Legislation introduced in the U.S. Senate would order the U.S. Department of Agriculture to resume frozen payments to farmers on contracts that have already been signed. (Photo by Gregory Conniff for the Wisconsin Examiner)

A group of U.S. Senate Democrats introduced legislation Monday that would order the agriculture department to resume paying farmers on contracts already signed.

“Donald Trump and Elon Musk are stiffing our farmers and processors — taking away resources these folks were guaranteed, threatening small businesses’ ability to stay open and people’s livelihoods,” said Sen. Tammy Baldwin (D-Wisconsin), one of 17 cosponsors.

In addition to 15 Democrats, two independent senators who caucus with them, Sens. Bernie Sanders of Vermont and Angus King of Maine, signed on to the bill.

The U.S. Department of Agriculture (USDA) has stopped reimbursing farmers and farm organizations for money they’ve spent, despite contracts they have already signed with the agency. The contracts call for farmers to be reimbursed for expenses they incur under the contracts.

Honor Farmer Contracts Act, introduced by Sen. Cory Booker (D-New Jersey), would require USDA “to release illegally withheld funding for all contracts and agreements previously entered into by the U.S. Department of Agriculture,” Baldwin’s office said in a statement announcing the legislation.

Under President Donald Trump, “USDA has refused to make reimbursement payments to fulfill signed contracts, without any indication of when or whether farmers will be paid the money they paid out and are owed,” Baldwin’s office said.

Farmers and organizations serving them contract with the USDA for various programs to connect with local markets and improve their productivity. The department then pays farmers back for the expenses they incur under those contracts. The department’s failure to pay strains finances both for the individual farmers and for the organizations that work with them under the programs, Baldwin’s office said.

The legislation would require USDA to unfreeze all signed agreements and make all past due payments as quickly as possible. It would also bar the department from canceling agreements or contracts unless there has been a failure to comply with their terms and conditions.

The bill would prohibit the department from closing county offices, field offices or centers of the Farm Service Agency, the Natural Resources Conservation Service or the Rural Development Service without notification at least 60 days in advance and justifying the closing to Congress.

On March 7, Baldwin said the USDA had resumed another previously stalled stream of funding, $6.5 million in grants for dairy businesses to diversify and market their products.

Baldwin has also demanded the Trump administration to reverse its cancellation in March of a program connecting farmers to local food banks.

U.S. President Donald Trump speaks to reporters in the Oval Office of the White House on Feb. 3, 2025 in Washington, D.C. (Photo by Anna Moneymaker/Getty Images)

WASHINGTON — Top Democrats in Congress are asking the Government Accountability Office to open an investigation into whether the Trump administration violated federal law by freezing funding for several programs.

Pennsylvania Rep. Brendan Boyle and Oregon Sen. Jeff Merkley, ranking members on the House and Senate Budget committees, wrote in a two-page letter sent Monday to the government watchdog organization that certain actions appear to have violated the Impoundment Control Act.

“Unilaterally impounding funds is illegal, and Donald Trump and Russ Vought are trying to gut the federal government piece by piece,” Merkley wrote in a statement accompanying the letter. “GAO must get to the bottom of this and reiterate to the administration that Congress has the power of the purse, not Trump and Vought.”

The Senate voted along party lines earlier this year to confirm Vought as director of the Office of Management and Budget, which has wide-reaching authority over decisions within the executive branch

A Government Accountability Office spokesperson told States Newsroom the agency is working through its process to determine whether it will launch an investigation based on the letter.

GAO, the spokesperson said, also has ongoing work related to the ICA.

OMB authority

Boyle wrote in a statement that the Constitution gives Congress the authority to determine when and where the federal government spends money.

“The administration’s withholding of critical investments harms American communities that rely on these funds for jobs, economic stability, and essential infrastructure,” Boyle wrote. “Robust congressional oversight, alongside litigation, is vital to protecting the interests of the American people.”

The Impoundment Control Act, enacted in the 1970s, bars presidents from not spending the money that Congress has appropriated. Vought has said repeatedly he believes the law is unconstitutional and that presidents have this authority.

Several lawsuits have been filed over the Trump administration opting not to spend federal money, some of which have blocked the actions from taking effect while the cases proceed through the federal courts. 

