The Trump administration unveiled an $87.6 billion supplemental spending request to address the cost of the war in Iran that also calls for $11.1 billion in additional farm aid, year-round sales of E15 and a change in national hemp law.
Of the farm aid, $10 billion is sought for row and specialty crops planted in crop year 2026. An additional $1.1 billion is requested to support Florida producers hit with devastating losses from winter storms, according to the White House budget office letter to U.S. House Speaker Mike Johnson, R-La.
The requests come as farm-state lawmakers struggle to secure additional economic assistance for financially strained producers who have been hurt by low crop prices and high production costs. The aid needs to arrive before October when the updated ag safety nets kick in. That's because farmers need to start meeting with lenders and start buying inputs for next season before then, according to farm groups.
"American farmers are struggling right now, and I applaud President Trump for including this much-needed ag relief in his supplemental funding request," said Senate Ag Committee Chairman John Boozman, R-Ark. "I have been calling for emergency assistance to help producers manage this uncertainty, and this proposal is an important step to providing support."
The Trump administration is seeking the farm aid on top of $12 billion in Farmer Bridge Assistance Program payments that the administration began distributing earlier this year.
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The broader funding request includes $67.1 billion for Department of War programs, such as $17.3 billion for operational costs. The administration also seeks various, smaller funds for items like construction projects in and around Washington, D.C., and the building of a modernized Penn Station in New York City.
Ethanol politics
Farm state lawmakers, corn growers and biofuel producers have tried for years to pass legislation that would allow year-round sales of higher ethanol-gasoline blends, known as E15.
E15 wasn't included in a Senate farm bill discussion draft released Tuesday.
An E15 bill passed by the House last month isn't likely to be taken up by the Senate due to a controversial provision related to the exemption of oil refineries from national biofuel-blending rules. Instead, Senate Majority Leader John Thune, R-S.D., has said he aims to move a stand-alone E15 bill onto the chamber floor for a vote, though it's not yet clear what such a measure would entail.
Pro-biofuel lawmakers have said they're in favor of any legislative vehicle for E15 that can realistically get a bill through Congress. Expansion of domestic renewable fuel markets is seen as crucial to ensure long-term demand for corn and soybean farmers.
On hemp, Trump is asking Congress to update the statutory definition of hemp-derived cannabinoid products to "allow Americans to benefit from access to appropriate full-spectrum CBD products while preserving the Congress’s intent to restrict the sale of products that pose serious health risks," according to the letter.
The upcoming implementation of a federal ban on certain intoxicating hemp products, like beverages and gummies, is strongly opposed by lawmakers including Sen. Rand Paul, R-Ky., and Sen. Amy Klobuchar, top Democrat on the Senate Agriculture Committee.
“We are excited to see the president take such a strong public stance in favor of replacing the hemp ban with a strong regulatory framework, or at a minimum, securing an extension of the hemp ban moratorium to give Congress more time to develop regulations," said Jonathan Miller, general counsel of the U.S. Hemp Roundtable. "This is an important step in honoring Congress’ promise to help farmers and consumers.”
The Trump administration's support for farmers and rural America comes as Republicans are currently widely expected to lose control of the House and face a tough fight to retain a majority in the Senate in the upcoming midterm elections.
Trump is set to hold a dinner with farmers, ranchers, cattlemen and growers from across the country in the White House Rose Garden Thursday on the first night of the administration's Great American State Fair timed to the 250th anniversary of America's founding on July 4.
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