Federal Reserve 
                        Act (12 U.S.C. 601 et seq.);
                  (B) the Office of the Comptroller of the 
                Currency in the case of a swap dealer, major 
                swap participant, security-based swap dealer, 
                or major security-based swap participant that 
                is--
                          (i) a national bank;
                          (ii) a federally chartered branch or 
                        agency of a foreign bank; or
                          (iii) any Federal savings 
                        association;
                  (C) the Federal Deposit Insurance Corporation 
                in the case of a swap dealer, major swap 
                participant, security-based swap dealer, or 
                major security-based swap participant that is--
                          (i) a State-chartered bank that is 
                        not a member of the Federal Reserve 
                        System; or
                          (ii) any State savings association;
                  (D) the Farm Credit Administration, in the 
                case of a swap dealer, major swap participant, 
                security-based swap dealer, or major security-
                based swap participant that is an institution 
                chartered under the Farm Credit Act of 1971 (12 
                U.S.C. 2001 et seq.); and
                  (E) the Federal Housing Finance Agency in the 
                case of a swap dealer, major swap participant, 
                security-based swap dealer, or major security-
                based swap participant that is a regulated 
                entity (as such term is defined in section 1303 
                of the Federal Housing Enterprises Financial 
                Safety and Soundness Act of 1992).
          (40) Registered entity.--The term ``registered 
        entity'' means--
                  (A) a board of trade designated as a contract 
                market under section 5;
                  (B) a derivatives clearing organization 
                registered under section 5b;
                  (C) a board of trade designated as a contract 
                market under section 5f;
                  (D) a swap execution facility registered 
                under section 5h;
                  (E) a swap data repository registered under 
                section 21; and
                  (F) with respect to a contract that the 
                Commission determines is a significant price 
                discovery contract, any electronic trading 
                facility on which the contract is executed or 
                traded.
          (41) Security.--The term ``security'' means a 
        security as defined in section 2(a)(1) of the 
        Securities Act of 1933 (15 U.S.C. 77b(a)(1)) or section 
        3(a)(10) of the Securities Exchange Act of 1934 (15 
        U.S.C. 78c(a)(10)).
          (42) Security-based swap.--The term ``security-based 
        swap'' has the meaning given the term in section 3(a) 
        of the Securities Exchange Act of 1934 (15 U.S.C. 
        78c(a)).
          (43) Security-based swap dealer.--The term 
        ``security-based swap dealer'' has the meaning given 
        the term in section 3(a) of the Securities Exchange Act 
        of 1934 (15 U.S.C. 78c(a)).
          (44) Security future.--The term ``security future'' 
        means a contract of sale for future delivery of a 
        single security or of a narrow-based security index, 
        including any interest therein or based on the value 
        thereof, except an exempted security under section 
        3(a)(12) of the Securities Exchange Act of 1934 as in 
        effect on the date of the enactment of the Futures 
        Trading Act of 1982 (other than any municipal security 
        as defined in section 3(a)(29) of the Securities 
        Exchange Act of 1934 as in effect on the date of the 
        enactment of the Futures Trading Act of 1982). The term 
        ``security future'' does not include any agreement, 
        contract, or transaction excluded from this Act under 
        section 2(c), 2(d), 2(f), or 2(g) of this Act (as in 
        effect on the date of the enactment of the Commodity 
        Futures Modernization Act of 2000) or title IV of the 
        Commodity Futures Modernization Act of 2000.
          (45) Security futures product.--The term ``security 
        futures product'' means a security future or any put, 
        call, straddle, option, or privilege on any security 
        future.
          (46) Significant price discovery contract.--The term 
        ``significant price discovery contract'' means an 
        agreement, contract, or transaction subject to section 
        2(h)(5).
          (47) Swap.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the term ``swap'' means any 
                agreement, contract, or transaction--
                          (i) that is a put, call, cap, floor, 
                        collar, or similar option of any kind 
                        that is for the purchase or sale, or 
                        based on the value, of 1 or more 
                        interest or other rates, currencies, 
                        commodities, securities, instruments of 
                        indebtedness, indices, quantitative 
                        measures, or other financial or 
                        economic interests or property of any 
                        kind;
                          (ii) that provides for any purchase, 
                        sale, payment, or delivery (other than 
                        a dividend on an equity security) that 
                        is dependent on the occurrence, 
                        nonoccurrence, or the extent of the 
                        occurrence of an event or contingency 
                        associated with a potential financial, 
                        economic, or commercial consequence;
                          (iii) that provides on an executory 
                        basis for the exchange, on a fixed or 
                        contingent basis, of 1 or more payments 
                        based on the value or level of 1 or 
                        more interest or other rates, 
                        currencies, commodities, securities, 
                        instruments of indebtedness, indices, 
                        quantitative measures, or other 
                        financial or economic interests or 
                        property of any kind, or any interest 
                        therein or based on the value thereof, 
                        and that transfers, as between the 
                        parties to the transaction, in whole or 
                        in part, the financial risk associated 
                        with a future change in any such value 
                        or level without also conveying a 
                        current or future direct or indirect 
                        ownership interest in an asset 
                        (including any enterprise or investment 
                        pool) or liability that incorporates 
                        the financial risk so transferred, 
                        including any agreement, contract, or 
                        transaction commonly known as--
                                  (I) an interest rate swap;
                                  (II) a rate floor;
                                  (III) a rate cap;
                                  (IV) a rate collar;
                                  (V) a cross-currency rate 
                                swap;
                                  (VI) a basis swap;
                                  (VII) a currency swap;
                                  (VIII) a foreign exchange 
                                swap;
                                  (IX) a total return swap;
                                  (X) an equity index swap;
                                  (XI) an equity swap;
                                  (XII) a debt index swap;
                                  (XIII) a debt swap;
                                  (XIV) a credit spread;
                                  (XV) a credit default swap;
                                  (XVI) a credit swap;
                                  (XVII) a weather swap;
                                  (XVIII) an energy swap;
                                  (XIX) a metal swap;
                                  (XX) an agricultural swap;
                                  (XXI) an emissions swap; and
                                  (XXII) a commodity swap;
                          (iv) that is an agreement, contract, 
                        or transaction that is, or in the 
                        future becomes, commonly known to the 
                        trade as a swap;
                          (v) including any security-based swap 
                        agreement which meets the definition of 
                        ``swap agreement'' as defined in 
                        section 206A of the Gramm-Leach-Bliley 
                        Act (15 U.S.C. 78c note) of which a 
                        material term is based on the price, 
                        yield, value, or volatility of any 
                        security or any group or index of 
                        securities, or any interest therein; or
                          (vi) that is any combination or 
                        permutation of, or option on, any 
                        agreement, contract, or transaction 
                        described in any of clauses (i) through 
                        (v).
                  (B) Exclusions.--The term ``swap'' does not 
                include--
                          (i) any contract of sale of a 
                        commodity for future delivery (or 
                        option on such a contract), leverage 
                        contract authorized under section 19, 
                        security futures product, or agreement, 
                        contract, or transaction described in 
                        section 2(c)(2)(C)(i) or section 
                        2(c)(2)(D)(i);
                          (ii) any sale of a nonfinancial 
                        commodity or security for deferred 
                        shipment or delivery, so long as the 
                        transaction is intended to be 
                        physically settled;
                          (iii) any put, call, straddle, 
                        option, or privilege on any security, 
                        certificate of deposit, or group or 
                        index of securities, including any 
                        interest therein or based on the value 
                        thereof, that is subject to--
                                  (I) the Securities Act of 
