Farmers are 'on the hook' for millions of dollars in repairs and improvements as promised USDA funds are paused

Many U.S. farmers are waiting to be reimbursed for
out-of-pocket investments. (Photo by Richard Bell, Unsplash)

U.S. farmers are concerned about when and if they will get paid the millions of dollars owed to them by the federal Depaartment of Agriculture, report Daniel Wu, Gaya Gupta and Anumita Kaur of The Washington Post. "Despite promises from the Trump administration that a federal funding freeze would not apply to projects directly benefiting individuals. . . . President Donald Trump ordered the USDA to freeze funds for several programs."

The frozen funds are part of the 2022 Inflation Reduction Act which helps farmers "address natural resource concerns, and the Rural Energy for America Program, which provides financial assistance for farmers to improve their infrastructure," the Post reports. With their funding paused, farmers are "on the hook" for expenses that range from new crops to fencing to renewable energy builds.

The battle over the frozen funds remains in play even after "a federal judge temporarily halted its implementation," Wu, Gupta and Kaur explain. "But over the weekend, farmers reported that their funding remained frozen — another blow to farmers who are also facing threats of tariffs and freezes to foreign-aid spending that involved food purchased from American producers."

Last week, National Farmers Union President Rob Larew "testified before the Senate Agriculture Committee that the Trump administration’s sweeping decisions on federal funding were creating concern for farmers across the country," the Post reports. Larew said the freeze and extreme changes are increasing farmer hardships in "an already tough farm economy.”

In 2024, the USDA made $3.1 billion available "for climate-smart agriculture activities, according to the department, including grants and loans for initiatives such as the Environmental Quality Incentives Program and the Rural Energy for America Program," they write. "The funding freezes have also paused large projects across states."