As Trump Continues To Inject Chaos Into The Economy, Leader Schumer Urges USDA To Block Illegal Closure Of Nebraska Tyson Foods Beef Processing Facility, Saving Thousands Of[...]

New York, N.Y. - Today, Senate Democratic Leader Chuck Schumer (D-NY) demanded Secretary of Agriculture Brooke Rollins exercise her authority under Section 203 of the Packers and Stockyards Act to block the proposed closure of the Tyson Foods beef processing facility in Lexington, Nebraska, which would save thousands of jobs and prevent beef prices from surging further for consumers.

In a time of economic instability and sky-high prices on everyday goods, Senate Democratic Leader Chuck Schumer (D-NY) is calling on Secretary of Agriculture Brooke Rollins to prevent further harm and economic devastation from hitting the American people by stopping the illegal closure of the Tyson Foods beef processing facility in Lexington, Nebraska. If this closure moves forward on January 20^th, it will cause over 25% of the town to lose their jobs, and have lasting impacts on the economy, specifically rising the cost of beef for American families.

"Trump sold America an empty promise when he claimed he would drive prices down and job growth up. The reality of his first year could not be more different. Now, when the Trump administration has a real opportunity to save thousands of jobs and address skyrocketing costs, they are sitting on their hands, bowing down to their corporate buddies. When Tyson closes this Lexington plant next week - without due cause - it will send shockwaves through America's cattle market and have consequences nationwide," said Leader Schumer. "Beef prices are already on the rise; this closure ensures prices will remain sky-high. It is an abdication of the administration's responsibility to not prevent this illegal closure."

The Lexington plant closure will devastate the local economy - costing 3,200 jobs in a town of 11,000 people. But the effects of the closure will have reverberations throughout the country. According to an analysis by the University of Nebraska-Lincoln, the plant closure will cause $3.3 billion in annual economic losses statewide. This plant closure comes at a time when Tyson Foods paid its Chief Executive Officer $34.469 million last year, a 50% pay raise from 2024, and the company has previously spent millions on stock buybacks.

Moreover, Schumer openly questioned the legality of the closure. Section 202 bans meatpackers from conducting "any course of business" or engaging in "any act for the purpose or with the effect of manipulating or controlling prices." Leader Schumer labeled this a "textbook violation."

Schumer has repeatedly sounded the alarm on rising costs and the higher cost of living. Leader Schumer has led a caucus-wide push to address the high cost of living under the Trump administration and will unveil policy proposals throughout the year aimed at the issues the American people are most focused on - the high costs of groceries, health care, power and more. Just this week, Schumer unveiled his plan to address the housing affordability crisis.

The cost of beef has gone up 16.4% since last year, and will only go up further if Secretary Rollins and the USDA choose to allow this illegal closure to move forward. The closure of this plant will allow Tyson to drive down the cost it would pay to cattle ranchers, and drive up the price everyday Americans would have to pay for beef at their local grocery store.

Schumer concluded, "USDA has both the authority and the responsibility to act when corporations try to skirt the law to make a quick buck. I urge you to act swiftly to preserve competition, stall skyrocketing prices, and save American jobs."

The full text of the letter can be seen below:

***

The Honorable Brooke Rollins

Secretary of Agriculture

U.S. Department of Agriculture

1400 Independence Avenue, SW

Washington, DC 20250

Dear Secretary Rollins:

I write to urge you to immediately exercise your authority under Section 203 of the Packers and Stockyards Act (7 U.S.C. § 193) to block the proposed closure of the Tyson Foods beef processing facility in Lexington, Nebraska.

The Lexington plant is a critical component of the regional and national livestock marketing system. The plant accounts for roughly 5% of America's beef processing capacity. When the Lexington plant closes on January 20, 2026, it will send shockwaves through America's cattle market. This has real-world consequences nationwide. Consumers are going to pay more at the grocery store. Beef prices are already high; this closure ensures prices will remain high. Producers will have fewer options to sell their livestock, likely forcing them to transport their cattle farther only to make less per head. All this is happening at a time when America's producers are struggling amidst challenging market conditions.

The Lexington plant closure will cost 3,200 jobs in a town of 11,000 people, forcing families to pack up and leave their hometown. According to an analysis by the University of Nebraska-Lincoln, the plant closure will cause $3.3 billion in annual economic losses statewide. At the same time, Tyson Foods paid its Chief Executive Officer $34.469 million last year, a 50% pay raise from 2024, and the company has previously spent millions on stock buybacks.

Section 202(e) of the Packers and Stockyards Act of 1921 bans meatpackers from conducting "any course of business" or engaging in "any act for the purpose or with the effect of manipulating or controlling prices." See 7 U.S.C. § 192(e). This plant closure is a textbook violation. Given the high level of consolidation in the beef packing industry, the loss of a major processing facility such as Lexington would further entrench market power, weaken producers' bargaining positions, and risk depressing cattle prices while raising consumer costs. Simply put, by shutting down this plant, instead of selling it to a competitor, Tyson Foods will be able to drive down the price it has to pay to ranchers for cattle and drive up the prices that consumers pay for beef.

The U.S. Department of Agriculture (USDA) has publicly stated it is 'closely monitoring' the planned closure of large processors like Tyson's Lexington plant, yet has offered little clarity on whether that monitoring includes active investigation, enforcement, or any concrete steps to protect producers and competition. USDA has both the authority and the responsibility to act when plant closures violate the law. USDA must promptly seek a judicial or administrative order to prevent the plant closure. I urge you to act swiftly to preserve competition, help bring prices down for families, and save jobs.

Sincerely,

Charles E. Schumer

United States Senator

###