                                1933 (15 U.S.C. 77a et seq.); 
                                and
                                  (II) the Securities Exchange 
                                Act of 1934 (15 U.S.C. 78a et 
                                seq.);
                          (iv) any put, call, straddle, option, 
                        or privilege relating to a foreign 
                        currency entered into on a national 
                        securities exchange registered pursuant 
                        to section 6(a) of the Securities 
                        Exchange Act of 1934 (15 U.S.C. 
                        78f(a));
                          (v) any agreement, contract, or 
                        transaction providing for the purchase 
                        or sale of 1 or more securities on a 
                        fixed basis that is subject to--
                                  (I) the Securities Act of 
                                1933 (15 U.S.C. 77a et seq.); 
                                and
                                  (II) the Securities Exchange 
                                Act of 1934 (15 U.S.C. 78a et 
                                seq.);
                          (vi) any agreement, contract, or 
                        transaction providing for the purchase 
                        or sale of 1 or more securities on a 
                        contingent basis that is subject to the 
                        Securities Act of 1933 (15 U.S.C. 77a 
                        et seq.) and the Securities Exchange 
                        Act of 1934 (15 U.S.C. 78a et seq.), 
                        unless the agreement, contract, or 
                        transaction predicates the purchase or 
                        sale on the occurrence of a bona fide 
                        contingency that might reasonably be 
                        expected to affect or be affected by 
                        the creditworthiness of a party other 
                        than a party to the agreement, 
                        contract, or transaction;
                          (vii) any note, bond, or evidence of 
                        indebtedness that is a security, as 
                        defined in section 2(a)(1) of the 
                        Securities Act of 1933 (15 U.S.C. 
                        77b(a)(1));
                          (viii) any agreement, contract, or 
                        transaction that is--
                                  (I) based on a security; and
                                  (II) entered into directly or 
                                through an underwriter (as 
                                defined in section 2(a)(11) of 
                                the Securities Act of 1933 (15 
                                U.S.C. 77b(a)(11)) by the 
                                issuer of such security for the 
                                purposes of raising capital, 
                                unless the agreement, contract, 
                                or transaction is entered into 
                                to manage a risk associated 
                                with capital raising;
                          (ix) any agreement, contract, or 
                        transaction a counterparty of which is 
                        a Federal Reserve bank, the Federal 
                        Government, or a Federal agency that is 
                        expressly backed by the full faith and 
                        credit of the United States; and
                          (x) any security-based swap, other 
                        than a security-based swap as described 
                        in subparagraph (D).
                  (C) Rule of construction regarding master 
                agreements.--
                          (i) In general.--Except as provided 
                        in clause (ii), the term ``swap'' 
                        includes a master agreement that 
                        provides for an agreement, contract, or 
                        transaction that is a swap under 
                        subparagraph (A), together with each 
                        supplement to any master agreement, 
                        without regard to whether the master 
                        agreement contains an agreement, 
                        contract, or transaction that is not a 
                        swap pursuant to subparagraph (A).
                          (ii) Exception.--For purposes of 
                        clause (i), the master agreement shall 
                        be considered to be a swap only with 
                        respect to each agreement, contract, or 
                        transaction covered by the master 
                        agreement that is a swap pursuant to 
                        subparagraph (A).
                  (D) Mixed swap.--The term ``security-based 
                swap'' includes any agreement, contract, or 
                transaction that is as described in section 
                3(a)(68)(A) of the Securities Exchange Act of 
                1934 (15 U.S.C. 78c(a)(68)(A)) and also is 
                based on the value of 1 or more interest or 
                other rates, currencies, commodities, 
                instruments of indebtedness, indices, 
                quantitative measures, other financial or 
                economic interest or property of any kind 
                (other than a single security or a narrow-based 
                security index), or the occurrence, non-
                occurrence, or the extent of the occurrence of 
                an event or contingency associated with a 
                potential financial, economic, or commercial 
                consequence (other than an event described in 
                subparagraph (A)(iii)).
                  (E) Treatment of foreign exchange swaps and 
                forwards.--
                          (i) In general.--Foreign exchange 
                        swaps and foreign exchange forwards 
                        shall be considered swaps under this 
                        paragraph unless the Secretary makes a 
                        written determination under section 1b 
                        that either foreign exchange swaps or 
                        foreign exchange forwards or both--
                                  (I) should be not be 
                                regulated as swaps under this 
                                Act; and
                                  (II) are not structured to 
                                evade the Dodd-Frank Wall 
                                Street Reform and Consumer 
                                Protection Act in violation of 
                                any rule promulgated by the 
                                Commission pursuant to section 
                                721(c) of that Act.
                          (ii) Congressional notice; 
                        effectiveness.--The Secretary shall 
                        submit any written determination under 
                        clause (i) to the appropriate 
                        committees of Congress, including the 
                        Committee on Agriculture, Nutrition, 
                        and Forestry of the Senate and the 
                        Committee on Agriculture of the House 
                        of Representatives. Any such written 
                        determination by the Secretary shall 
                        not be effective until it is submitted 
                        to the appropriate committees of 
                        Congress.
                          (iii) Reporting.--Notwithstanding a 
                        written determination by the Secretary 
                        under clause (i), all foreign exchange 
                        swaps and foreign exchange forwards 
                        shall be reported to either a swap data 
                        repository, or, if there is no swap 
                        data repository that would accept such 
                        swaps or forwards, to the Commission 
                        pursuant to section 4r within such time 
                        period as the Commission may by rule or 
                        regulation prescribe.
                          (iv) Business standards.--
                        Notwithstanding a written determination 
                        by the Secretary pursuant to clause 
                        (i), any party to a foreign exchange 
                        swap or forward that is a swap dealer 
                        or major swap participant shall conform 
                        to the business conduct standards 
                        contained in section 4s(h).
                          (v) Secretary.--For purposes of this 
                        subparagraph, the term ``Secretary'' 
                        means the Secretary of the Treasury.
                  (F) Exception for certain foreign exchange 
                swaps and forwards.--
                          (i) Registered entities.--Any foreign 
                        exchange swap and any foreign exchange 
                        forward that is listed and traded on or 
                        subject to the rules of a designated 
                        contract market or a swap execution 
                        facility, or that is cleared by a 
                        derivatives clearing organization, 
                        shall not be exempt from any provision 
                        of this Act or amendments made by the 
                        Wall Street Transparency and 
                        Accountability Act of 2010 prohibiting 
                        fraud or manipulation.
                          (ii) Retail transactions.--Nothing in 
                        subparagraph (E) shall affect, or be 
                        construed to affect, the applicability 
                        of this Act or the jurisdiction of the 
                        Commission with respect to agreements, 
                        contracts, or transactions in foreign 
                        currency pursuant to section 2(c)(2).
                  (G) Treatment of transactions between 
                affiliates.--
                          (i) Exemption from swap rules.--An 
                        agreement, contract, or transaction 
                        described in subparagraphs (A) through 
                        (F) shall not be regulated as a swap 
                        under this Act if all of the following 
                        apply with respect to the agreement, 
                        contract, or transaction:
                                  (I) Affiliation.--One 
                                counterparty, directly or 
