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February 2, 20260 citationsOpen Access

The One Big Beautiful Bill’s USDA Conservation Spending Shuffle

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MWMing WangHarbin Medical UniversityMGMatthew GammansCouncil on Food, Agricultural and Resource Economics

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  • $1.8 billion decline projected in conservation outlays due to rescinded IRA funds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funding stability, CBO projects a net 1. 8 billion decline in conservation outlays over FY2025–FY2034, driven by rescinded IRA funds.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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Cite This Study

Wang et al. (2025) studied this question.

synapsesocial.com/papers/6980fd9dc1c9540dea80f651https://doi.org/10.22004/ag.econ.391343
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