Ending Taxpayer Support for Big Egg Producers Act
- Bill Number
- S. 1904
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2025-05-22: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. (Sponsor introductory remarks on measure: CR S3119-3120)
- Last Updated
- 2025-06-20T18:47:40Z
AI-Generated Summary
Purpose
The legislation, titled the "Ending Taxpayer Support for Big Egg Producers Act," aims to prevent large poultry producers from using taxpayer-funded compensation for losses due to highly pathogenic avian influenza (HPAI) on activities like paying dividends or buying back company stock. It ensures such funds support ongoing operations rather than benefiting shareholders.
Key Provisions
- Definition of Covered Entity: Applies to companies (and their affiliates) with more than $100 million in annual revenue and 1,500 employees. Affiliates are determined by federal regulations on business size standards; employees include clerical staff and independent contractors.
- Basic Certification Requirement: To receive indemnity or compensation from the Secretary of Agriculture under existing law (for HPAI-affected poultry flocks), covered entities must certify they will not:
- Pay dividends on common stock.
- Repurchase equity securities (of the company or its parent) listed on a national stock exchange.
This restriction lasts for 2 years after receiving funds, except for pre-existing contractual obligations (in effect as of the bill's enactment).
- Additional Requirements for Certain Companies: Public companies or those owned by private equity funds must also certify:
- Economic uncertainty necessitates the government aid for ongoing operations.
- The company lacks other sufficient liquidity sources without significant harm to its business.
- Penalties for False Statements: Companies making knowingly false certifications must repay the full amount received (plus interest) and face criminal penalties, including up to 5 years in prison, fines up to $1 million, or both.
Significant Changes to Existing Law
This bill amends the Animal Health Protection Act (7 U.S.C. 8301 et seq.) by adding a new section (10409B). Previously, the Secretary of Agriculture could provide indemnity or compensation for HPAI losses without these restrictions or certifications. The change conditions aid for large entities on compliance, introducing accountability measures not previously required.
Potential Impacts
- On Government Agencies: The U.S. Department of Agriculture (USDA) must verify certifications before disbursing funds, potentially increasing administrative workload and enforcement costs. It promotes more targeted use of federal resources.
- On Citizens: Taxpayers benefit from safeguards against subsidizing corporate financial activities (e.g., stock buybacks), potentially reducing perceived waste of public funds on large agribusinesses.
- On International Relations: No direct impacts; the bill focuses on domestic agricultural policy and U.S. taxpayer protections.
Main Stakeholders Affected
- Large Poultry Producers (Covered Entities): Especially "big egg producers" like public companies or private equity-owned firms, who face new restrictions and certification burdens to access aid.
- U.S. Department of Agriculture (USDA): Responsible for implementing certifications and enforcement.
- Taxpayers and General Public: Indirectly protected through prevention of aid misuse.
- Smaller Producers: Unaffected, as the rules apply only to entities above specified size thresholds.
Notable Legal, Constitutional, or Political Implications
- Legal: Introduces enforceable conditions on federal spending, with civil (repayment) and criminal penalties for fraud, strengthening oversight of agricultural indemnification programs. Terms like "affiliate" and "employee" are clearly defined using existing federal regulations to avoid ambiguity.
- Constitutional: Aligns with Congress's spending power (Article I, Section 8), as it conditions federal aid without infringing on private property rights; no apparent free speech or due process issues.
- Political: Targets corporate welfare perceptions by restricting aid to large entities, potentially appealing to fiscal conservatives and critics of big agribusiness. It could spark debates on government intervention in private business decisions during crises like HPAI outbreaks.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-05-22: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. (Sponsor introductory remarks on measure: CR S3119-3120)
- 2025-05-22: Introduced in Senate
Bill Versions
- Ending Taxpayer Support for Big Egg Producers Act — issued 2025-05-22 — PDF (4 pages)