The final rule published on December 17, 2020, amended the U.S. Department of Agriculture (USDA) regulations and those of eight other participating Federal agencies to implement Executive Order 13831 (Establishment of a White House Faith and Opportunity Initiative). However, by Executive Order 14015, President Biden revoked Executive Order 13891, and USDA and the other participating Federal agencies are engaging in an interagency process to consider revisions.

This final rule amends the U.S. Department of Agriculture's civil monetary penalty regulations by making inflation adjustments as mandated by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

USDA will provide additional direct financial assistance to producers of agricultural commodities who suffered eligible revenue losses in calendar year 2020 during the COVID-19 pandemic; this will expand on the assistance USDA provided last year.  Payments will be made using funds under the Consolidated Appropriations Act, 2021 (CAA; Pub. L. 116-260).  In addition, the rule will also update the regulations for the Coronavirus Food Assistance Program (CFAP); Biomass Crop Assistance Program (BCAP); Emergency Conservation Program (ECP); Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP); Livestock Forage Disaster Program (LFP); Livestock Indemnity Program (LIP); Noninsured Crop Disaster Assistance Program (NAP); and payment eligibility provisions.

The National Institute of Food and Agriculture (NIFA) issues grants and cooperative agreements to a variety of entities including, but not limited to, colleges and universities, other Federal agencies, and individuals in support of agricultural research, education, and extension programs. The Agency's administrative provisions in 7 CFR part 3430, Competitive and Noncompetitive Non-formula Federal Assistance Programs, contain elements common to all competitive and noncompetitive grant programs it administers in subparts A through E. Subpart F and thereafter apply to specific grant programs.  These regulations do not, however, currently apply to any of the formula grant programs administered by NIFA. Therefore, NIFA will amend the regulations to expand the scope of 7 CFR part 3430 to include these programs and to rename the part Competitive, Noncompetitive, and Capacity Federal Assistance Programs.

At the time 7 CFR part 3430 was established, NIFA planned to eliminate some of its existing program-specific regulations in title 7 and incorporate their provisions into part 3430.  Accordingly, this rule will remove 7 CFR parts 3402 (Food and Agricultural Sciences National Needs Graduate and Postgraduate Fellowship Grants Program), 3405 (Higher Education Challenge Grants Program), 3406 (1890 Institution Capacity Building Grants Program), and 3415 (Biotechnology Risk Assessment Research Grants Program) and incorporate their provisions into part 3430 as subparts N, R, S, and T.

The National Institute of Food and Agriculture (NIFA) issues grants and cooperative agreements to a variety of entities including, but not limited to, colleges and universities, other Federal agencies, and individuals in support of agricultural research, education, and extension programs. The Agency's administrative provisions in 7 CFR part 3430 contain elements common to the competitive grant programs it administers in subparts A through E. Subpart F and thereafter apply to specific grant programs.

Section 7117 of the Agriculture Improvement Act of 2018 (Pub. L. 115-334, or the 2018 Farm Bill) added section 1446 to the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to establish a new competitive grant program entitled Scholarships for Students at 1890 Institutions. Section 7117 provides mandatory funding in the enacted amount of $40 million, to remain available until expended, for a scholarship program for eligible students at 1890 Institutions. This final rule establishes a new subpart V in 7 CFR part 3430 for this program.

This rule would establish a new 7 CFR section 3435, which would clarify the processes and procedures for administering the Urban, Indoor, and Emerging Agriculture competitive grant program.  The proposed rule is being withdrawn because the administrative processes and procedures found in 7 CFR 3430 are sufficient to administer this competitive grant program. As such, a new 7 CFR 3435 would be duplicative of already existing regulatory guidance.

FSA proposes amending a provision in its National Environmental Policy Act (NEPA) regulation. FSA is clarifying a categorical exclusion related to small and medium CAFOs.  Small and medium CAFOs have implicitly been categorically excluded by the Farm Service Agency (FSA) since FSA revised the NEPA regulations in 7 CFR 799 in 2016. The regulation has a process by which small and medium CAFOs are properly reviewed under NEPA using FSA’s Environmental Screening Worksheet.

The regulations in 7 CFR part 7 specify the election and functions of FSA county committees and the function of the FSA State committees. The regulations are being amended to add a requirement that, to be eligible to serve on an FSA county committee, a producer must not be banned or restricted from entering an FSA office.  The FSA county committee meetings are held in the FSA office.  Any producer who has been banned or restricted from an FSA county office will not be eligible to be a nominee for, or current member of, an FSA county committee.

The final rule will be amended to revise loan making and servicing to improve program delivery and equity in the Farm Loan Programs.  (NOTE:  The rulemaking initiative was formerly titled:  Streamline and Consolidate Value-Added Oversight of Farm Loan Programs.)

The rule establishes provisions for providing agricultural disaster assistance as authorized by the Extending Government Funding and Delivering Emergency Assistance Act of 2021 and the Consolidated Appropriations Act, 2023.  The assistance will cover 2020, 2021, and 2022 milk losses.  The Milk Loss Program will provide payments to eligible dairy operations for milk that was dumped or removed without compensation from the commercial milk market due to droughts, wildfires, hurricanes, floods, derechos, excessive heat, winter storm, freeze (including a polar vortex), and smoke exposure that occurred in the 2020, 2021 and 2022 calendar years.  This rule specifies the administrative provisions, eligibility requirements, application procedures, and payment calculations for the Milk Loss Program. 

The final rule will remove regulations for farm programs that are obsolete, no longer authorized, or administered under different funding. For example, certain regulations such as the Livestock Indemnity Program regulation are located in both the FSA chapter in the Code of Federal Regulations (CFR) and in the Commodity Credit Corporation (CCC) chapter of the CFR; the current regulations are the CCC regulations, so the rule will remove the obsolete regulations from the FSA chapter of the CFR. Therefore, the old regulations in the FSA regulations will be removed. In addition, several subchapter headings will be updated to remove obsolete references and a few CFR parts will be moved into a more logical subchapter.

The final rule would finalize changes made by the interim rule making minor changes to existing The Conservation Reserve Program (CRP) regulation. The Agriculture Improvement Act of 2018 (2018 Farm Bill) mandated changes to CRP, which were fully implemented by the interim rule.  CRP is a Commodity Credit Corporation (CCC) program administered by FSA.  There were 63 comments submitted in response to the interim rule.  The final rule will address the issues raised in the comments.  CRP assists producers in conserving and improving soil, water, and wildlife resources by converting highly erodible and other environmentally sensitive acreage to a long-term vegetative cover; the core scope of CRP did not change. The changes implemented by the interim rule included:  extended and modified the authorization for CRP through fiscal year (FY) 2023; increased the CRP acreage cap from 24 million acres to 27 million acres by FY 2023 and includes 8.6 million acres for continuous practices and 2 million acres for grasslands; implemented two pilot programs: the Clean Lakes, Estuaries, and Rivers initiative (CLEAR 30, which has 30-year contracts) and the Soil Health and Income Protection Program (SHIPP); up to $12 million in incentive payments for tree thinning and related activities and provides additional haying and grazing flexibilities; changes to the eligibility criteria for enrollment in CRP; the benefits available to participants; the compliance provisions of CRP; how regional drought concerns are addressed on the Conservation Reserve Enhancement Program (CREP) agreements; and the specific length of SHIPP contracts.

The Agriculture Improvement Act of 2018 (the 2018 Farm Bill) extends and revises the Biomass Crop Assistance Program (BCAP) and authorizes funding to be appropriated through 2023; however funding for the changes has not yet been provided to USDA. BCAP provides financial assistance to producers who establish and harvest biomass crops. The rule makes changes consistent with the 2018 Farm Bill changes. The rule will add algae as an eligible material. Other aspects of BCAP remain essentially unchanged; all biomass must be harvested in a manner that is consistent with a conservation plan, forest stewardship plan or equivalent plan. The rule will revise the definition of biobased to add renewable chemicals and clarify that renewable chemicals are not just an intermediate ingredient, but rather a biobased product, an output that we require for qualified biomass conversion facilities to produce. Finally, the rule will provide notification about adjustments to sign up expectations in order to respond to the changes in funding.

The USDA Farm Production and Conservation (FPAC) mission area is reviewing existing environmental compliance provisions for the Farm Service Agency, Commodity Credit Corporation, FPAC Business Center, Natural Resources Conservation Service, and Risk Management Agency.  Changes will be proposed to revise and consolidate the environmental compliance regulations (including for farm loans) for consistency, efficiency, and compliance with the National Environmental Policy Act, and the Council on Environmental Quality’s guidance and regulations (for example, environmental justice).

 FSA will make the necessary changes in the APAS regulations, including organizational FSA and FPAC changes and programmatic changes.  This is a Defense Production Act (DPA) regulation.

This rule proposes to streamline and clarify the processes for requesting interpretations of crop insurance policy and procedure (Final Agency Determinations) and streamline requests for administrative review or appeal of final agency determinations issued by FCIC. The rule also proposes to streamline and clarify the process for policyholders to seek extra-contractual damages from their AIP and create a more linear review process for RMA determinations.

This rule is amending its Common Crop Insurance Regulations; Common Crop Insurance Policy (CCIP) Basic Provisions, Area Risk Protection Insurance Regulations and the General Administrative;  Subpart G-Actual Production History (APH) regulations.  The changes will allow RMA to expand Enterprise Units to specialty crops more easily through the actuarial documents, update organic provisions to make consistent with the National Organic Program.  The rule will incorporate existing APH requirements from procedural language as well as incorporate procedures that exclude acreage and the actual production from acreage that is damaged by an unavoidable uninsured fire and/or a third party when calculating the approved APH yield and production guarantee.  FCIC is also making changes to improve crop insurance transparency to producers by incorporating existing crop insurance rules and benefits into existing regulations.   

This rule will amend the Common Crop Insurance Regulations, Apple Crop Insurance Provisions to provide policy changes to better meet the needs of the apple producers, to address program vulnerabilities that have caused increased loss ratios and rising premium costs, and to provide safeguards against fraud, waste, and abuse. The changes are expected to be effective starting with the 2025 crop year.

Federal Crop Insurance Corporation actions to accomplish the 2018 Farm Bill changes were done administratively.  Additional legislative changes may be made in the next Farm Bill, therefore potential changes to the regulation will be evaluated at that time.  As a result, FCIC determined that the previously planned rulemaking initiative (a proposed rule) is no longer needed and withdrew it from the regulatory agenda.

This rule amended the Common Crop Insurance Regulations, Walnut crop insurance provisions by removing the minimum acreage requirement.  This change aligned the insurability requirements in the Walnut Crop Provisions with other tree nut policies.  In aligning the insurability requirements for walnuts and similar crops, this change will  make it easier for producers to obtain walnut crop insurance.  FCIC also made conforming amendments to match changes made to similar crop insurance policies.

