Make America Healthy Again (MAHA)— Federal Agencies Seek Input on Defining Ultra-Processed Foods as Industry Adapts
This summer, the Department of Health and Human Services (HHS), the Food and Drug Administration (FDA), and the U.S. Department of Agriculture (USDA) issued a joint Request for Information (RFI) inviting stakeholder input on potential frameworks for defining ultra-processed foods. The agencies established a 60-day period for public comment, with submissions due by September 23, 2025.
The development of a standardized definition for ultra-processed foods has the potential to enhance consistency in scientific research and influence the direction of various future policies, including front-of-package labeling, claims, dietary guidance, school meal standards, procurement guidelines, and consumer warnings. This definition may also affect industry reformulation practices, marketing strategies, and legal exposure. Furthermore, the way ultra-processed foods are described in communications and public health messaging could impact consumer perceptions and attitudes.
In response to ongoing concerns, companies continue to voluntarily modify their product ingredients. For example, the International Dairy Foods Association (IDFA) has announced that numerous U.S. ice cream manufacturers plan to remove artificial colors from their products by 2028. Similarly, Coca-Cola recently communicated changes to their offerings.
Joint Employer Clarification Reintroduced
The Save Local Business Act was refiled to clarify the joint employer standard in the National Labor Relations Act and the Fair Labor Standards Act. The Act would help end regulatory flip-flopping on the issue, clarifying that joint employer status only applies when two or more businesses have actual, direct, and immediate control over a worker’s employment.
This follows the win by the National Restaurant Association in a lawsuit filed with the Restaurant Law Center to block the Biden Administration’s harmful, expansive interpretation of the standard. The decision means that restaurants cannot be held liable for employment decisions made by franchisees, contractors, or suppliers. Also, businesses wouldn’t be pulled into union negotiations involving workers they don’t employ.
The GENUIS Act Greenlights Stablecoins
The federal government signed the GENIUS Act into law in June, establishing the first federal regulatory framework for payment stablecoins—a type of cryptocurrency pegged to the U.S. dollar or other national currencies that works like Venmo for restaurants. This framework is designed to ensure stablecoin issuers maintain sufficient reserves, giving businesses and consumers confidence in using these digital assets for everyday transactions.
Stablecoins could offer a faster, cheaper, and more secure alternative to traditional payment systems, eventually putting pressure on the credit card industry to evolve. It works similar to Venmo. To pay at a restaurant with stablecoins, diners initiate a transaction from their digital wallet by scanning a QR code or providing the restaurant’s wallet address. Their digital wallet sends the stablecoins directly to the restaurant’s wallet, acting as a digital form of instant cash. This process is enabled through integrated Point-Of-Sale (POS) systems or crypto payment gateways, making it as simple as a traditional digital payment.
A Step in the Right Direction on Tariffs
President Trump signed an executive order in September creating a framework for exempting certain agricultural imports from tariffs if they come from countries with U.S. trade agreements. Other nations must negotiate agreements to unlock the same exemptions.
Through various formal and emerging frameworks, the U.S. currently has comprehensive food trade agreements with countries including Australia, Bahrain, Chile, Colombia, Israel, Japan, Jordan, Korea, Morocco, Oman, Panama, Peru, and Singapore. Canada and Mexico are not a part of reciprocal tariffs and already benefit from tariff-free treatment for these products under the United States-Mexico-Canada Agreement exemption.
Food & agricultural products eligible for the exemption under these agreements include coffee, cocoa, bananas, avocados, mangoes, papayas, kiwis, pineapples, guava, cooking oils (palm, coconut, sunflower), tea (green, black, mate), spices (cinnamon, cardamom, turmeric, cloves, nutmeg, pepper), oats and tropical grains. Some seafood (Albacore or long finned tunas, excluding fillets), (yellowfin tunas, fresh or chilled, excluding fillets), and frozen tuna fillets are also exempt.
ICE Actions Stir Uncertainty
The National Restaurant Association sent a letter dated July 1 to the White House saying the restaurant industry needed a break. It came after the Trump administration signaled willingness to cut some slack for farms and hotels. Trump is quoted as saying, “The very aggressive policy on immigration is taking very good, long-time workers away from them.”
The letter called for Trump to “partner with our industry to implement targeted workforce solutions” and “consider deferred action with work authorization on a select basis for long-serving employees who pass background checks, pay taxes, and meet rigorous vetting standards.”
The Association promotes proactive compliance measures for restaurants, such as I-9 audits and using E-Verify, while also supporting a legal, temporary worker visa program for the service sector.
Meanwhile, last summer, a federal district court in California initially blocked ICE from using factors like race, ethnicity, or presence in certain locations to stop and question people during immigration sweeps. An appeals court kept this ban in place, but the Supreme Court has now temporarily lifted it. September’s Supreme Court decision is considered an emergency order and not a final ruling. The full case, Perdomo v. Noem, will continue to be litigated in the lower courts and could eventually return to the Supreme Court for a definitive decision.
Tax and Spending Reconciliation Bill Restores Key Deductions
The bill delivered all the major tax reforms that the National Restaurant Association and its state chapters advocated for. And in several instances, it makes them permanent.
Pass-through Tax Deduction: Makes the 20% qualified business income deduction permanent for restaurant operators.
Full Expensing for Capital Equipment: Extends 100% bonus depreciation permanently, so restaurants can immediately write off new capital investments (ovens, fryers, furniture, renovations) rather than slowly depreciating over years.
Business Interest Deduction Fix: Reinstates the original business interest expense limitation formula based on earnings before interest, taxes, depreciation, and amortization (EBITDA) rather than earnings before interest and taxes (EBIT) on a permanent basis. Capitalization would not be included as business interest. Restaurant groups who are managing a loan or financing a new project may see some relief on high interest rates with this deduction.
Shift Meals Deduction Protected: Clarifies that free or discounted employee meals remain deductible under IRC §274(e)(8), codifying a full write-off for staff “shift meals.”
No Taxes on Tips: Employees may deduct up to $25,000 in tips from their taxable income each year.
No Taxes on Overtime: Employees may deduct up to $12,500 in overtime pay from their taxable income each year.
Both the no tax on tips and no tax on overtime provisions apply for tax years 2025-2028 and are phased out for individuals whose income exceeds $150,000 (or couples whose income exceeds $300,000).
