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White House Moves to Tap Tariff Revenue to Keep WIC Running During Shutdown

The announcement seeks to plug a looming shortfall after USDA paused new WIC grants at the start of the fiscal year.

Overview

  • WIC officials warn federal funds could be exhausted in roughly one to two weeks without a spending deal, putting benefits for nearly 7 million mothers, infants and young children at risk.
  • USDA told states it halted quarterly fiscal 2026 allocations and said it intends to deploy up to $150 million in contingency funds while allowing use of manufacturer rebates and limited carryover.
  • The White House says it plans to transfer Section 232 tariff revenue to sustain WIC, though the size of the support and the precise legal and implementation steps have not been specified.
  • State capacity to backfill is uneven, with Connecticut pledging temporary coverage as Washington state, Minnesota and Alabama say they can continue benefits only for about one to three weeks.
  • Clinics, retailers and food banks report preparing for disruptions, with groups like Cincinnati’s Freestore Foodbank planning for increased demand if benefits lapse.