Daybreak September 2: Congress Reconvenes as GOP Aims to Cut Labor Regulators and CDC Funding

Key Takeaways

House Republicans propose significant budget cuts to the Labor Department and CDC in a draft spending bill.
The Supreme Court to review President Trump’s use of tariffs, which some argue may affect future trade policies.
The USDA will discontinue the Farm Labor Survey, impacting wage rates for H-2A farmworkers.

Budget Cuts Proposed by House Republicans

House Republicans have resumed work in Washington, D.C., with a draft fiscal 2026 spending bill set for discussion. This proposal aims to cut the Labor Department’s budget by 28% and reduce funding for the Centers for Disease Control and Prevention (CDC) by 19%. Specific allocations include a $50 million cut for the Occupational Safety and Health Administration and a $25 million reduction for the Wage and Hour Division. In addition to financial cuts, the bill seeks to block the Biden administration’s proposed H-2A wage reforms.

Supreme Court Case on Trump’s Trade Powers

The Supreme Court will address a pivotal case regarding President Donald Trump’s trade authority. A recent ruling by the U.S. Court of Appeals for the Federal Circuit indicated that Trump misapplied the International Emergency Economic Powers Act when imposing global tariffs. Alternatives exist for imposing tariffs, but they come with stricter regulations. A Wall Street Journal editorial highlights the constitutional implications, fearing a Democratic president might leverage tariffs to influence environmental policies. Trump criticized the appeals court decision, arguing the removal of tariffs would jeopardize the U.S. economy.

USDA Halts Farm Labor Data Collection

The U.S. Department of Agriculture (USDA) has announced it will cease collecting data for the Farm Labor Survey, which has been vital for determining the Adverse Effect Wage Rate (AEWR) for H-2A farmworkers. The USDA clarified in a forthcoming notice that the agency is reallocating resources to legally mandated activities, deeming the survey non-essential. The National Council of Agricultural Employers has voiced support for the USDA’s decision but seeks clarity on potential impacts for farmers. For the time being, farmworkers will continue to receive the AEWR as outlined in their employment contracts.

Settlement Reached in Rio Grande Water Dispute

New Mexico, Texas, and Colorado, along with federal authorities, have reached a settlement in a Supreme Court case concerning water-sharing from the Rio Grande. The agreement proposes adjustments to the water distribution formula and includes commitments from New Mexico to reduce groundwater depletion. Approval from the court is still required, with hearings scheduled for September 29.

Concerns About Avian Influenza

Despite a decrease in Highly Pathogenic Avian Influenza (HPAI) cases over the summer, experts warn of potential resurgences in the fall due to migratory bird patterns. An economist from the American Farm Bureau Federation reports no new detections in commercial poultry flocks for the past 30 days, although a recent case was noted in a California dairy. The fall season could signal an uptick in infections as birds migrate south.

Comments on Regulatory Changes in Meat Processing

In response to EPA Administrator Lee Zeldin’s decision to withdraw a proposal aimed at regulating wastewater discharges from meat and poultry processing plants, Julie Anna Potts, President and CEO of the Meat Institute, expressed gratitude for the decision, stating it averts a “regulatory disaster” that could have increased food prices and harmed producers.

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