USDA Freezes $2.3 Billion in CFAP Payments

The USDA on Jan. 27 posted a notice that $2.3 billion in supplemental Coronavirus Food Assistance Program (CFAP) payments will be temporarily frozen. The previous administration had announced expanded eligibility for the CFAP 1 and 2 programs on Jan. 15, just days before President Joe Biden’s inauguration.

“In accordance with the White House memo, Regulatory Freeze Pending Review, USDA has suspended the processing and payments under the Coronavirus Food Assistance Program – Additional Assistance and has halted implementation until further notice. FSA local offices will continue to accept applications during the evaluation period,” said a notice on the USDA CFAP page.

“In the coming days, USDA and the Biden Administration intend to take additional steps to bring relief and support to all parts of food and agriculture during the coronavirus pandemic, including by ensuring producers have access to the capital, risk management tools, disaster assistance, and other federal resources,” the notice continued.

The program expansion announced by the Trump administration was targeted mostly at contract pork and poultry producers and others previously excluded from the relief payments. USDA said in the notice that it will continue to take applications for the CFAP program, but no checks will be issued while the program is reviewed.