This rule amended the Common Crop Insurance Regulations, Sugar Beet Crop Insurance Provisions by adding stage guarantees, providing an option for the producer to remove the stage guarantees.  The rule also made small editorial clarifications and corrections.

This rule amended the Common Crop Insurance Regulations, Small Grains and Processing Sweet Corn Crop Insurance Provisions to allow for revenue protection for oats and rye and updated the settlement of claim example in section 11 with current prices.  The Processing Sweet Corn Crop Provisions also extended the end of insurance date for Illinois, Minnesota, and Wisconsin by 10 days from September 20 to September 30.

Enactment of the Agriculture Improvement Act of 2018 (Pub. L. 115-334) on December 20, 2018, provides the legal authority for this rulemaking. This rulemaking is a continuation of the directives given by the Agricultural Act of 2014 (Pub. L. 113-79) and the Food, Conservation, and Energy Act of 2008 (Pub. L. 110-234), and Rural Investment Act of 2002 (Pub. L. 107-171).  The overall intent of this action is to add 2018 Farm Bill provisions for the Biobased Markets Program. Specifically, the action will propose to codify program guidance into the regulations.

This action is expected to reduce burden on both the applicants and the Agency by reducing requirements, clarifying requirements, streamlining the application and certification process and increase efficiencies in program delivery. Codification for all program guidance will ensure consistency in how programs are administered.
Additionally, improvements will facilitate the sales of the business using the labeling program.

The Rural Business Cooperative Service (RBCS) of USDA Rural Development offers programs to help businesses grow as well as job training for people living and working in rural communities. Such programs include loans and grants to nonprofit entities, public bodies, and Indian Tribes, who utilize the funds to assist in the development of private businesses and other economic development activities. For specific reasons expressed through Tribal consultation and direct applicant feedback, by multiple Tribes, certain Tribes have been unable to apply, or have chosen not to apply, for Rural Business Development Grants (RBDG). Tribes and tribally owned businesses, corporations and enterprises have faced recurring challenges and barriers in accessing the RBDG program due to outdated, misinformed and irrelevant definitions and regulatory language in regard to how Tribes and Tribally owned businesses are actually defined and structured. Tribes are sovereign nations and often have complex and unique business, corporate and community structures that are often incorporated under Tribal codes and laws. Currently, the RBDG regulation protects the interest of the Federal Government by preventing pass through funds for public bodies and nonprofits to for-profit businesses. This program stipulation has negatively impacted Tribes ability to utilize the RBDG program.

This planned regulatory revision will assist Tribes and Tribally owned businesses in removing unnecessary barriers providing equity to access the RBDG program’s regularly allocated funds and RBDG set aside funds for Tribes and tribally owned businesses - such as Native American RBDG grant funds and RBDG Native American Persistent Poverty grant funds. 

Specifically, RBCS plans to reduce barriers to access for Tribes in the RBDG program by amending Tribal applicant definitions, Tribal applicant references, conflict of interest language, and appearance of conflict of interest and affiliation language as it relates to Tribes in the RBDG regulation 7 CFR part 4280 subpart E. In addition to recent Tribal Consultation, RBCS plans to publish the amended regulatory language as a proposed rule, allowing additional time between publication of the proposed and final rules to receive feedback from Tribes through Tribal Consultation on the proposed language. Prior to becoming a final rule, the Agency will have time to review the feedback received through Tribal consultation and the formal comment process to adjust and refine the proposed changes before implementation.

This action is intended to implement the provisions of the Agriculture Improvement Act of 2018 (2018 Farm Bill) related to section 10102 for the Value-Added Producer Grant (VAPG) Program and section 7608 for the Agriculture Innovation Center (AIC) Program and modernize section 6412 for the Rural Cooperative Development Grant Program (RCDG). In addition, this action will support ways to simplify and streamline Rural Development (RD) program delivery by removing outdated and ineffective definitions, requirements and scoring criterion for the grant regulations (programs) under 7 CFR 4284. 

USDA's Rural Business Cooperative Service (RBCS) received funding and authority through Division B, title I of the CARES Act to provide for additional funds for use under the Business & Industry (B&I) Guaranteed Loan Program.  In accordance with the CARES Act, the purposes of the additional B&I funding is to prevent, prepare for and respond to the effects of the pandemic. It is the Agency’s intent that guaranteed loan funds will be primarily for working capital loan purposes to support business operations and facilities in rural areas. 

An interim rule was published for immediate implementation of  the B&I Coronavirus Aid, Relief, and Economic Security Act (CARES Act) on May 22, 2020 (V.85, No. 100, Pg. 31035) which supplemented the B&I Guaranteed Loan Program as implemented in 7 CFR part 4279, Guaranteed Loan Making and 7 CFR part 4287, Servicing - with inclusion of the new B&I CARES Act Guaranteed Loan Program (B&I CARES Act Program) in 7 CFR 4279.190 to provide assistance to businesses impacted by the coronavirus emergency.  The interim rule applied to applications submitted under the B&I CARES Act Guaranteed Loan Program through June 22,2020 or until program funds were expended. RBCS staff have successfully implemented the interim final requirements.

Since the publication of the interim rule, funds have been fully expended and the Agency received public comments from interested members of the public regarding the interim rule for consideration of making changes based on those comments. The Agency has determined that some clarifications and modifications should be made to the regulation to further improve program delivery. 

 With continuous interaction with stakeholders as well as receipt of public comments, the Agency has determined that some clarifications and modifications should be made to the regulation to further improve program delivery. This final rule will provide clarification and modification to further enhance opportunities for rural businesses to use the B&I program to directly respond to and alleviate the issues resulting from the National COVID-19 Public Health Emergency. This change in the final rule will help the program clarify their intent of eligible purposes.

The Rural Development (RD) mission area, comprised of the Rural Utilities Service, Rural Business-Cooperative Service, and Rural Housing Service agencies, published a final rule; request for comments in the Federal Register on September 15, 2020 [85 FR 57077] to establish the authority authorized by section 6210 of the Agriculture Improvement Act of 2018, which will assist rural families and small businesses in gaining access to broadband service by permitting recipients of a loan, grant, or loan guarantee from RD to use up to 10 percent of the amount provided to construct broadband infrastructure in areas not served by minimum acceptable level of broadband service.

Although the final rule was effective on September 15, 2020, comments were solicited from the public during a 60-day comment period. Public comments were received and are currently being considered by RD for the need to make any revisions.     

The Rural Utilities Service (RUS) intends to update 7 CFR 1780, Water and Waste Loans and Grants, as a part of its efforts to improve customer service for its recipients and create more efficient work processes for Agency staff. This regulation provides guidance on application processing, including eligibility, planning, bidding, constructing, closing, and liquidating accounts. While the focus is on the water and waste disposal loans and grants, programs administered through other regulations within WEP’s portfolio follow certain provisions of this regulation.  

RUS intends to publish this rulemaking as a final rule with comment. The updates to 7 CFR part 1780 are expected to: (1) provide clear and up-to-date policies; (2) provide consistent program delivery; (3) provide greater overall customer service; and (4) bring program delivery more in line with current industry practices and best practices.

Specifically, the regulation updates are expected to: (1) incorporate new and revised statutory and discretionary language; (2) clarify and consolidate applicant and project eligibility requirements; (3) codify Agency priorities; (4) promote program accessibility; (5)  and reorganize topics to more closely align with the life-cycle of a loan and grant. By correcting existing water and wastewater system situations that could threaten the environment or human health, WEP projects improve the livelihoods of community residents and meet pollution mitigation. In FY2021, approximately 70 percent of the projects funded alleviated a health or sanitary issue. Further, the revisions in this final rule with comment expect to expand eligibility for lead service line replacement and clarify the criteria of a health or sanitary hazard.  Finally, with an emphasis on underserved areas, this 7 CFR 1780 is used to process loans and grants focused on benefiting historically impoverished areas located in designated Persistent Poverty counties and distressed communities.

The Administrative Procedures Act exempts from prior notice rules any action relating to agency management or personnel or to public property, loans, grants, benefits, or contracts” (5 U.S.C. 553(a)(2)).

RUS intends to update 7 CFR 1782 by publishing a final rule with comment as a part of its continuing effort to improve customer service for its recipients and create more efficient work processes for Agency staff. Specifically, the intent of the updates is to provide: (1) clearer policies; (2) consistent program delivery; (3) greater overall customer service.  Additionally, the final rule intends to reorganize the regulation to more closely align with the life-cycle of a loan and grant. The proposed changes are expected to ensure that both internal and external stakeholders have clear guidance on both routine and non-routine servicing actions.

The Administrative Procedures Act exempts from prior notice rules any action relating to agency management or personnel or to public property, loans, grants, benefits, or contracts” (5 U.S.C. 553(a)(2)). To implement these changes, RUS will publish this action as a final rule with comment.

7 CFR 1782, Servicing of Water and Waste Programs provides recipients and staff guidance on the servicing of water and waste disposal direct loans and grants administered by the USDA, Rural Utilities Service (RUS), Water and Environmental Programs (WEP). This regulation was last updated on September 28, 2007, at 72 CFR 55011. The previous regulation update combined several loan and grant servicing regulations into a single, unified servicing regulation. The regulation provides guidance on routine servicing activities as well as non-routine servicing activities for recipients needing assistance in resolving problem loan or delinquency issues. Servicing activities, especially non-routine, have become more complex and the regulation has proved inadequate. Many of the servicing activities occurring today were not as common in the water and waste disposal industry at the time the regulation was last modified. The updates in this final rule with comments are expected to remedy these issues. 

The Rural Housing Service (RHS), the Rural Business-Cooperative Service (RBCS), and the Rural Utilities Service (RUS), agencies of the Rural Development mission area, hereinafter referred to as the Agency, published a final rule with comment on July 14, 2020 (85 FR 42494) that created a unified guaranteed loan platform for enhanced delivery of four existing guaranteed loan programs: Community Facilities (CF) administered by RHS; Water and Waste Disposal (WWD) administered by RUS; and Business and Industry (B&I) and Rural Energy for America (REAP) administered by the RBCS. The final rule was effective on October 1, 2020, and Rural Development began operating under the new guaranteed loan platform.

Collectively, Rural Development’s guaranteed loan programs work to assist in building and maintaining sustainable rural communities. The Agency has identified areas for revision or clarification and our plan is to issue a fourth final rule with comment to make amendments to the regulation. This OneRD final rule with comment incorporates mostly all administrative revisions intended to simplify, clarify, improve, expand, and enhance the delivery of the four guaranteed loan programs. One such example would be expanding the explanation of what is an acceptable financial statement.  There are no policy changes with this regulation update. There is, however, a policy clarification for 5001.103(a)(3), the Community Facilities Guaranteed Loans, which intends to codify the eligibility requirements for business incubators (when not inherently commercial), thrift stores, and fairgrounds, agricultural exposition centers, farmers markets, food distribution and food banks.  

