Food and Beverage News and Trends - May 4, 2026

FDA budget now before Congress. Earlier this month, President Donald Trump’s fiscal year (FY) 2027 budget request was submitted to Congress. On April 22, the House Appropriations Committee released its initial proposal for the FY 2027 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Bill. The bill would provide USD7.1 billion for FDA, slightly less than the USD7.2 billion the agency requested in its own proposal. As AgencyIQ reports, FDA’s FY 2027 budget request outlines a shift in the agency’s approach to funding, with constrained funding from appropriations and continuing reliance on user fees. The request highlights key operational priorities: In addition to maintaining user fee programs, it proposes expanding inspection capabilities and investing in infrastructure and advanced manufacturing. It also contains requests for funding authorization for several food-specific issues, such as support for implementation of the Food Traceability Rule, sodium reduction, Listeria prevention guidance, and pet food labeling and ingredient standards. At this writing, the bill has advanced to a subcommittee for markup.

Congressional mega-hearing on 28 active bills related to food safety and FDA. On April 29, the US House Subcommittee on Health held a hearing titled “Healthier America: Legislative Proposals on the Regulation and Oversight of Food” to discuss 28 pieces of legislation currently being considered by Congress on issues related to food safety regulatory oversight and the FDA. The hearing was called by Representative Brett Guthrie (R-KY), chair of the House Committee on Energy and Commerce, and Representative Morgan Griffith (R-VA), chair of the Subcommittee on Health. The numerous bills under discussion addressed such issues as food chemical safety reassessments, food labeling, Generally Recognized as Safe (GRAS) determinations, infant formula and baby food safety, information sharing between federal and state agencies, and additional FDA authorities for human foods oversight.

New York state set to ban three food additives, require GRAS ingredient reporting. The New York legislature has passed AB 1556/SB 1239, the Food Safety and Chemical Disclosure Act, which would ban three substances from food manufactured or sold in the state and would require industry to disclose the use of GRAS ingredients. The bill passed the Assembly by a wide margin on April 21 (106-32), then was unanimously passed by the Senate on March 23. It bans three food additives from foods sold in New York state: FD&C Red 3, potassium bromate, and propylparaben. (California banned those additives, as well as brominated vegetable oil, in 2023, and other states have since passed similar food additive bans.) The New York bill also sets forth safety data and information that food manufacturers must divulge about GRAS ingredients when they use such substances in products that are made or sold in New York. It further mandates the creation of a public database for disclosure of GRAS ingredients used in food and beverages manufactured or sold in the state. The food additive ban would take immediate effect once the bill is signed, but retailers would be allowed to sell foods containing in-scope substances until their expiration or best-by date, not to exceed three years beyond the legislation’s enactment. The GRAS portion of the bill would take effect one year after signing. The bill is now before Governor Kathy Hochul.

Diamantas: Defining UPFs is a challenge. Earlier this year, HHS Secretary Kennedy announced that a federal definition of ultra-processed foods (UPFs) would be ready by April this year, but getting there is proving difficult, FDA Deputy Commissioner for Food Kyle Diamantas stated during the POLITICO Health Care Summit on April 21. “A definition for ultra-processed foods is really hard. There’s not a great current definition for ultra-processed foods in our view,” he said. Diamantas emphasized, however, that defining UPFs remains a top priority for the Administration, and that the definition “really is the first step” in the federal policy-making process. How the government makes use of the ultimate definition, he added, will vary across the FDA, USDA, Department of Education, Veterans Affairs, and military. When asked about whether the FDA was considering a front-of-package label for UPFs, Diamantas replied that “work on defining ultra-processed foods and front-of-pack nutrition labeling go hand in hand, but it’s too early for us to say exactly how that will be used.”

