Legislative Status

Congress took another major step toward Farm Bill reauthorization on June 23, 2026, when Senate Agriculture Committee Chairman John Boozman (R-AR) released a discussion draft of the Agricultural Act of 2026, the Senate's proposal for a new five-year Farm Bill.

The release of legislative text marks the Senate's first comprehensive proposal for Farm Bill reauthorization this Congress and provides the starting point for committee consideration and negotiations with the House-passed Farm, Food, and National Security Act of 2026 (H.R. 7567). Because this is a discussion draft, the legislation remains subject to change during committee markup and subsequent House-Senate negotiations before a final Farm Bill can be enacted. Senate Agriculture Committee leaders are expected to begin formal consideration of the legislation in July.

The Senate summary is available on the Senate Agriculture Committee's website.

Background

On April 30, 2026, the U.S. House of Representatives passed the Farm, Food, and National Security Act of 2026 by a vote of 224-200. The legislation marked the first time a Farm Bill had advanced out of either chamber of Congress since enactment of the Agriculture Improvement Act of 2018 (H.R. 2, P.L. 115-334). Current Farm Bill authorities have been extended through September 30, 2026, allowing existing programs to continue while Congress works toward enactment of a new five-year authorization.

The Farm Bill is a comprehensive package of legislation that authorizes federal policy and funding for agriculture, nutrition assistance programs such as SNAP, conservation, rural development, forestry, energy, agricultural research, trade, credit, and numerous other programs affecting producers and communities across the country. Reauthorization establishes the policy framework and funding authorities for these programs and provides continuity for farmers, ranchers, rural communities, and program administrators.

Why the Farm Bill Matters to Economic Developers

The Farm Bill is the primary federal authorization for USDA rural development programs and a broad range of initiatives that support economic opportunity in rural America. Beyond traditional agricultural programs, the legislation influences investments in broadband infrastructure, business financing, community facilities, water and wastewater systems, workforce development, energy innovation, and research — all of which help shape the long-term economic competitiveness of rural and regional economies.

The Senate discussion draft places particular emphasis on strengthening rural economic competitiveness through expanded broadband deployment, modernization of USDA credit programs, targeted investments in rural infrastructure and essential community facilities, support for entrepreneurship, and expanded trade and export promotion. Many of the proposed changes to Title VI – Rural Development are especially relevant to economic development organizations because they directly affect the federal programs that support business growth, infrastructure investment, and community development in rural communities.

Selected Senate Draft Provisions Relevant to Economic Development

The following summary highlights selected provisions contained in the Senate Agriculture Committee discussion draft. These provisions represent proposed policy changes and would take effect only if included in a final Farm Bill enacted into law.

Rural Development (Title VI)

• Codifies the USDA ReConnect broadband program, streamlines the application process, and directs broadband funding to communities where 90 percent or more of residents lack access to speed of 25/3 Mbps services.
• Requires that funding through ReConnect and Community Connect must be used to deploy broadband infrastructure capable of providing speeds of at least 100/20 Mbps with the capability to evolve over time to meet consumer demand.
• Prevents broadband overbuilding and service duplication through stronger state and federal coordination.
• Establishes a program to expand connectivity on farm and ranchland, supporting precision agriculture adoption.
• Increases access to healthcare and childcare in rural America and allows resources awarded to these facilities to be used flexibly to meet local needs.
• Expands market opportunities for small meat and poultry processors and renderers to help them scale up, modernize and handle food safety requirements.
• Provides mandatory funding of $5 million annually to support Rural Development Loans and Grants to spur economic development in rural areas.
• Increases Rural Microentrepreneur Assistance Program loans to $75,000.
• Reauthorizes USDA's Rural Water and Waste Disposal Program, which provides both grants and loans to help rural communities finance drinking water and wastewater infrastructure, strengthening emergency preparedness and recovery while improving public health outcomes. The draft also expands predevelopment planning grants, increases technical assistance for rural water systems, and creates new financing options for distressed water systems.
• Increases authorization of funding levels for the Rural Water and Wastewater Circuit Rider Program to enhance and continue on-the-ground support to address the needs of rural water systems.
• Enables eligible high-functioning water systems to aid neighboring water systems that demonstrate insufficient ability to operate, maintain or manage their facilities.

Trade (Title III)

• More than doubles funding for the Market Access Program and the Foreign Market Development Program, USDA's premier trade promotion programs, using investments made available in the Working Families Tax Cuts.
• Addresses barriers to trade by directing USDA and the U.S. Trade Representative (USTR) to prioritize the defense of common food names in foreign markets and strengthening USDA reporting on specialty crop export competitiveness.
• Establishes a new technical assistance program to improve infrastructure including cold chain capacity and port improvements to facilitate expanded trade opportunities in emerging markets.
• Establishes an interagency working group between USDA, USTR and the U.S. Department of Commerce, to advance the competitiveness of seasonal and perishable fruits and vegetables in global and domestic markets.
• Requires the Secretary to work with USTR and the U.S. International Trade Commission to analyze and report on the domestic competitiveness of U.S.-grown agricultural commodities.
• Instructs GAO to conduct a report on international shrimp trade and solutions to advance the competitiveness of U.S. shrimp and seafood in global and domestic markets.

Energy (Title IX)

• Expands and strengthens the BioPreferred program by increasing the volume of biobased-only contracts.
• Directs the Secretary to issue guidance and training for agencies involved in the procurement of biobased products.
• Strengthens reporting of biobased products that are purchased through online federal procurement systems, including use of North American Industry Classification System (NAICS) codes.
• Improves the Biorefinery Assistance Program to strengthen energy security, manufacturing and rural development.
• Clarifies that sustainable aviation fuel is eligible for Biorefinery Assistance funding.
• Establishes a new technical review agreement between USDA and applicants to streamline the application process.
• Restores grants for the development, construction or retrofitting of pilot or demonstration-scale biorefineries.
• Improves the Rural Energy for America Program (REAP) to expand energy affordability in rural communities.
• Provides technical assistance to agricultural producers and rural small businesses applying for financial assistance.
• Creates a new covered rebate pilot program.
• Allows for combined energy audit and energy efficiency applications and allows for a single application for assets and energy efficiency projects.
• Requires the Secretary to simplify the application process for smaller projects.

Next Steps

The Senate Agriculture Committee is expected to begin formal consideration of the discussion draft during a committee markup later this summer. If approved by the committee, the legislation would advance to the full Senate for consideration. Because the House has already passed its version of the Farm Bill, significant differences between the two bills — including provisions affecting rural development, nutrition, conservation, and commodity programs — would ultimately need to be resolved before Congress can send a final Farm Bill to the President. Until a new Farm Bill is enacted, programs generally continue to operate under the one-year extension of the Agriculture Improvement Act of 2018, which expires on September 30, 2026.