Senate Republicans hope to find out today whether they can salvage a key cost-cutting provision in their budget reconciliation bill.

Senate Ag Committee Chairman John Boozman, R-Ark., is trying to persuade the Senate parliamentarian to accept some tweaks to a state cost-share requirement for the Supplemental Nutrition Assistance Program. The parliamentarian ruled that the provision as it was originally worded would violate the Senate’s Byrd rule.

Boozman said Monday evening the impact of the tweaks on the bill should be “negligible.” He still expects about $41 billion in savings from the provision.

The parliamentarian “didn’t feel like the states had enough time to respond and prepare for the consequences” of the cost-share requirement, Boozman said. Boozman said the issue needs to be addressed “as soon as possible” to keep the bill on track in the Senate.

CBO links Medicaid savings to SNAP

The Congressional Budget Office says states might use savings from the Medicaid program to cover the increased cost of a more expansive state cost-share requirement in the House-passed reconciliation bill.

CBO on Monday released a dynamic analysis of the House budget bill’s SNAP provisions, including the state cost-share, that accounts for their economic impact. According to that analysis, the House’s SNAP provisions could reduce spending by $343 billion over 10 years — well above the $287 billion in savings estimated under a conventional analysis.

Revamped BEAD rules challenge some broadband providers

New Broadband Equity, Access and Deployment program requirements are now presenting state and local broadband officials with new challenges, including geographic barriers that hinder wireless and satellite connections. 

While the Trump administration is seeking to bolster the presence of non-fiber options like low-earth orbit satellite and fixed wireless in rural areas through a new set of program guidelines, it can be a struggle to make these technologies work in certain landscapes, said Jeff Chamberlain, the manager of broadband and enterprise projects for Frederick County, Maryland.

“For us, it’s going to be a challenge to identify addresses that can fall under these alternative connection points,” Chamberlain said Monday at a roundtable hosted by the New Democrat Coalition.

Take note: The new rules also call for use of the lowest-cost technologies, but Maryland’s state broadband director, Ronny Hammond, said there’s a lot of confusion around what that means.

“How are we looking at low cost — in the short term or the long term?” Hammond asked, noting that in some cases, cheaper short-term investments may require more money down the road to sustain. 

Dems push for more information on administration’s handling of foodborne outbreaks

House Oversight Democrats reupped a request for more details on the Trump administration’s handling of food inspection and foodborne illness outbreaks.

The members previously wrote to Health Secretary Robert F. Kennedy Jr. in April with concerns that firings at the Food and Drug Administration would hurt food safety efforts. The initial letter also followed reports that the agency had not published findings tying an E. coli outbreak to romaine lettuce made by a specific producer, despite internal communications showing the agency knew the source of the outbreak. 

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Lawmakers said they have received no response from HHS to date.

In Monday’s letter, lawmakers also raised concern about reports that staffing cuts at the Centers for Disease Control and Prevention have created a backlog of public announcements related to foodborne illness outbreaks. They asked for responses to all their inquiries by July 7. 

Meanwhile: Kennedy is set to appear before the House Energy and Commerce Committee today to testify on his department’s 2026 budget request. This will be his first Hill appearance since the release of the MAHA Commission report, which was criticized for the science underpinning some findings. 

Labor suspends farmworker rule that had been enjoined by courts

Farm groups cheered the Labor Department’s suspension of a rule issued last year to protect farmworkers. Employers said the rule was overly prescriptive.

The rule’s implementation had already been suspended by the department because of federal injunctions.

“From the outset, it was clear that the pejorative nature and tenor of the rule was intended to feed and foster false and inappropriate narratives about America’s agricultural community,” National Council of Agricultural Employers President and CEO Michael Marsh said.  

Dallas Fed: Drought effects still lingering

Ag producers in Texas, northern Louisiana and southern New Mexico say recent rains have helped some, but that conditions are still challenging.

“Recent rains provided a much-needed reprieve to the ag sector,” according to a summary of the latest survey from the Federal Reserve Bank’s 11th District. “Since last year, the lack of rain has led to poor growing conditions.”

The rains helped revive struggling wheat crops, one survey participant said, but yields still are below average. “With both production and market prices lower, wheat farmers face a tough year financially, with little to no profit expected.”

“Except for operating loans and feeder cattle loans, loan volume was down for all remaining categories compared with a year ago,” the Fed district said in a summary of the survey.

New bill would redistribute tariff revenues to farmers

Rep. Julia Letlow, R-La., has introduced legislation to funnel revenues from duties on U.S. ag imports into a fund to support farmers facing costs from the new tariffs.

“As President Trump works to fix unfair trade practices, I’m moving to make sure our farmers receive the support they need,” Letlow said in a statement on the bill. The statement adds that farmers could use the funds to replace export losses and offset higher input costs.

The bill does not have any cosponsors, but a spokesperson for the congresswoman told Agri-Pulse that Letlow had worked with the House Agriculture Committee on the legislation. 

Final word

“America’s farmers and ranchers are excited and relieved that this administration put this rule out to pasture” – National Council of Agricultural Employers President and CEO Michael Marsh, on the farmworker protection regulations.

Rebekah Alvey, Philip Brasher, Oliver Ward and Noah Wicks contributed to today’s Daybreak.

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