USDA announces reorganization of Food Safety and Inspection Service. In an April 23 press release, the United States Department of Agriculture (USDA) announced that the Food Safety and Inspection Service (FSIS) will be reorganized to “modernize operations, streamline support functions and better align the agency with the nation’s agricultural landscape.” The reorganization will include repurposing existing USDA facilities in Urbandale, Iowa to establish a new National Food Safety Center; about 200 USDA-FSIS positions currently based in Washington, DC will be relocated to Iowa. FSIS will also expand the capabilities of the existing FSIS Eastern Field Services Laboratory in Athens, Georgia, establishing a Science Center with a focus on microbiology, chemistry, and epidemiology. USDA-FSIS further aims to establish a presence in Fort Collins, Colorado for staff to support the agency’s international activities. In all, USDA-FSIS will relocate approximately two-thirds of its Washington DC-area employees to locations across the US, leaving about 100 positions in the nation’s capital to support congressional engagement, policy development, and inter-agency coordination. USDA states that the reorganization will not impact FSIS’s frontline inspection workforce, which represents 85 percent of employees and operates across more than 6,800 regulated establishments, and “does not include any reduction in force. All FSIS employees will retain positions within the agency.” USDA Deputy Secretary Stephen A. Vaden stated, “Consolidating support operations in Iowa, strengthening scientific work in Georgia, and aligning staff with mission needs will reduce duplication and improve accountability. This approach ensures that resources are used efficiently while maintaining the high standards the public expects from our food safety system.”

Leadership changes at FSIS OPHS. The FSIS Office of Public Health Science (OPHS) has announced two key leadership changes. Dr. Melanie Abley has become Acting Assistant Administrator of OPHS. Most recently, Dr. Abley served as the agency’s acting Deputy Director of the Risk Management and Innovations Staff in the Office of Policy and Program Development. In addition, Terry Dutko has become OPHS Acting Deputy Assistant Administrator. Previously, he was Acting Executive Associate for Laboratory Services within OPHS Laboratory Regulatory Operations.

Farm Credit Canada warns of another year of uncertainty for Canada’s food and beverage manufacturers. Canada’s food and beverage manufacturing sector is expected to see modest revenue growth in 2026, but weak demand and shrinking production volumes will continue to weigh on the industry, according to Farm Credit Canada (FCC)’s latest Food and Beverage Report. FCC forecasts sales will rise 0.8 percent, driven largely by higher prices, while sales volumes are projected to fall 0.7 percent for a fourth consecutive year as consumers curb spending amid slower population growth. Although easing input costs could bring some relief and improve margins, the outlook remains affected by trade uncertainty, geopolitical risks, and declining investment across the country’s largest manufacturing industry.

FDA announces public meetings on challenges and solutions for lot-level traceability – first meeting is June 15. The US Food and Drug Administration (FDA) has announced it is hosting two virtual town hall meetings focused on the implementation of the Requirements for Additional Traceability Records for Certain Foods (Food Traceability Rule), fulfilling Section 204(d) of the Food Safety Modernization Act. The first meeting on June 15 will give the public an opportunity to share information on implementation of the Food Traceability Rule, particularly focusing on concerns about lot-level tracking and flexibilities for compliance. The Food Traceability Rule requires persons who manufacture, process, pack, or hold food on FDA’s Food Traceability List to maintain and, in some cases, provide to their supply chain partners key data elements for certain critical tracking events in the food’s supply chain, with the larger goal of allowing for faster identification and rapid removal of potentially contaminated food from the market. The original compliance date for all persons subject to the recordkeeping requirements of the Food Traceability Rule was January 20; the Continuing Appropriations Act, however, instructed FDA not to enforce the rule before July 20, 2028. The public meeting is free and open to the public, but registration is necessary to attend. General registration will remain open until June 14; individuals who may wish to speak during the event must register by June 5. The second meeting, scheduled for November 6, is titled “Solutions and Progress in Lot-Level Traceability.”

FDA final rule on salt substitutes is close to official publication. In the last step before official publication, FDA has sent the final rule entitled “Use of Salt Substitutes To Reduce the Sodium Content in Standardized Foods” to the White House Office of Information and Regulatory Affairs for review. The rule will amend about 80 standards of identity (SOIs) that currently mandate the use of sodium chloride as a required or optional ingredient, allowing the use of salt substitutes to reduce the sodium content of foods. It defines such substitutes as safe, suitable ingredients that are appropriate replacements for sodium chloride. About 140 standardized foods, such as cheeses, processed foods, and breads, would be affected by the final rule.