                                indirectly, holds a majority 
                                ownership interest in the other 
                                counterparty, or a third party, 
                                directly or indirectly, holds a 
                                majority ownership interest in 
                                both counterparties.
                                  (II) Financial statements.--
                                The affiliated counterparty 
                                that holds the majority 
                                interest in the other 
                                counterparty or the third party 
                                that, directly or indirectly, 
                                holds the majority interests in 
                                both affiliated counterparties, 
                                reports its financial 
                                statements on a consolidated 
                                basis under generally accepted 
                                accounting principles or 
                                International Financial 
                                Reporting Standards, or other 
                                similar standards, and the 
                                financial statements include 
                                the financial results of the 
                                majority-owned affiliated 
                                counterparty or counterparties.
                          (ii) Reporting requirement.--If at 
                        least one counterparty to an agreement, 
                        contract, or transaction that meets the 
                        requirements of clause (i) is a swap 
                        dealer or major swap participant, that 
                        counterparty shall report the 
                        agreement, contract, or transaction 
                        pursuant to section 4r, within such 
                        time period as the Commission may by 
                        rule or regulation prescribe--
                                  (I) to a swap data 
                                repository; or
                                  (II) if there is no swap data 
                                repository that would accept 
                                the agreement, contract or 
                                transaction, to the Commission.
                          (iii) Risk management requirement.--
                        If at least one counterparty to an 
                        agreement, contract, or transaction 
                        that meets the requirements of clause 
                        (i) is a swap dealer or major swap 
                        participant, the agreement, contract, 
                        or transaction shall be subject to a 
                        centralized risk management program 
                        pursuant to section 4s(j) that is 
                        reasonably designed to monitor and to 
                        manage the risks associated with the 
                        agreement, contract, or transaction.
                          (iv) Variation margin requirement.--
                        Affiliated counterparties to an 
                        agreement, contract, or transaction 
                        that meets the requirements of clause 
                        (i) shall exchange variation margin to 
                        the extent prescribed under any rule 
                        promulgated by the Commission or any 
                        prudential regulator pursuant to 
                        section 4s(e).
                          (v) Anti-evasion requirement.--An 
                        agreement, contract, or transaction 
                        that meets the requirements of clause 
                        (i) shall not be structured to evade 
                        the Dodd-Frank Wall Street Reform and 
                        Consumer Protection Act in violation of 
                        any rule promulgated by the Commission 
                        pursuant to section 721(c) of such Act.
          (48) Swap data repository.--The term ``swap data 
        repository'' means any person that collects and 
        maintains information or records with respect to 
        transactions or positions in, or the terms and 
        conditions of, swaps entered into by third parties for 
        the purpose of providing a centralized recordkeeping 
        facility for swaps.
          (49) Swap dealer.--
                  (A) In general.--The term ``swap dealer'' 
                means any person who--
                          (i) holds itself out as a dealer in 
                        swaps;
                          (ii) makes a market in swaps;
                          (iii) regularly enters into swaps 
                        with counterparties as an ordinary 
                        course of business for its own account; 
                        or
                          (iv) engages in any activity causing 
                        the person to be commonly known in the 
                        trade as a dealer or market maker in 
                        swaps,
                provided however, in no event shall an insured 
                depository institution be considered to be a 
                swap dealer to the extent it offers to enter 
                into a swap with a customer in connection with 
                originating a loan with that customer.
                  (B) Inclusion.--A person may be designated as 
                a swap dealer for a single type or single class 
                or category of swap or activities and 
                considered not to be a swap dealer for other 
                types, classes, or categories of swaps or 
                activities.
                  (C) Exception.--The term ``swap dealer'' does 
                not include a person that enters into swaps for 
                such person's own account, either individually 
                or in a fiduciary capacity, but not as a part 
                of a regular business.
                  (D) De minimis exception.--The Commission 
                shall exempt from designation as a swap dealer 
                an entity that engages in a de minimis quantity 
                of swap dealing in connection with transactions 
                with or on behalf of its customers. The 
                Commission shall promulgate regulations to 
                establish factors with respect to the making of 
                this determination to exempt.
          (50) Swap execution facility.--The term ``swap 
        execution facility'' means a trading system or platform 
        in which multiple participants have the ability to 
        execute or trade swaps by accepting bids and offers 
        made by multiple participants in the facility or 
        system, through any means of interstate commerce, 
        including any trading facility, that--
                  (A) facilitates the execution of swaps 
                between persons; and
                  (B) is not a designated contract market.
          (51) Trading facility.--
                  (A) In general.--The term ``trading 
                facility'' means a person or group of persons 
                that constitutes, maintains, or provides a 
                physical or electronic facility or system in 
                which multiple participants have the ability to 
                execute or trade agreements, contracts, or 
                transactions--
                          (i) by accepting bids or offers made 
                        by other participants that are open to 
                        multiple partipants in the facility or 
                        system; or
                          (ii) through the interaction of 
                        multiple bids or multiple offers within 
                        a system with a pre-determined non-
                        discretionary automated trade matching 
                        and execution algorithm.
                  (B) Exclusions.--The term ``trading 
                facility'' does not include--
                          (i) a person or group of persons 
                        solely because the person or group of 
                        persons constitutes, maintains, or 
                        provides an electronic facility or 
                        system that enables participants to 
                        negotiate the terms of and enter into 
                        bilateral transactions as a result of 
                        communications exchanged by the parties 
                        and not from interaction of multiple 
                        bids and multiple offers within a 
                        predetermined, nondiscretionary 
                        automated trade matching and execution 
                        algorithm;
                          (ii) a government securities dealer 
                        or government securities broker, to the 
                        extent that the dealer or broker 
                        executes or trades agreements, 
                        contracts, or transactions in 
                        government securities, or assists 
                        persons in communicating about, 
                        negotiating, entering into, executing, 
                        or trading an agreement, contract, or 
                        transaction in government securities 
                        (as the terms ``government securities 
                        dealer'', ``government securities 
                        broker'', and ``government securities'' 
                        are defined in section 3(a) of the 
                        Securities Exchange Act of 1934 (15 
                        U.S.C. 78c(a))); or
                          (iii) facilities on which bids and 
                        offers, and acceptances of bids and 
                        offers effected on the facility, are 
                        not binding.
                Any person, group of persons, dealer, broker, 
                or facility described in clause (i) or (ii) is 
                excluded from the meaning of the term ``trading 
                facility'' for the purposes of this Act without 
                any prior specific approval, certification, or 
                other action by the Commission.
                  (C) Special rule.--A person or group of 
                persons that would not otherwise constitute a 
                trading facility shall not be considered to be 
                a trading facility solely as a result of the 
                submission to a derivatives clearing 
                organization of transactions executed on or 
                through the person or group of persons.

