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President Obama released his proposed budget for fiscal year 2014 on April 10, 2013. Obama’s budget proposes new user fees to be collected by the Food and Drug Administration (FDA) and the Food Safety and Inspection Service (FSIS) that would impact the cold storage industry. GCCA is joining like-minded groups in opposition to the proposed fees.
The President’s budget for FDA includes the implementation of a food facility registration and inspection fee to fund agency activities required by the Food Safety Modernization Act (FSMA). This is similar to a proposal included in Obama’s FY 2013 budget request, which was rejected by Congress. FDA projects it will collect $59 million in FY 2014 from food and feed producers, makers and distributors if this new fee is authorized by Congress. The budget also proposes a food import that would raise an estimated $166 million in FY 2014. GCCA joined a group of over 50 food, agriculture and business organizations in signing a letter to Congress opposing these fees.
The President’s budget also includes new user fees for the United States Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS). Under the proposal, new user fees would be charged to plants that have “sample failures” or require additional inspection activities due to “regulatory non-compliance”. These so-called new “user fees” for government mandated food safety inspection programs for meat, poultry and egg products are estimated to generate $4 million in revenue to the agency. These new fees are estimated to generate $4 million in revenue for the agency. GCCA joined with over 20 food and agriculture organizations in sending a letter to Congress urging opposition to the proposed fees. Similar user fees have been proposed in the past and rejected by Congress.
GCCA will continue to work with partners in the food and agriculture industry to fight against these proposed fees as the Congressional appropriations process moves forward.