Senate Republicans are out with the agriculture provisions of their budget reconciliation bill. The farm program provisions track closely with what’s in the One Big Beautiful Bill passed by the House in May, including increases in reference prices and authorization for a voluntary base update.
The Senate Ag Committee also is going along with the House when it comes to forcing states to start sharing the cost of Supplemental Nutrition Assistance Program benefits.
But the Senate Ag bill released Wednesday evening would have a lower state cost-share than the House version. Both versions are based on states’ SNAP error rates.
Take note: The federal government currently pays for all SNAP benefits but splits administrative costs 50-50 with states. The Senate and the House bills would both raise the state share of administrative costs to 75%.
Bottom line: The Senate Ag provisions would result in a net spending cut of $144 billion over 10 years, compared to the $238 billon that would be saved by the House bill.
The bill text is here.
Bessent: Tariff pause could be extended for some countries
Treasury Secretary Scott Bessent says it’s “highly likely” that some countries with ongoing trade negotiations will receive an additional stay from country-specific tariffs past July 9.
Bessent cited active trade discussions with 18 “important trading partners” during a hearing before the House Ways and Means Committee on Wednesday. He argued it is likely that those partners “who are negotiating in good faith” will see their specific reciprocal tariffs suspended beyond the 90-day freeze.
Take note: Bessent sparred with Democrats repeatedly over both the impacts of U.S. tariffs and Trump’s “Big Beautiful Bill” in a hearing that turned tempestuous at times.
Democrats repeatedly pointed to a Congressional Budget Office analysis that finds the bill would add $2.4 trillion to the federal deficit over 10 years, as well as other economic studies. But Bessent insisted it “remains to be seen” whether the bill would add to the national debt.
Bessent is back on Capitol Hill this morning to testify before the Senate Finance Committee, where Democrats are sure to continue their assault on Trump’s trade policymaking and sweeping legislative proposals.
Food for Peace stays out of USDA in final House appropriations bill
The House Appropriations Committee approved changes to a fiscal 2026 USDA funding bill that would keep the Food for Peace program outside the Agriculture Department.
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The panel approved a manager’s amendment in a voice vote that contained some bipartisan adjustments to the initial draft, and one of those changes cut language that would have moved the international food aid program from the State Department into USDA.
The amendment also increased funding for New World screwworm preparedness, given recent outbreaks in Mexico and Central America.
Immigration raids rattle ag industry
Raids by federal immigration agents targeting field workers in California and a meat processing plant in Nebraska have some producers on edge, lawmakers said at a House Ag Committee hearing Wednesday.
Rep. Salud Carbajal, D-Calif., cited a statement by the Ventura County Farm Bureau that said Immigration and Customs Enforcement agents had engaged in illegal racial profiling in raids in his district.
In the statement released Tuesday, the farm bureau said, “The conduct of ICE this morning, marked by racial profiling, intimidation and attempts to enter private property without judicial authorization, constitutes an unacceptable escalation. This approach undermines constitutional rights and directly threatens the integrity of California’s agricultural economy.”
Rollins said during the hearing she is working with Labor Secretary Lori Chavez-DeRemer and Homeland Security Secretary Kristi Noem on the issue but added it’s ultimately up to Congress to change the law.
“I think you'll be hearing more about that very, very soon,” she told Carbajal.
In addition to the action in California, ICE raided a meatpacking plant in Omaha. Rep. Don Bacon, R-Neb., said the raid involved “stolen identities.”
Grocery prices jump 0.3% in May
The cost of eating at home rose 0.3% although the overall Consumer Price Index was up just 0.1%. Even with the increase last month, food inflation is still relatively mild. Grocery prices are up 2.2% over the past 12 months.
Two recent drivers of inflation, eggs and beef, were down in May. Egg prices fell 12.7% and beef prices slipped 0.1%
But the index for cereals and bakery products jumped 1.1% last month, and prices for fruits and vegetables rose 0.3%.
Andy Harig of FMI-The Food Industry Association said the CPI numbers “demonstrate continued — albeit mild — volatility.”
Take note: Harig said tariffs have had only a muted impact on food prices but remain “a factor worth watching. The increase in steel and aluminum tariffs announced earlier this month may impact packaging costs for food items like canned vegetables and beverages as well as capital costs like store construction and heavy equipment.”
Iowa governor vetoes anti-carbon-pipeline bill
Iowa Gov. Kim Reynolds has vetoed a bill that would have made it harder for liquefied carbon dioxide pipelines to win approval in the state. The bill would have sunsetted permits for liquefied carbon dioxide pipelines after 25 years while also prohibiting state regulators from renewing those permits.
In a letter explaining her decision, Reynolds said the bill "combines valid concerns with vague legal standards and sweeping mandates that reach far beyond their intended targets." She also noted that it affects all "hazardous liquid pipelines" — not just those that carry CO2.
Take note: It takes a two-thirds vote in both chambers to override a veto. The bill only passed the Senate 27-22.
House, Senate aggies take the field
Since 1909 the Congressional Baseball Game has been an annual bipartisan event in Washington. The House Ag Committee was well represented on the field Wednesday night.
Reps. Sharice Davids of Kansas, Don Davis of North Carolina, Shomari Figures of Alabama and Adam Gray of California signed up for the Democratic team.
Reps. Mike Bost of Illinois, Kat Cammack of Florida, Randy Feenstra of Iowa, Brad Finstad of Minnesota and freshman Dave Taylor of Ohio enlisted for the GOP for the game. Sen. Joni Ernst of Iowa also played with the Republicans.
Capitol Hill ice cream party showcases dairy industry
The International Dairy Foods Association hosted its annual ice cream party on Wednesday. “This bipartisan event brings everyone together to enjoy some fun, connection, and, of course, a scoop (or two) of America’s favorite frozen dessert,” said IDFA President and CEO Michael Dykes.
This annual event brings together members of Congress, their staff, executive branch officials and industry leaders. It comes on the heels of new survey results about the ice cream preferences of Capitol Hill staffers. In this survey, when asked what ice cream flavor best describes Congress, 43% of respondents chose “Rocky Road: Anything but Smooth.”
American ice cream makers contribute $11.4 billion to the U.S. economy, according to the IDFA’s recent Dairy Delivers report.
Final word
“There was no incentive to actually do their books right.” – Senate Ag Chair John Boozman, R-Ark., defending the state cost-share requirement for SNAP.
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