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Agency:
Department of Agriculture

IRA Section 22007- USDA Assistance and Support for Underserved Farmers, Ranchers, and Foresters

Section 22007 of the IRA amends Section 1006 of the American Rescue Plan of 2021, 7 U.S.C. § 2279, and appropriates the following to the USDA, to remain available until September 30, 2031:

1. $125 million for outreach, mediation, financial training, capacity building training, cooperative development and agricultural credit training and support, and other technical assistance to underserved farmers, ranchers, or forest landowners, including veterans, limited resource producers, beginning farmers and ranchers, and farmers, ranchers, and forest landowners living in high poverty areas;

2. $250 million for grants and loans to eligible entities, to be determined by the USDA Secretary, for the improvement of land access for underserved farmers, ranchers, or forest landowners, including veterans, limited resource producers, beginning farmers and ranchers, and farmers, ranchers, and forest landowners living in high poverty areas. The improvement of land access shall include heirs’ property and fractionated land issues;

3. $10 million to fund activities of equity commissions established to address racial equity issues within the USDA and in the programs of the USDA;

4. $250 million to support and supplement agricultural research, education, and extension, including scholarships and programs providing internships and pathways to agricultural sector or federal employment, for:

a) 1890 institutions, defined in Section 2 of the Agricultural, Research, Extension, and Education Reform Act of 1998, 7 U.S.C. § 7601, as colleges or universities that were eligible to receive funds under the Act of August 30, 1890;
b) 1994 Institutions listed in the note to section 532 of the Equity in Educational Land-Grant Status Act of 1994, 7 U.S.C. § 301 note;
c) Alaska Native serving institutions and Native Hawaiian serving institutions eligible to receive grants under subsections (a) and (b), respectively, of section 1419B of the National Agricultural Research, Extension, and Teaching Policy Act of 1977, 7 U.S.C. § 3156;
d) Hispanic-serving institutions eligible to receive grants under section 1455 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977, 7 U.S.C. § 3241;
e) Insular area institutions of higher education located in U.S. territories, as referred to in section 1489 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977, 7 U.S.C. § 3361.

5. $2.2 billion to support a program to provide financial assistance (including the cost of providing financial assistance) to farmers, ranchers, or forest landowners who were determined to have experienced discrimination in USDA farm lending programs prior to January 1, 2021. The amount of financial assistance provided may not be more than $500,000, as determined to be appropriate based on any consequences experienced as a result of the discrimination. The program shall be administered by 1 or more qualified nongovernmental entities selected by the USDA in compliance with USDA-set standards.

6. $24 million for administrative costs, including training of USDA employees.

The USDA is prohibited under this section from entering into any agreement for which payment shall be disbursed after September 30, 2031, and from using other funds available to carry out obligations initially made under this section.

Eligible Entities:

Property Owner, Educational Institution, Native American/Indigenous Community, Non-profit Organization, Other

Environmental Justice Considerations:

This section provides financial assistance and support to underserved and previously discriminated farming and forest landowners, and educational assistance to indigenous / minority communities.

Current Status:

No change under Trump administration

Trump Administration Actions:

  • Litigation Compliance Report Indicates USDA Released Previously Frozen Awards [04/23/2025]
  • OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
  • OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
  • Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]

Implementation Status at End of Biden Administration:

In Progress

Section 22007 appropriates to USDA a total of approximately $2.9 billion in funding, which includes $125 million for outreach and training, $250 million for grants and loans to improve land access, $10 million for equity commissions, $250 million for research, $2.2 billion for financial assistance for farmers and $24 million for administrative costs, with funds available until September 30, 2031.

USDA has awarded at least $2.54 billion, potentially leaving about $360 million still available. USDA announced $2.2 billion in assistance to 43,000 farmers, ranchers, and forest landowners who experienced discrimination. $144 million was awarded in loans and grants through the Rural Partners Network and $20 million to the Southern Farmers Financial Association. In February 2024, USDA also announced an award of $772.6 million for the Rural Partners Network which included funding from the Bipartisan Infrastructure Law. Because the announcements do not specify the exact amount of IRA funding, it is unknown exactly how much funding remains.

Biden Administration Actions:

  • USDA Announces Launch of Southern Farmers Financial Association [10/31/2024]
  • USDA to Provide $2.2 Billion of Assistance to 43,000 Farmers Who Faced Lending Discrimination [07/31/2024]
  • USDA Announces First Cohort for Working Lands Climate Corps [05/03/2024]
  • USDA Announces $144 Million for Clean Energy Projects and Infrastructure Updates in Rural and Tribal Communities [04/29/2024]
  • USDA Announces $772.6 Million for Rural Partners Network [02/21/2024]
  • USDA Extends Deadline for Discrimination Financial Assistance Program [09/22/2023]
  • USDA Announces Opening of Financial Assistance Application Process for Borrowers Who Faced Discrimination [07/07/2023]
  • White House Releases IRA Guidebook for Tribes [04/04/2023]
  • USDA Announces First Steps in Providing Financial Assistance to those Exposed to Discriminatory Farm Lending Practices [03/01/2023]

Litigation:

In Cultivate KC v. USDA (formerly Butterbee Farm v. USDA) (filed March 13, 2025), farmers and nonprofit organizations sued USDA to compel the agency to unfreeze funds awarded under four IRA programs. On May 19, the plaintiffs filed an amended complaint. On June 2, USDA filed its answer to the amended complaint. On July 18, the plaintiffs filed a motion for summary judgment. On August 17, USDA filed a cross-motion for summary judgment.

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