GAO: Biden’s USDA Violated Federal Budget Laws in SNAP Fund Allocation

GT Thompson: ‘USDA’s reckless accounting gimmicks under Vilsack were bad bookkeeping, abuse of taxpayer resources and violation of law’

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Updates: Food & Food Industry
(Pro Farmer)

Following the release of the Government Accountability Office report concluding that the U.S. Department of Agriculture (USDA) violated federal budget statutes in its management of the Supplemental Nutrition Assistance Program (SNAP), House Ag Committee Chairman GT Thompson (R-Pa.) issued the following statement:

“USDA’s reckless accounting gimmicks under Secretary Vilsack weren’t just bad bookkeeping—they were an abuse of taxpayer resources and a violation of law. Ignoring their own financial experts, Biden’s USDA chose political convenience over program integrity and the financial standing of the department, a clear pattern of operation for the prior Administration. We will not let this go unchecked — we will ensure accountability and put an end to these partisan budget games.”

The Trump administration USDA responds. “Make no mistake, Secretary Vilsack and Deputy Undersecretary Stacy Dean put politics over commonsense, ignoring scores of USDA financial analysts and policy experts. Using a memorandum from the left-leaning Center on Budget and Policy Priorities as their guide, Vilsack and Dean compromised the integrity of SNAP, the financial standing of USDA, and further eroded public trust,” said Kailee Buller, Chief of Staff of USDA. “The Trump administration will immediately correct this egregious action, making certain material weaknesses like this do not happen again.”

Thompson’s statement comes in response to a significant Government Accountability Office (GAO) report (link) that has uncovered serious issues with the USDA’s management of SNAP under the previous administration. The report, released Feb. 12, concluded that USDA violated federal budget statutes in its handling of SNAP funds.

Key findings of the GAO report. GAO’s investigation revealed several concerning practices:

  • Violation of recording statute: USDA’s practices for recording SNAP obligations were found to be in violation of the recording statute. The agency failed to properly record obligations when appropriations were enacted and available, instead recording them either daily or prematurely for future fiscal years.
  • Bona fide needs statute violation: USDA violated the bona fide needs statute by using its fiscal year (FY) 2023 one-year SNAP appropriation to pay for FY 2024 SNAP benefits.
  • Potential Antideficiency Act violation: GAO concluded that if USDA lacks sufficient funds in the relevant appropriations to cover the improperly allocated benefits, it must report an Antideficiency Act violation.

Political implications. Thompson’s statement highlights the political ramifications of these findings:

  • Criticism of previous administration: Thompson characterizes the USDA’s actions under Secretary Vilsack as “reckless accounting gimmicks” and an “abuse of taxpayer resources.”
  • Partisan accusations: The chairman suggests that USDA prioritized “political convenience over program integrity,” implying that the violations were politically motivated.
  • Call for accountability: Thompson promises to “ensure accountability” and “put an end to these partisan budget games,” indicating potential congressional action.

This controversy is part of a larger debate over SNAP management and funding:

  • Thrifty Food Plan re-evaluation: The Biden administration’s 2021 re-evaluation of the Thrifty Food Plan, which resulted in a 21% increase in SNAP benefits, has been a point of contention.
  • Republican proposals: Some Republicans have proposed measures to limit USDA’s power to adjust the Thrifty Food Plan and implement other changes to SNAP, potentially leading to significant spending reductions. This will likely be part of the GOP’s budget resolution and budget reconciliation.
  • Ongoing scrutiny: USDA’s management of SNAP has been under increased scrutiny, with recent reports showing high improper payment rates.