           *       *       *       *       *       *       *


SEC. 15. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST LAWS.

  (a) Costs and Benefits.--
          [(1) In general.--Before promulgating a regulation 
        under this Act or issuing an order (except as provided 
        in paragraph (3)), the Commission shall consider the 
        costs and benefits of the action of the Commission.
          [(2) Considerations.--The costs and benefits of the 
        proposed Commission action shall be evaluated in light 
        of--
                  [(A) considerations of protection of market 
                participants and the public;
                  [(B) considerations of the efficiency, 
                competitiveness, and financial integrity of 
                futures markets;
                  [(C) considerations of price discovery;
                  [(D) considerations of sound risk management 
                practices; and
                  [(E) other public interest considerations.]
          (1) In general.--Before promulgating a regulation 
        under this Act or issuing an order (except as provided 
        in paragraph (3)), the Commission, through the Office 
        of the Chief Economist, shall assess and publish in the 
        regulation or order the costs and benefits, both 
        qualitative and quantitative, of the proposed 
        regulation or order, and the proposed regulation or 
        order shall state its statutory justification.
          (2) Considerations.--In making a reasoned 
        determination of the costs and the benefits, the 
        Commission shall evaluate--
                  (A) considerations of protection of market 
                participants and the public;
                  (B) considerations of the efficiency, 
                competitiveness, and financial integrity of 
                futures and swaps markets;
                  (C) considerations of the impact on market 
                liquidity in the futures and swaps markets;
                  (D) considerations of price discovery;
                  (E) considerations of sound risk management 
                practices;
                  (F) available alternatives to direct 
                regulation;
                  (G) the degree and nature of the risks posed 
                by various activities within the scope of its 
                jurisdiction;
                  (H) the costs of complying with the proposed 
                regulation or order by all regulated entities, 
                including a methodology for quantifying the 
                costs (recognizing that some costs are 
                difficult to quantify);
                  (I) whether the proposed regulation or order 
                is inconsistent, incompatible, or duplicative 
                of other Federal regulations or orders;
                  (J) the cost to the Commission of 
                implementing the proposed regulation or order 
                by the Commission staff, including a 
                methodology for quantifying the costs;
                  (K) whether, in choosing among alternative 
                regulatory approaches, those approaches 
                maximize net benefits (including potential 
                economic and other benefits, distributive 
                impacts, and equity); and
                  (L) other public interest considerations.
          (3) Applicability.--This subsection does not apply to 
        the following actions of the Commission:
                  (A) An order that initiates, is part of, or 
                is the result of an adjudicatory or 
                investigative process of the Commission.
                  (B) An emergency action.
                  (C) A finding of fact regarding compliance 
                with a requirement of the Commission.
          (4) Judicial review.--Notwithstanding section 24(d), 
        a court shall affirm a Commission assessment of costs 
        and benefits under this subsection, unless the court 
        finds the assessment to be an abuse of discretion.
  (b) Antitrust Laws.--The Commission shall take into 
consideration the public interest to be protected by the 
antitrust laws and endeavor to take the least anticompetitive 
means of achieving the objectives of this Act, as well as the 
policies and purposes of this Act, in issuing any order or 
adopting any Commission rule or regulation (including any 
exemption under section 4(c) or 4c(b)), or in requiring or 
approving any bylaw, rule, or regulation of a contract market 
or registered futures association established pursuant to 
section 17 of this Act.

