Federal Judge Orders USDA to Restore $127 Million for Black Farmers and Underserved Communities

SPEAKIN’ OUT NEWS

A federal judge has ordered the USDA to reinstate $127 million in grants supporting Black and underserved farmers while a lawsuit challenging the agency’s cancellation of the funding moves forward. (Google)

WASHINGTON — A federal judge has ordered the U.S. Department of Agriculture (USDA) to restore $127 million in grants to 24 organizations that provide critical assistance to Black, minority, and other underserved farmers after ruling that the agency improperly canceled the funding.

U.S. District Judge Beryl A. Howell directed the USDA to reinstate the grants while a legal challenge over the cancellations continues. The funding was awarded through the Increasing Land, Capital, and Market Access Program, which was created to help historically underserved agricultural producers gain better access to farmland, financing, business opportunities, and new markets.

The USDA terminated the grants earlier this year, arguing the awards were part of Biden-era spending initiatives that the agency believed were vulnerable to waste, fraud, and abuse. Officials also said the department was moving away from programs tied to Diversity, Equity, and Inclusion (DEI) policies.

In response, 24 nonprofit organizations and local governments filed suit against the USDA in USDN v. USDA, contending the agency lacked legal authority to cancel the grants after they had already been awarded. The plaintiffs argued the sudden loss of funding disrupted programs serving farmers who rely on technical assistance, land access, financial education, and business development.

Judge Howell concluded the organizations demonstrated they faced immediate and irreparable harm if the funding remained frozen. She ordered the USDA to restore the grants and submit updates to the court detailing its compliance with the ruling.

The lawsuit remains pending, and a final decision will determine whether the USDA’s cancellation of the grants was lawful. Until then, the court’s order allows participating organizations to resume programs that supporters say are essential to expanding opportunities for historically underserved farmers across the country.