Midwest Farmers Struggle Amidst Funding Uncertainty
Farmers, non-profits, and state agencies in the Midwest are grappling with uncertainty surrounding federal funding due to a recent freeze on clean energy projects and agricultural programs. These funds were granted through the Inflation Reduction Act, but a pause ordered by President Donald Trump has cast doubt on many projects’ futures.
Jason Grimm, a farmer from Williamsburg, Iowa, had planned to expand his business by delivering frozen poultry to a wider area. He secured a $50,000 Resilient Food Systems Infrastructure grant from the U.S. Department of Agriculture to purchase a delivery truck with a built-in freezer. However, the funding freeze has made him hesitant to make the purchase.
“We could go ahead and purchase something, but we don’t know how long it would take us to get reimbursed,” Grimm said. “We’re hesitant on putting that money out there.”
Widespread Impact of Funding Freeze
The impact of the funding pause extends far beyond individual farms. Grants were allocated to various initiatives across the Midwest, including projects focusing on solar energy, conservation, and community development. The “Unleashing American Energy” executive order halted grants issued through former President Joe Biden’s Inflation Reduction Act, which promised nearly $3 billion in grants to Kansas, Iowa, Missouri, and Nebraska.
Mike Lavender, a policy director with the National Sustainable Agriculture Coalition, highlighted the limited scope of the recent fund releases and its impact.
“Our best estimate is that that’s roughly 1% of the overall amount of money that’s been paused just within two programs impacted by the Inflation Reduction Act,” Lavender said.
Rural Communities Feel Disproportionate Impact
According to Brian Depew, the executive director of the Center for Rural Affairs: “A large portion of the funding in the IRA for clean energy is going to projects that are in rural communities…and so there’s been a disproportionate freeze impact from that.” Projects for solar energy for low-income households, as well as other conservation projects, have been affected.
For example, The Center for Rural Affairs in Nebraska received a grant to build solar systems. The funding is currently accessible. Other programs, such as a $156 million Solar For All project in Missouri, remain in limbo, with project work halted.
Meanwhile, the Center for Rural Affairs in Nebraska has received an almost $62.5 million grant, but they have had to pause plans due to funding uncertainty.
Depew commented that the lack of financial consistency makes it difficult for groups to plan and execute projects.
“The on-and-off access to the funding has made it very difficult for us to plan projects,” Depew said.
Calls for Action
Renew Missouri Executive Director James Owen expresses frustration with the lack of forward movement. He hopes Congress will start acting like a co-equal branch of government again.
In Nebraska, Depew is calling on Congress to exercise its power and enforce its obligations surrounding these funds.
“To the extent that the agencies of the administration are canceling contracts or freezing funds, they are going against what Congress indicated should be done with this money, and so it’s Congress that should stand up and make sure they protect the funds that they appropriated,” Depew has said.
The legal community is also speaking out. U.S. District Judge John McConnell Jr. ordered the funds released, but the Trump administration has yet to comply. Pennsylvania Gov. Josh Shapiro has sued the Trump administration, citing its “unilaterally and arbitrarily” suspending access to congressional funds.
