Why Black Farmers Are Fighting to Restore $127 Million in USDA Funding

A coalition of Black farmers, tribal groups, and supporting organizations has taken their fight to federal court to restore $127 million in U.S. Department of Agriculture (USDA) grant funding that was abruptly canceled earlier this year. The legal case, filed in the U.S. District Court for the District of Columbia, addresses long-standing issues related to land access, economic fairness, and accountability from the federal government.

A Program Built to Address Historic Inequities

The disputed funds were part of the Increasing Land, Capital and Market Access (LCM) Program, a federally supported initiative started during the Biden administration under the Inflation Reduction Act and American Rescue Plan Act. This program aimed to provide nearly $300 million in support for underserved producers. This include help with land acquisition, access to credit, market development, and technical training.

For organizations like the 2020 Farmers Cooperative, the funding was more than just financial support; it was essential for survival. “We planned to use this grant to help Black farmers acquire equipment, purchase land, and receive technical assistance,” said Sharon Mallory, executive director of the cooperative, in court filings cited by Black Enterprise. “When you try to wipe out things just based upon DEI [diversity, equity and inclusion], you really miss the whole impact of what agriculture is really all about.”

The program was widely viewed as a crucial response to the long history of discrimination Black farmers have faced in federal agricultural programs. National farm data shows that Black-owned farms make up less than 2% of U.S. farming operations, revealing ongoing inequalities in access to land and credit.

Sudden Cancellations and Legal Challenge

In March 2026, the USDA, now under the Trump administration, issued termination notices for 49 of the 50 grants awarded under the LCM Program. It cites concerns that the projects showed “discriminatory preferences” and did not align with current federal priorities. The agency also claimed that some aspects of the program were examples of “wasteful spending.”

The unexpected cancellations led to immediate protests from grantees and advocacy groups, many of whom had already started their projects. A recent report from Montana Free Press highlighted local effects: a tribal agricultural project lost nearly $9 million, another project lost $6 million, and a community fund supporting multiple Native reservations lost $8.5 million, all of which threatened work that had already begun.

In response, a coalition of 24 organizations, including the Black Oregon Land Trust, Four Bands Community Fund, Iowa Valley RC&D, and NDN Collective, joined a larger lawsuit that was initially filed in June 2025. Together, they are asking the court to reinstate the canceled $127 million and require the USDA to uphold the initial grant agreements.

Voices on the Courtroom Frontlines

Attorneys representing the plaintiffs, including Earthjustice, Farmers Justice Center, and FarmSTAND, contend that the USDA’s actions were “arbitrary and capricious” and did not involve an individualized review.

The plaintiffs also refer to a preliminary injunction granted in August 2025, where a federal judge ordered six previously canceled grants to be reinstated. This ruling suggests that the courts see legal validity in their claims. That earlier decision provided temporary relief, but for many farming communities, it was only the first step.

Beyond the Court: Hardship and Hope

For many people involved, this fight is not just about legal matters; it’s about survival and community resilience. In rural areas of the Midwest and South, farmers and service organizations report that the lost grants lead to layoffs, delayed land purchases, and closed programs.

The implications of this situation extend beyond individual groups, affecting the fundamental structure of local food systems and ongoing access to farmland.

Looking Ahead

In the coming months, the court is expected to make a significant ruling on a motion for a preliminary injunction. This ruling could decide whether the canceled funding is restored while the case continues.

For Black farmers and their ally organizations, a win would mean not only the return of funds but also a reaffirmation of their role in American agriculture, setting a precedent for how equity is handled in federal policy.