Congress Passes Controversial Budget Bill with Major Implications for Organic Agriculture

Congress has passed and the President has signed a sweeping bill that delivers on key elements of President Trump’s domestic policy agenda. The legislation extends tax cuts enacted in 2017 while making deep reductions to the social safety net.

The House passed the bill in a narrow 218–214 vote, with only two Republicans—Brian Fitzpatrick of Pennsylvania and Thomas Massie of Kentucky—joining all Democrats in opposition. House Speaker Mike Johnson pushed the bill through after nearly 24 hours of internal resistance. Final action was delayed by House Minority Leader Hakeem Jeffries, who delivered a record-breaking floor speech opposing the 887-page bill. The Senate had passed the legislation earlier, on July 1, in a 50–50 vote, with all Democrats and three Republicans voting against it. Vice President Vance cast the tie-breaking vote.

Despite cutting approximately $230 billion from SNAP (the final price tag is still pending given the last minute changes to the bill) and slashing $1 trillion from Medicaid over the next decade, the bill is projected to add nearly $4 trillion to the national debt. This is largely due to the extension of 2017 tax cuts, along with new tax breaks for tips and overtime pay, and increased spending on defense and border security.

Mike Lavender, Policy Director at the National Sustainable Agriculture Coalition, criticized the bill, stating that the bill:

“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. By excluding farm loans, rural development, new market opportunities, research, and more, the Senate bill chooses to take a narrow view of agriculture.”

A ‘Mini Farm Bill’ with Major Implications

The bill has been characterized as a “mini Farm Bill” because it includes provisions related to commodity support programs, crop insurance enhancements, and conservation funding. However, under budget reconciliation rules, only provisions that directly affect mandatory spending can be included—leaving out significant parts of the full Farm Bill.

Using a partisan process to advance select Farm Bill provisions risks undermining the historically bipartisan approach to passing a comprehensive Farm Bill. In early May, NOC joined the National Sustainable Agriculture Coalition and more than 160 farmer-serving organizations in calling on Congressional Agriculture leaders to “stand for a new, full Farm Bill by rejecting and opposing any and all approaches to budget reconciliation that will reduce market opportunities for farmers and lessen the likelihood of a much-needed full Farm Bill.”

What’s at Stake for Organic Programs?

In a limited win for the organic community, the legislation includes partial funding for some critical ‘orphan’ organic programs. NOC has been urging Congress to restore funding for these programs:

·    Organic Certification Cost Share Program:

o   Provides $8 million each year through 2031, including funding for 2025.

o   While this is a partial win, the funding is insufficient to fully support the program, potentially forcing some farms to abandon certification due to rising costs.

·    Organic Certification Trade and Tracking system:

o   Provides $6 million for technology infrastructure to enforce organic regulations and prevent fraud.

o   Funding this initiative is essential to safeguard the integrity of the organic label and enforce the new Strengthening Organic Enforcement rule.

·    Organic Data Initiative (ODI):

o   Provides $10 million from 2026 through 2031, doubling the 2018 Farm Bill’s funding.

o   ODI is critical for collecting and analyzing data to support organic producers and ensure competitiveness in a growing market.

Notably, the bill makes no specific reference to the Organic Agriculture Research and Extension Initiative (OREI), meaning mandatory funding for this flagship research program would remain flat. If the reconciliation bill becomes law, separate Farm Bill legislation will be required to reauthorize funding for OREI and other critical programs.

Many critical organic provisions NOC has requested are left out and would need to be addressed in a separate Farm Bill package. For example, the organic dairy data collection provisions and language authorizing appropriations for the National Organic Program are not included in this bill because, under Budget Reconciliation rules, they are not considered “germane” — they don’t have a direct impact on mandatory spending.

This piecemeal approach leaves multiple aspects of organic oversight and market support unresolved and increases uncertainty for organic farmers and businesses.

What Comes Next

Republican lawmakers are moving forward with a pared-down “farm bill 2.0” aimed at updating programs left out of the broader reconciliation package, which already included $67 billion for major farm bill priorities. House Agriculture Chair G.T. Thompson has said this second bill would cost under $8 billion and focus on remaining programs that still need funding or reauthorization.

However, Democrats have signaled they won’t engage in negotiations following deep cuts to climate and nutrition programs—traditionally core components of the bipartisan farm bill coalition.

Amid this tension, NOC will be working to advance key organic priorities in “farm bill 2.0,” including the bipartisan Organic Dairy Data Collection Act and adequate funding for the National Organic Program and organic certification cost share. Stay tuned for updates as we continue to advocate for strong support for organic agriculture in upcoming negotiations.