To implement these changes, Rural Development will publish this action as a final rule with comment. The Administrative Procedures Act exempts from prior notice rules any actions "relating to agency management or personnel or to public property, loans, grants, benefits, or contracts" (5 U.S.C. 553(a)(2)). However, RD will invite the public to participate in the rulemaking process by submitting written comments. RD will consider all of the comments that are received and may conduct additional rulemaking based on the comments received.

The Agency proposes to make these revisions to the policy and procedures which will strengthen oversight and management of the growing CF, WWD, B&I and REAP portfolios. This action is part of a continuing effort by the Agency to improve customer service for its Lender’s and create more efficient work process for its staff.

The Agriculture Improvement Act of 2018 (2018 Farm Bill) made mandatory changes to several programs administered by the Electric Program of the Rural Utilities Service.  The final rule will make revisions to 7 CFR parts 1710, 1720, and 1785 to adopt the statutory changes made by the 2018 Farm Bill, including:

SECTION 6501. Amendments to section 2 of the Rural Electrification Act of 1936 (a) Electric Loan Refinancing
SECTION 6503. Cushion of Credit Payments Program
SECTION 6505. Guarantees for Bonds and Notes Issued for Electrification or Telephone Purposes
SECTION 6507. Cybersecurity and Grid Security Improvements

The Rural Utilities Service (RUS) intends to publish a final rule with comment to amend 7 CFR 1777, section 306C Water and Waste Disposal (WWD) Loans and Grants program.  The objective of the program is to provide water and waste disposal facilities and services to low-income rural communities whose residents face significant health risks and lack access to safe, reliable drinking water and waste disposal facilities and services. The updates to the regulation are expected to clarify terminology and policies, update scoring criteria, and streamline program processes and delivery to recipients. 

The Rural Utilities Service (RUS), intends to publish a final rule to update 7 CFR 1710, 1724, 1717, 1724 and 1730 to streamline its procedures for Electric Program borrowers, including: loan application requirements; approval of workplans and load forecasts; use of approved contracts and system design procedures; and reporting requirements. This is round 3 of streamlining updates.

It is expected that the proposed changes will streamline and make more efficient the requirements for applying for Electric Program loans and to streamline the Electric Program’s pre- and post-loan procedures. Specifically, the expected outcomes will: (1) reduce the regulatory burden on Electric Program borrowers; (2) ensure that loan funds will be repaid in the time agreed upon; and (3) that the RUS loans remain adequately secured during their lifetime. The proposed final rule is expected to also reduce the burden on RUS Electric Program staff by reducing the time and resources required to review routine or unnecessary documents. RUS expects that these actions will enhance RUS and customer efficiency, thereby increasing customer satisfaction and service.

To implement these changes, RUS will publish this as a final rule without prior notice. The Administrative Procedure Act exempts from prior notice rules with any actions "relating to agency management or personnel or to public property, loans, grants, benefits, or contracts" (5 U.S.C. 553(a)(2)).

The RUS will modify its coverage ratio requirements in 7 CFR part 1710.114 to add an additional set of ratios to be considered for compliance which will allow more flexibility for RUS Borrowers’ to meet their coverage ratios. In addition, (as detailed below) RUS will be adding the definitions for Modified Times Interest Earned Ratio (MTIER) and Modified Debt Service Coverage (MDSC) to 7 CFR part 1710.2 and update the definitions for Times Interest Earned Ratio (TIER), Debt Service Coverage (DSC), Operating Times Interest Earned Ratio (OTIER) and Operating Debt Service Coverage (ODSC) in 7 CFR part 1710.2 to utilize the data from the current RUS Financial and Operating Reports filed utilizing the RUS Data Collection System (DCS). These new and clarified terms will provide more clarity and ease of use for the program’s applicants, and is based on stakeholder feedback.

To implement these changes, RUS will publish this as a final rule without prior notice. The Administrative Procedure Act exempts from prior notice rules with any actions "relating to agency management or personnel or to public property, loans, grants, benefits, or contracts" (5 U.S.C. 553(a)(2)).

The Rural Utilities Service (RUS or the Agency) loan, loan guarantee, and grant programs act as a catalyst for economic and community development. By financing improvements to rural electric, water and waste, and telecommunications and broadband infrastructure, RUS also plays a significant role in improving other measures of quality of life in rural America, including public health and safety, environmental protection and culture and historic preservation.

RUS has implemented the standards for audits required by the loan and grant agreements of RUS electric and telecommunications borrowers and grantees (awardees).This policy provides guidance to awardees to specifically address the timing and documentation requirements of annual audited financial statements, requirements of audit firms performing the audit of financial statements, applicable regulations and guidelines for both awardee and audit firms, and requirements and guidelines in selection of audit firms. In addition, possible consequences for failure to adhere to this policy are identified.

The Agency, via a final rule with request for comments, is considering eliminating the requirement for the Report of Compliance of Contractual Agreements and Regulatory Requirements (i.e., RUS Management Letter) from Certified Public Accountant (CPA) audit submittals and updating all references in the regulation related to the report. It has been determined this report no longer provides a meaningful benefit to RUS or the awardees. The elimination of this report could reduce burdensome requirements on borrowers and applicants and possibly provide a cost benefit to the awardees.

To implement these changes, RUS will publish this as a final rule without prior notice. The Administrative Procedure Act exempts from prior notice rules with any actions "relating to agency management or personnel or to public property, loans, grants, benefits, or contracts" (5 U.S.C. 553(a)(2)).

The Rural Utilities Service (RUS or the Agency) officially established the Rural eConnectivity Program (ReConnect Program) thru a final rule with comment that published in the Federal Register on February 26, 2021, (86 FR 11603). 

 The Agency seeks to update the regulation with several edits that include replacing the requirement for the use of the Dun and Bradstreet Universal Numbering System (DUNS) with the requirement to provide a unique entity identifier (UEI) as well as removing the  requirement to supply a Commercial and Government Entity (CAGE) Code number.  These changes are being made as a part of a government wide initiative that was initiated in April 2022, to have one unique entity identifier across the Federal government.

The Agency will also update section 1740.60(d)(19) to clarify that applications must include a Tribal Government Resolution of Consent from the Tribal Council of the Tribal Government with jurisdiction over the Tribal Lands where services are being proposed over or on Tribal Lands.

Additionally, the Agency will update section 1740.63 which currently requires all applicants to provide a unqualified comparative audit.  This requirement is not in-line with the Federal Government’s Single Audit Act requirements outlined in 2 CFR part 200 which only requires non-federal entities to submit one year of audited financial statements.  This section will be updated to make it clear that non-federal entities are only required to provide one year of audited financial statements during the years in which they receive more than $750,000 in federal assistance.

Finally, the Agency will amend section 1740.46 to clarify the Buy America requirements and align the language with the Infrastructure Investment and Jobs Act (IIJA).

To implement these changes, RUS will publish this as a final rule without prior notice. The Administrative Procedure Act exempts from prior notice rules with any actions "relating to agency management or personnel or to public property, loans, grants, benefits, or contracts" (5 U.S.C. 553(a)(2)).

The Rural Housing Service (RHS) intends to publish a proposed rule with the intent to amend 7 CFR 3560 to establish criteria for compliance with section 214 of the Housing and Community Development Act of 1980. Section 214 requires that individuals applying to receive federal assistance under certain programs must provide a U.S. citizenship declaration and verification of the individual’s citizenship status. Customer experience with the program will be enhanced by codifying processes in the regulation that have been run through funding announcements since the inception of the program.

The Rural Housing Service (RHS) intends to publish a proposed rule that will propose modifications to the Voucher Program, which is expected to address the eligibility of tenants, the inspection of the housing units, and the calculation of the subsidy amount. Since Fiscal Year 2006, the U.S. Department of Agriculture has received funding for its Voucher Program as authorized under section 542 of the Housing Act of 1949, as amended (42 U.S.C. 1490r). Under section 542, the voucher program offers assistance to very low-income families and persons residing in rental housing in rural areas. This program has been operating since 2006 using a Notice of Funding Availability (NOFA) published annually in the Federal Register incorporating the supplemental appropriation requirements.

On August 13, 2013, RHS published a proposed rule in the Federal Register to add a subpart Q to 7 CFR part 3560 specifically for the Voucher Program. A 60-day comment period was provided that ended October 15, 2013 (78 FR 49374- 49379). As significant time has passed since that proposed rule, RHS will re-propose permanent regulations that reflect the statutory provisions in section 542 of the Housing Act of 1949, as amended. The proposed rule is expected to also provide procedural guidance for the Program.

Rural Development (RD) expects to publish a proposed rule to update policies and procedures for implementing the regulations of the Department of Agriculture issued pursuant to title VI of the Civil Rights Act of 1964, title VIII of the Civil Rights Act of 1968, Executive Order 11246 and the Equal Credit Opportunity Act of 1974, as they relate to the USDA Rural Development or its successor agency under Public Law 103-354. This proposed rule would cover all those items that are specific to RD and not already addressed in 7 CFR part 15. The Agency intends to address requirements that awardees must meet to comply with Equal Opportunity and Civil Rights laws and various executive orders and enhance customer experience with updates to processes and procedures the first time in over 30 years.

This proposed rule would clarify program eligibility requirements in 7 CFR 3555 for USDA's Single Family Housing Guaranteed Loan Program (SFHGLP).  Applicants seeking to purchase a home through USDA Single Family Housing Guaranteed (SF HG) program, must have acceptable citizenship or immigration status.  Specifically, under current regulations, the applicant must be a U.S. citizen, a U.S. non-citizen national, or a qualified alien as required by section 401 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PROGRAM) (8 U.S.C. section 1611).  The intended outcome of the proposed changes is increased access to essential opportunities for stakeholders by clarifying program eligibility requirements for USDA’s Single Family Housing Guaranteed Loan Program, and align the Agency with other Federal housing partners. Additionally, the proposed changes are expected to allow more applicants availability to own a home and increase the rate of home ownership and promote community stability which creates the foundation for prosperity in Rural America.

Under the authority of the Housing Act of 1949, (42 U.S.C. 1471 et seq.), as amended, the MFH Direct Loan and Grant Programs make direct loans or grants to provide affordable multi-family rental housing for low income, elderly, disabled individuals and families, or domestic farm workers in eligible rural areas. The program is implemented under 7 CFR 3560.

