June 2025 - Sweetpotato Speak

The DOGE impact has initially implemented significant budget cuts and personnel changes at federal agencies. DOGE has cut or reduced billions of dollars in government contracts, leases and grants in over 176 departments and agencies. It also has cut the federal workforce by about 130,000 employees, with more planned reductions. It is estimated about 12% of the 2.4 million civilian federal workers are expected to be impacted. DOGE IMPACT HAS IMPLEMENTED SIGNIFICANT CUTS & PERSONNEL CHANGES AT FEDERAL AGENCIES The Congressional Farm Bill renewal appears to be stalled at this point. Some of the potential funding measures for the Reconciliation package could possibly be included to offset costs, specifically relating to Food and Nutrition funding that was added in the previous administration. In addition, FY 2026 appropriations process is likely to move sometime this summer once a clearer path is known on the Reconciliation legislation.

Congress continues to work on President Trump’s “One Big Beautiful Bill.” The U.S. House and U.S. Senate have both passed budget resolutions to allow them to proceed forward on either a one or two bill approach to extend the 2017 individual tax cuts, other tax provisions and additional funding for administration priorities that include immigration enforcement and defense. There is a scramble to offset the costs of the extension ($4.5 trillion over 10 years) with likely changes to Medicaid) and tax revenue raisers. This measure called reconciliation (which allows just a simple majority to pass in the US Senate) needs to be completed prior to the end of the fiscal year (September 30 ) but could be completed by end of July or early August. In addition the debt ceiling which is expected to expire in August would likely be attached to this measure. th Tariff discussions continue by the President and his team while almost a third into the 90 day pause period since his tariff announcement in early April. Since tariff levels often are already low with many of the US trading partners, the Trump administration is looking at concessions in other areas, including the reduction of non-tariff barriers, commitments on investments in the US and measures to pressure China (limits on trade content from China and the imposition of controls on certain exports and/or investments from China).

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