House Adopts Budget Proposal for Package with $12 Billion in Farm Aid

Progressive Farmer’s Jake Zajkowski reported that, “the House of Representatives passed a $95 billion budget resolution Wednesday along party lines that would direct up to $12 billion in aid to struggling farmers while providing $73 billion for defense and intelligence spending tied to the ongoing war with Iran.” “The resolution passed 216-214, with Reps. Warren Davidson, R-Ohio; Thomas Massie, R-Ky.; and Kevin Kiley, I-Calif., voting with all Democrats against it,” Zajkowski reported. “Farm groups and lawmakers have called for additional aid as the war in Iran strains agricultural markets.” “The budget resolution gives the House Agriculture Committee instructions for spending,” Zajkowski reported. “The committee’s chairman, G.T. Thompson, R-Pa., has repeatedly said the dollars would go toward row crops, specialty crops and sawmills.” “The American Farm Bureau Federation (AFBF) applauded the progress toward budget reconciliation,” Zajkowski reported. “‘We applaud members of the House of Representatives for recognizing the economic toll facing farm country and advancing farm aid as part of their reconciliation package,’ AFBF said in a statement,” Zajkowski reported. “’High production costs and weak commodity prices are expected to drive billions in losses across row crops in 2027, with additional losses facing specialty crop, alfalfa and sugar producers.’” “The National Farmers Union also welcomed the farm aid but warned congressional leaders in a letter on Wednesday that funding the war with $73 billion could further harm farms,” Zajkowski reported. “‘We are troubled by funding that perpetuates a costly military conflict that risks further disrupting global markets, increasing input costs, and contributing to the economic pressures already weighing on farm operations,’ the group stated in the letter obtained by DTN,” Zajkowski reported. “‘Farmers should not have to bear the financial consequences of policies that further erode their bottom lines,’ it said. The request for farm aid was always tied to additional funding for the war since Trump first created the proposal.”

Future of Aid Package Remains Uncertain 

The Associated Press’ Lisa Mascaro reported that, “even as the House action advanced the resolution, Speaker Mike Johnson’s strategy faces uncertainty in the Senate. The package has $60 billion for the Pentagon and $13 billion for other national security needs, $12 billion for farmers struggling under Trump’s tariffs and $10 billion for voting law changes aligned with the SAVE America Act and proof-of-citizenship requirements that are Trump’s top priority.” “Republicans are relying on the budget reconciliation process, which enables approval on a majority vote in Congress, bypassing the Senate’s ability to filibuster the measure to stall or kill it,” Mascaro reported. “Once rare, the reconciliation process is now Johnson’s preferred strategy for pushing proposals through Congress. It’s the way Republicans approved Trump’s big tax breaks and spending cuts bill last summer and funded Homeland Security this year over Democrats’ refusal to fund Trump’s mass deportation agenda.” “This is the third time GOP leaders have relied on reconciliation, dubbing this version 3.0, and it’s a lengthy process,” Mascaro reported. “If the House approves the budget resolution, it next goes to the Senate for a round-the-clock session to consider politically tough amendments — something senators would rather avoid in an election year.” “The budget resolution sets out instructions for the various committees to draft legislation, which Johnson hopes could be done this summer, with final voting on the package once lawmakers return after the August recess,” Mascaro reported.

Farm-State Senators Call for Funding Increase

Politico’s Katherine Tully-McManus and Jennifer Scholtes reported that, “Senate Republican leaders are already hearing from farm-state senators and defense hawks who want to increase the amount of funding the final package would provide for the military and agriculture assistance. Fiscal hawks on that side of the Capitol are also demanding Republican leaders find offsets to blunt the deficit impact of the massive bill.” “‘There’s a lot of people with a lot of ideas,’ Sen. Ron Johnson (R-Wis.), the newly seated chair of the Senate Budget Committee, said in an interview,” Politico reported. “‘The good news is the White House is definitely leading on this, which is going to be really important. I think most Republicans are interested in helping President Trump succeed in his agenda.’”