Synthetic dyes to be removed from Gatorade products. PepsiCo has announced that it is removing synthetic dyes from its Gatorade Zero and Thirst Quencher product lines. The company said it will begin eliminating artificial colors from its full powder stick portfolio this spring before removing them from fruit punch, lemon lime, and orange varieties of Gatorade Thirst Quencher and Gatorade Zero later in the year. The synthetic dyes will be replaced with colors derived from fruits and vegetables.

USDA launches Office of Seafood to boost US seafood competitiveness. On April 15, USDA announced the creation of the USDA Office of Seafood, a first-of-its-kind agency that will prioritize customer service and ease of navigation for American seafood cultivators, producers, and processors. Among its roles, the office will coordinate across USDA agencies to ensure fishers are integrated into USDA programs and will work alongside the US Department of Commerce and other federal partners to revitalize the American seafood industry. The new office will play a key role in the development of the America First Seafood Strategy to promote production, marketing, sale, and export of US fishery and aquaculture products and strengthen domestic processing capacity.

DOJ suit against egg producers may be filed this month. The US Department of Justice (DOJ) is reportedly close to bringing an antitrust suit against several major egg producers. As we reported in March, the investigation into price fixing in the egg industry began last year. DOJ investigators found that as H5N1 devastated laying flocks across the US, leading egg producers reportedly shared sales data with Expana, the agrifood-focused price reporting agency, which then compiled benchmark prices that the producers used to coordinate their pricing strategies. Retail egg prices reached record highs in early 2025, averaging around USD6 a dozen, with prices in some regions exceeding USD8 a dozen. Since then, despite ongoing H5N1 outbreaks in laying flocks, prices have continuously fallen; in February this year, the average retail price for a dozen large eggs was around USD2.50. The DOJ lawsuit may be filed as early as this month. In addition, DOJ is carrying out similar antitrust investigations of other businesses in the agricultural marketplace involving crop seeds, beef packing, and fertilizer. Also see the latest issue of DLA Piper’s newsletter Inside Competition, which includes brief looks at a challenge to snack pricing and proposed settlements in chicken, turkey, and pork price-fixing litigation. 

Please join us: “Navigating Global Trade: Sanctions, Export Controls, Customs, and Geopolitical Risk.” In this May 13 half-day program in DLA Piper’s Washington, DC office, the firm’s National Security and Global Trade team will explore global perspectives on US trade actions and evolving geopolitical risk, including key developments in customs, sanctions, export control, and trade policy. This program is designed to provide valuable insights, foster strategic dialogue, and create meaningful networking opportunities. Find out more by contacting Che Webb, and register here. 

Health, food groups at odds over safety of BHA in foods. On April 13, FDA closed the docket on its February request for information on the current uses and safety data of butylated hydroxyanisole (BHA) in human food and in packaging. Public health advocates, including the Center for Science in the Public Interest and Environmental Working Group, are urging the agency to deauthorize BHA’s use as a food additive via the Federal Food, Drug, and Cosmetic Act’s Delaney Clause, which sets out a zero-risk standard for food additives. Meanwhile, food industry groups, including the Association for Sustainable Food Safety and Consumer Brands Association, have argued that BHA has been safely used in foods globally, with active authorizations in Australia, Canada, the European Union, and New Zealand. BHA is widely used in food to prevent fats and oils from spoiling and as a food contact substance, such as in adhesive labels applied to poultry or processed fruits. FDA will now use the feedback in its reassessment of BHA to determine whether the agency will maintain, revoke, or modify BHA's various food additive and GRAS authorizations.

Alabama governor signs SNAP food restriction waiver request into law. On April 15, Alabama Governor Kay Ivey signed SB 57, seeking a waiver from USDA to exclude candy and soda from the list of eligible foods under the state’s Supplemental Nutrition Assistance Program (SNAP). The law defines soda as any beverage that lists the first two ingredients as carbonated water and sugar, cane sugar, corn syrup, or high-fructose corn syrup. It defines candy as any food product with sugar, cane sugar, corn syrup, or high-fructose corn syrup as a primary ingredient. Unlike SNAP waivers obtained by some other states, the Alabama bill does not extend to products like baked goods, prepared desserts, baking mixes, dessert toppings, and jams. To date, the USDA has approved SNAP waivers for 22 states and is expected to approve more requests this year.

