Pelosi Cuts Farm Bailout Money After Trump Takes Credit

Written by SK Ashby

Trump traveled to Wisconsin last week where he announced another round of bailout checks would be coming to farmers soon, but he probably shouldn't have spoken before the money for it was actually secured.

House Speaker Nancy Pelosi was negotiating a deal with Treasury Secretary Steve Mnuchin to include additional money in a continuing resolution to keep the government running in exchange for more funding for food stamps, but Pelosi has reportedly canceled the deal.

House Democrats saw Trump taking credit for something they were negotiating

Senate Republicans from farm states pushed for the $30 billion to replenish funding for the U.S. Department of Agriculture’s Commodity Credit Corp., a government-owned entity that aims to stabilize farm income. Trump announced $13 billion in new aid to farmers, drawing from the CCC, at a rally in Wisconsin on Thursday, and the corporation had already projected an increase in demand for agriculture-risk coverage, price-loss coverage and marketing-assistance loans. [...]

Democrats floated the possibility of providing the farm funds in exchange for $2 billion in child-nutrition money on Friday, but that was never finalized before Pelosi called Treasury Secretary Steven Mnuchin to cancel the trade-off, according to aides. The House bill left out the child-nutrition money for a program that runs out at the end of the month.

A senior Democratic aide argued that the CCC money was being used by Trump for political aims as a benefit to rural areas that are crucial to his re-election chances. Democrats included $30 billion in direct Covid farm aid in their stalled $3.4 trillion May stimulus bill.

Senate Republicans are stomping their feet over Pelosi's decision, but they haven't threatened to shut down the government over it. They don't have the leverage for that and Pelosi has plenty of reason not to help them.

I suppose you could say Pelosi and House Democrats are treating a vital part of the economy like a political football as well, but I would say farmers have already been bailed out so many times I've lost count. Moreover, House Democrats passed a comprehensive stimulus bill almost five months ago that Senate Republicans never even considered and that bill included the money. The Senate GOP's small $300 billion stimulus proposal didn't even include it.

This, among many other things, will likely be addressed after the election regardless of who wins.