USDA freezes $400 million drought aid for irrigation districts

The U.S. Department of Agriculture selected 18 irrigation districts across 12 western states for up to $15 million each in drought aid in late 2024, but over a year later, none of the $400 million has been distributed under the Trump administration. Recipients report no communication from the agency, leaving farmers in drought-stricken areas without promised upgrades to water infrastructure. Former officials say agreements were finalized, yet the funds remain unaccounted for amid staff reductions and program reviews.

In late 2024, the USDA's Water-Saving Commodities program, launched under the Biden administration, earmarked $400 million from the Commodity Credit Corporation for water infrastructure improvements in drought-affected areas. The initiative targeted 18 irrigation districts in 12 western states, three tribal communities, and two state associations of conservation districts, with grants up to $15 million each. The program aimed to help farmers manage scarce water resources more efficiently, such as replacing aging radial arm gates in canal systems.

Gloria Montaño Greene, former Deputy Under Secretary for USDA’s Farm Production and Conservation, explained that the idea originated in 2021 amid severe droughts in agricultural states. "When we left the administration, we already had the signed agreements and the commitments that were going to be going through with the process," she told Grist. An anonymous former USDA official confirmed the agreements were "100 percent" finalized by the end of 2024, with funds structured as reimbursements or advance payments over five years.

However, since the Trump administration took office in January 2025, the funds have been frozen with no payouts or updates to recipients. Ron McEachern, former general manager of the Central Arizona Irrigation and Drainage District in Eloy, Arizona, said his district, which serves areas reliant on the Colorado River, has heard nothing since his contact left the USDA over a year ago. "One thing is, they haven’t swept the money. So the money is there. It’s just getting them to release it," McEachern noted.

Similar experiences were reported by Dan Crabtree of Palisade Irrigation District in Colorado, who said the agency only mentioned evaluating the program post-election, and Randall Winston of Hidalgo & Cameron Counties Irrigation District 9 in Texas, where drought has reduced irrigated acres from 120,000 to 8,000. The Greybull Valley Irrigation District in Wyoming also reported no updates.

A former USDA staffer, who left in 2025, described being instructed to tell recipients the program was under "administrative review" without clearer details, amid a 24 percent workforce loss at the Farm Service Agency. Amanda Starbuck of Food & Water Watch questioned whether the delay stems from climate adaptation concerns or general cuts, but the USDA did not respond to requests for comment.

The delay exacerbates challenges in regions like the Colorado River basin, where inefficient irrigation contributes to high water use, including 2.15 trillion gallons for alfalfa in 2024 across seven states.

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