Overtime and Holiday Inspection Fee Reductions for Small and Very Small Meat, Poultry, and Egg Products Establishments (FY 2026)
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The USDA Food Safety and Inspection Service (FSIS) is temporarily reducing overtime and holiday inspection fees for eligible small and very small official establishments that process meat, poultry, and egg products during Fiscal Year 2026. The agency is directing $20 million in previously de-obligated funds to finance these reductions, providing financial relief to smaller operators who bear a disproportionate burden from mandatory federal inspection costs. Eligible small establishments that successfully apply will receive a 30 percent reduction in overtime and holiday inspection fees, while eligible very small establishments will receive a more substantial 75 percent reduction. These tiers reflect the greater relative financial strain that inspection costs place on the smallest businesses in the industry. To participate, establishments must submit FSIS Form 5200-16, the Overtime/Holiday Rate Reduction Form, which FSIS will use to determine eligibility. The notice outlines both the application instructions for establishments and FSIS's internal procedures for implementing and administering the fee reductions throughout the fiscal year.
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Key Changes
- FSIS allocates $20 million in de-obligated funds to temporarily reduce overtime and holiday inspection fees for FY 2026
- Small establishments receive a 30% reduction on overtime and holiday inspection fees upon approval
- Very small establishments receive a 75% reduction on overtime and holiday inspection fees upon approval
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Obligations
What this law requires
Small and very small meat, poultry, and egg products establishments must submit FSIS Form 5200-16 (Overtime/Holiday Rate Reduction Form) to apply for fee reductions
Applicant establishments must provide information sufficient for FSIS to determine eligibility for the fee reduction program
FSIS must evaluate submitted FSIS Form 5200-16 applications to determine establishment eligibility for fee reductions
FSIS must implement and administer the 30 percent overtime and holiday inspection fee reduction for eligible small establishments throughout FY 2026
FSIS must implement and administer the 75 percent overtime and holiday inspection fee reduction for eligible very small establishments throughout FY 2026