           *       *       *       *       *       *       *


               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill that directly or indirectly change the 
application of existing law.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law:
    1. Office of the Secretary.--Language is included to limit 
the amount of funds for official reception and representation 
expenses, as determined by the Secretary.
    2. Departmental Administration.--Language is included to 
reimburse the agency for travel expenses incident to the 
holding of hearings.
    3. Agricultural Research Service.--Language is included 
that allows the Agricultural Research Service to grant 
easements at the Beltsville, MD, agricultural research center 
and to grant easements at any facility for the construction of 
a research facility for use by the agency.
    4. Animal and Plant Health Inspection Service.--A provision 
carried in the bill since fiscal year 1973 regarding state 
matching funds has been continued to assure more effective 
operation of the brucellosis control program through state cost 
sharing, with resulting savings to the Federal budget.
    Language is included to allow APHIS to recoup expenses 
incurred from providing technical assistance goods, or services 
to non-APHIS personnel, and to allow transfers of funds for 
agricultural emergencies.
    Language is included to limit the amount of funds for 
representational allowances.
    5. Agricultural Marketing Service, Limitation on 
Administrative Expenses.--The bill includes language to allow 
AMS to exceed the limitation on administrative expenses by 10 
percent with notification to the Appropriations Committees. 
This allows flexibility in case crop size is understated and/or 
other uncontrollable events occur.
    6. Grain Inspection, Packers and Stockyards Administration, 
Inspection and Weighing Services.--The bill includes authority 
to exceed the limitation on inspection and weighing services by 
10 percent with notification to the Appropriations Committees. 
This allows for flexibility if export activities require 
additional supervision and oversight, or other uncontrollable 
factors occur.
    7. Dairy Indemnity Program.--Language is included by 
reference that allows the Secretary to utilize the services of 
the Commodity Credit Corporation for the purpose of making 
dairy indemnity payments.
    8. Agricultural Credit Insurance Fund Program Account.--
Language is included that deems the pink bollworm a boll weevil 
for the purposes of administering the boll weevil loan program.
    9. Risk Management Agency.--Language is included to limit 
the amount of funds for official reception and representation 
expenses.
    10. Commodity Credit Corporation Fund.--Language is 
included to provide for the reimbursement appropriation. 
Language is also included to allow certain funds transferred 
from the Commodity Credit Corporation to be used for 
information resource management. In addition, language is 
included which limits the amount of funds that can be spent on 
operation and maintenance costs of CCC hazardous waste sites.
    11. Natural Resources Conservation Service.--Conservation 
Operations.--Language which has been included in the bill since 
1938 prohibits construction of buildings on land not owned by 
the government, although construction on land owned by states 
and counties is permitted as authorized by law.
    12. Rural Development Salaries and Expenses.--Language is 
included to allow funds to be used for advertising and 
promotional activities and to limit the amount of funds to 
provide modest nonmonetary awards to non-USDA employees.
    13. Rental Assistance Program.--Language is included which 
provides that agreements entered into during the current fiscal 
year be funded for a one-year period. Language also is included 
to renew contracts once during any 12-month period.
    14. Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC).--Language is included to purchase 
infant formula except in accordance with law and pay for 
activities that are not fully reimbursed by other departments 
or agencies unless authorized by law.
    15. Supplemental Nutrition Assistance Program.--Language is 
included to enter into contracts and employ staff to conduct 
studies, evaluations, or to conduct activities related to 
program integrity.
    16. Foreign Agricultural Service.--Language carried since 
1979 enables this agency to use funds received by an advance or 
by reimbursement to carry out its activities involving 
international development and technical cooperation. Language 
is included to limit the amount of funds for official reception 
and representation expenses.
    17. Commodity Futures Trading Commission.--Language is 
included to limit the amount of funds for official reception 
and representation expenses. Language is also included to allow 
the Chairman of the Commission to adjust compensation and 
benefits if furloughs may result from collective bargaining 
agreements and language that allows the Commission to record 
prior year lease obligations to correct a violation of the 
Anti-Deficiency Act.
    18. Farm Credit Administration.--The bill includes 
authority to exceed the limitation on assessments by 10 percent 
with notification to the Appropriations Committees.
    19. General Provisions.--Section 704: This provision 
provides that none of the funds in this Act may be made 
available to pay indirect costs charged against competitive 
agricultural research, education, or extension grants awarded 
by the National Institute of Food and Agriculture in excess of 
10 percent of total direct costs.
    Section 705: This provision allows funds made available in 
the current fiscal year for the Rural Development Loan Fund 
program account; the Rural Electrification and 
Telecommunications Loans program account; and the Rural Housing 
Insurance Fund program account to remain available until 
expended to disburse obligations.
    Section 706: Language is included that requires approval of 
the Chief Information Officer and the concurrence of the 
Executive Information Technology Investment Review Board for 
acquisition of new information technology systems or 
significant upgrades, and that prohibits the transfer of funds 
to the Office of the Chief Information Officer without the 
notification of the Committees on Appropriations of both Houses 
of Congress.
    Section 707: Language is included regarding the 
availability of funds for certain conservation programs.
    Section 708: Language is included regarding certain Rural 
Utilities Service Programs.
    Section 709: Language is included that allows unobligated 
balances of the Farm Service Agency and Rural Development 
mission areas to be used for information technology purposes.
