USDA has distributed $2.2 billion to 43,000 individuals who experienced discrimination in receiving USDA farm program services before January 2021.
The funds reached recipients in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and American Samoa. The Biden administration coordinated a press call to highlight the importance of this announcement, with USDA Secretary Tom Vilsack discussing it at a White House press briefing.
More than 23,000 individuals currently or previously involved in farming or ranching received between $10,000 and $500,000, averaging nearly $82,000. Additionally, over 20,000 individuals who planned to farm but couldn’t due to loan denials received between $3,500 and $6,000, averaging $5,000.
Funding source: The Discrimination Financial Assistance Program (DFAP), established by the Inflation Reduction Act (IRA), provided the $2.2 billion in funding.
Application Review: Two independent panels reviewed 58,000 applications, including duplicates, to determine eligibility.
Discrimination types: Cases involved denial of credit due to race, sex, or gender identification, late loan servicing, and higher interest rates.
USDA reforms: USDA is using application information to improve processes and has increased minority representation in Farm Service Agency offices.
Historical context: A separate IRA program provided over $2.4 billion to more than 40,000 existing USDA loan customers who had experienced discrimination.
Vilsack acknowledged the financial assistance as an important step towards inclusivity and equity in USDA programs.
