“Whistleblower Alleges Biden-Era USDA Loan Forgiveness Program Discriminated by Race”
A whistleblower from the U.S. Department of Agriculture (USDA) has come forward with claims that the Biden administration’s loan forgiveness programs for farmers were implemented along racial lines — sparking controversy, legal challenges, and renewed scrutiny from the current Trump administration.
The revelations, first reported by NewsNation, center on Section 1005 of the 2021 American Rescue Plan Act (ARPA), passed under President Joe Biden and a Democratic majority in Congress. That section authorized the USDA to forgive 120% of farm loan debt — including tax offsets — for “socially disadvantaged farmers,” a designation limited to certain racial and ethnic groups. Eligible categories included American Indian, Alaskan Native, Asian, Black, African American, Native Hawaiian, Pacific Islander, Hispanic, and Latino farmers.
Critics of the program said it excluded white farmers, regardless of financial hardship, effectively tying loan forgiveness solely to race. James Dunlap, a small farmer in Oregon who did not qualify for relief, told NewsNation: “It wasn’t about hardship. It wasn’t about financial situations. It was about that box you checked under ethnicity.”
The policy prompted lawsuits from farmers across the country. In one federal case, the court ruled in favor of the plaintiffs, declaring the race-based criteria to be an “actual constitutional harm.” The judge noted that white farmers had been “excluded from eligibility for that debt relief program solely on the basis of race,” and that the harm was “irreparable.”
In response to that ruling, Congress repealed the provision. However, the whistleblower alleges that race-based practices persisted under the Inflation Reduction Act (IRA) of 2022, which allocated $3.1 billion in relief for “distressed” borrowers — those more than 60 days delinquent on their loans. Though the new program was ostensibly race-neutral, internal USDA communications and an email obtained by NewsNation suggest that only minority farmers previously flagged under ARPA were directly informed of new loan relief opportunities.
“You are receiving this letter because you were previously informed of your potential eligibility… under Section 1005 of the American Rescue Plan Act,” the USDA email dated January 10, 2023 read. The whistleblower said no white farmers received this notification, and alleged that USDA officials had instructed minority farmers to stop making payments because forgiveness would be forthcoming.
In response to the allegations, the USDA under Secretary John Rollins — appointed by President Donald Trump — issued a statement condemning the previous administration’s policies.
“Over the last four years, the Biden administration left USDA in complete disarray and dysfunction,” the statement reads. “It is absurd that while the Biden Administration was driving up inflation, American taxpayers were forced to fund billions in woke DEI initiatives.”
According to the agency, Secretary Rollins has since rescinded all diversity, equity, and inclusion (DEI) programs and ended COVID-era loan forbearance initiatives, including the “Distressed Borrowers” program. The USDA says it is now reprioritizing “unity, equality, meritocracy, and color-blind policies.”
In place of race-based programs, the Trump administration has introduced the Emergency Commodity Assistance Program, which it says will provide $10 billion in direct aid to farmers regardless of background. All producers are encouraged to apply.
The issue has reignited broader political debate over DEI policies in federal agencies. While supporters argue that the original ARPA provisions sought to correct long-standing racial disparities in agriculture, critics say the execution crossed constitutional lines and sowed division among farmers.
As investigations continue and policies shift under new leadership, the episode highlights the complexity — and consequences — of federal attempts to address historic inequities through targeted economic relief.
Source article posted here: https://www.yahoo.com/news/exclusive-biden-race-based-loan-004021093.html
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