Borrowers are required to purchase and maintain property insurance on all buildings included as security for an Agency loan. Borrowers must also furnish fidelity coverage, liability insurance and various other insurance coverage required by the Agency to protect the security of the asset. Insurance protects the asset against loss or damage.  Failure to maintain adequate insurance coverage may lead to a non-monetary loan default.

The Rural Housing Service (RHS) proposes to amend 7 CFR 3560.4, 7 CFR 3560.62 and 7 CFR 3560.105 to implement changes related to insurance requirements for the MFH Direct Loan and Grant programs. These proposed changes to 7 CFR 3560 Subparts A, B and C are intended to align insurance coverage types, amounts and deductibles with affordable housing industry standards, as well as simplify the coverage amounts and deductible limits. The intended outcome of these proposed changes is to simplify insurance coverage amounts and deductible limits which is expected to reduce Agency staff review time of insurance requirements and improve overall efficiency in managing the assets in the multi-family housing portfolio. Simplifying the coverage amounts and deductible limits will also provide a more positive customer experience.

To ensure regulations clearly document current agency practice, the Rural Housing Service (RHS) Multi-Family Housing (MFH) Direct Loan and Grant Program has identified the need for updating its regulations, so they provide all affected parties with the requirements to qualify and participate in agency programs. The agency is considering amending 7 CFR part 3560 to clarify requirements for applying and participating in the program, including the requirements for how the agency obtains credit reports and the requirements of the Capital Needs Assessment (CNA) will be fully codified.

Borrowers must maintain MFH projects in accordance with local, state, and Federal laws and regulations, establish a maintenance system, and develop a capital budget and planning process. Part of this process is developing a CNA to support the projects reserve account. 7 CFR 3560.103(c)(2) currently requires a CNA to support the reserve replacement account, however, the agency has relied on guidance documents issued to staff to communicate the requirements of what information would be acceptable to the agency to document the CNA. The agency is considering codifying the detailed requirements of the CNA to ensure that the regulations clearly  outline the full requirements of an acceptable CNA which is a key component for the restructuring of loans for existing rural rental housing and off farm labor housing projects ensuring sufficient reserves are in place to meet major repairs and improvements over the lifetime of the property.

The agency is also proposing to change the process by which it obtains credit reports from applications and borrowers for all MFH servicing actions. Currently 7 CFR 3560.56(d)(5) provides that for initial loan applications, eligibility and feasibility will be determined based on an analysis of current credit reports. The agency collected a credit report fee from applicants during the application process and agency staff obtained the required credit report through a contract with credit reporting agencies. The agency relied on various internal communications to staff to provide information on the requirements. To expedite the application process for applicants and approval of certain servicing actions, the agency is considering accepting credit reports obtained from applicants and borrowers and ceasing collection of the fee during the application process or prior to approving certain servicing actions.

The intended changes are to improve customer experience with updated and understandable insurance requirements. Insurance premiums, including those for hazard/property insurance required by the Agency, are increasing at an alarming rate due to changes in the economics of the insurance industry. Stakeholders will benefit from these proposed changes through lower insurance premiums and more flexibility in choices of coverage and deductibles.

The SFH section 502 Direct and section 504 Programs are implemented under 7 CFR 3550 and the SFH Guaranteed Loan Program is implemented under 7 CFR 3555. Both programs are authorized, by sections 502 and 504 of the Housing Act of 1949, as amended, (42 U.S.C. 1472 and 1474).

The section 502 Direct Loan Program is implemented under 7 CFR 3550 and authorized by section 502 of the Housing Act of 1949, as amended, (42 U.S.C. 1472 and 1474). The purpose of the program is to assist low- and very low-income applicants who currently do not own adequate housing and cannot obtain other credit, the opportunity to acquire, build, rehabilitate, improve, or relocate dwellings in rural areas.

The section 504 Loan and Grant Program is implemented under 7 CFR 3550 and is authorized by section 504 of the Housing Act of 1949, as amended, (42 U.S.C. 1472 and 1474). This program offers loans to very low-income homeowners who cannot obtain other credit to repair or rehabilitate their properties. The section 504 program also offers grants to homeowners aged 62 or older who cannot obtain a loan to correct health and safety hazards or to make the unit accessible to household members with disabilities.

The section 502 Guaranteed Loan Program is implemented under 7 CFR 3555 and is authorized by section 502 of the Housing Act of 1949, as amended, (42 U.S.C. 1472 and 1474). The purpose of the program is to assist low- and moderate-income applicants the opportunity to acquire, build, rehabilitate, improve, or relocate dwellings in rural areas.

Consideration for expansion of manufactured housing options is being reviewed due to recent White House initiatives to deploy new financing mechanisms to build and preserve more housing where housing gaps exist. There is special emphasis on supporting production and availability of manufactured housing through improved loan rates and terms making this type of home ownership more attainable and affordable. RHS is proposing to reduce the regulatory burdens in 7 CFR parts 3550 and 3555 specifically related to manufactured housing requirements, enhance program delivery and customer service, promote consistency between the direct and guaranteed SFH loan programs where feasible, and reflect current housing market conditions and mortgage loan practices. A manufactured home is defined as a structure that is transportable in one or more sections on a permanent chassis, constructed for permanent occupancy, and placed on a permanent foundation.

RHS will continue to require all new and existing manufactured homes to be constructed and placed on a permanent foundation in accordance with the Federal Manufactured Home Construction and Safety Standards (FMHCSS), established by HUD and found in 24 CFR part 3280.

These changes supports new financing mechanisms to build and preserve more housing where housing gaps exist. The proposed updates are expected to include clarifying language addressing the following issues: (1) the ability for borrowers under the direct and guaranteed loan programs to purchase existing manufactured homes constructed in conformance with standards and on or after a specified date; (2) the Agency’s consideration of a land-lease with an unexpired term that is at least two years longer than the mortgage term for new energy efficient manufactured and modular home financing in land-lease communities operating on a nonprofit basis; and (3) the need for Agency approval of manufactured housing dealers.

These revisions are expected to allow the Agency to responsibly and effectively utilize funds appropriated by Congress through allowing borrowers more purchase options within a competitive market and thereby increasing the likelihood of finding adequate housing which increases program impact.

7 CFR part 3550 sets forth the requirements of the direct SFH programs, authorized by sections 502 and 504 of the Housing Act of 1949, as amended (42 U.S.C. 1472 and 1474). The section 502 direct loan program provides 100 percent loan financing to assist low- and very low-income applicants obtain modest housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. The section 504 loan program provides one percent interest rate loans to very low-income homeowners in eligible rural areas to repair, improve, or modernize their home or to remove health and safety hazards. The section 504 grant program provides grants to elderly very low-income homeowners in eligible rural areas to remove health and safety hazards, or accessibility barriers from their home, often in conjunction with a section 504 loan.

This rulemaking is part of the SFH Program’s effort to improve customer service for its borrowers by: creating a more efficient application process; promote consistency between the direct and guaranteed SFH loan programs where feasible; and review current housing market conditions and mortgage loan practices.  The agency intends to review SFH Program procedures and regulations to potentially identify and revise unnecessary and outdated regulations, as well as simplify other policies and procedures that may impose burdensome requirements on borrowers and applicants.

The purpose of the Guaranteed Rural Rental Housing Program (GRRHP) is to increase the supply of affordable rural rental housing by using loan guarantees to encourage partnerships between the Rural Housing Service (RHS or Agency), private lenders, and public agencies. 7 CFR part 3565 (Part 3565) sets forth the regulation requirements for the GRRHP which prescribes the policies, authorizations, and procedures for the guarantee of multifamily loans authorized by Section 538, Title V, of the Housing Act of 1949.

To preserve affordable housing, Part 3565 requires that properties that are financed with a Section 538 GRRHP loan be used for occupancy by low- and moderate-income households and remain as affordable rental housing for the original term of the loan. To codify this requirement, Part 3565 requires restrictive use language to be outlined in a separate deed restriction. Part 3565, currently, does not specify that the separate deed restriction be recorded.  Only recorded documents will convey with the property if the mortgage and/or deed of trust is prepaid or if the loan transfers to new ownership.  The Agency is proposing to amend 7 CFR part 3565.352(b) by adding language that states the separate deed restriction (containing the restrictive use language) must be recorded.

The Agency expects that this regulatory change would provide a better customer experience by allowing the Agency to enforce the restrictive use requirement to maintain affordability if the loan guaranteed by the Section 538 GRRHP is prepaid.

On December 29, 2022, the President signed into law the Consolidated Appropriation Act, 2023, which incorporated The Public and Federally Assisted Housing Fire Safety Act of 2022. This new law requires each unit of federally assisted housing to contain hardwired or 10-year non-rechargeable, sealed, tamper-resistant battery-powered smoke alarm devices, as well as other items. To comply with the new statutory requirements, the Rural Housing Service (RHS) proposes to amend 7 CFR 3560.103(a)(3)(xx) and 7 CFR 3560.60 to implement the changes related to smoke alarm requirements for the MFH Direct Loan and Grant programs. These proposed changes to 7 CFR 3560 Subparts B and C are intended to align the Agency’s smoke alarm requirements with the new qualified smoke alarm standards under the Public and Federally Assisted Housing Fire Safety Act of 2022.

The intent of this proposed rule is to increase the safety of residents and visitors, as well as strengthen measures for the protection of the asset value used to secure the Agency’s Section 515 and Section 514/516 program loans. Housing repair and replacement costs in the affordable housing industry have been increasing at a steady rate due to economic changes in the open market for labor and materials. Agency stakeholders will benefit from an improved customer experience through improved safety and prevention of potential damage resulting from smoke and fire.

The Off-Farm Labor Housing (Off-FLH) Grant program assists qualified applicants who cannot obtain commercial credit on terms that will allow them to charge rents that are affordable to low-income tenants. Borrowers must have sufficient qualifications and experience to develop and operate the project by providing affordable financing to develop housing for year-round and migrant or seasonal domestic farm laborers. The objectives of the Off-FLHLGP are to increase: (1) the supply of affordable housing for farm labor; and (2) the ability of communities to attract farm laborers by providing affordable, decent, safe, and sanitary housing.

The intention of this proposed rule is to update 7 CFR 3560.566 by adopting the period of performance requirements found in 2 CFR 200.  As required under 2 CFR Part 200, the Agency must include the term for the period of performance of the Federal award that has been given in the grant agreement. Therefore, the term of the grant agreement, under the proposed changes in this proposed rulemaking are intended to include a fixed period of time in 7 CFR 3560.566(c). 

The proposed changes are expected to enhance customer experience by clarifying for applicants and grantees their understanding of their obligations and requirements as a federal award recipient.

