US Agriculture Department’s funding freeze halts support for farmers

Farmers have stated that millions of dollars in funding promised by the US Agriculture Department are missing, despite assurances from the Trump administration that a federal funding freeze would not affect projects directly benefiting individuals.

On his first day in office, President Donald Trump instructed the Agriculture Department to halt funds for several programmes outlined in former President Joe Biden's signature clean-energy and healthcare law, the 2022 Inflation Reduction Act, Caliber.Az reports via foreign media.

As a result, some funding for the Environmental Quality Incentives Program, which assists farmers with natural resource issues, and the Rural Energy for America Program, which helps farmers enhance their infrastructure, was put on hold. Farmers who had signed contracts with the Agriculture Department for these programs had already paid upfront for projects like building fences, planting crops, and installing renewable energy systems, with the expectation that the federal government would provide grants or loan guarantees to help cover the costs. With the funding now frozen, they are left responsible for these expenses.

Laura Beth Resnick, who operates a flower farm in Maryland, mentioned that she had signed a contract with the Agriculture Department to cover half of the $72,900 cost for installing solar panels. However, in late January, she was informed that her reimbursement request had been denied due to Trump's executive order. The Agriculture Department has also suspended funding for various programs, including agricultural research grants and the development of climate-smart crops, according to a letter sent to the agency by House Democrats from the Agriculture and Appropriations committees. 

Despite the White House's repeated assurances that the freeze on agricultural funding and other federal financial aid would not affect benefits directly allocated to individuals, such as farmers, the administration reversed the suspension after a federal judge temporarily blocked its enforcement. However, over the weekend, farmers reported that their funding remained frozen, adding to their challenges as they also face the threat of tariffs and cuts to foreign aid that include food purchases from American producers.

By Naila Huseynova