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Chippy just got the sad news! 
Straight from Animalblawg.wordpress.com:

Since 2006, horse slaughter has been essentially banned in the United States, due to Congressional refusal to fund USDA inspections of horses at United States Slaughter Houses.  It is sad to say that on November 18th, this ban was silently lifted when Congress passed, and President Obama signed into law, a USDA spending bill that reinstated federal funding for inspection of horse meat intended for human consumption- effectively lifting the ban on domestic horse slaughter.

The lifting of the ban was the direct result of a Congressional Subcommittee Report“Horse Welfare: Action Needed to Address Unintended Consequences from Cessation of Domestic Slaughter” which connected the 2006 slaughter ban to an increase in neglect and abandonment of horses, as well as a drop in the price for horses. According to the report, the 2006 ban also resulted in a dramatic increase of horses being shipped to both Canada and Mexico for slaughter, with 138,000 horses having been shipped for slaughter in 2010 alone.  Animal welfare organizations such as the Humane Society of the United States argue that allowing domestic horse slaughter is not the proper tool for these managing issues, and instead posit that the move is a waste of taxpayer dollars. Their arguments ring true when reports show that 70% of polled Americans are opposed to horse slaughter.

As things stand it is estimated that 120,000 to 200,000 horses will be slaughtered a year for human consumption.  Furthermore, according to pro-slaughter group United Horsemen, plants are already being considered in Oregon, Idaho, Wyoming, Montana, Nebraska, North Dakota, Georgia and Missouri. READ MORE FROM ANIMALBLAWG
"The decision does not sit well with some animal rights groups. The Equine Welfare Alliance, a group focused on horses' welfare, released a position paper  in response to the GAO report, slamming "disturbing omissions" that favored slaughter lobbyists." Reports the Huffington Post. Click below to read the position paper.
"The poor economy has been tough on horse owners and the animals themselves, leading to what Representative Kingston calls an "unanticipated problem with horse neglect and abandonment.” InColorado alone, horse abandonment "increased 60 percent from 975 in 2005 to 1,588 in 2009," the GAO report stated." Click to read the full article
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The Christian Science Monitor