Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • NFU Mutual’s £7,899 donation helps Midlands Air Ambulance Charity save lives
    • TD Asset Management Inc. announces management fee reductions for certain TD Mutual Funds
    • Foreign investors sell off US $7B in Mexican government bonds
    • Alternative Assets for Workplace Retirement Savings Accounts
    • The best investment trusts – chosen by professionals
    • Understanding the Difference Between Stocks, Bonds, ETFs, and Mutual Funds
    • Axis Mutual Fund launches multi-asset FoF with dynamic allocation model
    • Gold, Bonds, Cash, and Other Ways to Protect Your Money
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Funds»USDA won’t shuffle funds to extend SNAP during shutdown, in about-face from earlier plan
    Funds

    USDA won’t shuffle funds to extend SNAP during shutdown, in about-face from earlier plan

    October 27, 2025


    WASHINGTON — The U.S. Department of Agriculture said in a memo Friday the agency’s contingency fund cannot legally be used to provide food assistance benefits for more than 42 million people in November, as the government shutdown drags on.

    The position is a reversal from the department’s earlier stance, according to a since-deleted copy of the USDA’s Sept. 30 shutdown plan that said the department would use its multi-year contingency fund to continue paying Supplemental Nutrition Assistance Program, or SNAP, benefits during the ongoing shutdown.

    SNAP has about $6 billion in the contingency fund — short of the roughly $9 billion needed to cover a full month of the program, putting November benefits in jeopardy.

    Because of a stalemate in Congress over a stopgap spending bill, the government shut down on Oct. 1 without new SNAP funding enacted.

    The memo, which was first reported by Axios on Friday, said states would not be reimbursed if they use their own funds to cover the cost of the benefits.

    “There is no provision or allowance under current law for States to cover the cost of benefits and be reimbursed,” the memo says, while also noting that “the best way for SNAP to continue is for the shutdown to end.”

    Seeking food assistance in South Florida, visit the Feeding South Florida website here. Use their database to search for a food program near you.

    Discrepancy with shutdown plan

    The memo also says the contingency fund is meant for natural disasters and similar emergencies, not for a lack of appropriations.

    But USDA’s Sept. 30 contingency plan contradicts that and appears to greenlight the use of SNAP’s contingency fund during a lapse in funding.

    “Congressional intent is evident that SNAP’s operations should continue since the program has been provided with multi-year contingency funds that can be used for State Administrative Expenses to ensure that the State can also continue operations during a Federal Government shutdown,” according to the plan. “These multi-year contingency funds are also available to fund participant benefits in the event that a lapse occurs in the middle of the fiscal year.”

    USDA’s contingency plan is no longer online, but is accessible through an internet archive.

    After providing States Newsroom with the memo Friday afternoon, USDA did not immediately respond to a follow-up inquiry about the discrepancy between Friday’s memo and its contingency plan.

    In the memo, USDA said transferring money toward SNAP from other sources “would pull away funding for school meals and infant formula.”

    The agency said it has shuffled funds to cover several nutrition programs during the shutdown, including the Special Supplemental Nutrition Program for Women, Infants, and Children, or WIC, as well as the National School Lunch Program, School Breakfast Program, and the Child and Adult Care Food Program.

    Dems call on Rollins to tap into fund

    U.S. Agriculture Secretary Brooke Rollins said last week the government would run out of funds to deliver November SNAP benefits as a result of the ongoing shutdown.

    Friday morning, U.S. House Democrats, like nearly all of their Senate counterparts and the Republican chair of the Senate Appropriations Committee, urged Rollins to not only use the contingency fund, but to reprogram other money to cover a $3 billion shortfall.

    “A potential lapse in benefits would be felt by Americans of all ages and affect every corner and congressional district in the country,” according to the letter from more than 200 House Democrats.

    In a separate letter, 46 Senate Democrats sent to Rollins on Wednesday, voicing concerns that USDA told states to hold off on sending in SNAP benefits to be processed for November.

