Congressional Republicans return from a one-week recess under pressure to reach agreement on a budget reconciliation plan, while the Trump administration will listen to U.S. ag's concerns about a push to promote domestic shipbuilding.
House and Senate Republicans are nowhere near reaching House Speaker Mike Johnson’s goal of getting a reconciliation bill to President Donald Trump’s desk by Memorial Day. They first must agree on a fiscal 2025 budget resolution to provide a blueprint of the reconciliation measure before they can even start putting it together.
Sen. John Hoeven, R-N.D., told Fox News on Sunday that Republicans hoped to pass a budget resolution before the upcoming Easter recess and that the goal is still to pass a reconciliation measure by Memorial Day.
"It's about making sure we continue the Tax Cuts and Jobs Act. It's about making sure there is additional funding for border security and the military. A lot of these things that are very important to our country will be included, and we hope to get it done by Memorial Day," Hoeven said.
Many provisions of the 2017 TCJA, including lower personal income tax rates and the 20% pass-through business income deduction, expire at the end of this year.
There is no agreement yet on what should be in the reconciliation bill. Senate Republicans have favored leaving tax cuts to a second, FY26 bill. Johnson has insisted on putting all of Trump’s spending and tax priorities in the same bill. And Republicans also have to do something about increasing the federal debt ceiling.
Democrats, meanwhile, are trying to highlight spending cuts that could be in a reconciliation bill should Republicans follow the House-passed resolution. On Tuesday, House Democratic leaders will join the ranking member of the House Ag Committee, Minnesota Rep. Angie Craig, in holding an informal hearing on potential cuts to the Supplemental Nutrition Assistance Program.
“The hearing will feature testimony from everyday Americans who will share how cuts to this essential program will have dire consequences for them and their families,” according to a hearing advisory.
The House budget resolution calls for the House Ag Committee to cut $230 billion over 10 years. House Ag Committee Chairman Glenn “GT” Thompson, R-Pa., has said a cut of that size would require reducing SNAP benefits, but the eventual SNAP cut could be significantly smaller and might be achieved in part by raising the age limit, now 54, for the program’s work requirements.
The SNAP reduction also could be tied to increased commodity program subsidies, if the House and Senate Ag committees agree to pass key portions of a farm bill through the reconciliation process. House Ag Republican Kat Cammack of Florida said in an interview with Agri-Pulse Newsmakers that likely couldn't happen until fiscal 2026, when Republicans may try to move the second of two reconciliation measures.
Senate Minority Leader Chuck Schumer, who is under fire from fellow Democrats for supporting a continuing resolution that will fund the government through Sept. 30, used an appearance on NBC’s Meet the Press to attack the Trump administration.
Schumer said the administration is trying to “eviscerate the federal government. On day two, they could say, ‘Oh, SNAP? Feeding hungry children? Not essential." On day four, "Mass transit? All transit? Aid to the states? Not essential. We're cutting it.’ On day six, ‘Medicaid? We'll cut that by 20%, 30%, 50%, 80%. We'll go after Social Security. We'll go after the veterans.’”
On Monday, the Office of the U.S. Trade Representative will kick off the first of two hearings on its recent proposals to spur domestic shipbuilding and reduce China’s dominance in global shipping.
The agency issued several recommendations for spurring domestic ship production in the final days of the Biden administration – including new port fees of up to $1.5 million for Chinese-built or operated vessels and a requirement that a minimum share of U.S. exports is transported on U.S.-made vessels.
Since taking office, Trump has taken up the mantle of reviving domestic shipbuilding capabilities. During his address to Congress last month, the president argued a strong commercial shipbuilding industry is essential for preserving the U.S. defense industrial base.
But U.S. agriculture groups are raising alarm bells that the proposals under consideration could decimate U.S. exports by sharply raising shipping costs for U.S. exporters.
In a Market Intel report, the American Farm Bureau Federation pointed out that, "While addressing China’s maritime dominance is a valid national security concern, these proposals may unintentionally – and disproportionally – penalize U.S. farmers and ranchers who rely on affordable and efficient shipping."
Jim Sutter, CEO at the U.S. Soybean Export Council, said during Agri-Pulse’s Ag and Food Policy Summit last week that the proposals are “top of our list” of near-term threats to U.S. ag exports. He argued that they had the potential to “shut off” U.S. ag exports to trading partners.
A study from Trade Partnership Worldwide published Friday found wheat, rice and cotton exports are particularly exposed, with U.S. exports potentially falling to less than half their current levels if all of the proposals are implemented as written.
Across the two-day hearing, multiple representatives from the U.S. ag industry will weigh in on the proposals. Mike Koehne, from the American Soybean Association, is set to testify on Monday; while Alejandra Castillo, president and CEO of the North American Export Grain Association, Jared Gale, the chief legal officer at Dole, and Peter Friedmann, executive director of the Agriculture Transportation Coalition, will all appear on Wednesday.
Friedmann will tell officials that the proposals will raise prices, lead to vessels stopping at fewer U.S. ports, and “threaten the very existence of large segments of U.S. agriculture,” according to an outline of his remarks.
In comments submitted to USTR published last week, Paul Farmer, president and CEO of CSC Sugar, said the proposals are already hurting U.S. exporters. He described freight offers “drying up” across the board, as companies cannot be sure their vessels will not be taxed at U.S. ports in the near future.
“[T]he principal fleet owners on whom we rely for our freighting needs have either withdrawn from offering fixtures for U.S. destinations or have increased their rates by around $20 per metric ton,” Farmer wrote.
Here is a list of agriculture- or rural-related events scheduled for this week in Washington and elsewhere (all times EST):
Monday, March 24
10 a.m. – Office of the U.S. Trade Representative hearing on shipbuilding, 500 E St. SW.
Tuesday, March 25
9 a.m. – World Food Prize Foundation DialogueNEXT: “A Root Awakening,” Willard Intercontinental.
9 a.m. – USDA releases monthly Food Price Outlook.
9:30 a.m. – International Food Policy Research Institute webinar, “How Can We Improve Food Security Monitoring in Conflict-Affected Regions? Machine Learning for Spatially Granular Food Security Mapping.”
10 a.m. – House Agriculture Committee hearing, “The CFTC at 50: Examining the Past and Future of Commodity Markets,” 1300 Longworth.
10 a.m. – Supreme Court hears arguments in case regarding proper venue for small refinery exemption cases under Renewable Fuels Standard.
3 p.m. – House Democratic hearing on possible cuts to the Supplemental Nutrition Assistance Program.
Wednesday, March 26
10 a.m. – Senate Environment and Public Works Committee hearing on the nominations of Brian Nesvik to be director of the Fish and Wildlife Service, and Jessica Kramer and Sean Donahue to be assistant administrators of EPA, 406 Dirksen.
10 a.m. – Supreme Court hears arguments in case involving constitutionality of Universal Service Fund.
Thursday, March 27
Friday, March 28
For more news, go to Agri-Pulse.com.
