Trump's former USDA chief economist warns the shutdown makes the president's $15 billion farmer bailout a fantasy: 'You can't just flip a switch' | Fortune
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Trump's former USDA chief economist warns the shutdown makes the president's $15 billion farmer bailout a fantasy: 'You can't just flip a switch' | Fortune
"You'd need Congress to reallocate tariff revenues. USDA can't just say, 'We're going to take all that money and give it to farmers.' That takes an act of Congress, and that's tricky when the government isn't even open."
"The Farm Service Agency offices that process payments are closed right now. You'd have to call back 'essential employees,' get new regulations written, and design a whole new program. That takes time and manpower, and you can't"
The administration plans to use tariff revenue to provide up to $15 billion in aid to struggling farmers, but implementing the bailout faces major obstacles. Congressional action would likely be required to reallocate tariff revenues and to replenish or authorize use of Commodity Credit Corporation funds, which were heavily used in prior aid programs and remain constrained. Processing and distributing payments is complicated by closed Farm Service Agency offices during the shutdown, the need to call back essential staff, draft new regulations, and design a program, all of which demand time and manpower. Trade-related losses previously cost farmers billions in exports.
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