    Section 710: Language is included regarding the prohibition 
of first-class travel by the employees of agencies funded in 
this Act.
    Section 711: Language is included regarding the funds of 
the Commodity Credit Corporation.
    Section 712 Language is included that limits the amount of 
spending for USDA Advisory Committees.
    Section 713: Language is included regarding indirect costs 
for grants.
    Section 714: Language regarding certain limitations of 
mandatory programs.
    Section 715: Language regarding certain limitations of 
mandatory programs.
    Section 716: Language is included that prohibits funds from 
being used to prepare a budget submission to Congress that 
assumes reductions from the previous year's budget due to user 
fee proposals unless the submission also identifies spending 
reductions which should occur if the user fees are not enacted.
    Section 717: Language is included that requires certain 
reprogramming procedures of funds provided in Appropriations 
Acts.
    Section 718: Language is included regarding fees for the 
business and industry guaranteed loan program.
    Section 719: This provision prohibits the Department of 
Agriculture or the Food and Drug Administration from 
transmitting or making available to any non-Department of 
Agriculture or non-Department of Health and Human Services 
employee questions or responses to questions that are a result 
of information requested for the appropriations hearing 
process.
    Section 720: Language regarding prepackaged news stories.
    Section 721: This provision prohibits any employee of the 
Department of Agriculture from being detailed or assigned to 
any other agency or office of the Department for more than 60 
days unless the individual's employing agency or office is 
fully reimbursed by the receiving agency or office for the 
salary and expenses of the employee for the period of 
assignment.
    Section 722: Language is included Congressional 
notification of grant awards.
    Section 723: Language is included requiring spending plans 
for each agency funded by the Act.
    Section 724: Language is included regarding the use funds 
for humanitarian food assistance programs.
    Section 725: Language is included regarding the Single 
Family Housing Direct Loan Program.
    Section 726: Language is included on certain USDA loan 
programs.
    Section 727: Language is included regarding the Working 
Capital Fund.
    Section 728: Language is included regarding purchases made 
through child nutrition programs.
    Section 729: Language is included regarding an emergency 
rural development program.
    Section 730: Language is included regarding the Agriculture 
and Food Research Institute.
    Section 731: Language is included regarding interagency 
coordination of nutrition research.
    Section 732: Language is included regarding rural loan 
programs.
    Section 733: Language is included regarding disclosure of 
information for pharmaceuticals.
    Section 734: Language is included regarding FDA biologics 
review.
    Section 735: Language is included regarding spent grains 
for animal feed.
    Section 736: Language is included regarding APHIS 
regulations.
    Section 737: Language is included regarding APHIS 
regulations.
    Section 738: Language is included regarding partially 
hydrogenated oils.
    Section 739: Language is included regarding the Rural 
Housing Service.
    Section 740: Language is included regarding federal IT 
regulations.
    Section 741: Language is included regarding a rescission of 
funds.
    Section 742: Language is included regarding domestic 
preference.
    Section 743: Language is included regarding child nutrition 
programs.
    Section 744: Language is included regarding rural poverty 
programs.
    Section 745: Language is included regarding eligibility for 
Rural Development Programs.
    Section 746: Language is included regarding lobbying by 
federal employees.
    Section 747: Language is included regarding SNAP 
regulations.
    Section 748: Language is included regarding FDA regulation.
    Section 749: Language is included regarding housing 
programs.
    Section 750: Language is included regarding a rescission of 
funds.
    Section 751: Language is included regarding CFTC 
regulation.
    Section 752: Language is included regarding FDA regulation.
    Section 753: Language is included regarding FDA regulation.
    Section 754: Language is included regarding FSIS 
regulation.
    Section 755: Language is included regarding the Commodity 
Credit Corporation.
    Section 756: Language is included regarding the National 
Ocean Policy.
    Section 757: Language is included regarding the 21st 
Century Cures Act.
    Section 758: Language is included regarding citrus 
greening.
    Section 759: Language is included regarding the Healthy 
Food Financing Initiative.
    Section 760: Language is included regarding CFTC 
regulation.
    Section 761: Spending Reduction Account.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of 
the House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law for the period concerned:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Last Year of                                 Appropriation in Last
                     Agency/Program                       Authorization        Authorization Level     Year of Authorization      Appropriations in This
                                                                                                                                          Bill
--------------------------------------------------------------------------------------------------------------------------------------------------------
CFTC.................................................                2013              Such sums               205,000,000                248,000,000
Farmers' Market Nutrition Program....................                2015              Such sums                16,548,000                 18,548,000
State Administrative Expenses........................                2015              Such sums               263,686,000                299,139,000
Summer Food Service Program..........................                2015              Such sums               495,521,000                639,789,000
WIC..................................................                2015              Such sums             6,623,000,000              6,150,000,000
Multi-Family Revitalization Program..................                2016              Such sums                41,400,000                 35,000,000
Broadband Telecommunications Grants..................                2016              Such sums                34,500,000                   \1\- - -
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\Funding is included in the Rural Economic Infrastructure Grant account.

