USDA’s year-end actions – tighter standards for voluntary “Product of USA” claims, spanning SNAP waiver expansions and a $30M fresh fruit purchase and – signal shifting priorities that CPG brands will need to navigate in 2026
Rule on voluntary “Product of USA” labeling for FSIS-regulated products
Earlier this week, USDA’s Food Safety and Inspection Service (FSIS) hosted a webinar walking stakeholders through the final rule governing voluntary “Product of USA” labeling claims for federally inspected meat, poultry and egg products. Finalized in March 2024, the rule lays out when brands can use origin claims such as “Product of USA” and “Made in the USA,” and sets a Jan. 1, 2026 compliance date by which existing labels must either meet the new criteria or be changed or removed.
Under the final rule, these voluntary origin claims are permitted only when a product is derived from animals that were born, raised, slaughtered and processed in the US. Labels bearing these claims are considered generically approved, meaning they do not require pre-approval from FSIS, as long as all mandatory labeling elements are present and brands maintain sufficient documentation to substantiate the claim.
For multi-ingredient products, the bar is higher. All FSIS-regulated components must meet the full domestic-origin definition, while all other ingredients – excluding spices and flavorings – must also be of US origin. FSIS clarified that spices and flavorings are defined by existing regulatory language, and that any qualified origin claims must clearly reflect processing steps that occurred domestically. Examples discussed during the webinar included claims such as “sliced and packaged in the United States” or “made with chicken born and raised in the United States,” assuming appropriate documentation is on file.
FSIS also highlighted expanded guidance around documentation and key definitions. That includes clarifying that “raised” means from birth to slaughter, and that non-FSIS multi-ingredient items, such as soy sauce, must be produced in the US to qualify as domestic origin, even if their sub-ingredients are sourced elsewhere. The added clarity is intended to help manufacturers audit existing labels, prepare compliant label records and avoid disruptions as enforcement begins in 2026.
SNAP “Make America Healthy Again” waivers expand to six more states
USDA Food and Nutrition Service announced on Dec. 10 the approval of six additional state waivers that will amend what foods can be purchased using Supplemental Nutrition Assistance Program (SNAP) benefits beginning in 2026. The new approvals cover Hawai‘i, Missouri, North Dakota, South Carolina, Virginia and Tennessee and are part of the broader administration’s Make America Healthy Again (MAHA) initiative.
Under these waivers, each state will have authority to redefine the SNAP statutory definition of “food for purchase” to exclude certain unhealthy or highly processed items based on state-submitted plans. Governors from the participating states highlighted nutrition improvement and taxpayer value as central rationales for their requests.
These approvals bring the number of states with SNAP food-choice waivers – including earlier sign-offs in Arkansas, Idaho, Indiana, Iowa, Nebraska, Utah and others – to approximately 18 nationwide. Implementation details, including which specific products will be restricted in each jurisdiction, will vary by state and are expected to be phased in during 2026.
Earlier this summer, USDA also greenlit similar SNAP restriction pilots that targeted items like soda and candy, prompting industry pushback over potential confusion at the retailer and consumer levels and concerns around stigma and administrative complexity.
USDA announces $30M fresh fruit purchase to boost nutrition assistance
USDA announced plans last month to purchase up to $30 million in fresh fruit from American farmers and producers to distribute through food banks and nutrition assistance programs. This purchase, authorized under Section 32 of the Agriculture Act of 1935, is intended both to support domestic growers and to increase the availability of nutritious options for those relying on nutrition assistance, according to USDA.
The breakdown of the commodities included in this purchase – such as oranges, grapefruit and mandarins – highlights USDA’s aim to focus on fresh, nutrient-rich products.