WIC Program Receives $300 Million in Funding from Tariff Revenues
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Action: Last week, the Administration redirected $300 million in unspent tariff revenue from FY2025 to the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). WIC was at risk of running out of funding this month because of the government shutdown, which occurred just before the program was slated to receive its annual appropriation. The $300 million is expected to keep the program operating for the next several weeks. But using tariff revenue for this purpose is controversial, particularly if the Administration is planning other uses for tariff funding as the shutdown continues.

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  • Last week, White House spokeswoman Karoline Leavitt said on X that the Administration had found “a creative solution” in transferring revenues from sectoral tariffs imposed under Section 232 of the Trade Expansion Act of 1962 to fund WIC. The plan claims authority under Section 32 of the Agricultural Adjustment Act of 1935, which designates the equivalent of 30% of annual customs receipts to support the farm sector and other USDA programs. As WIC is housed under the Agriculture Department (USDA), the law permits the Administration to transfer money allocated for other programs to WIC.
  • WIC helps an estimated 6.7 million low-income mothers, young children, and expectant parents to purchase nutritious staples such as fruits and vegetables, low-fat milk, and infant formula. In addition to nutrition, WIC provides education, counseling, and referral services to healthcare and social services. The Federal government funds WIC through USDA, while the states administer it. An estimated 40% of all infants in the US benefit from the program.
  • While WIC services have never previously lapsed during a shutdown, some state and local agencies are already scaling back services. A WIC office in Lyon County, Kansas closed this week, while Mississippi has suspended most new applications to the program. Some states, including Colorado and Connecticut, have already redirected state funds for WIC.
  • States have already begun receiving money from this installment. Alaska and Washington reported that they received enough Federal funding to keep their programs operating through October or early November. In an October 14 statement, USDA said it will continue to utilize tariff revenue to fund WIC “for the foreseeable future.”
  • Still, some experts question the legality of the move, as lawmakers have not appropriated Federal funds to be spent on the program for FY 2026 as no appropriations bill covering FY 2026 has been enacted. It also raises broader questions about whether the Administration would seek to redirect tariff revenue from general revenues to fund specific programs as the shutdown continues and under what authority it would do so.
  • On Tuesday, 70 House Democrats introduced the WIC Benefits Protection Act which would designate WIC a mandatory program, guaranteeing funding regardless of lapses in government operations.

WIC Program Receives $300 Million in Funding from Tariff Revenues

October 16, 2025

Action: Last week, the Administration redirected $300 million in unspent tariff revenue from FY2025 to the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). WIC was at risk of running out of funding this month because of the government shutdown, which occurred just before the program was slated to receive its annual appropriation. The $300 million is expected to keep the program operating for the next several weeks. But using tariff revenue for this purpose is controversial, particularly if the Administration is planning other uses for tariff funding as the shutdown continues.

Trusted Insights for What's Ahead®

  • Last week, White House spokeswoman Karoline Leavitt said on X that the Administration had found “a creative solution” in transferring revenues from sectoral tariffs imposed under Section 232 of the Trade Expansion Act of 1962 to fund WIC. The plan claims authority under Section 32 of the Agricultural Adjustment Act of 1935, which designates the equivalent of 30% of annual customs receipts to support the farm sector and other USDA programs. As WIC is housed under the Agriculture Department (USDA), the law permits the Administration to transfer money allocated for other programs to WIC.
  • WIC helps an estimated 6.7 million low-income mothers, young children, and expectant parents to purchase nutritious staples such as fruits and vegetables, low-fat milk, and infant formula. In addition to nutrition, WIC provides education, counseling, and referral services to healthcare and social services. The Federal government funds WIC through USDA, while the states administer it. An estimated 40% of all infants in the US benefit from the program.
  • While WIC services have never previously lapsed during a shutdown, some state and local agencies are already scaling back services. A WIC office in Lyon County, Kansas closed this week, while Mississippi has suspended most new applications to the program. Some states, including Colorado and Connecticut, have already redirected state funds for WIC.
  • States have already begun receiving money from this installment. Alaska and Washington reported that they received enough Federal funding to keep their programs operating through October or early November. In an October 14 statement, USDA said it will continue to utilize tariff revenue to fund WIC “for the foreseeable future.”
  • Still, some experts question the legality of the move, as lawmakers have not appropriated Federal funds to be spent on the program for FY 2026 as no appropriations bill covering FY 2026 has been enacted. It also raises broader questions about whether the Administration would seek to redirect tariff revenue from general revenues to fund specific programs as the shutdown continues and under what authority it would do so.
  • On Tuesday, 70 House Democrats introduced the WIC Benefits Protection Act which would designate WIC a mandatory program, guaranteeing funding regardless of lapses in government operations.

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