Judge Orders USDA to Restore $127 Million in Grants Canceled Under Trump DEI Crackdown
Updated
Updated · The Guardian · Jul 11
Judge Orders USDA to Restore $127 Million in Grants Canceled Under Trump DEI Crackdown
1 articles · Updated · The Guardian · Jul 11
Summary
$127 million in USDA grants must be reinstated under a federal judge’s order, reversing Trump administration cancellations that had already halted programs such as Iowa Valley RC&D’s $2.5 million farmer-training award.
The cuts were justified as anti-DEI and anti-waste measures, but Iowa organizers said the land-access fellowship was open broadly to new and undercapitalized farmers, not limited by race or ethnicity.
Iowa farmers say the disruption has already cost them income and buyers: one estimated a 20% cashflow hit after local-food purchasing programs were scrapped, while others described frozen grants and understaffed USDA offices.
The grant fight lands as Iowa agriculture faces wider strain from tariffs, higher fuel and fertilizer costs tied to the Iran war, and 18 farm bankruptcies in 2025 — up 220% from a year earlier.
With agriculture driving about one-third of Iowa’s economy and one-fifth of its jobs, the fallout could shape November midterms in a state where Democrats see openings in Senate, governor and House races.
As USDA programs face deep cuts, what does the future hold for America’s small and beginning farmers?
A lawsuit challenges the USDA's $127M grant cancellation. What is the real story behind the funding cuts?
With 20,000 employees gone in a year, how can the USDA effectively serve farmers and rural communities?
Federal Court Restores $550 Million USDA Land Access Grants: Legal Battle Over Equity, DEI, and the Future of Underserved Farmers
Overview
On June 30, 2026, a federal court ordered the USDA to restore grants under the Increasing Land, Capital, and Market Access Program (LCM), reversing the Trump administration’s earlier cancellation. The USDA had ended these grants in March, claiming they favored underserved producers through discriminatory DEI preferences and wasteful spending. However, the court found these reasons insufficient and reinforced the USDA’s duty to serve all farmers and ranchers. This decision not only restored funding but also highlighted that the initial justification for terminating the grants was not supported by the court, signaling a strong legal protection for equity-focused agricultural programs.