Budget bill clears House after narrow Senate passage

A massive budget bill that contains millions of dollars of increased specialty crop funding but has drawn criticism for cuts to programs including Medicaid and the Supplemental Nutrition Assistance Program (SNAP) is closer to becoming law.

The measure, which passed the U.S. Senate by one vote on July 1, cleared the U.S. House of Representatives for a second time in a 218-214 vote on July 3.

The House passed the bill 215-214-1 on May 22 to send it to the upper chamber, which passed the bill 51-50 with a tie-breaking vote cast by Vice President JD Vance. The Senate made several changes to the proposal, which extends tax cuts passed by Republicans in 2017.

The bill now heads to President Donald Trump’s desk.

American Farm Bureau Federation president Zippy Duval applauded the Senate passage.

“Improvements to farm safety net programs that reflect today’s agricultural economy and maintaining important tax provisions will directly benefit farm families,” Duvall said in a statement, adding that prices being paid to farmers continue to fall while expenses remain high.

“The combination is taking a toll — America lost more than 141,000 farms in a five-year period, leading to more consolidation of family farms. Increases to reference prices as well as investments in conservation, research and trade are desperately needed, especially since it’s been seven years since passage of a new farm bill. Farmers will stand a better chance of enduring tough times so they can plant for another season.”

The National Sustainable Agriculture Coalition (NSAC) decried the Senate’s version of the bill — projected by the nonpartisan Congressional Budget Office to add roughly $2.8 trillion to the national deficit in the next 10 years.

“NSAC is deeply disappointed that the Senate has voted to approve a reconciliation bill that ignores the needs of the vast majority of American farmers and the communities they call home while providing billions for programs that only benefit a select few, all at the expense of programs that support nutrition access for hungry people,” Mike Lavender, NSAC policy director, said in a July 1 statement. “By excluding farm loans, rural development, new market opportunities, research, and more, the Senate bill chooses to take a narrow view of agriculture.”

Rocky road to reconciliation

On June 16, the Senate Finance Committee released the final piece of legislative text from the upper chamber’s budget version. The text proposed deeper cuts to Medicaid than the House version, including more stringent work requirements and a smaller cap on the tax rate that states may charge Medicaid providers.

The committee text also eased the rollback of green energy tax cuts and decreased the state and local tax education caps, moves likely to face opposition upon the bill’s return to the House.

Republicans in the House and Senate are trying to pass the budget through a special tool called reconciliation — a fast-track process that would bypass a filibuster in the Senate if an identical bill passes that body as well as the House. That path was complicated by rulings in late June by Senate Parliamentarian Elizabeth MacDonough that several budget provisions violate the Byrd Rule and are not eligible to pass the Senate with a simple majority vote.

The parliamentarian flagged provisions including the state cost-sharing for SNAP, a large bond requirement for suing the federal government, a mandate to sell postal service electric vehicles and  language authorizing states to conduct border security and immigration enforcement. Also struck was a proposal to increase the Federal Employees Retirement Systems contribution rate for new civil servants if they do not agree to give up civil service protections to become at-will employees and a section that would allow the executive branch to reorganize federal government agencies without congressional oversight.

Specialty crop spotlight

The Specialty Crop Farm Bill Alliance, co-chaired by National Potato Council CEO Kam Quarles, International Fresh Produce Association CEO Cathy Burns, Florida Fruit & Vegetable Association president Mike Joyner and Western Growers president and CEO Dave Puglia, lauded the bill’s specialty crop investments in a July 3 statement.

“Our message continues to be simple: any Congressional investment in American agriculture must include specialty crops,” the statement read in part. “America’s specialty crop growers face a host of unprecedented challenges similar to those confronting row crop producers. Specialty crops represent nearly a quarter of U.S. crop value and make up more than half of what Americans eat. The family farms that provide Americans with a reliable source of fruits, vegetables, tree nuts, and horticulture, deserve meaningful support from their government. Nothing short of the survival of our domestic industry is at stake.”

On June 11, the U.S. Senate Committee on Agriculture, Nutrition, and Forestry released legislative text detailing budget proposals that dialed back some House-approved changes to Supplemental Nutrition Assistance Program (SNAP) benefits.

The text (.pdf), also addressed specialty crop funding, including a measure that would increase annual mandatory funding from $85 million to $100 million for the Specialty Crop Block Grant Program.

The Specialty Crop Research Initiative would also see a funding increase, from $80 million to $175 million.

Senate Agriculture Chair John Boozman (R-Ariz.) said in a June 11 statement that the proposals would help U.S. farmers and ranchers “facing real challenges, which have been unaddressed for too long. This legislation delivers the risk management tools and updated farm bill safety net they need to keep producing the safest, most abundant and affordable food, fuel, and fiber in the world. It’s an investment in rural America and the future of agriculture.”

The committee released several online versions of the text, including a section-by-section breakdown (.pdf).

Also, beginning with the 2026 reinsurance year, specialty crop policies under the administrative and operating expense reimbursement cap would receive a minimum reimbursement of 17% of the policy premium.

Other specialty crop funding enhancements funded in the draft include:

• • Adjusted Gross Income: The limitation is eliminated if 75% or more income is derived from farming
  • Market Access Program: $200 million (a 100% increase)
  • Section 7721 – Pest and disease programs under Plant Protection Act: $90 million per year (an increase from $75 million)

“The provisions supporting specialty crop growers are not merely beneficial – they are essential for the survival and international competitiveness of our family farms and the entire U.S. potato industry,” Ted Tschirky, NPC president and a potato grower from Washington, said in a statement. “We appreciate Chairman Boozman for demonstrating a clear commitment to improving the challenging economic landscape faced by our nation’s farmers.”

The International Fresh Produce Association has encouraged a focus on increasing access to and consumption of fresh fruits and vegetables in SNAP discussions. Mollie Van Lieu, IFPA vice president of nutrition and health policy, recently told The Packer that SNAP serves 42 million people a year with an average monthly benefit of about $211 per person, which breaks down to $60 a day or $6 per meal.

Van Lieu has also called for data showing that people would spend more money on fruits and vegetables before supporting proposed SNAP restrictions to soda and candy.

In March, the organization submitted policy recommendations (.pdf) to the Make America Healthy Again Commission reinforcing its commitment to improving public health nationwide and reducing diet-related diseases.

The National Young Farmers Coalition condemned the proposed cuts in a May 15 statement.

“This budget proposal is a betrayal of the values that sustain our food system. These are not the investments young farmers need,” said Erin Foster West, policy campaigns director of the National Young Farmers Coalition. “Instead of passing a bipartisan farm bill that builds resilience for farmers and families alike, this bill fast-tracks harmful cuts to nutrition programs that serve as both a safety net for families and a revenue stream for farmers. It trades long-term food security for short-term austerity.”

Editor’s note: This story has been updated with the bill’s July 3 passage.