By Tom Polansek

CHICAGO (Reuters) – The Biden administration approved a second round of emergency funding to block New World screwworm from entering the U.S. on Friday, according to a U.S. Department of Agriculture undersecretary. This decision follows Washington's suspension of cattle imports from Mexico due to the pest.

Some imports may resume this month once Mexico implements new trade protocols, said Jenny Lester Moffitt, undersecretary for marketing and regulatory programs.

The agency is allocating $165 million from the Commodity Credit Corporation to strengthen the fight against the flesh-eating screwworm in Mexico and Central America, with $109.8 million already approved last year.

The U.S. is making efforts to block the pest, which has spread throughout Central America, as it can infest livestock, wildlife, and occasionally humans. Screwworm fly maggots burrow into the skin of living animals, causing severe, often fatal damage.

Mexico identified screwworm in a cow in a southern state near the Guatemalan border in November, leading to the halt of imports. Lifting the suspension would help the U.S. agricultural sector, especially as farmers and consumers brace for rising prices and potential supply-chain disruptions if President-elect Donald Trump pursues tariffs on goods from Mexico and Canada.

To resume shipments, Mexico must establish USDA-approved holding pens where inspectors will verify and treat Mexican cattle for screwworm prior to crossing the border, Moffitt indicated. USDA intends to inspect Mexico's pens soon.

"We could have some [imports] certainly before the holidays," Moffitt said, and more in January.

U.S. meat companies and cattle feeders are eager for trade to restart following a drought that has reduced the nation's herd to its smallest size in decades. "They're just holding their breath right now," noted Ron Gill, a Texas A&M University livestock specialist.

USDA's funds will facilitate the production and dispersal of sterile screwworm flies in Central America. A Panama-based facility has increased production to about 95 million sterile flies a week, up from 20 million last year.

Sterile male flies are bred to mate with fertile females, decreasing the screwworm population until it ultimately dies out. USDA successfully eradicated screwworm from the U.S. in 1966 using this approach.