The Rural Housing Service Single Family Housing (SFH) Self-Help Technical Assistance Grants programs provides grants to qualified organizations to help them carry out local self-help housing construction projects. Grant recipients supervise groups of very-low- and low-income individuals and families as they construct their own homes in rural areas. The group members provide most of the construction labor on each other’s homes, with technical assistance from the organization overseeing the project. Eligible applicants include government nonprofit organizations, federally recognized Tribes, and private nonprofit organizations.

Consistent with the Agency's goal that calls on its agencies to deliver programs efficiently, effectively, with integrity, and with a focus on positive customer experience, the SFH program has identified improvements that are intended to streamline and simplify SFH requirements to reduce paperwork and result in process improvement. The SFH program routinely meets with staff and partners to provide them the opportunity to discuss suggestions for process improvement to reduce burden on grantees and borrowers, increase flexibility of the program and improve overall customer satisfaction.

The Rural Housing Service (RHS) plans to publish a final rule with comment to consolidate and update three regulations governing Community Facilities Loans and Grants programs, 7 CFR part 1942, subparts A and C, and 7 CFR part 3570, subpart B, into a new regulation, 7 CFR part 3570, subpart A. This new regulation will be used to administer the Community Facilities Direct Loan and Grant programs as well as incorporate the Tribal College and Economic Impact Initiative Grant programs. The existing regulations in 7 CFR part 1942, subparts A and C, and 7 CFR part 3570, subpart B, will be removed as obsolete. It is planned to also include language implementing the 2018 Farm Bill to include priority for projects that provide substance abuse prevention, treatment, and recovery services; and to allow as an eligible loan purpose the refinancing of certain rural hospital debt. 

The Rural Housing Service (RHS) published a proposed rule on August 4, 2022 [87 FR 47646] to amend the current regulations for the Single-Family Housing Guaranteed Loan Program (SFHGLP) regulation found in 7 CFR part 3555.  A 60-day comment period was provided for the proposed rule, which closed on October 3, 2022.  RHS received comments from 41 respondents, of which one of the comments was not applicable to the contents of the rule.  Of the comments received, 30 were from mortgage lenders, one was from a public assistance agency, and ten were from other members of the public. 

As a result of the comments received, Rural Development anticipates including in the Final Rule the opportunity for Delegated Lenders to submit files to the Agency for review and approval, in some circumstances.  In addition, Rural Development will consider the recommendations on oversight sample size and the roll-out timeframe in development of the final rule. The Agency will also add 7 CFR 3555.55 to grant Delegated Lenders the authority to approve and execute loan guarantees with limited to no involvement of Agency staff. The provisions include the following:

 (1) The Agency may grant Delegated Lenders the authority to approve loans and obtain Loan Note Guarantees with limited to no involvement of Agency staff.

 (2) The Agency would reserve the right to suspend or terminate any lender’s delegated status for reasons including, but not limited to, underwriting loans which do not meet Agency guidelines, providing data to the Agency’s automated underwriting system which is not supported by documentation retained by the lender, maintaining a portfolio that does not meet the established delinquency, loss claim, and default rate performance metrics, and other criteria described in Agency loan program requirements in 7 CFR 3555, and any other regulatory guidance issued.

 (3) Delegated Lenders would be required to use the Agency’s automated underwriting system as described in 3555.107(b) Automated underwriting.”

 (4) The Agency would monitor ongoing delegated authority (DA) eligibility using regular collection and analysis of loan level data and performance, as well as through lender oversight reviews/examinations.

The changes to 7 CFR 3555 are expected to improve the efficiency of the delivery of the SFHGLP, align Agency practices with industry standards, and provide the public, specifically low- and moderate-income households, with faster and better service by eliminating Agency intervention at loan origination through closing.

The Community Facilities (CF) Program currently utilizes seven existing regulations to service the CF Direct Loans (7 CFR part 1951, subparts E, F, and 0; 7 CFR part 1955, subparts A, B, and C; and 7 CFR part 1956, subpart C). The CF Program will be removed from the existing seven regulations. The Agency will place all regulations for servicing the loans and grants of the CF program into one streamlined regulation; that regulation will apply solely to the CF Program. The Agency will also make changes to improve the servicing options available to CF borrowers.

The Rural Housing Service (RHS) Multi-Family Housing (MFH) Direct Loan Programs is proposing to update 7 CFR part 3560 to implement changes related to the administration of property reserve accounts under the Multi-Family Housing (MFH) Rental Assistance (RA) program. The programs covered by this part are authorized by title V of the Housing Act of 1949, as amended. 

In the proposed rule, RHS is considering amending section 3560.306 to update the definition of surplus general operating funds, clarify that surplus operating funds may be used to reduce debt service for debt other than agency debt, and allow for an annual increase in reserve contributions by utilizing the Department of Housing and Urban Development's (HUD) Operating Cost Adjustment Factor (OCAF). 

Proposed changes to 3560.306 Reserve account may also include updates to section (d)2 to define surplus cash and explicitly include other third-party debt as an allowable use of those funds, allowing borrowers to access state and local government funding available as a capital source for property improvements. If proposed this could improve property condition and increase tools available to borrowers to preserve properties as affordable housing resources. 

Additionally, the proposed rule may allow for an annual adjustment to increase reserve account funding levels by Operating Cost Adjustment Factor (OCAF) as published by HUD annually. This could allow properties to increase their savings for capital repairs and incorporate the appreciation of the cost of repairs, ensuring funds could be available as needed to make these improvements. 

The proposed changes  are expected to benefit Low -and moderate-income tenants living MFH units with improved physical condition of the properties. It is expected that the proposed changes will focus on providing more flexibility in obtaining funds for rehabilitation which will result in safer housing for MFH tenants, and a stronger, and more resilient, portfolio of properties.

The Rural Housing Service (RHS) is proposing to publish a final rule with comment to update 7 CFR part 3560, subpart D, to implement changes related to the Multi-Family Housing (MFH) Direct Loan Program.  The updates to the regulation would provide that, during the COVID-19 pandemic and any other public health emergencies, the Secretary may require that section 515, 514 and 516 MFH program borrowers provide tenants with information on any available emergency funding specific to the emergency prior to initiating a lease termination or eviction action. 

Additionally, the expected outcomes of this regulation update, will provide that in such circumstances, the Secretary may extend the time period before lease termination for nonpayment of rent to 30 days after the tenant has received such information. Currently, MFH section 515, 514 and 516 tenants must vacate the property within 30 days of notice of occupancy termination. This extension will provide adequate opportunities for tenants to overcome impediments to secure emergency funding and will prevent unnecessary evictions. The programs covered by this part are authorized by title V of the Housing Act of 1949, as amended. 

The changes are expected to broaden the level of assistance that is available- during times of natural national emergency for low- and moderate income families to continue to assist with their rent payments. Tenants can remain in their housing and continue their rental payments which gives them the resources to pay their bills and ultimately impacts the economy in positive way.  Customer experience will also be enhanced by making additional resources available to tenants in time of need. 

The Rural Housing Service (RHS) expects to publish a proposed rule to amend the current regulation for 7 CFR 3555.304(d)(6) to implement changes related to the use of special service options for Non-Performing Loans. The action is expected to amend 7 CFR 3555.301 to adjust the Mortgage Recovery Advance (MRA) process to make it less cumbersome and eliminate documentation and eligibility challenges for borrowers who do not require payment reduction. Currently, the process to administer the MRA options require extensive processing, tracking, and oversight. The expected results of the proposed changes are: (1) To offset the negative effects that delinquencies will have on our Single Family Guaranteed Loan Portfolio. This will allow more families to remain in their homes resulting in fewer loss claims for the Agency; (2) Gives lenders more flexibility in their servicing options; (3) Benefit borrowers and lenders by offering a less expensive and less cumbersome option, creating an environment that supports successful future home ownership. 

The purpose of the Guaranteed Rural Rental Housing Program (GRRHP) is to increase the supply of affordable rural rental housing by using loan guarantees to encourage partnerships between the Rural Housing Service (RHS or Agency), private lenders, and public agencies. 7 CFR part 3565 sets forth the regulation requirements for the GRRHP which prescribes the policies, authorizations, and procedures for the guarantee of multifamily loans authorized by section 538, title V, of the Housing Act of 1949.
The Agency proposes to better align the current criteria for priority projects with the Housing Act of 1949 and published a proposed rule on 1.31.2023 requesting public comments. The comment period closes on 4.3.2023.

The GRRHP uses priority points to rank and score applications that are based on criteria that frequently evolve and change depending on the housing market demands, as well as current and future Administrations’ priorities. Currently, 7 CFR part 3565.5(b) does not afford the flexibility the Agency requires in its decision making to fully address these evolving priorities without a regulatory change to the criteria.

Specifically, the intended change would aim to better align the current regulation with the language in the Housing Act, 1949 as amended, which would allow RHS to choose priorities applicable to the market demands and Administration priorities. As mandated by title V of the Housing Act of 1949, the Agency must give priority to rural areas in which borrowers can best use and need guaranteed loans. The agency is reevaluating the current prioritization in smaller rural communities, in the neediest communities having the highest percentage of leveraging, having the lowest interest rate, having the highest ratio of 3-5-bedroom units to total units, or on tribal lands.

The Agency expects the change to improve the customer experience with timelier and proactive responses to housing market demands without frequent changes to the GRRHP regulation. This is expected to be accomplished by providing the much-needed flexibility required in the Agency’s decision making to fully address evolving priorities in the housing market demands, as needed, as well as with current and future Administrations’ priorities. The Agency would also be in a stronger position to meet the current and future demands of the housing market, which ultimately would allow the Agency to be more responsive to the needs of the program’s rural stakeholders

Rural Development (RD) Rural Housing Service (RHS) intends to publish a proposed rule to update 7 CFR 1924 with the intention of making the current regulation consistent with other current RD requirements and federal agency criteria. The proposed rule is expected to set forth the requirements that are needed in the planning and performance of construction and other development work. The focus will be to consolidate, streamline, and update the various regulations that contain the policies and procedures for planning and performing building construction using financial assistance from a variety of programs from RHS.

The proposed regulation changes will provide guidance for the construction of buildings that are financed across the RD portfolio. The focus will be on habitable structures that are considered to be buildings within the construction industry.  The affected programs are within RHS Community Facilities, Single Family Housing, and Multi-Family Housing programs. Habitable buildings financed by RUS and RBCS will have access to 7 CFR 1924 by a cross reference with those Agency’s applicable program regulations.

The changes are expected to streamline and update code references and application, better external communications to apprise borrowers of the improved product of current standards for construction including energy efficiency and resilience to natural disasters such as provide greater protection against the effects of natural disasters and hazards by implementing greater energy efficiencies, addressing indoor air quality issues, and result in stronger, safer, healthier housing and other building structures.