    “We were deeply disturbed to hear that the USDA has instructed states to stop processing SNAP benefits for November and were surprised by your recent comments that the program will ‘run out of money in two weeks,’” according to the letter. “In fact, the USDA has several tools available which would enable SNAP benefits to be paid through or close to the end of November.”

    The chair of the Senate Appropriations Committee, Republican Susan Collins of Maine, also urged Rollins in a Thursday letter to “consider all available options in accordance with federal law to ensure that this vital nutrition assistance continues, including the use of contingency funds and looking at the viability of partial payments or any transfer authority you may have.”

    Benefits could be slow even if a deal reached

    States have been told by the agency to hold off on submitting SNAP benefit requests to processing centers. Food banks and pantries are already bracing for the increased need, including in Iowa, where more than 270,000 Iowans rely on SNAP each month.

    However, even if Congress immediately reached a deal to end the shutdown, the time needed to process the payments and make them available for recipients means SNAP benefits would likely be delayed. State officials have warned SNAP recipients of the possibility of delays.

    In West Virginia, officials said delays are expected and told residents to seek assistance at local food pantries. Roughly 1 in 6 West Virginia residents rely on SNAP each month.

    Legal requirement cited

    Sharon Parrott, a White House Office of Management and Budget official during the Obama administration who now leads a left-leaning think tank, said in a Thursday statement that USDA is legally required to use its SNAP contingency funds.

    Parrott, the president of the Center on Budget and Policy Priorities, said the multi-year contingency fund is “billions of dollars that Congress provided for use when SNAP funding is inadequate that remain available during the shutdown — to fund November benefits for the 1 in 8 Americans who need SNAP to afford their grocery bill.”

    Parrott said the Trump administration could use its legal transfer authority, just as it did with WIC funding, to “supplement the contingency reserves, which by themselves are not enough to fund families’ full benefits.”

    Florida Phoenix is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Florida Phoenix maintains editorial independence. Contact Editor Michael Moline for questions: info@floridaphoenix.com.





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    $1.3M in opioid settlement funds to address ‘one of the most urgent public health challenges’ in Bay County

    November 20, 2025

    Cyprus still has long way to go in absorbing EU funds

    November 20, 2025

    Judge in Ohio’s unclaimed funds lawsuit recuses himself from case

    November 19, 2025
    Leave A Reply Cancel Reply

    Top Posts

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    Charlie Cobham: The Art Broker Extraordinaire Maximizing Returns for High Net Worth Clients

    February 12, 2024

    NFU Mutual’s £7,899 donation helps Midlands Air Ambulance Charity save lives

    November 20, 2025

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023
    Don't Miss
    Mutual Funds

    NFU Mutual’s £7,899 donation helps Midlands Air Ambulance Charity save lives

    November 20, 2025

    NFUM has been proudly supporting rural communities with financial services for over 100 years. In…

    TD Asset Management Inc. announces management fee reductions for certain TD Mutual Funds

    November 20, 2025

    Foreign investors sell off US $7B in Mexican government bonds

    November 20, 2025

    Alternative Assets for Workplace Retirement Savings Accounts

    November 20, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Teesside property firm earns national recognition

    October 9, 2025

    Class UK defence investments as ethical, Labour MPs urge banks

    March 5, 2025

    Trump cuts millions in grants for predominantly Black institutions, diverts funds to HBCUs

    September 16, 2025
    Our Picks

    NFU Mutual’s £7,899 donation helps Midlands Air Ambulance Charity save lives

    November 20, 2025

    TD Asset Management Inc. announces management fee reductions for certain TD Mutual Funds

    November 20, 2025

    Foreign investors sell off US $7B in Mexican government bonds

    November 20, 2025
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    ₹10,000 monthly SIP in this mutual fund has grown to ₹1.52 crore in 22 years

    September 17, 2025
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.