The agriculture department could announce as early as Wednesday a beef recall that covers the three processing plants that handled the infected cow, a department source said.
Although the impact remains unclear, the US cattle industry has long feared an outbreak of the disease, which could result in vast financial losses. US beef exports totaled US$3.2 billion last year.
Canada in May reported its first mad cow case, which has since cost its industry billions of dollars. Some countries, such as Japan, still ban Canadian beef.
Canadian investigators were never able to pinpoint the cause of the disease in a single Black Angus cow in Alberta. Canada's chief veterinary official said there was no evidence that the infected Holstein in Washington state was linked to a Canadian animal.
The dairy cow diagnosed with the disease was a "downer" animal, meaning it was too sick to walk. The US Senate last month approved language that would ban downer animals from being used in the human food supply, but the measure was dropped from a final bill because of House opposition.
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