As the new year unfolds, we are anxiously awaiting to see how the Trump Administration begins to take shape. For us food industry folks, finding out who will head up the United States Department of Agriculture (USDA) and the Food and Drug Administration (FDA) is turning out to be a highly controversial race to the finish line. There are lots of candidates, but many have “baggage”. At press time, which was the last week of December, the only good news was that a government shutdown was averted as a stopgap funding bill cleared Congress. The short-term extension, known as a continuing resolution, funds the government at current levels through March 14 while adding $100 billion for disaster aid and $10 billion for agricultural assistance to farmers. The bill also includes a one-year extension of the Farm Bill which by now you know from my prior commentaries is the foundation for U.S. food and agricultural policy.
The 119th Congress officially got seated on January 3rd and everyone is now gearing up for the official change of Commander- in- Chief and the swearing in of Donald Trump as our 47th President on January 20th. Also, during the two-and-a-half months between the November elections and the January 20th inauguration, nearly all political appointees from the Biden Administration will “voluntarily resign” their positions and be replaced on a temporary basis with senior career officials until the new Trump Administration can fill key positions with political appointees. Thus, we anticipate lots of ups and downs over the next few months as the new Administration begins to take shape.
Fiscal Deadlines Loom
Now that Congress is back in town, there are many fiscal deadlines looming on the horizon in 2025 for Congress to tackle including the return of the debt ceiling, the end of discretionary spending caps, the expiration of many parts of the tax code, and remarkably, the need to fund the government for the rest of the fiscal year and beyond. Can the new President and the new Republican controlled Congress find ways to do their jobs in a fiscally responsible way? We shall see. Now let us move on to other news.
Food Traceability – A Year to Go
Way back in 2011, President Obama signed into law the Food Safety Modernization Act that established stringent traceability recordkeeping requirements for those who manufacture, process, pack, or hold foods. Many grocers will be affected by this rule. Beginning January 2026, food industry stakeholders will need to collaborate with partners throughout the supply food chain to create traceability plans that assign and track traceability lot codes to high-risk products included on a special list created by the FDA.
While the rule does not go into effect for another year, that timeline is still too soon for many within the food industry who have said that compliance will be costly and cumbersome. FMI, among other food industry trade groups, has been working with the FDA to get an extension for complying. However, while the new rule poses major challenges for the food industry, we at Policy Solutions urge top executives in the food chain to check with their food safety staff as well as their trade associations as all stakeholders must eventually comply with the traceability rules and if there are screwups, it is usually the top executives whose heads will roll. See next item below.
Stricter Food Inspections Anticipated
How can we forget the past July tragic events surrounding the recall of more than seven million pounds of ready-to-eat products from the Boar’s Head’s Jarratt, Virginia plant? The news made headlines all over the world and tragically resulted in ten deaths and dozens of illnesses linked to a listeriosis outbreak. Well, in this continuing saga, last month the Food Safety and Inspection Service (FSIS) ordered all its consumer safety inspectors to undergo a mandatory training review which must be completed by mid-February. We at Policy Solutions think that food retailers as well as food plant manufacturers and processors can anticipate more stringent and frequent inspections in 2025 and beyond by USDA and FDA inspection agencies including more state inspections. Boars Head federal and state inspectors were raked over the coals for their total lack of follow-through when citing past failed inspections and legislators are demanding to know what the hell happened. Could Boar’s Head leadership go to jail for their missteps? Possibly according to news media reports. It is a good time to make sure your own house is in order! Just recently, a meat processing and packing plant in Atalla, Alabama, was fined more than $213,000 after the U.S. Department of Labor’s Occupational and Health Administration (OSHA) found that safety issues dating back to 2022 had still not been addressed.
As a sidebar note, House member Rosa DeLauro (D-Conn), a stanch supporter of food safety issues, has grilled top officials at Boar’s Headquarters for their failures and said, “The American people will not be satisfied with marketing fluff or half-truths – they deserve straight answers.”
FDA Updates “Healthy” Claim
The FDA has announced a final rule to update the definition of the nutrient content claim “healthy.” There is an ever-growing crisis of preventable, diet-related chronic diseases in the U.S that requires immediate action. The updated “healthy” claim marks an important step in fulfilling the FDA’s nutrition priorities, which are part of a whole-of-government approach to address this crisis. This rule will help ensure that consumers have access to more complete, accurate, and up-to-date nutrition information on food labels.
The “healthy” claim has been updated to help consumers find foods that are the foundation of a healthy dietary pattern and could also result in the development of healthier foods. Manufacturers can voluntarily use the “healthy” claim on a food package if a product meets the updated definition.
Beer & Wine in Maryland Food and Drug Stores
Maryland is one of five states, including Alaska, Delaware, Minnesota, and Rhode Island, where it is currently not legal to sell beer and wine in food and drug stores. For the first time I can remember, Maryland’s sitting governor has come out strongly in favor of changing the antiquated law. And Governor Wes Moore has said he wants a bill on his desk by the end of the 2025 legislative session in April! I should know that it is a very tall order as I chaired the well-funded and powerful Committee for Fair Marketing Practices for over five years which was comprised of Maryland food and drug retailers throughout the state who wanted the right to sell beer and wine.
Maryland consumers, in poll after poll, are strongly in favor of allowing food and drug retailers to sell beer and wine – a common table beverage. But independent liquor stores are obviously in staunch opposition to any change. Nevertheless, supporters for change and repeal of the antiquated Maryland law governing issuance of alcoholic beverage licenses are looking forward to another legislative battle with renewed optimism as the Governor’s support will help immensely.
Food Date Labeling and Clarity
Food Safety News has reported that the FDA and USDA have announced a joint Request for Information (RFI) about food date labeling, which includes the use of terms such as “Sell By,” “Use By” and “Best By” indications. The RFI seeks information on industry practices and preferences for date labeling, research results on consumer perceptions of date labeling, and any impact date labeling may have on food waste and grocery costs.
The information collected from the RFI may be used to inform future policy decisions, guidance, or consumer education campaigns on food date labels, which are intended to help reduce the premature discard of wholesome and safe food.
2025 Dietary Guidelines Now Available Online
The Scientific Report of the 2025 Dietary Guidelines Advisory Committee is now available at www.DietaryGuidelines.gov. The report contains the 2025 Dietary Guidelines Advisory Committee’s independent, evidence-based findings and advice to the U.S. Department of Health and Human Services (HHS) and USDA. The Scientific Report, alongside public comments and federal agency input will inform the two departments as they develop the official “Dietary Guidelines for Americans, 2025-2030”, which is expected to be published in late 2025.
“The Dietary Guidelines serve as the foundation for national nutrition programs, standards, and education. They provide health professionals with guidance and resources to assist the public in choosing an overall healthy diet that works for them, and they help HHS, USDA, and others in the federal government to tailor our policies to best serve the American people,” said HHS Secretary Zavier Becerra.
SNAP Changes Looming
With the incoming Trump Administration, major changes could be on the horizon for the Supplemental Nutrition Assistance Program (SNAP) as Trump has promised to do all he can to slash the federal government budget to offset tax cuts in 2025. And SNAP is in the crosshairs. This has the potential to be a major problem for the approximately 33 million SNAP recipients not to mention negatively impacting food retailers who collect billions of dollars in revenues through participating in the SNAP program. We will keep you informed.
A healthy and happy New Year to all my readers. Keep those e-mails coming to me as I enjoy hearing from you.
