Good afternoon,
A lot of frustration is building up in the agriculture community. First, the USDA is holding roughly $50 million in funding for farmers to try new farming methods and address business challenges and the deadline for the money to be returned is right around the corner. To make matters worse, plans for an updated farm bill are quickly dissipating and moving toward delay. According to POLITICO, "House Republicans are already falling behind on their original goal of advancing a bill out of the House Ag Committee by the end of September." In Washington, USDA leaders are getting a lot of heat from a group of senators for failing to consult its employees and union representatives in developing its reorganization plans. All these efforts to support the agriculture world are quickly spiraling. We need leaders in the industry to get it together and make good on the promises they've made in the past.
Here are a few important updates...
ADVANCING TRIBAL EDUCATION
Important advancements in tribal education are happening as the Navajo Nation Council considers legislation that would permanently increase the tribe's annual investment in students and tribal colleges to $30 million annually. This marks a substantial increase from the current total allocation of $12.4 million. If implemented, this investment would be governed by the Navajo Nation – an improvement from receiving federal funding, which often comes with tough restrictions on how funds can be used. Ultimately, this legislation would support Navajo students and make higher education more accessible to them. On the federal level, the Trump administration has done a poor job at supporting tribal communities. Take its proposed Bureau of Indian Education budget, for example. Funding for TCUs was cut by approximately 90%.
While the Navajo Nation funding is a step in the right direction, it does not replace federal funding or the federal government's responsibility to support tribal education. Unfortunately, these institutions remain very underfunded, with 70-80% of their budgets dependent on federal dollars and little support from states or tribal governments. We cannot let tribal colleges go underfunded and neglected because they are vital to Native communities. Tribal communities deserve the opportunity to thrive, and this starts with supporting education.
BROADBAND IS THE BACKBONE OF COMMUNITIES
Broadband is increasingly the backbone of communities as businesses and people in all corners of the U.S. need internet connectivity to function and thrive. Recently, the U.S. House Committee on Small Business held a hearing on how expanding broadband can revitalize rural small businesses. During the hearing, industry leaders and policymakers discussed the quintessential role of internet connectivity in helping rural enterprises thrive. The committee explored how insufficient broadband infrastructure not only stifles economic activity, but also creates larger challenges for community growth. As for tribal communities, the Department of the Interior's Office of the Assistant Secretary for Indian Affairs just announced an updated policy that cuts red tape and expedites broadband infrastructure development in these areas. Similarly to rural America, broadband infrastructure is vital to economic growth, education, healthcare, and general progress in tribal communities as well.
According to the Cellular Telecommunications and Internet Association, Americans used 132 trillion megabytes of wireless data in 2024, the largest annual total in history. This record is a steep increase from the 2023 total of 100 trillion megabytes. Last year, total wireless connections in the U.S. reached 578 million. These are just a few figures that highlight the importance of, and growing need for, strong broadband infrastructure across the country. Rural communities, urban communities, and everything in between need these resources to advance and innovate. Our federal government must ensure adequate funding, resources, and programs go toward bolstering broadband.
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MANUFACTURING A RECESSION
The manufacturing sector of the U.S. economy has contracted for six consecutive months. Investment in new factory construction this year is down almost 7% compared to 2024. Combined with the negative revisions to the job's reports over the first 8 months of the year, and weaker than expected employment reports for the past 3 months, the U.S. economy is flashing warning signs that it cannot handle the stress of the Trump agenda much longer.
In the view of Moody's Chief Economist Mark Zandy, the U.S. economy is most likely already in a recession. Zandy dates the start of the recession to June when there was a net loss of jobs in a month for the first time since Trump's first term in December 2020. For those of you following the One Country Project Impact Social reports on economic anxiety in rural America, people have consistently been voicing concerns over job security and rising prices. The administration must shift its policy approach to the economy and workforce before it is too late.
NUMBER OF THE WEEK
$47 billion: The USDA's most recent projected trade deficit for fiscal 2025.
"The deficit is projected to drop to $41.5 billion for fiscal 2026 because U.S. ag importers are expected to fall even more than imports," according to Agri-Pulse's Philip Brasher. Soybean growers are being heavily impacted by Trump's ongoing trade war with China. With harvest season upon us, many American soybean farmers still do not have a single order from China, which has been their largest customer in the past.
- October 1st – The Deadline for passage of a Continuing Resolution, or full annual budget, to prevent a government shutdown. With Congress returning to session this week, we expect to hear lots of discussion on the path forward for funding the government.
WHAT WE'RE READING
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