Rule2025-09582
Rescission of the Dairy Donation Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 29, 2025
Effective
July 28, 2025
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This action removes from AMS' regulations the implementing regulations for the Dairy Donation Program and makes conforming amendments to the implementing regulations for the Milk Donation Reimbursement Program. The Dairy Donation Program is no longer funded by Congress; therefore, AMS has no authority to take further action under the Dairy Donation Program and its implementing regulations are obsolete. Removing the regulations will provide transparency and may reduce confusion for dairy processors and other stakeholders.
Full Text
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<title>Federal Register, Volume 90 Issue 102 (Thursday, May 29, 2025)</title>
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[Federal Register Volume 90, Number 102 (Thursday, May 29, 2025)]
[Rules and Regulations]
[Pages 22623-22625]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-09582]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1146 and 1147
[Doc. No. AMS-DA-25-0026]
RIN 0581-AE45
Rescission of the Dairy Donation Program
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Direct final rule.
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SUMMARY: This action removes from AMS' regulations the implementing
regulations for the Dairy Donation Program and makes conforming
amendments to the implementing regulations for the Milk Donation
Reimbursement Program. The Dairy Donation Program is no longer funded
by Congress; therefore, AMS has no authority to take further action
under the Dairy Donation Program and its implementing regulations are
obsolete. Removing the regulations will provide transparency and may
reduce confusion for dairy processors and other stakeholders.
DATES: The rule will be effective on July 28, 2025 without further
action, unless adverse comments are received on or before June 30,
2025. If adverse comments are received, AMS will publish a document in
the Federal Register withdrawing this rule before the effective date.
ADDRESSES: You may submit comments on the internet at <a href="http://www.regulations.gov">http://www.regulations.gov</a> or to Lauren Becker, USDA/AMS/Dairy Programs, Order
Formulation and Enforcement Division, STOP 0231-Room 2530, 1400
Independence Ave. SW, Washington, DC 20250; email:
<a href="/cdn-cgi/l/email-protection#214d405453444f0f4344424a445361545245400f464e57"><span class="__cf_email__" data-cfemail="b7dbd6c2c5d2d999d5d2d4dcd2c5f7c2c4d3d699d0d8c1">[email protected]</span></a>; telephone: 202-720-0758. All comments should
reference the docket number and the date and page number of this issue
of the Federal Register. All comments submitted in response to this
rule will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting comments will be made public on the internet at the
address provided above.
FOR FURTHER INFORMATION CONTACT: Lauren Becker, USDA/AMS/Dairy
Programs, Order Formulation and Enforcement Division, STOP 0231-Room
2530, 1400 Independence Ave, SW, Washington, DC 20250; email:
<a href="/cdn-cgi/l/email-protection#f599948087909bdb9790969e9087b580869194db929a83"><span class="__cf_email__" data-cfemail="4a262b3f382f2464282f29212f380a3f392e2b642d253c">[email protected]</span></a>; telephone: 202-720-0758.
SUPPLEMENTARY INFORMATION: This direct final rule will remove part
1147, ``Dairy Donation Program,'' from title 7 of the CFR and make
conforming amendments to part 1146, ``Milk Donation Reimbursement
Program.'' The Dairy Donation Program (DDP) was established in 2021
under the authority of section 762 of the Consolidated Appropriations
Act of 2021 (Pub. L. 116-260) (86 FR 48887; Sept. 1, 2021). Under the
program, eligible dairy organizations that accounted to a Federal milk
marketing order and incurred a qualified expense related to certain
dairy product donations could apply for and receive reimbursements for
those donations. The DDP was run along with an existing Milk Donation
Reimbursement Program (MDRP). The MDRP is a USDA dairy milk donation
program that was established as part of the 2018 Farm Bill (Pub. L.
115-334) to facilitate the donation of fluid milk products and avoid
food waste (84 FR 46653; Sept. 5, 2019).
Like the MDRP, the DDP was intended to encourage the donation of
dairy products and to prevent and minimize food waste. It was also
created to assist in balancing the supply chain during the COVID-19
pandemic. The DDP is no longer funded by Congress; therefore, AMS has
no authority to take further action under the DDP and its implementing
regulations are obsolete.
