Washington Roundup – May 2025

House Passes Budget Reconciliation Package, Includes Some Farm Bill Programs

President Trump has made it a top priority to pass a Budget Reconciliation package that addresses tax policy as well as a wide variety of other programs, including some traditionally in the Farm Bill. Republicans in Congress are attempting to complete the process before August recess. The benefit of using the reconciliation process is that approval only requires a simple majority in the House and Senate, avoiding the 60-vote filibuster threshold in the Senate. On May 22nd, the House narrowly passed its version of the legislation by a vote of 215-214. The bill will now be considered in the Senate. While Senate passage of the House package is far from certain, it is useful to understand the provisions passed by the House as the process moves forward. Below is a summary of key agriculture provisions included in the package:

Agricultural Research Provisions

• Provides $37,000,000 in mandatory funding, to remain available until expended, to carry out the Foundation for Food and Agriculture Research (FFAR). The 2018 Farm Bill included $185 million for FFAR. 
• Provides $60,000,000 in mandatory funding for fiscal year 2026 to carry out the Scholarships for Students at 1890 Institutions. $10 million per year was included in the 2018 farm bill.
• Provides $8,000,000 in mandatory funding to carry out the Assistive Technology Program for Farmers with Disabilities Program. Funding has been discretionary for this program in the past.
• Provides $80,000,000 in mandatory funding through fiscal year 2025 and $175,000,000 through fiscal year 2026 to carry out the Specialty Crop Research Initiative. The 2018 Farm Bill provided $100 million per year.
• Provides $125,000,000 in mandatory funding for each year beginning with fiscal year 2026 to carry out the study, plan, design, structure, and related costs of the Agriculture Research Facilities under this subchapter. This represents significant new mandatory investment in the Research Facilities Act. 

Other Major Provisions

• Achieves significant savings through reforms to nutrition programs. States would be responsible for funding 5% of the costs of SNAP benefits. Prevents USDA from updating the cost of the Thrifty Food Plan, which forms the basis of SNAP benefits calculations, outside of annual cost-of-living adjustments. Modifies the ages for work requirements to include recipients 18-64.
• Extends and modifies commodity support programs and increases coverage levels under the crop insurance program.
• Extends conservation program funding.
• Provides $285 million for USDA trade promotions programs including the Market Access Program, Foreign Market Development Program and Emerging Markets Program.
• Increases funding for animal disease prevention and response programs including: 
  • $30,000,000 in mandatory funding for each of the fiscal years 2023 through 2025, to carry out animal disease prevention and management.
  • $233,000,000 in mandatory funding from the Commodity Credit Corporation for each of the fiscal years 2026 through 2030, of which $10,000,000 is allocated to National Animal Health Laboratory Network, $70,000,000 is allocated to the National Animal Disease Preparedness and Response Program, and $153,000,000 is allocated to the National Animal Vaccine and Veterinary Countermeasure Bank.
  • The bill also provides $75,000,000 in mandatory funding for fiscal year 2031 and each fiscal year thereafter to carry out these programs, of which $45,000,000 is allocated to the National Animal Disease Preparedness and Response Program.

As the action turns to the Senate, it is important to note that the Senate’s budget resolution was different than the resolution passed by the House. For example, the Senate version allows for larger tax cuts and a $5 trillion debt limit increase. In addition, committees were giving different spending and savings instructions. The House Agriculture Committee was directed to save $230 billion from programs within its jurisdiction while the Senate Agriculture Committee was directed to save only $1 billion. Questions may also be raised about some of the House provisions and whether they meet the requirements of the Byrd Rule, which requires that all provisions directly impact spending or revenue. Anything deemed to violate the Byrd Rule would require 60 votes in the Senate to remain in the bill.  

Some Senate Republicans have indicated their intention to modify the bill. Several of the more controversial and challenging provisions include the House reforms to Medicaid and nutrition programs, the debt limit, SALT deduction levels and the magnitude of savings/spending. Congressional Republicans will have to strike a delicate balance across these various issues to satisfy moderate party members who are concerned about reforms to safety net programs and more conservative members who are demanded greater savings as a part of the bill. This balancing act will be challenging as party leaders attempt to reach an agreement during the summer. Failure to pass the tax provisions before the end of 2025 would result in the largest tax increase in the nation’s history, so the incentive to successfully pass the legislation will be very high.