Exclusive: Biden's race-based loan program hurt white farmers, whistleblower says

Yahoo

28-05-2025

(NewsNation) — While President Donald Trump has spoken out against most of the Biden administration's policies, he's been particularly enraged by what he sees as Biden's endorsement of diversity, equity and inclusion initiatives in all aspects of government. However, Trump didn't even know the Biden administration had managed to implement DEI policies involving American farmers. It has remained a secret until now.
NewsNation exclusively spoke with a whistleblower from the United States Department of Agriculture about loan forgiveness policies under the Biden administration.
The whistleblower discussed the passage of the American Rescue Act and how Section 1005 of that act provided loan relief specifically for socially disadvantaged farmers.
Analyst: iPhone exports from China to US drop 75%
The section provided race-based loan forgiveness, granted only to those who qualified as socially disadvantaged farmers or ranchers.
Buried in the American Plan Rescue Act passed by a Democratic majority in Congress, the United States secretary of agriculture shall 'provide payment in an amount up to 120 percent of the outstanding indebtedness of each socially disadvantaged farmer.' The 'socially disadvantaged farmer' was defined by the act as American Indian, Alaskan Native, Asian, Black, African American, Native Hawaiian, Pacific Islander, Hispanic or Latino in order to qualify for their loan to be paid off, plus 20% to cover taxes.
When word got out that the American Rescue Plan Act was paying off the loans of only a specific class of minority farmers, white farmers from all over the country sued in federal court, alleging that the American Rescue Plan Act was race-based and violated the equal protection clause under the Constitution.
James Dunlap owns a small family farm in Baker City, Oregon. He works two other jobs to keep his farm afloat, but he did not qualify for loan forgiveness because he's white. James Dunlap told NewsNation that he found out about the new loan forgiveness policy from a friend.
Trump admin orders halt to student visa interviews
'As far as I understand, not at all. It wasn't about hardship. It wasn't about financial situations. It was about that box you checked under ethnicity line under your application,' he said.
If a borrower checked the 'non-white' box, they received loan forgiveness. It didn't matter if they actually needed assistance in making their loan payments.
Dunlap, along with other white farmers, successfully sued the Biden administration in federal court with the assistance of their attorney, Glenn Roper, from the Pacific Legal Foundation.
The federal court judge found the loan forgiveness program for socially disadvantaged farmers was 'an actual constitutional harm that cannot be undone.' He added that the fact James and other white farmers 'will suffer the harm of being excluded from eligibility for that debt relief program solely on the basis of race … is irreparable.'
But despite the federal judge's ruling, the Biden administration wasn't ready to give up on providing loan forgiveness for socially disadvantaged farmers.
Trump plans to pardon Todd and Julie Chrisley
They pushed for passage of the Inflation Reduction Act, which provided $3.1 billion for distressed direct and guaranteed loan borrowers (all farmers) who were over 60 days delinquent on qualified loans as of September 30, 2022. It was intended to provide financial assistance to all distressed borrowers as of January 2023, but as NewsNation discovered, not all farmers were actually informed about the provision.
NewsNation obtained a copy of an email that was sent out on January 10, 2023, 'to share information about new payments and/or loan modifications that may assist you.'
But the USDA whistleblower told NewsNation that not everyone received this letter. It was only sent out to minority farmers — those who qualified as socially disadvantaged farmers or ranchers under the definition set forth in the American Rescue Plan Act, which was subsequently deemed unconstitutional and repealed by Congress.
The letter was addressed to borrowers and clearly stated the reason for their notification: 'You are receiving this letter because you were previously informed of your potential eligibility as a Farm Loan Programs borrower for a payment under Section 1005 of the American Rescue Plan Act.'
Tommy Tuberville running for governor of Alabama
The letter went on to inform these socially disadvantaged farmers that, although the American Rescue Plan Act no longer grants the USDA statutory authority to fund payments to them, a new payment and loan modification program is available under the IRA.
The whistleblower told NewsNation none of the white farmers he works with received this email. He also noted that USDA workers were even instructed to tell that specific group of socially disadvantaged farmers to stop paying their loans because they would be forgiven.
'It's not right,' the whistleblower told NewsNation. 'It was discriminatory. Unethical. And the people who pushed it are still in charge of the agency … (those) at the national office. Trump hasn't gotten rid of them.'
The USDA spokesperson provided NewsNation with the following statement:
'Over the last four years, the Biden administration left USDA in complete disarray and dysfunction and that's why farmers were being left behind. The entire farm economy has been hurt by Biden's inaction. It is absurd that while the Biden Administration was driving up inflation, American taxpayers were forced to fund billions in woke DEI initiatives. No one should be shocked that Biden weaponized bipartisan farm programs to discriminate and provide taxpayer dollars to one group based on race and not on merit.
On day one, Secretary Rollins issued a memorandum to rescind all DEI programs.
Instead, USDA is reprioritizing unity, equality, meritocracy, and color-blind policies. Secretary Rollins directed USDA to review Inflation Reduction Act funding to ensure that it honors the sacred obligation to American taxpayers—and to ensure that programs are focused on supporting farmers and ranchers, not DEI programs or far-left climate programs.
As part of returning the department to normal business operations, Secretary Rollins has ended the four-year-long COVID-19 pause on debt collections. This includes terminating the 'Distressed Borrowers' program and servicing those loans.
Unlike the Biden Administration, under Trump, USDA does not discriminate and single out individual farmers based on race, sex, or political orientation. Secretary Rollins is working to reorient the department to be more effective at serving the American people and put farmers first. Fortunately, President Trump is taking strong action to support farmers by quickly rolling out programs like the Emergency Commodity Assistance Program that provides $10 Billion in direct assistance to producers. All farmers are encouraged to apply.'
USDA spokesperson
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.