	Most Recent Developments

On February 20, 2003, the President signed into law the FY2003 omnibusappropriations act ( P.L. 108-7 , H.J.Res. Of this amount,$17.545 billion is for discretionary programs. Not included in the total is $3.1 billionin supplemental disaster assistance provided by the measure, primarily for farmersand ranchers affected by a natural disaster in 2001 or 2002. Currently accounting for the vast majority of USDAmandatory spending are: the farm commodity price and income support programs(including ongoing programs authorized by the 2002 farm bill and emergencyprograms authorized by various appropriations acts); the food stamp program andchild nutrition programs; the federal crop insurance program; and various agriculturalconservation and trade programs. FY2003 Agriculture Appropriations Action

Administration's Request. Within the budget,the Administration requested FY2003 budget authority of $74.062 billion for the U.S.Department of Agriculture and related agencies (which includes all of USDA exceptthe Forest Service, and also includes the Food and Drug Administration and theCommodity Futures Trading Commission.) Funding levels for USDA and related agencies in H.J.Res. 480 food aid. 108-7 containsbudget authority of $74.25 billion, of which $17.55 billion is for discretionaryprograms and $56.70 billion is for mandatory programs. 2 ), but $124 million above the Administration request and$1.27 billion above the enacted FY2002 level including supplementals. Spending for disaster assistance was offset by a comparablereduction in estimated spending for a mandatory conservation program over a 10-yearperiod. The appropriated totals do not reflect the effect of a 0.65% across-the-boardin almost all discretionary programs in the omnibus measure, which if appliedequally to all USDA and related agency programs, would reduce appropriations byapproximately $85 million. The omnibus appropriations act ( P.L.108-7 ) contains an estimated $3.1 billion in economic and disaster assistance foragricultural producers in a separate title of the act (Division N, Title II). Foreign Food Aid: Funding andIssues. 108-7 includes a supplemental appropriation of $250 million foremergency relief activities under P.L. Mandatory Trade Programs. Discretionary Programs. Congress rejected an Administrationproposal to move to a new funding approach. 108-7 amends the farm bill by specifically prohibitingthe use of discretionary funds to implement any mandatory conservation programs. The act: 1) limits FY2003 enrollmentin the Wetlands Reserve Program to 245,833 acres instead of the 250,000 acresauthorized in the farm bill (savings of $5 million); 2) limits FY2003 funds for theEQIP to $695 million instead of the $700 million authorized in the farm bill; and 3) 
prohibits the use of any of the $45 million in mandatory funds authorized in FY2003for the Small Watershed Rehabilitation Program. 2 ) and$2.379 billion in the House-reported bill ( H.R. 5263 ). The largest appropriation for marketing and regulatoryprograms goes to USDA's Animal and Plant Health Inspection Service (APHIS), theagency responsible for protecting U.S. agriculture from foreign pests and diseases. Food and Nutrition

The FY2003 omnibus appropriations act ( P.L. (WIC is the only discretionary account that isexempted from the provision in P.L. Other Provisions. The amount of drug user fees to be collected each year is set in FDA'sannual appropriations act. 2 ) , which also added revenues from a new medical device user fees, provided$1.665 billion. 108-7 funded a number of initiatives related to food safety. (4) P.L.
On February 20, 2003, the President signed into law the FY2003 omnibus appropriations act( P.L. 108-7 , H.J.Res. 2 ), containing funding for agencies and programs within theeleven regular FY2003 appropriations bills that were unresolved in the 107th Congress. For the U.S.Department of Agriculture (USDA) and related agencies, P.L. 108-7 contains a total regular annualappropriation of $74.25 billion, of which $56.7 billion is for mandatory programs and $17.55 billionis for discretionary programs. The $17.55 billion in discretionary funds is $805 million below theSenate-passed version of H.J.Res. 2 and $56 million below the House-reported versionof H.R. 5263 , but $124 million above the Administration's FY2003 request and $1.27billion above the enacted FY2002 level including FY2002 supplementals. Not included in the totalsis the effect of a 0.65% across-the-board rescission to almost all discretionary programs funded by P.L. 108-7 , which could reduce USDA and related agencies appropriations by approximately $85million in FY2003. Also separate from the regular appropriations is a provision in P.L. 108-7 for$3.1 billion in FY2003 agricultural disaster assistance, primarily for farmers and ranchers affectedby a natural disaster in 2001 or 2002. The cost of the disaster assistance is offset by a comparablereduction in a mandatory conservation program over a 10-year period.
Among its other major provisions affecting USDA agencies and programs, P.L. 108-7 : 1)provides $1.45 billion in foreign food aid under P.L. 480 Title II, including $250 million insupplemental funding that is available through FY2004, and requires USDA to supply a minimumof 400,000 tons of commodities under a separate mandatory food aid program; 2) prohibits the useof discretionary funds to administer any mandatory conservation programs; 3) limits spending oncertain mandatory trade, conservation and research programs and applies the savings from thesereductions to spending on discretionary programs; 4) rejects an Administration proposal to requireprivate crop insurance companies to absorb more of the cost of the federal crop insurance program;5) provides supplemental funding to help the Farm Service Agency administer disaster and farm billprograms; 6) funds special research grants proposed to be terminated by the Administration; 7)increases funding over FY2002 for food safety and animal and plant health inspection activities,reflecting increased government responsibility to protect the food supply from terrorist attacks; and8) increases USDA food and nutrition program spending by $4 billion over FY2002, in line with theAdministration request, including $3.2 billion more for the food stamp program.
Included in the bill totals is $1.4 billion in appropriations for the largest related agency, theDepartment of Health and Human Services' Food and Drug Administration. This appropriationincludes $159 million as requested by the Administration for FDA's counter-terrorism activities.FDA also is authorized to collect $270.5 million in various user fees to supplement its appropriation,including a new medical device user fee.
Key Policy Staff
Division abbreviations: RSI = Resources, Science and Industry; DSP= Domestic Social Policy.