SENATE APPROPRIATIONS COMMITTEE
HEARING ON SUPPLEMENTAL FUNDING REQUEST
For questions on the note below, please contact the Delta Strategy Group team.
On July 21, the Senate Committee on Appropriations held a hearing entitled “A Review of the President’s Supplemental Funding Request of June 24, 2026.” Witnesses in the hearing were:
- Ted Budd, U.S. Senator (R-NC)
- Alex Padilla, U.S. Senator (D-CA)
- Mike Rounds, U.S. Senator (R-SD)
- Peter B. Hegseth, Secretary of Defense, Department of Defense
- General John D. Caine, Chairman, Joint Chiefs of Staff
- Brooke L. Rollins, Secretary, U.S. Department of Agriculture (USDA)
Below are several key takeaways from the hearing prepared by Delta Strategy Group, focused on the agricultural and energy portion of the supplemental request.
KEY TAKEAWAYS
Supplemental Request
- Secretary Rollins outlined how the request includes $10 billion in temporary economic assistance for 2026 row crop and specialty crop producers, with $1.1 billion to help producers recover from catastrophic freeze losses suffered this past winter.
- Secretary Rollins framed the request as a limited bridge to more permanent improvements rather than long-term dependence on government aid. Senator Boozman (R-AR) echoed this, describing the assistance as a bridge until more permanent demand-driving policies take hold.
- Senator Heinrich (D-NM) questioned Secretary Rollins on how USDA will ensure relief funds reach U.S. producers, citing roughly $90 million directed to a Brazilian company during the first Trump Administration. Secretary Rollins responded that DOJ is investigating consolidated and foreign-based firms.
Farm Economy, Input Costs, & Trade
- Secretary Rollins cited rising agricultural input costs between 2020 and 2025, including seed costs up 19 percent, crop protection costs up 30 percent, fertilizer costs up more than 50 percent, fuel and oil costs up nearly 33 percent, and maintenance and repair costs up 27 percent. She stated that these increases, combined with falling commodity prices, contributed to a decline of more than $90 billion in farm income from 2023 to 2024.
- Secretary Rollins argued U.S. farmers had been “hollowed out” over the past century and particularly during the last Administration, noting 2023 marked the first year the U.S. became a net importer of food. Chair Collins (R-ME) additionally highlighted the loss of over 200,000 farms in the last decade.
- Senator Rounds (R-SD) cited projected 2026 losses per acre of $131 for corn, $342 for cotton, $114 for wheat, and $80 for soybeans.
- Secretary Rollins credited the Working Families Tax Cuts Act with moving $40 billion to agricultural producers and contributing to nineteen new trade deals that she stated cut the $50 billion agricultural trade deficit by 42 percent in one year.
- Senator Britt (R-AL) separately flagged the Russia-Ukraine conflict as a continuing driver of fertilizer and input costs.
National Security Considerations
- Secretary Rollins stated that defending America’s ability to feed, fuel, and clothe itself defending America, explaining USDA’s role in supporting national security alongside the Department of War. Senator Rounds framed food security, energy security, and national security as interconnected.
- Secretary Rollins described consolidation in agricultural industries, such as seed and fertilizer, as a national security threat, noting that a small number of large firms control an overwhelming share of production, including Chinese ownership large producers.
Biofuels & Energy
- Secretary Rollins praised Environmental Protection Agency (EPA) Administrator Zeldin for achieving what she described as the strongest Renewable Fuel Standard (RFS) volumes in history. She noted the President’s continued support for year-round E15 in domestic markets.
- Senator Rounds called for permanently authorizing nationwide year-round E15 sales, arguing it would expand markets for corn growers, increase domestic fuel production, reduce reliance on foreign energy, and lower costs at the pump. Senators Hyde-Smith (R-MS), Fischer (R-NE), and Boozman similarly emphasized E15 and demand-driving policies, with Secretary Rollins agreeing that opening domestic markets is important to sustaining higher commodity prices.
Disaster Relief & Crop Insurance
- Chair Collins pressed Secretary Rollins on why the request addresses only 2026 winter freeze losses rather than 2025 weather events. Secretary Rollins responded that USDA supports relief for affected farmers and would work with the Committee on the matter.
- Senator Hoeven (R-ND) urged the reinstatement of the crop insurance buy-up option covering 67 million acres of U.S. farmland, which Secretary Rollins said USDA fully supports.
- Senator Budd (R-NC) called for additional Hurricane Helene recovery assistance for Western North Carolina, while Senator Padilla (D-CA) urged long-term wildfire recovery and emergency suppression funding.