USDA Section 32, IEEPA Tariff Refunds Threaten FY2027 Farm & Child Nutrition Funding

USDA's Section 32 account, funded by 30% of annual customs receipts, faces significant uncertainty after the Supreme Court invalidated IEEPA tariffs, with Treasury already refunding $125B that may reduce the FY2027 projected receipt of ~$82B. The shortfall would compress transfers to child nutrition programs and limit USDA's emergency surplus-removal purchases, which reached $866M in 2025.