Ending Taxpayer Support for Big Egg Producers Act

This proposal changes when large egg companies can get federal payments after bird flu outbreaks. To receive money for lost poultry, big firms would have to promise not to pay dividends or buy back stock for two years after getting the funds. Public companies and private-equity-owned firms would also have to state that they truly need the help and can’t get enough money elsewhere without serious harm to their business. Lying about this would mean paying the money back with interest, and it could lead to heavy fines or prison time.

It applies only to very large companies (over $100 million in yearly revenue and more than 1,500 workers, counting affiliates and certain contractors). The change amends existing animal health law for payments tied to highly pathogenic avian influenza in poultry flocks.

• Who is affected: Very large egg producers and their affiliates; includes public companies and private-equity-owned businesses.
• What changes: To get federal compensation for bird flu losses, they must pause dividends and stock buybacks for two years and, if public or PE-owned, certify real need and lack of other affordable funds. False claims trigger repayment and possible fines or jail.
• When: The no-dividend/buyback promise lasts for two years after receiving funds; existing contracts made before the law takes effect are carved out.