Washington sits in stalemate while farm policy sees promise

Lauren Sturgeon Bailey

April 8, 2026

US Capitol building in spring

Key Points

  • The partial government shutdown continues. A Senate DHS funding deal exists, but the House hasn’t considered it.
  • While defense spending rises, DHS agencies remain unfunded, disrupting core services (including airport screening).
  • In some good news, the EPA issued E15 summertime waivers starting May 1 and eliminated the diesel exhaust fluid sensor requirement. In Congress, the 2026 Farm Bill could move to the House floor by the end of April and a new farm aid package is gaining momentum.

Congress is in recess until April 13, leaving many Americans confused and irritated that we remain in a partial government shutdown. Shortly before leaving town, Republican senators negotiated a package to fund the Department of Homeland Security, except for the Immigration and Customs Enforcement office. The Senate passed the measure, and Washington was poised to see the end of this battle until Speaker of the House Mike Johnson, R-La., refused to bring up the legislation. Far right members in the House applauded the effort and proceeded to go home for Easter, while senators and many government workers were disappointed by this development. Nearly a week later, the House and Senate reached an agreement to end the partial shutdown, but it is unclear when a vote will occur to send the legislation to the president’s desk.

Funding follies continue

Last week the president released his proposed budget to increase defense spending by $1.5 trillion and cut domestic programs by $73 billion. The proposed cuts include a 67% reduction to small business programs authorized at the Small Business Administration and a 19% cut to non-mandatory funded programs at the United States Department of Agriculture. In this current political environment, people and issues often seem like pawns in political battles.

Meanwhile, a resolution with Iran remains uncertain and the war in Ukraine continues to drag on. The Department of Defense has been funded to support those endeavors across the globe, while the agencies with the duty to protect our homeland currently remain unfunded. The U.S. Coast Guard, the Federal Emergency Management Agency, U.S. Secret Service, Transportation Security Administration, Cybersecurity and Infrastructure Security, U.S. Citizenship and Immigration Services, Federal Protective Services, Federal Law Enforcement Training Centers, Countering Weapons of Mass Destruction Office, Science and Technology Directorate, Office of Intelligence and Analysis, and the controversial U.S. Immigration and Customs Enforcement all remain unfunded. Operations at many of these agencies and offices are minimal and running on fumes. Some in the American traveling public have experienced historic waits at airport security screening.

As leaders in both the House and Senate are posturing for the 2026 election cycle, intraparty Republican conflicts are on full display. It is unclear how Republicans will message their inability to fund domestic security needs while they enjoy the current majority in the House and Senate. President Trump has made minimal public comments on the matter, presumably seeing the political infighting as a lose-lose for his party.

Legislative outlook

When Congress reconvenes in mid-April, the House is expected to take up the DHS funding agreement from the Senate. House Agriculture Committee Chairman Glenn “GT” Thompson, R-Pa., has been told the Farm, Food, and National Security Act of 2026 (the 2026 Farm Bill) will be brought to the House floor. The bill passed the House Agriculture Committee on a bipartisan vote after over 20 hours of debate. The chairman hopes to continue to secure support from his most conservative Republicans, and to increase the number of House Democrats supporting the bill to ensure House passage. The “skinny” farm bill contains over 800 pages of program and policy improvements that will be of assistance in this current agriculture economy. These programs were last updated in 2018, when the last farm bill was written.

It’s important to note that there is significant positive news in agriculture policy. President Trump’s announcements on E-15 and eliminating the diesel exhaust fluid sensor requirement have been well received. A new farm aid package is beginning to gain traction. If the war in Iran ends soon as the president has promised, fall fertilizer prices could decline. But in the noisy legislative environment calls for assistance need to be constant and loud enough to be heard. Farm and rural advocates continue their calls for swift and urgent action on a new farm bill, more aid and trade certainty. They will likely need to keep that up through the remainder of the year.

 
 

Disclaimer: The information provided in this report is not intended to be investment, tax, or legal advice and should not be relied upon by recipients for such purposes. The information contained in this report has been compiled from what CoBank regards as reliable sources. However, CoBank does not make any representation or warranty regarding the content, and disclaims any responsibility for the information, materials, third-party opinions, and data included in this report. In no event will CoBank be liable for any decision made or actions taken by any person or persons relying on the information contained in this report.

 
 
 
 

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