Court Restores $127 Million in Illegally Canceled USDA Grants Supporting Black Farmers and Other Farmers of Color
Black farmers and agricultural organizations across the country will regain access to $127 million in federal grants after a judge ruled that the U.S. Department of Agriculture likely acted unlawfully when it canceled the awards.
According to Capital B News, U.S. District Judge Beryl A. Howell issued a preliminary order June 30 requiring the USDA to reinstate grants awarded to 24 organizations through the Increasing Land, Capital, and Market Access Program. The funding must remain available while a lawsuit challenging the cancellations proceeds.
The organizations said losing the grants forced them to suspend projects, reduce staff and break commitments made to farmers and community partners.
USDA Cuts Disrupted Projects Supporting Black Farmers
The Increasing Land, Capital, and Market Access Program was established under former President Joe Biden’s administration to address barriers experienced by farmers of color, including historic land loss and limited access to capital, property and agricultural markets.
The program awarded approximately $300 million to 50 projects nationwide.
After President Donald Trump returned to office, the USDA began canceling grants it associated with diversity, equity and inclusion initiatives. In termination letters sent in March, the department described the awards as discriminatory and connected to wasteful spending.
Among the affected organizations was the 2020 Farmers Cooperative, led by Sharon Mallory. The cooperative planned to use its grant to purchase farming equipment and land while expanding programs that provide food to local communities.
The organization had already entered agreements with farmers when the USDA terminated its funding.
“Put it another way, the grant termination has undone 2020 Farmers Cooperative’s long-term work in building trusting relationships, which led us to apply for the grant, and we must now find new ways to get back to where we were reputationally,” Mallory said in the lawsuit.
The sudden cancellation also created uncertainty for farmers and organizations that had structured long-term projects around the federal awards. Some groups laid off or reduced staff, ended programs or redirected money from other operations.
Judge Finds Organizations Could Face Irreparable Harm
Howell determined that the organizations demonstrated they could suffer irreparable harm without immediate court intervention.
“Land Access Program Plaintiffs have demonstrated that the terminations of their individual grants were likely contrary to statute, that they will suffer irreparable harm in the absence of relief, and that the balance of equities and public interest favor preliminary injunctive relief,” Howell wrote in an accompanying opinion.
“Thus, these grant terminations are preliminarily vacated.”
The judge also ordered the USDA and its employees to file a report updating the court on the status of the restored grants.
The ruling does not resolve the underlying lawsuit. Instead, it temporarily prevents the department from withholding the money while the court considers the organizations’ broader legal claims.
Advocates Say USDA Must Serve All Farmers
Hannah Wolf, a FarmSTAND staff attorney representing the organizations, called the ruling a victory for people working to create fairer and more sustainable food systems.
“Through this order, and in previously enjoining other grants terminated by USDA and DOGE, the court has consistently recognized that USDA has an obligation to assist all farmers and ranchers,” Wolf said in a statement. “It cannot diminish services to certain farmers by invoking phrases like ‘illegal DEI.’”
The grants will be restored to the following organizations:
- 2020 Farmers Cooperative
- African Alliance of Rhode Island
- Agraria Center for Regenerative Practice
- Agrarian Trust
- Black Oregon Land Trust
- Center for Heirs’ Property
- Cultivate Kansas City
- Four Bands Community Fund
- Heru Urban Farming
- H.O.P.E. for Small Farm Sustainability
- Iowa Valley RC&D
- Kansas Black Farmers Association
- King County, Washington
- NDN Collective
- Northeast Organic Farming Association of New Jersey
- Ourspace World
- RAFI
- San Diego Food System Alliance
- Sustainable Iowa Land Trust
- THRIVE Santa Ana
- Urban Oasis Project
- Viva Farms
- Workin Rootz
- World Farmers
For Mallory and other grant recipients, the decision provides an opportunity to restart projects and begin repairing relationships strained by the funding disruption.
The legal challenge will continue as the court determines whether the USDA had the authority to permanently terminate the grants.