In the DDP rulemaking, AMS made conforming changes to the MDRP
regulations in part 1146 to allow the two programs to operate
simultaneously (86 FR 48887; Sept. 1, 2021). With this
[[Page 22624]]
recission of the DDP regulations, AMS is removing all references in
part 1146 to ``Dairy Donation and Distribution Plan'' and replacing
them with ``Milk Donation and Distribution Plan''. AMS is also
reverting the text of part 1146 to its form prior to the establishment
of the DDP in September 2021 (the ``2021 regulatory text'')--with three
exceptions. First, rather than removing the definition of ``qualified
expense'' (which was added to part 1146 when the DDP was established),
AMS is revising the existing definition to remove the reference to
dairy products, which are not eligible for reimbursement under MDRP.
Second, AMS is reverting the text of Sec. 1146.102 to the 2021
regulatory text, except AMS is updating the words ``new and continuing
program participants'' to ``eligible partnerships,'' which is the term
currently used for participants, and eliminating the reference to
published deadline.
Third, in Sec. 1146.106, AMS is reverting to the 2021 regulatory
text, with a few exceptions. In the paragraph (a) introductory text,
AMS is reverting to the 2021 regulatory text but is removing the words
``partner'', ``qualified expenses,'' and the term ``report.'' With this
direct final rule, the term ``report'' is replaced with the term
``Reimbursement Claim Form.'' Removal of these words and the addition
of ``Reimbursement Claim Form'' is in conformance with the current
operation of MDRP. In the paragraph (a)(1) introductory text, AMS is
retaining current regulatory text, aside from removing the reference to
the DDP and replacing it with reference to the MDRP. AMS is doing so
because the 2021 regulatory text required that participants submit a
report for each month of the fiscal year. Under the current operation
of the MDRP, eligible dairy organizations must submit the Form once;
therefore, the retention of the current regulatory text will allow the
current practice to continue. With respect to the subparagraphs to
paragraph (a)(1), AMS is reverting to the 2021 regulatory text;
however, AMS is not adding paragraph (a)(1)(v) back to the CFR. This
paragraph, which required that reimbursement claims include applicable
announced Federal milk marketing order prices for the month the milk
was pooled, is not necessary because the information is now programmed
to be automatically included. Finally, AMS is not reverting Sec.
1146.106(a)(2) to the 2021 regulatory text. Under the current
regulatory text, the documents act to ``verify'' the donations were
made. The reporting requirements of the two versions are identical,
however the current regulatory text refers to the Reimbursement Claim
Form and Eligible Distributor Certification Form by title.
Section 553(b)(3)(B) of the Administrative Procedure Act (APA) (5
U.S.C. 551 et seq.) authorizes agencies to dispense with prior notice
and comment for rules when the agency for ``good cause'' finds that
those procedures are ``impracticable, unnecessary, or contrary to the
public interest.'' Under this section, an agency, upon finding good
cause, may issue a final rule without first publishing a proposed rule.
Removing the DDP regulations and amending the MDRP regulations will
provide transparency and may reduce confusion for dairy processors and
other stakeholders. Further, AMS views this action as noncontroversial
and anticipates no adverse public comment. This rule will become
effective, as published in this document, July 28, 2025 without further
action, unless adverse comments are received on or before June 30,
2025. Adverse comments are considered to be those comments that suggest
the rule should not be adopted or suggest the rule should be changed.
If AMS receives adverse comments, we will publish a document in the
Federal Register withdrawing this rule before the effective date. AMS
will then publish a proposed rule for public comment. Following the
close of that comment period, the comments will be considered, and a
final rule addressing the comments will be published.
Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), AMS
certifies that this direct final rule will not, if issued, have a
significant economic impact on a substantial number of small entities.
The DDP is no longer funded by Congress and is no longer in operation.
The amendments made by the direct final rule will merely conform the
CFR with AMS' current operating practices. This rule has been
determined to be not significant for purposes of Executive Order 12866
and, therefore, has not been reviewed by OMB. The information
collection associated with the DDP, approved under the Paperwork
Reduction Act (44 U.S.C. chapter 35) under the OMB Control Number 0581-
0327, will be discontinued. The forms required for participation in
MDRP will continue to be used and are exempt from the Paperwork
Reduction Act, as explained in the final rule establishing MDRP (84 FR
46653, 46657; Sept. 5, 2019).