The Boyle-Merkley letter alleges the Trump administration has run afoul of the law on several occasions, including on his first day in office when he ordered a pause on foreign development assistance as well as funding in the Inflation Reduction Act and the bipartisan infrastructure law.

The two ask GAO to also look into the Trump administration’s decision to halt military aid to Ukraine for about a week in March, writing they are “concerned this pause may have been an illegal impoundment with negative foreign policy and national security implications.”

“The Constitution grants the President no unilateral authority to withhold funds from obligation,” Boyle and Merkley wrote in the letter. “Instead, Congress has vested the President with strictly circumscribed authority to impound or withhold budget authority only in limited circumstances as expressly provided in the Impoundment Control Act.

“The executive branch may withhold amounts from obligation only if the President transmits a special message to Congress that includes the amount of budget authority proposed for withholding and the reason for the proposal (2 U.S.C. §§ 683–684).”

What can GAO do?

During the first Trump administration, the GAO found the Office of Management and Budget violated the Impoundment Control Act  when it halted assistance to Ukraine.

“Faithful execution of the law does not permit the President to substitute his own policy priorities for those that Congress has enacted into law,” GAO wrote in the report. “OMB withheld funds for a policy reason, which is not permitted under the Impoundment Control Act (ICA). The withholding was not a programmatic delay. Therefore, we conclude that OMB violated the ICA.”

The GAO writes on its website that the ICA “authorizes the head of GAO, known as the Comptroller General, to file a lawsuit if the President illegally impounds funds.”

Comptroller General Gene Dodaro testified before Congress earlier this year that he plans to do just that if the independent agency finds violations of the ICA.

“We’re going to make these decisions as fast as possible,” Dodaro said, according to a news report. “I fully intend to carry out our responsibilities under the Impoundment Control Act expeditiously and thoroughly . . . I’ll do it as quickly as I can, but we need to be careful and thorough, because the next step for us is to go to court ourselves. If we say there’s been impoundment and money isn’t released in a certain period of time, we have to go to court.”

An Eau Claire County farm. (Photo by Henry Redman/Wisconsin Examiner)

Seven western Wisconsin Republican lawmakers did not appear at an event hosted by the Wisconsin Farmers Union in Chippewa Falls Friday as farmers from the area said they were concerned about the effect that President Donald Trump’s first month in office is having on their livelihoods. 

Madison-area U.S. Rep. Mark Pocan (D-Black Earth), state Sen. Jeff Smith (D-Eau Claire) and state Reps. Jodi Emerson (D-Eau Claire) and Christian Phelps (D-Eau Claire) were in attendance. 

U.S. Reps. Tom Tiffany and Derrick Van Orden, state Reps. Rob Summerfield (R-Bloomer), Treig Pronschinske (R-Mondovi) and Clint Moses (R-Menomonie) and state Sens. Jesse James (R-Thorp) and Rob Stafsholt (R-New Richmond) were all invited but did not attend or send a staff member. 

“All four of us want you to know that there are people in elected office who want to fight for you,” Phelps said. “Because I think there’s a lot of fear that comes from the fact that we’re seeing a lot of noise and action from the people who aren’t and some of the people that didn’t show up to this. So I hope that you will also ask questions of them when you get a chance.” 

Multiple times during the town hall, Pocan joked that Van Orden was “on vacation.” 

Emerson, whose district was recently redrawn to include many of the rural areas east of Eau Claire, told the Wisconsin Examiner she had just been at an event held by the Chippewa County Economic Development Corporation where a Van Orden staff member did attend, so she didn’t understand why they couldn’t hear about how Trump’s policies are harming local farmers. 

“I get that a member of Congress can’t be at every meeting all the time, all throughout their district,” Emerson said. With 19 counties in the 3rd District, “it’s a big area. But I hope that they’re hearing the stories of farmers and farm-adjacent businesses, even if they weren’t here. There’s something different to sit in this room and look out at all the farmers, and when one person’s talking, seeing the tears in everybody else’s eyes, and it wasn’t just the female farmers that were crying, the big tough guys, and I think that talks about how vulnerable they are right now, how scary it is for some of these folks.”

Carolyn Kaiser, a resident of the nearby town of Wheaton, said she’s never seen her congressional representative, Van Orden, out in the community. Despite Van Orden’s position on the House agriculture committee, Kaiser said her town needs help managing nitrates in the local water supply and financial support to rebuild crumbling rural roads that make it more difficult for farmers to transport their products.

