Trump Says Some Tariff Revenue Will Go to Farmers, but There Are Legal Questions
- Media Logic Radio
- Sep 26
- 3 min read
By Oliver Ward
President Donald Trump on Thursday told reporters that the administration will direct some tariff revenue to farmers.
“We’re going to take some of that tariff money that we’ve made and we’re going to give it to our farmers,” Trump said in the Oval Office. “We’re going to make sure that our farmers are in great shape,” he added, but warned that there may be hurt “for a little while” until the payments kick in.
Trump’s comments echo those of Agriculture Secretary Brooke Rollins, who told the Financial Times during a visit to the United Kingdom last week that the administration was considering using tariff revenue to fund a bailout.
Earlier on Thursday, Rollins said during her appearance at Agri-Pulse’s Ag Outlook Forum in Kansas City, Missouri, that the administration is still “exploring every option available” to provide help where needed.
Multiple Republicans on Capitol Hill have been eyeing tariff revenue to fund a bailout effort. House Ag Committee Chair Glenn “GT” Thompson, R-Pa., told Agri-Pulse earlier this month that tariff payments to farmers could go in a skinny farm bill his committee will be drafting.
But Thompson later softened the comments, arguing that, legally, it would be difficult to channel tariffs to farmers.
During Trump’s first term, the administration used the Commodity Credit Corporation to compensate farmers for the impact of tariffs. That fund, which has a borrowing authority capped at $30 billion, has not yet been replenished by Congress, and with the administration already tapping the fund for Price Loss Coverage and Agriculture Risk Coverage payments in the coming months, it is not clear how much money would be left to fund another tariff bailout.
“They think there’s not enough room in the $30 billion cap to put together a good-enough size program to support farmers,” a former USDA official granted anonymity to speak candidly about the administration’s options told Agri-Pulse.
The administration has been considering using its Section 32 authority to support farmers. Section 32 is funded by 30% of tariff receipts, which officials can use to buy surplus commodities in order to boost domestic consumption, encourage farm exports and increase farmers' purchasing power, according to the Congressional Research Service. It has historically been used to buy commodities not covered by other mandatory support programs.
But there are legal restrictions on how officials can use Section 32. Only $350 million can be spent on restoring farmers’ purchasing power through direct payments, Bart Fischer, co-director of the agricultural and food policy center at Texas A&M University, said during the Ag Outlook Forum.
The bulk of the revenues has to be used to fund child nutrition programs administered by USDA’s Food and Nutrition Service.
Harrison Pittman, director of the National Agricultural Law Center, said on Thursday that it remains an “open question” as to whether the president would be able use Section 32 to channel tariff revenues to farmers.
Ultimately, the paths for providing tariff assistance to farmers lead back to Congress, the former official argued.
“Taking the handcuffs off and tying this back to tariff revenue through Section 32 would be the cleanest,
most appropriate way to do it,” the former USDA official said, adding that pushing the message that tariffs are funding the assistance is “a nice talking point.”
But Fischer warned against underestimating the administration’s determination to work unilaterally, without Congress.
“I don’t underestimate USDA attorneys and their ability to find authority for a president to be able to do what he wants when he wants,” Fischer said. “I wouldn’t rule that out. But honestly, Congress has a lot to say too.”
One potential wildcard in all this remains how the Supreme Court will rule on the legality of Trump’s tariffs, Pittman said. Both the Court of International Trade and the Federal Circuit Court of Appeals have said Trump overstepped his legal authorities in using emergency powers to impose tariffs. The Supreme Court will hear oral arguments in the case in early November.
If the tariffs are struck down, the administration could be ordered to issue tariff refunds.
“That’s going to be a wrinkle in all of this,” Pittman said.
In a statement on Thursday, Thompson welcomed Trump’s effort to help America’s farmers.
“President Trump is right to support them and step in to provide a bridge to the enhanced farm safety net policies in H.R. 1, which will kick in next year,” he said. “I’m committed to working with the Trump Administration to support farmers and rural America during critical economic times.”
This article was originally published by Agri-Pulse. Agri-Pulse is a trusted source in Washington, D.C., with the largest editorial team focused on food and farm policy coverage.
