CBO expects CCC to spend $10B more in 2020, $4B in 2021
A footnote in a Congressional Budget Office letter to Senate Budget Committee Chairman Mike Enzi, R-Wyo., says CBO expects the Coronavirus Aid, Relief, and Economic Security Act increase of $14 billion for the Agriculture Department’s Commodity Credit Corporation to be divided between $10 billion in spending in fiscal year 2020 and $4 billion in fiscal year 2021.
Footnote 17 on Page 24 says: “That amount includes $14.3 billion stemming from changes to mandatory programs.”
“Section 11002 of division B provides the Commodity Credit Corporation with a $14 billion reimbursement for net realized losses in fiscal year 2020. The CCC is limited to $30 billion in borrowing authority at any time and is authorized to receive an annual reimbursement for its net realized losses.
“This provision is a supplemental reimbursement to the CCC during fiscal year 2020. The effect is to lift the borrowing cap during the current fiscal year by $14 billion.
“CBO estimates that this additional borrowing authority will result in increased outlays of $10 billion in fiscal year 2020 and $4 billion in fiscal year 2021. That estimate is based on information that the Department of Agriculture is considering using this new 2020 authority to make additional producer support payments that may be similar to the trade mitigation payments announced in 2018 and 2019.
“Division B also provides $300 million for the Supplemental Nutrition Assistance Program; that funding will be used for food distribution efforts for Indian reservations and U.S. territories.”
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