The final rule would finalize changes made by the interim rule making minor changes to existing NRCS regulations.  The Agriculture Improvement Act of 2018 (2018 Farm Bill) mandated changes, which were fully implemented by the interim rule, to several conservation programs and related requirements, including State Technical Committee, Watershed Protection and Flood Prevention, Healthy Forests Reserve Program (HFRP), Technical Service Provider (TSP) Assistance, and Voluntary Public Access and Habitat Incentive Program (VPA-HIP).  The changes include:  (1) adding to the membership of the State Technical Committee; (2) waiving the requirement for watershed plans under certain circumstances under the Watershed Protection and Flood Prevention; (3) expanding the purposes of HFRP; (4) authorizing that certification of TSPs be through a qualified non-federal entity; and (5) including as a criteria for evaluation of VPA-HIP bids whether the land is enrolled in the Wetlands Reserve Easement component of the Agricultural Conservation Easement Program.  The final rule will address issues raised in the comments in the interim rule.

This advance notice of proposed rulemaking solicits public comment on APHIS’ plans to propose amendments to enhance regulations and standards for animals covered under the Animal Welfare Act (AWA) in three areas: 1) Public handling of wild and exotic animals at licensed exhibitors. 2) The training of personnel who handle wild and exotic animals in these settings. 3) Environmental enrichment to promote the psychological well-being of all species covered under the AWA. Our intent is to utilize this feedback to help inform our development of a proposed rule. 

In accordance with the Agricultural Bioterrorism Protection Act of 2002, we are proposing to amend and republish the select agent and toxin lists that have the potential to pose a severe threat to animal or plant health, or to animal or plant products. The Act requires the biennial review and republication of the list of select agents and toxins and the revision of the list as necessary. This action would implement findings of biennial review of the lists. In addition, we are proposing to codify operational procedures and policies necessary to enforce the regulations. 

APHIS is proposing to revise its national Brucellosis eradication program so that State statuses would no longer be based on the prevalence of brucellosis within the State, but rather based on whether a State is consistent or inconsistent with regard to standards contained in a Program Standards document. In addition, APHIS proposes to remove the list of brucellosis State classifications for both the cattle and bison and swine programs from the CFR and move the list to the APHIS website, and to revise conditions for interstate movement of cattle, bison, and swine to reflect the new State classification system. Finally, APHIS is proposing to align vaccination and branding requirements in the regulations with current operational practices.

We are proposing a new approach to indemnity value determination and a new framework for the indemnity regulations currently found at title 9, Code of Federal Regulations (9 CFR) parts 50-56. These parts address payment of indemnity to remove animals the Animal and Plant Health Inspection Service (APHIS) classifies as affected, suspect, or exposed to diseases of concern, to eradicate and control foreign animal diseases, emerging diseases, and program diseases. These sections specify values for animals removed for these diseases or the process to determine values if a flat rate was not established, methods of identification, confirmation of destruction, and other aspects of removal. The regulations can cover multiple species in each section based on the disease covered.

We are proposing to amend the regulations governing the importation of cut flowers to remove requirements for the importation of specific types of cut flowers from the regulations, and to list them in the USDA Cut Flowers and Greenery Import Manual instead. Updates to these requirements would occur through notices published in the Federal Register, rather than rulemaking. We are also proposing to remove entirely any restrictions on the importation of cut flowers of the genera Chrysanthemum, Leucanthemella, and Nipponanthemum from countries in which chrysanthemum white rust (Puccinia horiana P. Henn., CWR) is known to exist.

Current Horse Protection Act (HPA) regulations require Designated Qualified Persons (DQPs) to be licensed directly through Horse Industry Organizations (HIOs). DQPs conduct inspections of horses at HIO-affiliated shows, sales, auctions, and exhibitions to determine compliance with the HPA. We are proposing to amend the Horse Protection regulations by eliminating the role of HIOs and assigning inspection authority solely to Animal and Plant Health Inspection Service (APHIS) Veterinary Medical Officers and other third parties authorized and trained by APHIS. Other changes are also being contemplated.

We are proposing multiple revisions to our AQI user fee regulations in order to facilitate full cost recovery as required by 21 U.S.C. 136a. We are proposing to update the fees using more current operational data, as well as update the fees to incorporate recurring costs such as capital improvements and staffing needs. Inflation would also be incorporated into our model. Other changes are also being contemplated.

This action proposes adding a subsection to the regulations at title 9, Code of Federal Regulations (9 CFR) part 93, subpart F, to impose requirements on the import of live dogs for resale from regions where African swine fever (ASF) exists or is reasonably believed to exist.

This document proposes amendments to the National Poultry Improvement Plan (NPIP) regulations at title 9, Code of Federal Regulations (9 CFR) parts 145, 146, and 147. The NPIP is a long-standing, voluntary industry-State-Federal cooperative program governed by a Federal Advisory Committee. Part 145 contains the regulations for breeding poultry NPIP participation and part 146 contains the regulations for commercial poultry NPIP participation. These parts address classification programs for certain diseases which allow APHIS to provide certification for poultry and poultry products being shipped interstate as well as internationally. Part 147, the auxiliary provisions, contains the procedures to make changes to the NPIP program. We are also proposing changes to the indemnity regulations governing low pathogenicity avian influenza (LPAI) in 9 CFR part 56.

On a biennial basis, the Committee votes on recommended changes to the NPIP regulations and related provisions (in this case, LPAI indemnity). We propose to amend the regulations based on the recommendations approved by voting delegates at the NPIP 2022 Biennial Conference.

APHIS is proposing to create as an official program the United States Swine Health Improvement Plan (US SHIP) in title 9, Code of Federal Regulations. US SHIP will be a voluntary swine health improvement program that would operate similarly to the existing voluntary industry-State-Federal cooperative program National Poultry Improvement Plan (NPIP).

We are amending the regulations for the importation of equines. Many of these changes will better align our regulations with international standards and allow us and the equine industry more flexibility. The changes will also add further safeguards that protect against introducing or disseminating pests or diseases of livestock into the United States.

This action amends APHIS' animal disease traceability regulations, currently codified at 9 CFR part 86. The primary change requires that APHIS will only recognize identification devices (e.g., eartags) as official identification for cattle and bison covered by the regulations if the devices have both visual and electronic readability (EID). Other changes clarify language and requirements in several sections of part 86. These changes will enhance the U.S. traceability system to better achieve goals of rapidly tracing diseased and exposed animals and containing outbreaks.

We are amending our regulations governing user fees assessed for the costs of providing veterinary diagnostic and import/export related services for live animals and animal products. We are removing specific user fee tables from the regulations, and establishing a notice-based process to update our user fees using a standardized formula to calculate the fees that will be located in the CFR.

We are proposing to amend the regulations governing the importation of certain animals, meat, and other animal products by allowing, under certain conditions, the importation of fresh (chilled or frozen) beef from Paraguay. Based on the evidence from a risk analysis, we have determined that fresh beef can safely be imported from Paraguay, provided certain conditions are met. This action would provide for the importation of fresh beef from Paraguay into the United States while continuing to protect the United States against the introduction of foot-and-mouth disease.

This notice will allow the importation of commercial consignments into the continental United States of fresh pomegranate fruit from Turkey. As a condition of entry, fresh pomegranate fruit from Turkey will have to be produced in accordance with a systems approach that will include grove registration, sanitation, and pest control measures; packinghouse registration and procedures designed to exclude quarantine pests; cold treatment; and procedures for packing, storing, and shipping the pomegranate fruit. In addition, consignments will have to be accompanied by a phytosanitary certificate issued by the national plant protection organization of Turkey. This action will allow for the importation of fresh pomegranates from Turkey into the continental United States while continuing to provide protection against the introduction of plant pests. This notice is being issued pursuant to the terms set forth in a September 14, 2018, final rule (83 FR 46627-46639, Docket No. APHIS-2010-0082), which established a notice-based process for authorizing the importation of fruits and vegetables into the United States.

This notice will allow the importation of several varieties of fresh citrus fruit, as well as citrus hybrids, into the continental United States from areas in the Republic of South Africa where citrus black spot has been known to occur. As a condition of entry, the fruit will have to be produced in accordance with a systems approach that includes shipment traceability, packinghouse registration and procedures, and phytosanitary treatment. The fruit will also be required to be imported in commercial consignments and accompanied by a phytosanitary certificate issued by the national plant protection organization of the Republic of South Africa with an additional declaration confirming that the fruit has been produced in accordance with the systems approach. This action will allow for the importation of fresh citrus fruit, including citrus hybrids, from the Republic of South Africa while continuing to provide protection against the introduction of plant pests into the United States. This notice is being issued pursuant to the terms set forth in a September 14, 2018 final rule (83 FR 46627-46639, Docket No. APHIS-2010-0082), which established a notice-based process for authorizing the importation of fruits and vegetables into the United States.

This notice will allow the importation of fresh apple and pear fruit from certain countries of the European Union into the continental United States, provided that the fruit is produced in accordance with a systems approach, as an alternative to importation under the current preclearance program. The systems approach for fresh apple and pear fruit consists of production site and packinghouse registration, inspection of production sites, production site pest control and sanitation, post-harvest safeguards, fruit culling, traceback, sampling, cold treatment against Mediterranean fruit fly in countries where the pest is known to occur, a phytosanitary certificate, port of entry inspection, and importation as commercial consignments only. Fresh apple and pear fruit that does not meet the requirements of the systems approach will continue to be allowed to be imported into the United States from certain countries of the European Union subject to the conditions of the preclearance program currently in the regulations. This action will provide an alternative for the importation of fresh apple and pear fruit from certain countries of the European Union while continuing to provide protection against the introduction of plant pests into the continental United States. This notice is being issued pursuant to the terms set forth in a September 14, 2018 final rule (83 FR 46627-46639, Docket No. APHIS-2010-0082), which established a notice-based process for authorizing the importation of fruits and vegetables into the United States.

This rulemaking amends our disease regulations to provide for a National List of Reportable Animal Diseases, along with reporting responsibilities for animal health professionals that encounter or suspect cases of communicable animal diseases and disease agents. The changes are necessary to streamline Federal cooperative animal disease detection, response, and control efforts. This action will consolidate and enhance current disease reporting mechanisms, and it will complement and supplement existing animal disease tracking and reporting at the State level. 

We are proposing to amend the regulations regarding the importation of live dogs by requiring all live dogs imported into the United States for resale purposes to be microchipped for permanent identification, and to require importers to procure a microchip reader and make it available to port-of-entry officials as requested. This action would also add microchipping as one of three identification options for dogs and cats used by dealers, exhibitors and research facilities.  In addition, APHIS is proposing to require a verifiable signature on the health certificate and rabies certificate accompanying imported live dogs, an endorsement of the health certificate by a government official in the country of origin, and the mandatory use of forms provided by APHIS. Additionally, we are proposing to update cage standards for dogs held domestically by dealers or exhibitors who are licensed under the Animal Welfare Act or used in research at registered facilities. Other changes are also being contemplated.