                 Comparison With the Budget Resolution

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(1)(A) of the 
Congressional Budget Act of 1974, the following table compares 
the levels of new budget authority provided in the bill with 
the appropriate allocation under section 302(b) of the Budget 
Act:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                         302(b) Allocation                   This Bill
                                                 ---------------------------------------------------------------
                                                      Budget                          Budget
                                                     Authority        Outlays        Authority        Outlays
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee
 allocations to its subcommittees: Subcommittee
 on Agriculture, Rural Development, Food and
 Drug Administration, and Related Agencies:
    Mandatory...................................         110,691          99,326         110,691       \1\99,326
    Discretionary...............................          20,001          21,750          20,001          21,464
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.

                      Five Year Outlay Projections

    Pursuant to clause 3(c)(2) of rule XIII and section 
308(a)(1)(B) of the Congressional Budget Act of 1974, the 
following table contains five-year projections associated with 
the budget authority provided in the accompanying bill as 
provided to the Committee by the Congressional Budget Office:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                         302(b) Allocation                   This Bill
                                                 ---------------------------------------------------------------
                                                      Budget                          Budget
                                                     Authority        Outlays        Authority        Outlays
----------------------------------------------------------------------------------------------------------------
Projection of outlays associated with the
 recommendation:
    2018........................................             n.a             n.a             n.a     1\2\104,664
    2019........................................             n.a             n.a             n.a           5,229
    2020........................................             n.a             n.a             n.a             469
    2021........................................             n.a             n.a             n.a             453
    2022 and future years.......................             n.a             n.a             n.a             263
----------------------------------------------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.
\2\Excludes outlays from amounts provided pursuant to sections 1001-1004 of the 21st Century Cures Act (P.L. 114-
  255).

               Assistance to State and Local Governments

    Pursuant to clause 3(c)(2) of rule XIII and section 
308(a)(1)(C) of the Congressional Budget Act of 1974, the 
Congressional Budget Office has provided the following 
estimates of the amounts of financial assistance to State and 
local governments is as follows:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                         302(b) Allocation                   This Bill
                                                 ---------------------------------------------------------------
                                                      Budget                          Budget
                                                     Authority        Outlays        Authority        Outlays
----------------------------------------------------------------------------------------------------------------
Financial assistance to State and local                      n.a             n.a          40,149       \1\32,405
 governments for 2018...........................
----------------------------------------------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.

                          Program Duplication

    No provision of this bill establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the GAO to Congress pursuant to section 21 of 
Public Law 111 139, or a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance.

                          Directed Rule Making

    Pursuant to section 3(i) of H. Res. 5 (115th Congress), the 
bill includes the following directed rule makings:
          (1) Supplemental Nutrition Assistance Program, 
        retailer standards (in section 747 of Title VII)
          (2) Food and Drug Administration, product labeling 
        (in section 753 of Title VII)
          (3) Food Safety Inspection Service, poultry products 
        (in section 754 of Title VII).
        
        

    VIEWS OF THE HON. NITA LOWEY AND THE HON. SANFORD D. BISHOP, JR.

