Trump Says He'll Use Tariff Revenue To Bail Out Farmers

President Donald Trump said Thursday that he will use tariff revenue to offer cash bailouts for farmers who are struggling with trade uncertainty and other economic headwinds.

"We're going to take some of that tariff money that we made, we're going to give it to our farmers, who are, for a little while, going to be hurt until the tariffs kick into their benefit," Trump told reporters in the Oval Office. "So we're going to make sure that our farmers are in great shape, because we're taking in a lot of money."

Trump officials expect that Congress will need to authorize the use of tariff revenue for the farm aid package and are hoping lawmakers will include it in their omnibus package due by Nov. 21, according to three people familiar with the talks. That means the rollout of cash will likely start in early 2026.

The Trump administration has been exploring several ways to fund a farm aid package this fall for weeks as producers of top exports like corn and soy stare down a potential economic crisis that's been exacerbated by the president's aggressive tariff rollout.

The president, as he conveyed publicly Thursday, likes the messaging of using direct tariff revenue for the farm aid package, rather than tapping other funds, according to two of the people familiar.

Republicans from House Agriculture Chair G.T. Thompson (R-Pa.) to Agriculture Secretary Brooke Rollins have also floated using tariff revenue to pay farmers, though the plan could run into roadblocks if the Supreme Court decides Trump's tariffs are not legal.

Still, some Hill Republicans are privately alarmed by the proposal to distribute tariff revenue, according to one person with direct knowledge of the concerns. They're worried such a plan would spark major demands from Democrats to insert more of their priorities into the November funding package. And they'd rather USDA tap internal funds, like it did during Trump's first term trade war with China.

"I think we need to be eyes wide open about how big the Democratic counter-offer to this would be," said the person, who was granted anonymity to speak candidly.

Powerful agriculture lobbying groups and lawmakers representing farmers have been privately pushing the administration to step in with cash bailouts as they wait for the new market opportunities Trump has promised he can secure with major trading partners like China.

“The pitch being made to the administration is, ‘Look, if you don't have some kind of ace up your sleeve here, like an imminent deal with China and/or a string of other trade deals that are about to be announced that also happen to lighten the load on soybeans, then there's going to have to be a bailout,’” one agriculture industry representative, who was granted anonymity to discuss the private talks, previously told POLITICO.