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This study examines the restructuring of USDA conservation funding under the House-passed OBBB and its implications.

February 2, 2026Open Access

The One Big Beautiful Bill’s USDA Conservation Spending Shuffle

Key Points

This study examines the restructuring of USDA conservation funding under the House-passed OBBB and its implications.
Analyzed the impact of restructuring on USDA conservation funding
Assessed CBO projections for conservation outlays over FY2025–FY2034
Evaluated effects on EQIP funding and distribution
$1.8 billion decline projected in conservation outlays due to rescinded IRA funds
Short-term reductions in EQIP funding noted
Geographic distribution changes affect counties reliant on IRA support

Abstract

Under reconciliation, the House-passed OBBB restructures USDA conservation funding by shifting part of the Inflation Reduction Act’s (IRA) one-time investment into the Farm Bill baseline. While this increases long-term funding stability, CBO projects a net 1. 8 billion decline in conservation outlays over FY2025–FY2034, driven by rescinded IRA funds. EQIP faces short-term reductions, with permanent Farm Bill funding only partially offsetting losses. The shift away from climate-targeted IRA priorities also alters the geographic distribution of funding, disproportionately affecting counties and states that relied heavily on IRA-funded EQIP support.

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