    The FY2018 Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations bill is 5% 
($1.13 billion) below the 2017 enacted level. The low 
allocation makes it difficult to fully meet the needs of our 
nation.
    First, we are appreciative of the collaborative 
relationship with the Chairman that allowed us to address many 
of our priorities in markup, such as restoring funding for the 
McGovern-Dole Food for Education Program to the 2017 level, 
providing funding for the Healthy Food Financing Initiative, 
providing a $200 million increase for farm operating guaranteed 
loans, increasing diversity in agriculture career fields, 
addressing healthcare access issues in rural America, and 
making important improvements to language in the bill related 
to the importation of poultry products from China.
    We are disappointed the bill does not maintain the 2017 
level of $1.6 billion for Food for Peace, especially now when 
the need around the world is so great.
    We deeply regret the Committee's failure to adopt Rep. 
Roybal-Allard's amendment to prohibit the inspection of horses 
for slaughter for human food. There are far better and more 
humane ways to deal with unwanted horses, and the past 
experience in this country of slaughtering horses for human 
food was, frankly, a disaster.
    The Committee's unprecedented and ill-advised bill 
language, allowing the chairman of the Commodity Futures 
Trading Commission (CFTC) alone to determine if furloughs or 
reductions in force might result from a collective bargaining 
agreement and then adjust the schedule of pay and benefits any 
way he chooses, was also disappointing. Specifically, we are 
concerned this language could be expanded beyond the CFTC to 
employees at other financial regulatory agencies, as well as 
other agencies whose collective bargaining rights could be put 
at risk, including federal air traffic controllers.
    The report states the ``language is the result of numerous 
attempts by the Commission to impose a coercive deficiency upon 
Congress by threatening furloughs or RIFs.'' The suggestion 
that the Commission or its staff threatened or misled the 
Committee is deeply offensive.
    It should not go unnoticed that the Commission's budget has 
been held at a mere $250 million since fiscal year 2015, and 
this bill recommends an even lower funding level. With the 
implementation of new enforcement tools, coupled with the 
expanded oversight jurisdiction, it is evident that the CFTC is 
severely underfunded. In order to keep pace with the 
technological advancements in commodity trading, we strongly 
urge the majority to fund this agency at the higher level it 
needs to achieve its mission in protecting U.S. customers.
    We are disappointed that the bill included bill language 
locking in the swap dealer de minimis level at $8 billion. An 
appropriations bill is not the appropriate place to deal with 
this issue, and this is the fifth consecutive year in which the 
Committee has interjected itself into this matter.
    As the legislative process continues, we will do our best 
to address the concerns described here. But without a larger 
discussion of the Federal budget it will be nearly impossible 
to pass an Agriculture appropriations bill for FY 2018 into 
law. The inadequacy of this bill's allocation can only be fixed 
if Democrats and Republicans negotiate new caps for spending 
that do not slash the investments needed in this bill and 
others to grow the economy. Unfortunately, to date, Republicans 
are choosing to close ranks around a partisan effort to cut 
programs depended on by millions of Americans even though they 
know it will lead to another forced crisis to keep the 
government open. Democrats stand ready to work with Republicans 
on appropriations bills that invest in the American people.

                                   Nita M. Lowey.
                                   Sanford D. Bishop, Jr.

               ADDITIONAL VIEWS OF THE HON. NITA M. LOWEY

    I am very concerned with the inclusion of Section 752 and 
Section 753 in the FY 2018 Agriculture Appropriations bill. The 
Tobacco Control Act (TCA), which passed Congress with broad 
bipartisan support, provided FDA with the tools to review new 
tobacco products. Since enactment, tobacco products including 
e-cigarettes and flavored cigars have made significant gains in 
popularity, particularly among youth.
    According to the CDC, e-cigarette use among teens has risen 
tenfold in the past decade, rising to 16% of teens in 2015, an 
estimated three million American teens. E-Cigarettes are now 
more popular among teens than traditional cigarettes.
    And yet, the FY 2018 Agriculture Appropriations bill would 
put the tobacco companies in the driver's seat, exempting so-
called premium cigars from the regulatory structure of the TCA 
and allowing thousands of e-cigarette products to remain on the 
market without scientific review.
    I am particularly concerned by inclusion of Section 753 and 
offered an amendment to strike it from the underlying bill. 
Under Section 753, the predicate date for review for new 
tobacco products would be delayed, allowing future tobacco 
products which are substantially similar to those on the market 
since 2009 to be sold to the public without FDA premarket 
review. As a result, FDA would not be able to put the genie 
back in the bottle, unable to regulate, or even know what is 
in, e-cigarette products, forever.
    In addition, new language would allow for an alternative 
review process, outside of the one passed by Congress in the 
TCA, which would create unnecessary delays and open the door 
for even more tobacco products to come on the market without 
FDA review. Under this weakened alternative, it would be harder 
for FDA to address tobacco companies' use of kid-friendly 
flavors, such as Gummy Bears, Swedish Fish, and approximately 
7,000 other flavors. The FDA is already preparing to address 
flavors and could do so much faster if this rider was not 
included.
    Proponents of Section 753 on the Appropriations Committee 
maintain that e-cigarettes can help smokers quit based on 
anecdotal evidence. However, the American Medical Association 
and 12 other medical societies have determined that ``currently 
available data do not support the use of e-cigarette products 
as a smoking cessation strategy.''\1\
---------------------------------------------------------------------------
    \1\``Joint Letter to Congress Opposing Tobacco Riders.'' American 
Academy of Family Physicians, et al. 17 November 2016. http://
www.aafp.org/dam/AAFP/documents/advocacy/prevention/tobacco/LT-
Congress-Tobacco-111716.pdf.
---------------------------------------------------------------------------
    On the date following the markup, the American Thoracic 
Society (ATS) wrote to the Chairman and Ranking Members of the 
House and Senate Appropriations Committee, stating concern that 
proponents of Section 753 cite the sole--and questionable--
report, by the Royal College of Physicians (RCP), that suggests 
vaping products support smoking cessation. The letter stated:

          The ATS is also concerned that Congress and the 
        Administration will use the absence of definitive data 
        on e-cigarettes and the questionable findings of the 
        RCP report as justification for relaxing regulations on 
        e-cigarettes and other novel tobacco products. Any such 
        relaxation would be a significant policy mistake and 
        will put the health and well-being of our nation, 
        particularly our youth, at needless risk.

    Section 752 and 753 are a Trojan horse, allowing the 
tobacco industry to gain an advantage so it can continue to 
sell deadly products that lead to almost half a million deaths 
each year.
    The American people trust FDA to evaluate the data and make 
unbiased decisions about product safety. Congress certainly 
lacks the expertise to make such an assessment. The Fiscal Year 
2018 Agriculture Appropriations bill should not politicize the 
science and take aim at the FDA's ability to regulate tobacco 
products under the Tobacco Control Act.

                                                     Nita M. Lowey.