Judge restores $127M in grants for new farmers

By Marc Heller | 07/02/2026 01:15 PM EDT

The awards were part of the Biden-era American Rescue Plan and Inflation Reduction Act. The Trump administration had canceled the grants, calling them discriminatory.

The U.S. Department of Agriculture building is pictured.

The Department of Agriculture building is seen in Washington on Dec. 7, 2024. Jose Luis Magana/AP

The Agriculture Department must restore $127 million in canceled grants for beginning farmers, a federal judge ruled.

The grants to 24 organizations and local governments were intended to help farmers gain access to land and credit, a hurdle for beginners and a priority in the Biden administration’s drive to expand opportunities for underserved populations. The Trump administration canceled the awards, calling them discriminatory.

The Trump administration’s cancellations harmed organizations and farmers that had counted on funding through the land, capital and market access program, Judge Beryl Howell said in a June 30 ruling in U.S. District Court for the District of Columbia. The program was part of the American Rescue Plan in 2021 and Inflation Reduction Act in 2022, reimbursing grantees for up-front expenses.

Advertisement

Howell granted a preliminary injunction in the case filed by the Urban Sustainability Directors Network, Earthjustice and others, and she directed USDA to update the court by 5 p.m. Friday on its progress reinstating the grants.

GET FULL ACCESS