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A federal judge has ordered the U.S. Department of Agriculture to temporarily restore approximately $127 million in grant funding that supports Black farmers and other underserved agricultural producers after the Trump administration canceled the program earlier this year.
According to Capital B News, U.S. District Judge Beryl Howell issued a preliminary injunction requiring the USDA to reinstate funding while a lawsuit challenging the cancellations moves forward. The order restores funding for 24 grantees participating in the Increasing Land, Capital, and Market Access Program, which helps beginning and underserved farmers access land, financing, technical assistance, and new markets.
Earlier this year, the USDA terminated the grants, arguing many no longer aligned with the administration's priorities because they were tied to diversity, equity, and inclusion initiatives. The agency also cited concerns about waste, fraud, and abuse.
The organizations challenged the decision in federal court, arguing the USDA unlawfully canceled congressionally authorized grants after recipients had already begun using the funding to serve farmers and rural communities.
Judge Howell found the plaintiffs were likely to succeed on several of their legal claims and concluded they would suffer irreparable harm if the funding remained canceled.
The ruling is especially significant for organizations serving Black farmers, who have faced longstanding barriers to federal agricultural support. Black farmers represented about 14% of U.S. farmers in 1920 but now account for less than 2%, according to federal data and agricultural advocates.
According to Capital B News, several organizations said losing the grants forced them to pause programs, reduce services, and lay off employees. The funding is intended to expand access to land, capital, business development, technical assistance, and market opportunities for historically underserved producers.
Court records cited by the outlet allege the USDA identified grants for cancellation by searching grant documents for terms associated with diversity, equity, inclusion, and climate initiatives before terminating the awards. The Trump administration has defended the cancellations as consistent with its broader policy priorities.
The ruling does not end the lawsuit. Because Howell issued a preliminary injunction, the funding must be restored while the case proceeds through the courts. A final decision will determine whether the USDA acted lawfully when it canceled the grants.
For now, however, the decision allows organizations serving Black farmers and other underserved producers to resume programs that advocates say are critical to expanding economic opportunity in rural communities.
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