Key Takeaways
- •Inspector General John Walk presented the USDA OIG's FY2025 budget request of $111.5 million, emphasizing oversight of new legislative funding and ongoing efforts against fraud.
- •Mr. Walk reported that OIG's FY2023 work resulted in 388 indictments, 315 convictions, and over $443 million in monetary results, demonstrating value to taxpayers.
- •Rep. Franklin (Republican-FL-18) pressed Mr. Walk on inadequate USDA oversight of foreign investments in U.S. agricultural land, with OIG recommending improved tracking and risk assessment.
- •Republicans and Democrats both emphasized the OIG's vital role in preventing fraud, waste, and abuse across USDA programs, including SNAP and new legislative funding.
- •The OIG will continue monitoring USDA's implementation of recommendations, particularly regarding improper payments, program integrity, and oversight of new federal funding.
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Hearing Analysis
Key Testimony
The House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies met on February 3, 2026, to review the fiscal year 2025 budget request for the U.S. Department of Agriculture (USDA) Office of Inspector General (OIG). Chairman Andy Harris (R-MD-1) and Ranking Member Sanford Bishop (D-GA-2) led the hearing, which featured testimony from Inspector General John Walk, accompanied by Assistant Inspector General for Investigations Nicole Gardner and Acting Assistant Inspector General for Audit Yarisis Rivera-Rojas. The OIG requested $111.5 million for FY 2025 to maintain oversight of the USDA’s expansive portfolio, particularly in light of significant new funding streams and long-standing management challenges.
Overview
Inspector General Walk opened by highlighting the OIG’s performance in FY 2023, noting that the office’s work resulted in 388 indictments, 315 convictions, and over $443 million in monetary results. He emphasized that the OIG is currently prioritizing oversight of the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA). These laws have provided the USDA with substantial new funding, and the OIG is auditing grant and contract award processes to ensure transparency and prevent fraud. Walk noted that preliminary findings suggest the department needs to improve its monitoring of grantees and internal controls to prevent abuse.
A significant portion of the hearing focused on the Supplemental Nutrition Assistance Program (SNAP). Chairman Harris and Ranking Member Bishop expressed concern over the $11 billion in improper payments estimated for FY 2023. Walk explained that the USDA is attempting to mitigate this through enhanced data matching with Social Security, death, and prison records. Rep. Chellie Pingree (D-ME-1) raised the issue of "SNAP skimming," where criminal enterprises steal benefits via retail devices. Walk confirmed that the OIG is investigating these operations and has recommended the transition to chip-enabled EBT cards to enhance security. Additionally, Rep. John Moolenaar (R-MI-2) questioned the OIG regarding the Thrifty Food Plan, with Walk stating that a previous audit found the department failed to follow its own procedures or use sound science when updating the plan.
The subcommittee also scrutinized the Emergency Relief Program (ERP) and the Risk Management Agency (RMA). Rep. Dan Newhouse (R-WA-4) and Rep. Moolenaar expressed frustration over delays in ERP payments to producers affected by natural disasters. Walk attributed these delays to the program's complexity, data quality issues, and the need for new IT systems. Meanwhile, Rep. Ashley Hinson (R-IA-2) focused on the integrity of the crop insurance program, prompting Walk to recommend that the RMA improve its data analytics to identify suspicious activity among private insurance companies and producers.
Key Testimony
National security concerns regarding foreign ownership of American agricultural land were a major point of discussion. Rep. Scott Franklin (R-FL-18) cited a recent OIG report that found USDA oversight of foreign investment—particularly from countries like China—to be "inadequate." Walk testified that the USDA lacks a robust process for tracking these investments and does not properly verify the information reported by foreign investors. He noted that the department has agreed to OIG recommendations to develop a clearer strategy for assessing national security risks associated with land ownership.
The hearing also addressed social and regulatory issues, including civil rights and animal welfare. Rep. Debbie Wasserman Schultz (D-FL-25) questioned the OIG’s role in overseeing the USDA’s civil rights programs, specifically regarding the history of discrimination against minority farmers. Walk stated the OIG is monitoring the implementation of IRA provisions for distressed borrowers. Rep. Lauren Underwood (D-IL-14) confronted the witnesses regarding a report showing that the Animal and Plant Health Inspection Service (APHIS) failed to take enforcement action against facilities with over 100 violations of the Animal Welfare Act. Walk assured the subcommittee that the OIG is monitoring APHIS’s progress on a new enforcement strategy.
Overview
In terms of industry impact, the hearing touched upon food safety and rural infrastructure. Rep. Wasserman Schultz and Rep. Franklin discussed the Food Safety and Inspection Service (FSIS), with Walk identifying gaps in the inspection of imported foods and delays in responding to foodborne illness outbreaks. Regarding rural development, Ranking Member Bishop highlighted the necessity of broadband access. Walk noted that the OIG has found the USDA’s process for awarding broadband grants to be lacking in transparency and hampered by inaccurate data on current coverage.
Partisan dynamics were largely collaborative, with both sides supporting the OIG’s oversight mission, though their specific interests varied. Republicans tended to focus on SNAP fraud, foreign land ownership, and wildfire suppression costs, while Democrats emphasized animal welfare, civil rights, and SNAP skimming protections. A notable exchange occurred when Rep. Ben Cline (R-VA-6) questioned the autonomy of OIG offices, suggesting a need for more accountability to the departments they serve. Walk and Rivera-Rojas defended the necessity of OIG independence but agreed that transparency through the budget and reporting processes is vital.
The hearing concluded with a consensus on the need for more investigative resources. Walk argued that increasing penalties for fraud and improving information sharing between federal agencies would significantly enhance the OIG’s effectiveness. No specific follow-up deadlines were set, but the OIG committed to providing ongoing updates on its audits of the IRA, IIJA, and the USDA’s efforts to address the opioid crisis in rural communities.
Transcript
[Gavel sounds.] The subcommittee will come to order. Good morning. I'd like to welcome everyone to today's hearing on the fiscal year 2025 budget request for the Department of Agriculture's Office of Inspector General. Our witness today is Inspector General John Walk. He is accompanied by Nicole Gardner, Assistant Inspector General for Investigations, and Yarisis Rivera-Rojas, Acting Assistant Inspector General for Audit. Welcome to all of you. The OIG is an essential partner in our work to ensure that the Department of Agriculture is operating effectively and efficiently. The OIG's work helps to identify and prevent fraud, waste, and abuse in USDA programs, and to ensure that the department is meeting its mission to serve the American people. In fiscal year 2023, OIG's work resulted in 388 indictments, 315 convictions, and over $443 million in monetary results. This is a significant return on investment for the American taxpayer. Today, we will discuss the OIG's budget request for fiscal year 2025, as well as the OIG's ongoing work and priorities. We are particularly interested in the OIG's work to oversee the department's implementation of the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. These laws provide significant new funding for USDA programs, and it is essential that this funding is used effectively and efficiently. We are also interested in the OIG's work to address the department's long-standing management challenges, such as its financial management and its information technology security. I look forward to hearing from Mr. Walk about the OIG's work and its plans for the future. I now recognize the ranking member, Mr. Bishop, for his opening remarks.
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