Congress’ failure to reach an agreement on appropriations funding means that federal government will begin the new fiscal year on October 1 in a “shutdown.” As such, the U.S. Department of Agriculture (USDA) will be operating in a limited capacity with many of its workers furloughed until Congress appropriates funds for its operations. On September 30, 2025, USDA published its revised “Lapse of Funding Plan,” (the Plan) which outlines the Department’s current approach to maintain operations during the shutdown.
This update provides information on how USDA agencies key to our food and agriculture clients – the Food Safety and Inspection Service (FSIS), Agricultural Marketing Service (AMS), and Animal and Plant Health Inspection Service (APHIS) – plan to operate during the government shutdown.
How can agencies continue to operate during a “shutdown?”
Under the Anti-Deficiency Act, federal agencies may not incur additional obligations during a lapse in funding appropriations, outside of some key exceptions. Notably, federal agency functions may continue during a “shutdown” if: (1) the activities are financed by means other than appropriated funds, such as “user fees”; or (2) a delay in activities will pose a “reasonably likelihood that the safety of human life or the protection of property would be compromised.” Under these exceptions, user-fee funded activities and public health functions should continue without significant disruptions.
Food Safety and Inspection Service (FSIS)
The good news for stakeholders in the meat, poultry, and egg product industry is that core food safety operations are considered essential to protect public health and will continue.
- Activities that will continue: FSIS will continue its mission-essential functions required to protect public health in products under its jurisdiction. This includes the statutorily required inspection of meat, poultry, and egg products, investigations related to outbreaks and recalls, and essential laboratory work. Ninety-three percent of FSIS staff, over 7,000 employees, are expected to be retained to carry out these duties.
- Activities that will cease: Functions not directly supporting the protection of life and property will be halted. This includes non-essential administrative tasks, most training, and other support activities. The Plan also notes that policy initiatives will be stalled, and state-run Meat and Poultry Inspection (MPI) programs, which exist in twenty-nine states, may run out of funds.
Animal and Plant Health Inspection Service (APHIS)
Many APHIS functions will continue, largely because they are funded through sources other than annual appropriations or are deemed critical for protecting life and property.
- Activities that will continue: APHIS will continue activities supported by user fees, such as Agricultural Quarantine Inspections, animal import and export services, and the issuance of phytosanitary certifications. Work funded by reimbursable agreements with states and other cooperators will also proceed. Critically, animal and plant health emergency programs—including those for highly pathogenic avian influenza, New World Screwworm, and African swine fever —will continue to operate using emergency fund balances. Essential activities like border surveillance and the protection of federal lands and property will also continue.
- Activities that will cease: Activities that rely entirely on annual appropriations will be suspended. This includes routine animal welfare inspections, Horse Protection Act activities, and operations for certain cattle and swine health programs.
Agricultural Marketing Service (AMS)
Like APHIS, a sizable portion of AMS will remain operational because its services are funded by user fees and other mandatory sources.
- Activities that will continue: A wide array of services funded by user fees and assessments will be unaffected. This includes grading services for cotton, dairy, poultry, and meat; inspection services for seeds and specialty crops; and the operation of the Perishable Agricultural Commodities Act (PACA) program. Market News information will also continue to be provided, as it is considered essential for protecting property.
- Activities that will cease: Several key regulatory and oversight programs will be shut down. Businesses should note that the National Organic Program, the Packers and Stockyards Program, Country of Origin Labeling enforcement, and enforcement of the National Bioengineered Food Disclosure Standard will all cease operations. The Plan specifically warns that a suspension of the National Organic Program for more than a few days will impact the organic industry.
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Depending on the length of the lapse in funding, USDA may have to adjust activities and recall furloughed workers. OFW Law’s USDA Regulatory Team will be monitoring developments and providing updates, as necessary.