Launch is near for cross border alcohol sales among Canadian provinces. Most of Canada’s provinces and territories are almost ready to open the door to cross border direct to consumer alcohol sales, with the federal government saying the changes could be in place as early as this month. The federal government says all ten provinces and the Yukon are working toward a May 2026 deadline under an agreement that will allow Canadians to purchase domestically produced wine, beer, spirits, and other alcoholic beverages directly from producers for personal consumption. While each jurisdiction will decide how to implement the policy, the move is expected to expand consumer choice and improve market access for Canadian beverage producers, with some provinces, such as Ontario and Nova Scotia, already moving ahead with bilateral arrangements. 

Canada: New federal funding for research into impacts of school food programs. The Canadian federal government has announced CAD12.6 million in new research funding to support evidence based school food programs. Delivered through the newly launched Funding Research for Evidence in School Food and Health (FRESH) Team Grant under the National School Food Program, the three year funding will support up to 14 research projects in three areas: the health, social, and economic impacts of school food programs; design of programs for equitable delivery; and school food program outcomes for First Nations, Inuit, and Métis students and communities. Led by Employment and Social Development Canada in partnership with the Public Health Agency of Canada and the Canadian Institutes of Health Research, the initiative aims to ensure school meal programs are guided by strong research as the national program continues to expand. Budget 2025 committed CAD216.6 million a year starting in 2029–30 to make the program permanent, and the National School Food Program Act was passed into law in March 2026, formalizing ongoing federal collaboration with provincial, territorial, and Indigenous partners.

California Assembly committee advances three chemical safety bills. During the week of April 14, three chemicals-related measures advanced out of California’s Assembly Committee on Environmental Safety and Toxic Materials. The first, AB 1603, would phase out, by 2035, pesticides containing per- and polyfluoroalkyl substances (PFAS) intentionally added as active, adjuvant, or inert ingredients. Another measure, AB 2034, addresses GRAS food additives; starting July 1, 2027, it would compel businesses intending to use a food additive in California to submit a notice to state regulators including the same information specified for federal GRAS notices. California regulators would review new notices for completion and post them to a public database. The third bill, AB 2302, would require infant formula manufacturers to test their products for aluminum, arsenic, cadmium, lead, and mercury at least every month and communicate the results on their websites or packaging labels. That requirement would take effect January 1, 2028. The three bills have advanced to the Assembly’s Appropriations Committee. They must be approved there by May 29 to receive Senate consideration.

60 percent of US facing moderate to exceptional drought; winter wheat crop already impacted. According to data from the National Oceanic and Atmospheric Administration, the first quarter of 2026 was the driest period on record across the US, breaking the previous record set back in 1910. Now, at a critical time of year for agriculture, about 60 percent of the US is facing moderate to exceptional drought. Historic dryness is gripping the Southeast, the eastern Corn Belt, and the wheat-growing regions of the Plains. “The nation’s hard red winter (HRW) wheat crop is on the verge of another disaster rivaling 2023,” Farm Journal wrote on April 24, adding, “33% of the crop is rated poor to very poor. This ranks as the fifth-worst crop in history. The primary cause is drought, which currently impacts 68% of the crop.” The drought is particularly smiting hard red winter wheat crops in Colorado, Nebraska, Oklahoma, and Texas. Farm Journal also noted that the latest statistics do not reflect further crop damage from recent freezes across parts of the Plains, stating, “These ratings indicate significant abandonment is likely.”

Canadian-developed bovine TB vaccine advances to testing. A new vaccine for bovine tuberculosis, engineered by researchers at the University of Saskatchewan using proteins found in bovine TB-producing bacteria, has advanced to testing in cattle. The vaccine, known as MSX-1, has already been found to reduce bacterial levels and illness severity in mice. With bovine TB detections rising across the Canadian Prairies and herd depopulation remaining the primary control measure, scientists hope cattle trials will confirm the vaccine’s safety and effectiveness under real-world conditions, potentially paving the way for a Canadian-made solution to a long-standing livestock disease.

