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WIC Funding Teeters as Shutdown Pauses USDA Payments

A White House plan to tap tariff revenue faces legal questions.

Overview

  • USDA halted FY2026 allocations and is offering up to $150 million in contingency funds that advocates warn may cover only one to two weeks of operations.
  • Connecticut is temporarily financing WIC from its common cash pool, and Colorado approved $7.5 million to keep benefits running through October.
  • Arizona officials say leftover funding could run out by the end of October, and other states caution they cannot sustain services much longer without federal support.
  • The administration proposes using Section 232 tariff receipts to backstop WIC, but the amount and process are unclear and legal analysts say Congress may need to authorize it.
  • With about 6.7 million participants and roughly $7.2 billion in annual costs, providers in places like New York and Oklahoma report growing concern from parents as they brace for possible benefit gaps.