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Which federal agency controls tariff revenue and decisions on WIC funding in 2018 2019?
Executive Summary
The core claim divides into two competing assertions: one that the Department of the Treasury (and by delegation, Customs and Border Protection under the Department of Homeland Security) has authority over tariff policy and collection, and a separate claim that the United States Department of Agriculture (USDA) controlled the use of tariff revenue to fund WIC in 2018–2019. Both assertions are rooted in different legal and administrative responsibilities: Treasury sets tariff policy and oversees customs revenue functions while CBP collects tariffs, and USDA administers WIC funding decisions, with contemporaneous statements indicating USDA used tariff receipts to support WIC during a lapse or funding crisis [1] [2] [3] [4] [5] [6].
1. Who legally sets tariff rules—and why that matters for revenue control
The legal architecture places primary tariff authority in Congress, with administrative implementation vested in the executive branch; the Secretary of the Treasury establishes tariff regulations while U.S. Customs and Border Protection (CBP) administers collection at ports of entry. Treasury retains policy oversight of customs revenue functions and, historically via Treasury Orders and statutes, exercises authority over tariff policy even where operational duties have been delegated [2] [1]. The Congressional Research Service confirms that while Congress imposes tariffs constitutionally, the President and executive agencies play substantial roles in negotiation and adjustment, reinforcing that tariff control is split between legislative grant and executive administration [3]. This division matters because decisions about collecting tariffs versus directing their disposition can involve multiple agencies and statutory pathways.
2. Who actually collects and records tariff receipts in practice
Operationally, CBP collects tariffs at the border and records the revenue, but its authority derives from Treasury’s regulatory role and statutory delegations, meaning collection and record-keeping are executed by DHS components under Treasury-established rules [2] [1]. Treasury’s Office of the Secretary retains oversight of customs revenue functions, a fact underscored by internal reviews and Treasury Orders that describe the agency’s continuing policy role even after delegation to DHS [1]. The practical implication is that while CBP performs the hands-on work of collection, Treasury remains the policy steward of tariff administration — a distinction that influences who can declare or redirect receipts for particular programs.
3. Who decides WIC funding and how tariff receipts were applied in 2018–2019
WIC (Women, Infants, and Children) is a USDA nutrition program, and USDA controls WIC funding decisions and program administration, not Treasury [4]. In episodes of funding strain, including in the period around 2018–2019 and during later shutdown-related debates, USDA spokespeople stated that tariff revenue would be used to fund WIC obligations, signaling an interagency funding choice where USDA utilized available customs receipts to meet program needs [5]. USDA’s authority over WIC budgeting stems from statutory program control and appropriations structures; the agency’s operational decision to apply tariff receipts to WIC reflects administrative discretion within budgetary and legal constraints [4] [6].
4. How the two claims intersect—and where confusion originates
The tension in the original statement arises because tariff policy and collection involve Treasury and CBP while WIC program control lies with USDA, creating an appearance of competing authority when funds shift across accounts. Treasury’s policy role over tariffs does not mean USDA lacks the authority to deploy certain federal receipts for program needs; conversely, USDA’s use of tariff receipts does not alter Treasury’s statutory role in setting tariff rules [1] [2] [4] [5]. Confusion often results from headlines compressing a multi-agency fiscal arrangement into a single claim, obscuring that one agency sets and oversees tariff mechanics while another administers nutrition program funding and can accept or request specific receipts to support obligations.
5. What the timeline and sources reveal about 2018–2019 decisions and accountability
Contemporary records and reviews indicate that during 2018–2019 and subsequent funding crises, USDA publicly acknowledged using tariff receipts to support WIC, while Treasury documentation and CRS analysis show ongoing Treasury oversight of tariff policy and customs revenue functions [5] [1] [3]. The evidence points to a coordinated administrative practice: CBP collects tariffs under Treasury-delegated rules, Treasury maintains policy oversight, and USDA, as the WIC administrator, directs program payments and can rely on appropriated or designated receipts to fund benefits. Accountability for such transfers involves congressional appropriations, agency reporting, and interagency coordination, meaning questions about legality or precedent require looking at specific appropriation language and intra-executive memoranda beyond these summaries [3] [6].