NWS update.

The dangerous parasite New World Screwworm (NWS) is not yet present in the US, but cases of NWS continue to be detected in Mexico near the US border. All US southern ports of entry remain closed to the livestock trade.

• On April 24, Florida Commissioner of Agriculture Wilton Simpson issued a temporary emergency rule that restricts imports into Florida of all warm-blooded animals originating from certain high-risk US counties unless accompanied by an Official Certificate of Veterinary Inspection. That certificate must document that the animal has been inspected and found free of contagious and infectious disease and pests, including NWS. The rule specifically identifies six border counties in Texas as high risk. See the Florida NWS High-Risk County Emergency Rule.
  
  
• Also on April 24, FDA issued an Emergency Use Authorization (EUA) for F10 Antiseptic Barrier Ointment with Insecticide, a product designed to prevent NWS larvae from infesting wounds and mucous membranes in a broad range of species, ranging from cattle and horses to birds. This is the latest in a series of EUAs issued in recent months to expand prevention and treatment options for NWS.
  
  
• Construction of a new sterile fly facility is under way at Moore Air Force base in Texas. The sterile insect technique has proved successful in controlling past NWS incursions into the US. The facility is being built on an aggressive timeline, with initial operational capability expected by November 2027. It will complement the work of the extant Panama-based COPEG facility. Mexico’s sterile fly facility is currently being modernized with USDA support; those updates will become operational this summer.

Avian flu update.

• In the US, H5N1 outbreaks in US commercial facilities noticeably slowed in April, reports the Center for Infectious Disease Research and Policy (CIDRAP). In the 30 days before this writing, USDA has confirmed outbreaks in 15 commercial flocks in four US states, resulting in the culling of about 660,000 birds.
  
  
• On April 17, the Canadian Food Inspection Agency (CFIA) confirmed the presence of H5N1 in another commercial poultry flock in Saskatchewan – for the province, the second such confirmation in four days. Before that, Saskatchewan had not experienced any avian flu outbreaks since December 2025.
  
  
• A months long inquiry by the CBC News investigative program The Fifth Estate has found that efforts to stop a federal government-ordered ostrich cull in British Columbia were driven by exaggerated and false claims about scientific research and the birds’ supposed medical value. The investigation examined Universal Ostrich Farms in Edgewood, British Columbia, where owners mounted a legal and social media campaign arguing their ostriches could produce antibodies capable of treating diseases ranging from avian flu to obesity and hair loss. Journalists found no credible evidence supporting those assertions, with independent scientists, former business partners, and federal officials disputing claims about unique genetics, active research, and commercial potential. The Fifth Estate’s report also concluded that the prolonged standoff delayed a mandated avian flu cull, cost taxpayers millions of dollars, and raised concerns about increased public health risks. See some of our earlier coverage of this story here.
  
  
• In Europe, WATT Poultry reports, avian influenza cases have been declining, except in Poland, where as of this writing H5N1 has been detected on 36 poultry farms since January 1 – affecting laying hens, breeding chickens, broilers, ducks, geese, and turkeys. More than 6.4 million birds have been culled in Poland so far this year.
  
  
• Following an outbreak of avian influenza in Chile, on April 23 China banned the import of all poultry and related products originating from that country.
  
  
• USDA has awarded nearly USD2 million to researchers at Indiana University’s Department of Environmental and Occupational Health to study whether specialized ultraviolet C (UVC) lamps can slow the spread of the H5N1 virus in poultry operations. UVC light, sometimes called germicidal UV, is a powerful technology that sanitizes air, water, and surfaces by damaging microorganisms’ DNA and RNA, preventing reproduction. Associate Professor Roberto A. Rodríguez, who is leading the study, stated that the research will seek to determine whether the technology can be effectively applied in poultry operations – specifically in ventilation systems, as a groundwater treatment, or installed directly over birds.