We are contemplating establishing regulations for the movement of animals modified or produced by genetic engineering. Under the regulatory framework being contemplated, USDA would promulgate regulations using the authorities granted to the Department through the Animal Health Protection Act (AHPA), the Federal Meat Inspection Act (FMIA), and the Poultry Products Inspection Act (PPIA). Pursuant to these authorities, the Animal and Plant Health Inspection Service (APHIS) would conduct a safety assessment of organisms developed using genetic engineering that may increase an animal’s susceptibility to pests or diseases of livestock, including zoonotic diseases, or ability to transmit the same. The Food Safety and Inspection Service (FSIS) would conduct a pre-slaughter food safety assessment to ensure that the slaughter and processing of animals developed using genetic engineering would not result in a product that is unsound, unhealthful, unwholesome, or otherwise unfit for human food.   

The U.S. Department of Agriculture (USDA) is amending its Privacy Act regulations to exempt a system of records, Smuggling Interdiction and Trade Compliance (SITC) National Information Communication Activity System (SNICAS), USDA/APHIS-21, from certain provisions of the Privacy Act. USDA is further amending its Privacy Act regulations to reflect an administrative change to the list of system of records that are exempt from certain provisions of the Privacy Act.

This final rule revises the domestic quarantine regulations for various plant pests by removing lists of quarantined areas and regulated articles from the CFR in order to maintain these lists on the APHIS Plant Protection and Quarantine website. APHIS is making these amendments because they will allow the Agency to update the lists more responsively, using a notice-based, streamlined approach, while continuing to protect plant health.

The agency is considering the need for additional updates to its NEPA implementing regulations.

This rulemaking will extend APHIS enforcement of the Animal Welfare Act (AWA) to birds, other than birds bred for use in research. This will help ensure the humane care and treatment of such birds.

Consistent with 7 CFR 66.7, AMS is publishing a request for information soliciting input from the public which could result in changes to the AMS List of Bioengineered Foods (List).

This action proposes to revise regulations issued under the Packers and Stockyards Act (Act) (7 U.S.C. 181 229c), providing clarity regarding conduct that may violate the Act. Revisions are intended to support market growth, assure fair trade practices and competition, and protect livestock and poultry growers and producers. The action addresses long-standing issues related to competitiveness and showings of harm or likely harm to competition.

This action invites comments on the establishment of an industry-funded promotion, research, and information program for natural grass sod products. The proposed Natural Grass Sod Promotion, Research, and Information Order was submitted to the U.S. Department of Agriculture by Turfgrass Producers International, a group of natural grass sod producers. The program would conduct research, marketing, and promotion activities that will benefit the entire industry. Primary goals of the program include educating consumers and stakeholders of the benefits of natural grass and providing producers with marketing tools they can use to grow their business. The goals identified in this proposed rule would only attainable through a national research and promotion program for natural grass sod.

This action seeks comments on the proposed amendments to USDA organic regulations that would clarify production and handling requirements for a) organic pet food standards and b) organic mushrooms.  These products are currently certified organic to the standards for similar products like those for human consumption (pet food) or for crops (mushrooms). The proposed action seeks to increase regulatory certainty for these markets and, in turn, support investment, product development, and availability of products in the market.  The title and scope of the previous action for this RIN (05810-AE13) titled "Organic Pet Food Standards" has been revised to include the establishment of standards for the production and certification of mushrooms, which was previously proposed under now withdrawn RIN 0851-AE14.

The National List identifies the synthetic substances that may be used in organic crop and livestock production as well as the nonsynthetic (natural) substances that may not be used. It also identifies the nonorganic substances that may be used in or on processed organic products. Amendments to the National List included in this proposed rule are based on recommendations from the National Organic Standards Board (NOSB). The rule will address the following substances used in organic crop production: sodium nitrate, ammonia, and nitrogen fertilizers having a carbon-to-nitrogen ratio lower than three-to-one (3:1).

The proposed rule would revise the Packers and Stockyards regulations to add provisions to administer and enforce the livestock dealer trust, which arose from amendments to the Packers and Stockyards Act in December 2020. The revisions would establish procedures for enforcement of the trust provisions, including appointment of an independent trustee. The rule would also establish the authority, rights and responsibilities of the independent trustee. The rule would include procedures and responsibilities applicable to the Secretary in the event the Secretary assumes the role of trustee in a dealer statutory trust case.

This action proposes to address certain problematic practices related to poultry grower payment systems and capital improvement programs such as: payment disparities and reductions that are unconnected to commoditized flock performance, and transparency concerns related to additional capital investments in poultry production facilities and equipment.

This rulemaking proposes to modernize and increase efficiency of the current butterfat testing process offered as part of Grading Services by creating a butterfat test recordkeeping requirement for dairy product manufacturing plants and eliminate redundant USDA testing. Currently, plants conduct regular tests to ensure compliance with composition standards and a USDA inspector conducts another test at the time of inspection. Requiring records of the plant butterfat tests to be made available during a USDA inspection would reduce an additional test and allow USDA to ensure more consistent butterfat composition since there would be multiple test records to review.

The Agricultural Marketing Service (AMS) plans to publish a proposed rule that would amend the National Bioengineered Food Disclosure Standard to align with the results of the legal challenge brought by Natural Grocers. The amendments would remove the standalone text message disclosure option found at 7 CFR 66.108 and add an additional and comparable option to the electronic or digital disclosure option found at 7 CFR 66.106.  The amendment to the National Bioengineered Food Disclosure Standard would align the rule with the results of the legal challenge brought by Natural Grocers and improve accessibility of the disclosures to consumers.

After considering comments on proposed updates to the List of Bioengineered Foods as it pertains to the National Bioengineered Food Disclosure Standard, AMS intends to publish a Final Rule responding to recommended amendments.

This rulemaking would finalize the Dairy Donation Program, which was authorized in the Consolidated Appropriations Act of 2021. The Dairy Donation Program is a voluntary program that reimburses eligible dairy organizations for milk used to make eligible dairy products donated to non-profit groups for distribution to low-income persons.

This action would revise the Packers and Stockyards regulations to add provisions for written notifications related to the new livestock dealer trust. The revisions would outline the process for livestock sellers to notify livestock dealers and the Secretary of the seller's intent to preserve their interest in trust benefits should the dealer fail to pay for livestock purchased. The revisions would also require livestock sellers to acknowledge in writing that they forfeit rights to the dealer trust under the terms of credit sales to dealers. These provisions would mirror existing regulatory provisions related to livestock and poultry sales under the Packers and Stockyards Act.

This action amends regulations issued under the Packers and Stockyards Act (P&S Act), revising the list of disclosures and information live poultry dealers must furnish to poultry growers and sellers with whom dealers make poultry growing arrangements. The rule establishes parameters for the use of poultry grower ranking systems by dealers to determine settlement payments for poultry growers. Amendments are intended to promote transparency in poultry production contracting and to give poultry growers relevant information with which to make business decisions.

This final rule would supplement a recent revision to regulations issued under the Packers and Stockyards Act (Act) (7 U.S.C. 181 229c) that provided criteria for the Secretary to consider when determining whether certain conduct or action by packers, swine contractors, or live poultry dealers is unduly or unreasonably or advantageous. Supplemental amendments clarify the conduct the Department considers unfair, preferential, unjustly discriminatory, or deceptive and a violation of sections 202(a) and (b) of the Act. The rule also clarifies the criteria and types of conduct that would be considered unduly or unreasonably preferential, advantageous, prejudicial, or disadvantageous and violations of the Act, including retaliatory practices that interfere with lawful communications, assertion of rights, and associational participation.

This action would establish additional practice standards for organic livestock and poultry production. The rule would amend the USDA organic regulations related to: livestock and poultry living conditions (for example, outdoor access, housing environment, and stocking densities); animal health care (for example, physical alterations, administering medical treatment, and euthanasia); animal transport; and slaughter.

This action would establish standards for organic production and certification of farmed aquatic animals and their products in the USDA organic regulations. This action would also add aquatic animals as a scope of certification and accreditation under the National Organic Program (NOP).

Based on comments received from the advance notice of proposed rulemaking, this proposed rule seeks public comment on recommendations to replace outdated references in USDA's organic regulations to U.S. Environmental Protection Agency (EPA) policy on inert ingredients in pesticides. Inerts, also identified as ‘other ingredients’ on pesticide labels, are any substances other than the active ingredient that are intentionally added to pesticide products. References to outdated EPA policy appear in the USDA organic regulations in the National List of Allowed and Prohibited Substances (National List) and identify the inert ingredients allowed in pesticides for organic production.

This action proposes to amend the USDA organic regulations to reflect an October 2010 recommendation submitted to the Secretary by the National Organic Standards Board (NOSB) concerning the production of organic apicultural (or beekeeping) products.

The Strengthening Organic Enforcement (SOE) final rule would, once effective, amend the USDA organic regulations to strengthen oversight and enforcement of the production, handling, and sale of organic agricultural products.

Topics addressed in this rule include: Applicability of the regulations and exemptions from organic certification; National Organic Program Import Certificates; recordkeeping and product traceability; certifying agent personnel qualifications and training; standardized certificates of organic operation; unannounced on-site inspections of certified operations; oversight of certification activities; foreign conformity assessment systems; certification of grower group operations; labeling of nonretail containers; annual update requirements for certified operations; compliance and appeals processes; and calculating organic content of multi-ingredient products.

This final rule adds a "nonuse of service” exception to the requirement that will allow Federal Grain Inspection Service (FGIS) customers to obtain official services from agencies designated to provide those services within specific geographic areas.

The National List identifies the synthetic substances that may be used in organic crop and livestock production as well as the nonsynthetic (natural) substances that may not be used. It also identifies the nonorganic substances that may be used in or on processed organic products. Amendments to the National List included in this proposed rule are based on 2022 recommendations from the National Organic Standards Board (NOSB).

This action is being withdrawn because amendments base the 2020 NOSB recommendations have not been finalized. 

The Agricultural Marketing Service (AMS) intends to proceed with an Request for Information (RFI) for the next National List update as soon as the final rule for 2020 NOSB recommendations is published.  AMS pivoted from publishing an ANPR to get public input to an RFI to better align with the annual update schedule imposed by statute.

FSIS is proposing to amend the Federal meat, poultry, and egg product inspection regulations to make them more consistent and clarify that official establishments that transport adulterated or misbranded product under establishment or FSIS controls to another official establishment for appropriate disposition are not required to notify or obtain permission from FSIS prior to transporting the product.

