Lawmakers return from their long summer recess to growing prospects for a government shutdown, and policy makers will get a fresh look this week at the state of the increasingly fragile U.S. farm economy.
Also this week, the Office of the U.S. Trade Representative will hold a hearing in a case seeking retaliation against Brazil over its ethanol tariffs and use of deforestation to expand crop and grazing lands.
The new budget year starts Oct. 1, and Congress as usual is a long way from agreeing on its spending bills for fiscal 2026. Lawmakers will need to pass a continuing resolution to keep the government fully functioning after September, but the White House has thrown a new complication into the spending debate by taking steps to cancel $5 billion in foreign assistance and contributions to international organizations.
The rescissions package includes the annual U.S. contribution to the World Trade Organization of $29 million. A White House summary of the rescissions package described WTO as a “toothless” entity that has for “decades aided and abetted global trade cheating by the Chinese Communist party.”
Earlier this month, a WTO official said in a statement to Agri-Pulse that the United States was one of 24 member countries in arrears. The United States has not paid its WTO dues for 2024 or 2025.
“The Director-General earlier this year informed staff that in response to the current financial climate, Senior Management is exercising fiscal prudence by curtailing or deferring expenditures as necessary. However, she made clear that there are no plans for fixed and regular staff reductions at this time,” the statement said.
Senate Minority Leader Charles Schumer, D-N.Y., said the unilateral rescissions show Republicans are “hellbent” on refusing to work with Democrats to fund the government.
“As the country stares down next month’s government funding deadline on September 30th, it is clear neither President Trump nor Congressional Republicans have any plan to avoid a painful and entirely unnecessary shutdown,” Schumer said in a statement. “ In fact, it seems Republicans are eager to inflict further pain on the American people, raising their health care costs, compromising essential services and further damaging our national security," Schumer said.
Senate Appropriations Committee Chair Susan Collins, R-Maine, also challenged the administration, saying the rescissions package was an unlawful attempt to cancel spending without congressional approval since the proposal was being offered at the end of the fiscal year.
Along with passing a stopgap spending bill to keep the government funded into October, Congress also needs to pass an extension of portions of the 2018 farm bill that weren’t extended by the budget reconciliation bill enacted in July. The provisions set to expire include the Conservation Reserve Program.
It’s not clear when the House and Senate Ag committees will move legislation to reauthorize the provisions left behind in the reconciliation process. House Agriculture Committee Chair Glenn “GT” Thompson, R-Pa., has indicated he wanted to move a bill this fall, but the legislation is likely to include some highly controversial provisions addressing issues including California’s Proposition 12 standards for sow and hen housing.
Meanwhile, the House this week will continue work on FY26 appropriations bills. The Energy-Water bill that includes funding for the Army Corps of Engineers and Bureau of Reclamation is due to be on the House floor, while the Labor-HHS bill is set for action in a House Appropriations subcommittee on Tuesday.
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In the Senate, GOP leaders are threatening to take steps to overhaul the nomination process to speed the consideration of President Donald Trump’s picks.
Senate GOP Whip John Barrasso, R-Wyo., said in a recent Wall Street Journal op-ed that “Trump has more than 1,000 senior-level appointments that require Senate confirmation. Under a radical Democratic resistance strategy, the Senate has so far confirmed only 135.” Another 145 have been approved by committee.
“Republicans are considering changes to the Senate rules to end the most egregious delay tactics,” Barrasso said.
Schumer responded to Barasso with one sentence: “Historically bad nominees deserve a historic level of scrutiny by Senate Democrats.”
USDA is lacking much of its senior leadership. The nominees awaiting confirmation include Richard Fordyce, Trump’s pick as undersecretary for farm production and conservation; Dudley Hoskins as undersecretary for marketing and regulatory programs; and Scott Hutchins as undersecretary for research, education and economics.
In fact, the only USDA undersecretary so far confirmed is Luke Lindberg, the undersecretary for trade and foreign agricultural affairs.
Farm income forecast due on Wednesday
The farm income forecast will provide the first real gauge of the impact of Trump’s trade policy on farmers.
In February, USDA projected that net farm income would increase sharply this year, but only because of an infusion of $31 billion in disaster aid and market relief assistance provided by Congress last December.
Net farm income, which is a broad measure of profits, was forecast at about $180 billion for 2025, an increase of more than 26% from 2024, when adjusted for inflation, and 45% above the 20-year average for farm earnings.
The American Soybean Association warned Trump recently that soybean growers were facing “extreme financial stress” due to a lack of sales to their biggest export market, China. “Prices continue to drop and at the same time our farmers are paying significantly more for inputs and equipment. U.S. soybean farmers cannot survive a prolonged trade dispute with our largest customer,” the group said.
Meanwhile on Wednesday, USTR will hold a hearing on its 301 investigation of Brazil.
In announcing the investigation, USTR said Brazilian tariffs imposed in 2017 on U.S. ethanol had unfairly hurt the American industry.
On an issue important to soybean growers and other U.S. producers, the agency also said that Brazil “appears to be failing to effectively enforce laws and regulations designed to stop illegal deforestation, thereby undermining the competitiveness of U.S. producers of timber and agricultural products.".
Here is a list of agriculture or rural-related events scheduled for this week in Washington and elsewhere (all times EDT):
Monday, Sept. 1
Federal holiday
Tuesday, Sept. 2
4 p.m. – House Rules Committee meeting to consider rule for the fiscal 2026 Energy-Water appropriations bill, H-313 Capitol.
4 p.m. – USDA releases Crop Progress report.
5 p.m. – House Labor-HHS Appropriations Subcommittee meeting to consider its fiscal 2026 spending bill, H-140 Capitol.
Wednesday, Sept. 3
10 a.m. – House Small Business Committee hearing, “Wired for Growth: How Expanding Broadband Can Revitalize Rural Small Businesses,” 2360 Rayburn.
10 a.m. – U.S. Trade Representative hearing on Brazilian trade practices, 500 E St. SW.
11 a.m. – USDA releases Farm Income Forecast.
Thursday, Sept. 4
8:30 a.m. – USDA releases Weekly Export Sales report.
10 a.m. – Senate Finance Committee hearing with Health and Human Services Secretary Robert F. Kennedy Jr., 215 Dirksen.
Friday, Sept. 5
Oliver Ward contributed to this report.
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