Proposed budget cuts funding for rural programs in Agriculture Department - Entrepreneur Generations

President Trump's proposed Fiscal Year 2019 budget calls for a "$3.7 billion, or 16 percent, decrease in USDA spending compared to the 2017 level," Bryce Oates reports for The Daily Yonder. "While the document is vague about some proposed changes, the budget cuts appear to be targeted primarily at Supplemental Nutrition Assistance Program benefits and eligibility, changes to farm subsidies and crop insurance, decreases in conservation spending, and cuts to some Rural Development programs."

Some proposed changes that would impact rural areas:

• Community Connect, the rural broadband grants program, would maintain $30 million in funding, but broadband development loans would be cut 15 percent to $23 million and the distance learning program would be cut by 10 percent to 24 million.
• Some people who receive SNAP benefits would be required to work to stay eligible for the program. The budget also proposes delivering foods in a box to SNAP recipients, rather than allowing them to choose what foods fit their family at the grocery store. 
• The Farm Service Agency, the Risk Management Agency, and the Natural Resources Conservation Service would be combined into a Farm Production and Conservation office. 
• Funds are included for the Trade and Foreign Agricultural Affairs division to help increase agricultural exports. 
• Funds would be reduced for the Economic Research Service by eliminating low-priority research already being conducted in the private sector or nonprofits.
• The budget proposes to treat wildfires like other natural disasters like hurricanes, floods or tornadoes. That's because the cost of fighting wildfires last year hit a record $2.4 billion, which mean money had to be taken away from wildfire prevention programs to pay for it. 
• $3.5 billion would be earmarked for community facility direct loans, which would help with building or improving facilities such as health clinics or fire stations in rural America. The budget also includes $1.2 billion in water and wastewater treatment, and $24 billion for rural single-family housing loan guarantees. 
• The Rural Economic Development Loan and Grant Program would be eliminated.
• Subsidies would be eliminated for higher-income farmers and "overly generous" crop insurance premiums to farmers and payments made to private sector insurance companies would be reduced. Underwriting gains for insurance companies would be capped at 12 percent.
• Conservation programs would see reduced funding, though the details weren't included in the proposed budget.
• Interest payments to electric and telecommunications utilities would be eliminated. 

"The Trump administration’s budget proposal appears to be significantly different than what could emerge from the Congressional budget process," Oates reports. "Just last week, the House and Senate agreed to guidelines on a two-year funding package for federal spending that includes increases in both military and domestic spending programs. The size and scope of those budget details will be negotiated by House and Senate appropriators over the next several weeks."



from The Rural Blog http://ift.tt/2BpU91o Proposed budget cuts funding for rural programs in Agriculture Department - Entrepreneur Generations

Posted by Entrepreneur Generations

Tweet