USDA ends race-based farm subsidies as federal and state governments target DEI programs in education and workplaces

By willowt // 2025-07-14

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USDA eliminated race- and gender-based subsidies, ending preferential loan terms and aid for minority and female farmers under Biden-era programs.
Trump’s Executive Order in 2025 mandates termination of all federally funded DEI initiatives, citing violations of civil rights laws and constitutional “equal protection.”
Federal courts previously ruled unlawful a $4B Biden loan-forgiveness program, which the USDA declined to appeal.
Florida and other states have banned mandatory DEI courses in public universities, risking state funding for noncompliance.
The rollback follows findings that 60% of U.S. colleges require DEI coursework, disproportionately affecting public institutions, per a Speech First report.

On Thursday, the U.S. Department of Agriculture (USDA) officially ended race- and sex-based preferences in its flagship farm programs, part of a broader federal and state backlash against diversity, equity and inclusion (DEI) initiatives deemed discriminatory. The move aligns with President Donald Trump’s January 2025 executive order mandating an end to “illegal discrimination and preference policies,” emphasizing merit-based opportunity over identity-conscious programs. Meanwhile, state-level actions, notably Florida’s ban on DEI mandates in public universities, underscore a nationwide effort to redefine equality by eliminating institutional policies critics argue fracture societal unity.

USDA ends race-based subsidies, citing equality and merit

The USDA’s new rule, finalized after a high-profile lawsuit by Wisconsin dairy farmer Adam Faust, removes racial and gender criteria from over a dozen programs. Previously, minority or female applicants could secure higher loan guarantees or grants compared to non-minority males. For example, Faust received a 90% guarantee under Biden-era rules, while eligible minority applicants were offered 95% for the same program. “The USDA will no longer apply race- or sex-based criteria,” declared the rule, “ensuring all Americans access resources based on need and merit.” Secretary of Agriculture Brooke Rollins emphasized accountability: “This action reverses decades of unlawful discrimination and ensures equal treatment under the law.” The agency defended its shift by citing prior settlements addressing historical inequities, such as a $1.8B class-action payment to Black farmers in 2021, which it claims justified ending ongoing racial adjustments. Critics, however, argue systemic barriers persist, advocating for targeted support to correct enduring imbalances.

Federal crackdown accelerates with executive order banning DEI preferences

President Trump’s Executive Order 14083, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”, marked a sweeping reversal of DEI-focused policies. Enacted January 21, it revoked decades-old directives, including Biden-era environmental justice and diversity hiring mandates. Among its provisions:

Federal contractors must comply with anti-discrimination laws but cannot use “diversity” as a criterion in employment or procurement.
Entities receiving federal funds, including universities, must certify they do not operate DEI programs violating civil rights laws.
A report by the attorney general is due soon urging legal action against private-sector DEI initiatives.

Deputy Legal Counsel Dan Lennington called the order “long overdue,” arguing DEI programs “undermine dignity and excellence.” The Transportation Department followed USDA’s lead, scrapping DEI and climate mandates for funding recipients.

Colleges and universities face funding losses over DEI compliance

While the USDA and federal agencies pivot, states escalate actions against educational DEI mandates. Florida’s law, enforced since August 2024, bans state-funded universities from teaching that “the U.S. is fundamentally racist or sexist,” triggering a 3% annual penalty cut for noncompliance. The measure mirrors concerns in Congress, where Representative Greg Steubing praised states “dismantling divisive agendas.” A Speech First study reveals more than 160 U.S. colleges, 59% public, require DEI courses for graduation — a practice now under existential threat. The USDA’s move may ripple into academe: Trump’s executive order directs federal agencies to withhold grants from institutions enforcing DEI-linked admissions or employment policies.

Legal and historical context fuel policy reversal

The anti-DEI tide builds on a legal and cultural narrative stretching back decades. Earlier this year, the Supreme Court’s Students for Fair Admissions v. Harvard ruling forbade university race-conscious admissions, marking a pivot from Justice Powell’s Regents of the University of California v. Bakke (1978) endorsement of affirmative action. The Wisconsin Institute for Law & Liberty’s litigation symbolizes this shift. Their 2021 victory blocking Biden’s pandemic-era “socially disadvantaged” farmer loans laid groundwork for the USDA’s latest reforms. Legal experts note that while DEI intent aims to address inequality, courts increasingly view identity-based policies as incompatible with equal protection guarantees.

A decisive turn toward “merits over identity”

The USDA’s policy shift and concurrent rollbacks across federal agencies signify a new era in domestic governance, prioritizing individual merit over systemic redress measures. With states like Florida amplifying the backlash and federally funded institutions at risk of losing aid, the outcome may reshape access to education, employment and public resources for generations. As debates over equality’s definition intensify, the Trump administration’s reforms demand keen scrutiny — not just of programs eliminated, but of the nation’s evolving consensus on justice. Sources for this article include: YourNews.com WhiteHouse.gov Fox17.com