“When people don’t come, it’s unfortunate,” Kaiser said. 

Emmet Fisher, who runs a small dairy farm in Hager City, said during the town hall that he was struggling with the freeze that’s been put on federal spending, which affected grants he was set to receive through the U.S. Department of Agriculture (USDA).

Fisher told the Examiner his farm has participated in a USDA program to encourage better conservation practices on farms and that money has been frozen. He was also set to receive a rural energy assistance grant that would help him install solar panels on the farm — money that has also been held up.

The result, he said, is that he’s facing increased uncertainty in an already uncertain business.

“We get all our income from our farm, young family, young kids, a mortgage on the farm, and so, you know, things are kind of tight, and so we try to take advantage of anything that we can,” he said. “[The] uncertainty seems really unnecessary and unfortunate, and it’s very stressful. You know, basically, we have no idea what we should be planning for. The reality is just that in farming already, you can only plan for so much when the weather and ecology and biology matter so much, and now to have all of these other unknowns, it makes planning pretty much impossible.”

A number of crop farmers at the event said the looming threat of Trump imposing tariffs on Canadian imports is alarming because a large majority of potash — a nutrient mix used to fertilize crops — used in the United States comes from Canada. Les Danielson, a cash crop and dairy farmer in Cadott, said the tariffs are set to go into effect during planting season.

“How do you offer a price to a farmer? Is it gonna be $400 a ton, or is it gonna be $500 a ton?” he asked. “I’m not even thinking about the fall. I’m just thinking about the spring and the uncertainty. This isn’t cuts to the federal budget, this is just plain chaos and uncertainty that really benefits no one. And I know it’s kind of cool to think we’re just playing this big game of chicken. Everybody’s gonna blink. But when you’re a co-op, or when you’re a farmer trying to figure out how much you can buy, it’s not fine.”

A recent report by the University of Illinois found that a 25% tariff on Canadian imports — the amount proposed by Trump to go into effect in March — would increase fertilizer costs by $100 per ton for farmers.

Throughout the event, speakers said they were concerned that Trump’s efforts to deport workers who are in the United States without authorization  could destroy the local farm labor force, that cuts to programs such as SNAP (commonly known as food stamps) could cause kids to go hungry and prevent farmers from finding markets to sell their products, that cuts to Medicaid could take coverage away from a population of farmers that is aging and relies on government health insurance and that because of all the disruption, an already simmering mental health crisis in Wisconsin’s agricultural community — in rural parts of the state that have seen clinics and hospitals close or consolidate — could come to a boil.

“Rural families, we tend to really need BadgerCare. We need Medicaid. We need those programs, too,” Pam Goodman, a public health nurse and daughter of a farmer, said. “So if you’re talking about the loss of your farming income, that you’re not going to have cash flow, you’re already experiencing significant concerns and issues, and we need the state resources. We need those federal resources. I’ve got families that from young to old, are experiencing significant health issues. We’re not going to be able to go to the hospital. We’re not going to go to the clinic. We already traveled really long distances. We’re talking about the health of all of us, and that is, for me, from my perspective as a nurse, one of my biggest concerns, because it’s all very interrelated.”

Near the end of the event, Phelps said it’s important for farmers in the area to continue sharing how they’re being hurt by Trump’s actions, because that’s how they build political pressure.

“Who benefits from all the chaos and confusion and cuts? Nobody, roughly, but not literally, nobody,” he said. “Because I just want to point out that dividing people and making people confused and uncertain and vulnerable is Donald Trump’s strategy to consolidate his political power.”

“And the people that can withstand the types of cuts that we’re seeing are the people so wealthy that they can withstand them. So they’re in Donald Trump’s orbit, basically,” Phelps said, adding  that there are far more people who will be adversely affected by Trump’s policies than there are people who will benefit.

“And you know that we all do have differences with our neighbors, but we also have a lot of similarities with them, and being in that massive group of people that do not benefit from this kind of chaos and confusion is a pretty big similarity,” he continued. “And so hopefully these types of spaces where we’re sharing our stories and hearing from each other will help us build the kind of community that will result in the kind of political power that really does fight back against it.”