Trump FY 2027 Budget Targets USDA Spending Cuts, Structural Overhaul
White House seeks $4.9B reduction while pushing relocation and program eliminations
The Trump administration’s fiscal year (FY) 2027 budget proposal calls for deep cuts to USDA, requesting $20.8 billion in discretionary funding — a $4.9 billion reduction from enacted 2026 levels and roughly 19% below current funding. The plan pairs spending cuts with a structural overhaul, including relocating thousands of Washington, D.C.-area USDA employees nationwide by the end of 2026.
The White House has proposed an unprecedented $1.5 trillion national defense budget, including $350 billion in mandatory spending that would need to be enacted through a congressional reconciliation bill. According to a White House fact sheet (link), the plan would boost Pentagon funding by 44% compared to the current fiscal year—marking the largest single-year increase since World War II, as the war in Iran continues to drive defense priorities. The proposal prioritizes investment in advanced capabilities, including precision munitions, hypersonic weapons, and the “Golden Dome” missile defense system.
By placing the $350 billion portion in a reconciliation package, Republicans could advance the funding with a simple majority vote. However, the legislative path remains uncertain, as GOP leaders work toward a broader reconciliation bill aimed at funding border operations by June 1.
The Trump administration is proposing a sweeping 10% cut to non-defense discretionary spending — totaling roughly $73 billion — as part of its FY 2027 budget request, signaling a sharp pivot toward defense and security priorities.
Of note: Agriculture falls inside the 10% non-defense discretionary cut. Programs funded through annual appropriations — USDA research, conservation, rural development, and some administrative functions — are part of the pool being reduced (see more below). That means downward pressure on discretionary USDA accounts even if mandatory farm bill programs are largely untouched.
Meanwhile, the White House is seeking $50 million to fund the reorganization effort, arguing it will streamline operations and “eliminate unnecessary bureaucratic layers.” Critics warn the relocation could disrupt core functions such as food safety oversight, farm loan distribution, and crop insurance administration.
Food aid programs and research funding face sharp cuts. The proposal targets major food aid initiatives, including eliminating both the Food for Peace program and the McGovern-Dole Food for Education program, while rescinding $1.2 billion and $240 million in previously allocated funds. These programs have historically enjoyed bipartisan support due to their role in supporting U.S. agricultural exports.
The administration is also pushing to cut $510 million from the National Institute of Food and Agriculture, shifting away from formula-based funding for land-grant universities toward competitive grants. Officials argue current funding supports “pre-determined earmarks,” while critics say the move could undermine long-term agricultural research and rural education.
Additionally, the budget seeks a $61 million reduction to the Agricultural Marketing Service, contending that private industry should finance its own marketing efforts despite ongoing stress in export markets tied to tariffs, weak crop prices, and elevated input costs.
Broader farm policy tensions remain unresolved. Meanwhile, the proposal lands amid continued pressure from President Donald Trump for Congress to pass a long-delayed “skinny” farm bill that could expand borrowing limits for farmers. Lawmakers are also weighing additional economic assistance for agriculture — funding that USDA would ultimately administer.
Congress previously approved $26.7 billion for USDA in FY 2026, underscoring a significant gap between congressional priorities and the administration’s proposed cuts — setting up a contentious appropriations fight in the months ahead.