The Food Safety and Inspection Service (FSIS) is proposing to establish new requirements for the labeling of meat or poultry products made using animal cell-culture technology.

The Food Safety and Inspection Service (FSIS) is proposing to amend its regulations to establish criteria for evaluating Grant of Inspection (GOI) applications for Official Import Inspection Establishments.

The Food Safety and Inspection Service (FSIS) is proposing to amend its labeling requirements for processed meat and poultry products to establish new definitions for "Cured" and "Uncured." Additionally, FSIS is proposing to remove from the regulations the chart listing approved uses of food ingredients and sources of radiation at 9 CFR 424.21(c) and to instead list approved uses online and in FSIS Directive 7120.1, Safe and Suitable Ingredients Used in the Production of Meat, Poultry and Egg Products. FSIS is proposing these changes in response to a petition. Finally, FSIS is proposing to rescind the regulations at 9 CFR 424.22(b)(1)(i) and (ii)(C) that require FSIS to collect samples of pumped bacon from producing establishments and analyze them for nitrosamines because FSIS no longer conducts this testing.

The Food Safety and Inspection Service (FSIS) is proposing to update and combine into a new part of the Code of Federal Regulations the criteria FSIS uses to evaluate whether a foreign country is eligible to export meat (including Siluriformes fish), poultry, or egg products to the United States.

The Food Safety and Inspection Service (FSIS), in coordination with the U.S. Food and Drug Administration (FDA), is proposing to establish general principles that would be the first step in modernizing and updating the framework for food standards (including standards of identity, standards of quality, and standards of fill of containers). FDA and FSIS jointly issued a proposed rule in 2005 proposing such general principles. FDA reopened the comment period in 2020 because of the time that has elapsed since the publication of the proposed rule during which time there have been additional technological advances and other changes in the food industry that could help inform the development of a modernized food standards framework. Many of the comments submitted in response to the reopening suggested that the general principles be revised and consolidated to make the principles easier to understand and implement. As a result, FSIS and FDA decided to withdraw the 2005 proposed rule. FSIS and FDA intend to publish a new proposed rule.

Consistent with the changes that the Food and Drug Administration (FDA) finalized, the Food Safety and Inspection Service (FSIS) is amending the Federal meat and poultry products inspection regulations to update and revise the nutrition labeling requirements for meat and poultry products to reflect recent scientific research and dietary recommendations and to improve the presentation of nutrition information to assist consumers in maintaining healthy dietary practices.

The Food Safety and Inspection Service (FSIS) is exempting certain records from the FSIS system "USDA/FSIS-0005, AssuranceNet" from the access and notification provisions of the Privacy Act of 1974 to prevent interference with law enforcement investigations. This rule will list the name of the system of records as exempt under the FSIS Freedom of Information and Public Information regulations.

The Food Safety and Inspection Service (FSIS) is amending the poultry products inspection regulations to rescind the regulations that require condemnation of poultry carcasses affected with any of the forms of avian leukosis complex. Avian leukosis lesions will be addressed by the current regulation that provides for any organ or other carcass part affected with tumors to be trimmed and the unaffected parts of the carcass to be inspected and passed. FSIS is also rescinding the regulation that requires young chicken slaughter establishments operating under the New Poultry Inspection System (NPIS) to provide a location along the production line at which an FSIS inspector may inspect the first 300 carcasses of each flock together with associated viscera for leukosis and the regulation that prescribes inspection procedures for avian visceral leukosis in NPIS poultry slaughter establishments. 

The Food Safety and Inspection Service is amending the Federal meat, poultry, and egg product inspection regulations to require establishments that have an Internet connection to provide FSIS access to it for the purposes of conducting and recording inspection verification activities.  Internet service is essential to FSIS personnel for the inspection of meat, poultry, and egg products, given the need to fully employ the FSIS Public Health Information System (PHIS). PHIS assigns inspectors tasks to verify the establishment meets regulatory requirements and to respond to public health incidents promptly.  Inspectors also enter their activities in PHIS.  FSIS views Internet service as a necessary utility, like lighting, heating, and laundry services, that should be provided by establishments as a regulatory condition of receiving inspection. FSIS will not require establishments without Internet access to purchase the services or to upgrade services that are not sufficient for FSIS’ use.

The Food Safety and Inspection Service (FSIS) proposed to amend its regulations to define the conditions under which the labeling of meat, poultry, and egg products, as well as voluntarily-inspected products, can bear voluntary statements indicating that the product is of United States (U.S.) origin. FSIS also proposed to allow the authorized claims, "Product of USA” and "Made in the USA” on the labels of FSIS-regulated products derived from animals born, raised, slaughtered, and processed in the United States. U.S.-origin label claims other than "Product of USA” or "Made in the USA” would need to include a description on the package of how the product compares to the regulatory "Product of USA” and "Made in the USA” definition, including all preparation and processing steps that occurred in the United States upon which the claim is made. FSIS is reviewing comments on the proposed rule.

The Food Safety and Inspection Service (FSIS) amended its labeling regulations to expand the categories of meat, poultry, and egg product labels that it will deem generically approved and thus not required to be submitted to FSIS. These reforms will reduce the regulatory burden on producers seeking to bring products to market, as well as the Agency costs expended to evaluate the labels.

In September 2022, FSIS finalized a contract with a third-party team of worker safety experts to evaluate the impact of increased line speeds on establishment workers.  At the conclusion of this evaluation, the Agency will review all relevant evidence to determine whether to initiate a rulemaking to change the maximum line speed for plants participating in the New Poultry Inspection System. 

In 2005, the Food Safety and Inspection Service (FSIS), in coordination with the U.S. Food and Drug Administration (FDA), proposed to establish general principles that were intended to be the first step in modernizing and updating the framework for food standards (including standards of identity, standards of quality, and standards of fill of containers). FDA reopened the comment period in 2020 because of the time that has elapsed since the publication of the proposed rule during which time there have been additional technological advances and other changes in the food industry that could help inform the development of a modernized food standards framework. Many of the comments submitted in response to the reopening suggested that the general principles be revised and consolidated to make the principles easier to understand and implement. As a result, FSIS and FDA decided to withdraw the 2005 proposed rule. FSIS and FDA intend to publish a new proposed rule.

The Department proposes to revise its regulations for various Quality Control (QC) provisions in subpart C of 7 CFR part 275 to reflect numerous changes to the Supplemental Nutrition Assistance Program’s (SNAP) Quality Control system. The proposed provisions are based on instruction in the Agriculture Improvement Act of 2018 that gives the Secretary discretion on how to implement Congress’ request to improve the integrity and data quality of information collected in the QC process and in part on comments received to a Request for Information (RFI) published on June 1, 2018.

This rule updates the Child and Adult Care Food Program (CACFP) serious deficiency (SD) process and establishes SD processes for unaffiliated centers and the Summer Food Service Program (SFSP). Section 322 of the Healthy, Hunger-Free Kids Act of 2010 (the Act) requires the Secretary to establish procedures for the termination and disqualification of organizations participating in the SFSP. This rule also establishes criteria for imposing fines against schools, school food authorities, or State agencies in CACFP as required by section 303 of the Act. Additionally, this rule seeks to clarify challenges identified through public comments on the proposed CN Integrity Rule and through the request for information (RFI) on the SD process.

This proposed rulemaking will amend regulatory provisions at 7 CFR 247, 7 CFR 250, 251, 253, and 254 to make access and parity improvements within several food distribution programs, including the Commodity Supplemental Food Program (CSFP), the Food Distribution Program on Indian Reservations (FDPIR), The Emergency Food Assistance Program (TEFAP), and USDA Foods disaster response.

Revisions to CSFP regulations (7 CFR 247) will focus on increasing access to the program for low-income seniors in need of program benefits. Revisions to USDA Foods disaster response regulations (7 CFR 250) will focus on clarifying the requirements for the use of USDA Foods in disaster situations.  Revisions to TEFAP regulations (7 CFR 251) will focus on improving access to the program by simplifying requirements for State and local program operators.  Revisions to FDPIR program regulations (7 CFR 253) will focus on aligning FDPIR eligibility requirements and improving parity with the Supplemental Nutrition Assistance Program (SNAP).  Additionally, this proposed rulemaking will make technical corrections throughout program regulations. Conforming revisions will be made to 7 CFR 254. 

This proposed rule would modernize terminology used in the Supplemental Nutrition Assistance Program (SNAP) regulations at 7 CFR 271, 7 CFR 272, 7 CFR 273, 7 CFR 274, and 7 CFR 278 to be more inclusive and equitable, consistent with the Executive Order on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government (EO 13985). These technical changes would remove stigmatizing terminology and utilize person-first language without changing SNAP policy.

FNS is merging provisions from three proposed rules - the Child and Adult Care Food Program: Amendments Related to the Healthy, Hunger-Free Kids Act of 2010 rule (0584-AE12); most of the monitoring provisions within the Simplifying Meal Service and Monitoring Requirements in the National School Lunch and School Breakfasts rule (0584-AE67), and the CN Program Integrity Rule (0584-AE08). The merged provisions will be incorporated into a single final rule to be published in Spring 2023 as the CN Program Integrity Final Rule (0584-AE08). Of note, FNS will no longer be pursuing rulemaking as a separate action for 0584-AE12 or 0584-AE67.

The provisions that will be merged from the Simplifying Meal Service and Monitoring Requirements in the National School Lunch and School Breakfasts rule (0584-AE67) and the Child and Adult Care Food Program: Amendments Related to the Healthy, Hunger-Free Kids Act of 2010 rule (0584-AE12) reduce administrative burden for State agencies and School Food Authorities (SFAs), maintain accountability and integrity in the school meal programs, and codifies several provisions of the Healthy, Hunger-Free Kids Act of 2010 (Pub. L. 111-296) that affect management of the Child and Adult Care Food Program. The Child Nutrition Program Integrity rule (0584-AE08) codifies provisions of the Healthy, Hunger-Free Kids Act of 2010 to include establishing criteria for imposing fines against schools, SFAs, or State agencies that fail to correct severe mismanagement of the programs; replaces the renewal application with an annual certification process; and modifies review timing for day care homes and centers in the Child and Adult Care Food Program.  

This final rule will implement the Employment and Training (E&T) provisions of section 4022 of The Agricultural Act of 2014. The provisions of the Agricultural Act of 2014 require reporting measures for States' E&T programs.

This final rule implements section 4013 of the Agricultural Act of 2014, which requires States to verify applicant wage data through the National Directory of New Hires (NDNH) for the determination of eligibility and correct amount of benefits at the time of certification. This rule also changes the reporting frequency requirement for the Program and Budget Summary Statement Part B-Program Activity Statement” from an annual submission based on the State fiscal year to a quarterly submission based on the Federal fiscal year.