The Missouri Department of Natural Resources has turned down a permit request to process horses for meat from Rains Natural Meats in Gallatin, Mo. The department cites the lack of funding and federal budget restricts for their decision.

DNR said in a letter Thursday to David Rains, owner of Rains Natural Meats, that the agency has denied the permit request for his proposed horse slaughter operation because the new federal budget withheld funding for required federal inspections of the slaughtering process.

The resumption of commercial horse slaughter in the U.S. was effectively blocked last week when President Barack Obama signed a budget measure that stops the U.S. Department of Agriculture from spending money for inspections necessary for slaughterhouses to ship horse meat interstate and export it.