June 2025 Policy Update

June 9, 2025
|In News
|By Amber Lippon

By Lily Hawkins, Policy Director

Read on for an overview of federal budget developments, the ongoing Appropriations and Farm Bill processes, and recent events at the USDA.

Updates from Congress and the Whitehouse

Last week, House appropriators began advancing their fiscal year 2026 spending bills, shortly after the White House unveiled its budget requests. The White House’s proposal includes a $6.7 billion (22.6%) reduction in funding for discretionary USDA programs, including research and regulatory activities that are not mandated by existing laws like the Farm Bill.

In May, House Republicans passed a significant budget package through the Reconciliation process, a special procedure allowing for quicker passage of budget-related laws with a simple majority. This package includes tax changes, increased funding for military and border security, and some agricultural programs, while proposing cuts to safety-net programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP), and some green tax incentives. The bill must still pass through the Senate, where Republicans are expected to make further changes, aiming for presidential approval by June or July.

Crucially for the organic community, this House budget 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.

While work on a full Farm Bill continues, its passage becomes more uncertain if the Republican budget package, with its included Farm Bill program funding, is approved. 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.

Advocating for Organic in Appropriations

The annual Appropriations process is another critical funding stream. Organic advocates in both the House and Senate are pushing for investments in organic agriculture for Fiscal Year 2026.

In May, 44 House members sent a letter to the House Agriculture Appropriations Subcommittee, urging funding for:

  • $24 million for the National Organic Program (NOP)
  • $1 million for the Organic Data Initiative (ODI)
  • $1 million for the Organic Certification Trade and Tracking Program (OCTT)

Recently, 16 Senators sent a similar letter to their Ag Appropriations leadership including the above requests as well as $11 million for the Organic Certification Cost Share Program. These funding levels are vital for the National Organic Program to effectively oversee and enforce organic standards.

USDA Updates

The spring has seen significant activity at the USDA. Dudley Hoskins recently had a Senate confirmation hearing for Undersecretary of Agriculture, Marketing, and Regulatory Programs. Dr. Jenny Tucker has returned to the NOP after a brief stint with Specialty Crops, a move welcomed by OFA.

Following previous staffing cuts, Secretary Brooke Rollins has announced no further buyouts are planned for the Agency. Workforce reorganization, including potential relocation of some staff outside Washington D.C., is facing legal challenges but remains a possibility.

Good news has arrived with funding flowing again for several USDA programs:

  • Market and Agriculture Stabilization Program (MASC): Secretary Rollins announced a second round of payments for specialty crop growers, aiding with higher marketing costs.
  • Transition to Organic Partnership Program (TOPP): The program is now cleared to approve and process payments for all agreements, prioritizing reimbursement claims for work done after January 20. The USDA will later discuss upcoming work and aim to complete the initiative by the end of 2026.
  • Organic Market Development Grants: Existing contracts will be honored, with more details expected upon Under Secretary Hoskins’ confirmation.
  • Local Agriculture Market Program (LAMP): The USDA announced $26.5 million in grant funding available through LAMP, which supports local and regional food groups in developing and expanding direct-to-consumer sales and local food businesses. This includes the Farmers Market Promotion Program (FMPP), Local Food Promotion Program (LFPP), and Regional Food System Partnerships (RFSP). Applications are open until June 27, 2025.

Proposed Rescission of Mushrooms and Pet Food Rule

Unfortunately, the USDA’s Agricultural Marketing Service has proposed rescinding the Mushrooms and Pet Food Rule, which was finalized last year to clarify and support market development in these organic sectors. 

The proposal is open for public comment through June 11, 2025. Submit your comments today!