By Lily Hawkins, Policy Director

Budget and Appropriations

Last month, Congress passed a domestic policy “megabill” bill just ahead of the July 4th Holiday. The bill was passed using the budget reconciliation process – a special procedure allowing for quicker passage of budget-related laws with a simple majority. 

Crucially for the organic community, this bill provides funding for several “orphan programs” that were not funded in the March Continuing Resolution:

• Organic Certification Cost Share Program (OCCSP): Funded at $8 million for seven years, matching 2018 Farm Bill levels. OFA continues to advocate for higher funding.
• Organic Transition Initiative (OTI): Level-funded at $5 million for the next six years.
• Organic Data Initiative (ODI): No additional funds in 2025, but a $10 million boost over the next six years, doubling 2018 allocations.

This package also includes tax changes, increased funding for military and border security, and some agricultural programs, while slashing safety-net programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP), and some green tax incentives. The bill passed despite misgivings from members of both parties..

The future of the next Farm Bill becomes more uncertain with the passage of the Republican budget package and its included Farm Bill program funding. Lawmakers continue to work on marker bills, which are not intended to pass independently but build support for policies to be included in the final Farm Bill. You can learn about marker bills OFA is supporting here.

Work on FY2026 appropriations continues. with both the House and Senate Appropriations Committees advancing their respective versions.

Organic Dairy Bills Reintroduced

The Organic Dairy Data Collection Act was reintroduced in the House for the 119th Congress. The bill, sponsored by Representatives Pingree (D-ME), Wied (R-WI), and Langworthy (R-NY), aims to improve data collection and reporting on organic milk production costs, prices, and feedstuffs.

The Senate “Organic Dairy Assistance, Investment, and Reporting Yields Act (O DAIRY) Act,” was also reintroduced. This bill goes further than the one in the House, proposing to expand emergency assistance to organic dairy farmers, invest $25 million annually in dairy infrastructure and research, and direct the USDA to study the viability of an organic safety net program. 

USDA Reorganization

The USDA has announced a major reorganization effort, which includes relocating thousands of federal employees, restructuring regional offices, and consolidating administrative services. This initiative involves moving roughly 2,600 employees from Washington, D.C. to five new regional centers in North Carolina, Missouri, Indiana, Colorado, and Utah. As part of this plan, the USDA’s South Building and the Beltsville Agricultural Research Center will be closed. The department’s stated goals for these changes are to save money and to be more accessible to the people it serves.

This move comes after the loss of more than 15,000 USDA employees through the Deferred Resignation Program (DRP). The National Organic Program (NOP) was strongly impacted by the DRP, losing about a third of its staff. A fully staffed NOP is essential for maintaining trust in the organic label and supporting the growing organic industry.

This spring, OFA, the Organic Trade Association and the National Organic Coalition, sent a joint letter signed by more than 1,300 organic stakeholders to Agriculture Secretary Brooke Rollins, urging her to protect the NOP’s staff and mission.

Public Comment Period: After facing criticism for lack of transparency, the USDA has opened a 30-day public comment period on the reorganization plan, which is open until August 26, 2025. USDA leadership has stated that the plan is “about 95% baked,” but that the department is still open to feedback.

OFA is preparing comments and will share action steps in the coming days.