It is not the interest of the public or USDA to maintain
regulations that are obsolete. USDA has determined that there is no
current reliance on this regulation. Further, USDA has determined the
benefits of rescinding the DDP regulations and amending the MDRP
regulations outweigh any cost associated with rescission.
List of Subjects
7 CFR Part 1146
Milk, Donations, Reporting and recordkeeping requirements.
7 CFR Part 1147
Dairy, Donations, Food waste, Emergency, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, AMS amends 7 CFR chapter
X as follows:
PART 1146--MILK DONATION REIMBURSEMENT PROGRAM
0
1. The authority citation for part 1146 continues to read as follows:
Authority: Sec. 1431, Pub. L. 113-79, 128 Stat. 695, as amended.
0
2. Amend Sec. 1146.1 by revising the term ``Qualified expense'' to
read as follows:
Sec. 1146.1 Definitions.
* * * * *
Qualified expense means the cost incurred to purchase fresh fluid
milk products.
* * * * *
0
3. Revise Sec. 1146.102 to read as follows:
Sec. 1146.102 Milk donation and distribution plans.
Eligible partnerships must submit a completed Milk Donation and
Distribution Plan to AMS in the form and manner established by AMS to
be eligible for program consideration. The completed Milk Donation and
Distribution Plans must:
(a) Include the physical location(s) of the eligible dairy
organization's processing plant(s) and the eligible distributor's
distribution site(s);
(b) Include an affirmation signed by both eligible partners
regarding the partnership's ability to supply, transport, store, and
distribute donated milk products consistent with the commodity
specifications under Sec. 1146.3;
(c) Include an estimate of the quantity of eligible milk that the
eligible dairy organization plans to donate each year, based on--
(1) Preplanned donations and
(2) Contingency plans to address unanticipated donations; and
(d) Describe the rate at which the eligible dairy organization will
be
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reimbursed, not to exceed 100 percent of qualified expenses pursuant to
Sec. 1146.108.
0
4. Revise Sec. 1146.106 to read as follows:
Sec. 1146.106 Reimbursement claims.
(a) In order for the eligible dairy organization to receive
reimbursement pursuant to Sec. 1146.108, the participating partnership
must submit a Reimbursement Claim Form and appropriate supporting
documentation to AMS.
(1) Each Reimbursement Claim Form associated with an approved Milk
Donation and Distribution Plan must include:
(i) The amount of eligible milk donated to the eligible
distributor;
(ii) The location of the plant where the donated milk was
processed;
(iii) The date the donated milk was shipped from the plant where
the milk was processed; and
(iv) The date the donated milk was received by the eligible
distributor.
(2) Each Reimbursement Claim Form must be accompanied by documents
verifying that the donation(s) reported in the form were made. Such
documentation may include, but is not limited to, copies of processing
records, shipping records, bills of lading, warehouse receipts,
distribution records, or other documents demonstrating the reported
amount of eligible dairy products were processed, donated, and
distributed in accordance with the approved Milk Donation and
Distribution Plan and Eligible Distributor Certification Form and as
reported on the Reimbursement Claim Form.
(b) Reimbursement requests may be submitted to AMS at any time
during the fiscal year and for up to 90 days after the close of the
fiscal year.
(c) AMS will review and process reimbursement requests on a
quarterly basis, including those submitted by the last day of the month
following the end of each quarter of the fiscal year.
(d) Incomplete reimbursement requests will be returned to the
submitter for revision or completion and resubmission as necessary.
0
5. Amend part 1146 by removing the words ``Dairy Donation and
Distribution Plan'' wherever they appear and adding, in their place,
the words ``Milk Donation and Distribution Plan''.
PART 1147--[Removed and Reserved]
0
6. Under the authority of sec. 762, Pub. L. 116-260, 134 Stat. 1182,
remove and reserve part 1147.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-09582 Filed 5-28-25; 8:45 am]
BILLING CODE 3410-02-P
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