Proposed 2021 Federal Budget Budget Fact Sheet

President Donald Trump’s $4.8 trillion 2021 federal budget proposes steep cuts to programs that are critical to small towns and rural communities. It’s full of bad ideas and broken promises for rural America. 

Today, small towns and rural communities are seeing a dramatic increase in catastrophic weather events like flooding and forest fires, and many of these same communities have been forced to carrying the economic burden of Trump's failed trade war.

These communities need the Federal Government on their side like never before. However, instead of standing with rural America during these challenging times, President Trump is calling for a $21.8 billion cut to the U.S. Department of Agriculture and a $239 billion cut to the bipartisan 2018 Farm Bill – a 28% reduction.

In short, President Trump's proposed 2021 federal budget:

• Eliminates job-creating rural business investments
• Underfunds critical medical services like rural opioid programs
• Cuts critical services for rural Americans, like SNAP (food stamps) and local food initiatives 

So what is Trump’s plan for rural America? 

• Cut USDA Rural Business and Cooperative Programs by 97% all but ending programs to help grow rural businesses and provide job training for people living in rural areas

• Cut $3.5 billion from the United States Department of Agriculture’s discretionary budget, by reducing support for rural development, nutrition programs for women, infants and children, international food aid, food safety and conservation

• Cut $57.7 billion in mandatory agricultural spending by 2030, like lowering crop insurance subsidies, tightening eligibility for farm payments and gashing conservation programs

• Cut the recently reauthorized Land and Water Conservation Fund by nearly 97 percent—the primary stewardship program used by farmers to create pheasant and quail habitats and while protecting critical watersheds

• Cut funding for the Supplemental Nutrition Assistance program by 22%, the largest food assistance program in the country that disproportionately serves rural low-income people

• Eliminate USDA Single Family Housing Direct Loans that enable low income rural residents to become home owners with affordable loans for decent, safe and sanitary housing in rural areas 

• Cut $190 million from USDA’s Agricultural Research Service, the in house research agency that delivers cutting-edge, scientific tools and innovative solutions for the Ag industry and rural  communities

• Cut federal support for education by $4.7 billion by eliminating 30 stand-alone programs, including $186 million for rural education and $787 million for English learners

• Eliminate key housing and community development programs, calling them “low value” and shifting the financial burden to state and local governments

• Eliminate the Social Services Block Grant, which provides flexible funding to states for child and senior care, day programs for people with disabilities, and services for homeless individuals and families

• Cut $248 million from the Community Development Financial Institution Loan and Grant Fund, which helps provide affordable access to capital in places the financial industry does not fully serve, such as many rural communities

Trump’s budget proposal is full of bad ideas... 

• President Trump’s proposed budget favors big corporations at the expense of the small farms and the small businesses that are the bedrock of rural economies. Recently, Agriculture Secretary Sonny Perdue told Wisconsin dairy farmers that, “In America the big get bigger and the small go out.” The administration’s  preference for big agricultural over small farms is reflected through the budget priorities.

• The Trump administration’s “get big or get out” philosophy also applies to  small businesses. President Trump considers the USDA programs that provide funding opportunities for rural small businesses through loans, loan guarantees, and grants to  be an “unnecessary and wasteful program.” His proposed budget cuts the Rural Business and Cooperative Program by 97% all but ending programs to help grow rural businesses and provide job training for people living in rural areas

• Rural people support federal government programs aimed at improving people’s lives, but Trump is proposing an  8 percent cut in funding to USDA, the Education Department, and the Energy Department. These agencies provide critical programs that support the rural way of life. 

… and  broken promises.

• Trump said he would “negotiate trade deals to help our farmers.” As we all know by now, his “trade war” has been a complete an utter disaster. And when Trump said he was bailing out farmers suffering devastating losses due to his failed trade deal, a Brazilian-owned company received $67 million in bailout funds.

• Now, Trump is proposing a budget that forces farmers to, once again, fend for themselves by  cutting $57.7 billion in mandatory agricultural spending by 2030. This includes lowering crop insurance subsidies, and tightening eligibility for farm payments and slashing conservation programs. These cuts are especially harmful to farmers who dealt with one of the worst weather years in history. This is not the time to cut conservation spending.

• President Donald Trump posted a tweet promising that, “We will not be touching your Social Security and Medicare in Fiscal 2021 Budget.” However, Trump’s budget includes destructive changes to Medicaid, SNAP, Social Security, and other assistance programs critical for small town and rural Americans. These cuts disproportionately impact the communities that need the support now more than ever.