Trump administration launching H-2A reforms to secure legal farm workforce... The Trump administration is moving swiftly to overhaul the H-2A visa system to establish a fully legal workforce for U.S. agriculture, USDA Secretary Brooke Rollins announced at the Western Governors Association annual meeting. Rollins confirmed that top officials from the White House, USDA, and Department of Labor are collaborating on plans to simplify and expand the H-2A process, aiming to make it more accessible for small and mid-sized farms. She pledged additional announcements within days as the administration readies new steps to support farm employers and stabilize the sector.
The centerpiece of the coming reforms is a coordinated drive to reduce paperwork and regulatory barriers that have long hampered employers’ ability to use the H-2A program. Labor Secretary Lori Chavez-DeRemer will lead efforts to streamline the application and compliance process, working closely with USDA and Homeland Security. Chavez-DeRemer is slated to outline the Department of Labor’s new approach today to the Western Governors Association, with a focus on making the H-2A system more efficient and employer-friendly.
The policy push comes amid heightened anxiety in the farm sector, following recent immigration raids that left some operations short-staffed by up to 60% as workers stayed home out of fear of deportation. At the same time, the Department of Labor last week suspended enforcement of Biden-era H-2A rules that imposed new wage, housing, and disclosure requirements, a move farm groups criticized as costly and cumbersome.
By prioritizing a streamlined H-2A program, the administration said it is signaling a commitment to both enforce immigration law and maintain a stable, legal workforce for American agriculture — without undermining the viability of farms or the national food supply. Further details on the planned reforms and paperwork reductions are expected in the coming days.
Hassett: U.S./China trade framework stable amid Iran tensions... Rising tensions in the Middle East, including recent U.S. strikes on Iran, have not affected the U.S./China trade agreement, according to Kevin Hassett, head of the White House National Economic Council. In an interview with CNBC, Hassett stated that the U.S. and China remain in “constant contact,” and that the trade framework is stable, with no disruptions stemming from the situation in Iran.
Hassett emphasized that Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are maintaining active communication with Chinese officials, focusing on keeping the rare earths supply chain steady. Rare earth minerals — critical for U.S. manufacturing — are a key area of cooperation, and both nations are working to ensure that the flow of these materials returns to pre-conflict levels.
Hassett also clarified that the recent U.S. military operations in Iran were “extremely targeted” and did not disrupt global oil markets — an outcome that could have otherwise threatened economic stability and ongoing trade talks. White House officials continue to express confidence that the trade framework with China will remain intact, insulated from unrelated international crises.
House committee, Japan ambassador to meet amid stalled trade talks... Members of the House Ways and Means Committee will hold a closed-door roundtable with Japanese Ambassador Shigeo Yamada on Thursday, as trade negotiations between the U.S. and Japan remain deadlocked ahead of a critical July 9 tariff deadline. The discussions, led by the panel’s Trade Subcommittee, come at a tense moment: Japan is urgently seeking relief from a 25% U.S. tariff on car exports and a suspended 24% reciprocal tariff on other imports — both set to expire July 9 unless a deal is reached.
Japan’s chief trade negotiator, Ryosei Akazawa, described the talks as “in a fog,” with no major breakthrough despite intense diplomatic efforts. The uncertainty is already hitting Japan’s economy: May marked the first decline in Japanese exports in eight months, driven by U.S. trade restrictions that have squeezed automakers and underscored Japan’s dependence on the American market.
Negotiations face added complications from Japan’s July 20 upper house elections, which limit Prime Minister Shigeru Ishiba’s ability to make concessions on politically sensitive issues like agricultural imports. While Tokyo is pressing for a broad review of U.S. tariffs, Washington continues to resist special treatment for Japanese auto exports and has kept steel and aluminum duties in place.
Japanese officials warn that failing to resolve the auto tariff dispute could “cause the entire Japanese economy to stall,” given the central role of the car industry in national supply chains. With time running out and no clear resolution in sight, Thursday’s meeting offers a rare opportunity for lawmakers and the Japanese ambassador to seek new paths forward.
Bottom Line: With political and economic pressures intensifying, uncertainty over U.S./Japan trade is likely to persist beyond the July deadline.
Senate Republicans scramble to salvage SNAP savings after parliamentarian ruling... Senate Republicans are urgently revising their plan to cut tens of billions of dollars from the Supplemental Nutrition Assistance Program (SNAP) after the Senate parliamentarian ruled their initial cost-sharing proposal violated chamber rules. The original provision, which formed a key part of the GOP’s sweeping “megabill,” would have required states to share SNAP costs based on their payment error rates, producing significant federal savings.
The parliamentarian, citing the Byrd Rule, determined the measure operated more as a policy incentive for states to reduce error rates rather than a direct budget cut, making it ineligible for the fast-track reconciliation process that bypasses a filibuster. The ruling forced Republican leaders back to the drawing board as they scrambled to secure enough savings to support their legislative priorities and meet an ambitious timeline to finalize the bill by Thursday.
In response, Senate Republicans are amending the bill to give states additional time to adapt to the new cost-sharing rules. Whereas the initial proposal would have compelled states to start contributing to SNAP benefits just four months after receiving their error rate data from USDA — beginning in October 2028 — the revised language offers a longer window between the data release and the requirement to begin funding benefits.
Senate Ag Chair John Boozman (R-Ark.) said the modification is meant to address the parliamentarian’s concerns and ensure compliance with Senate rules. If approved, the updated language could still deliver most of the estimated $41 billion in savings from the reworked cost-sharing plan — savings that are vital for GOP leaders after several other budget offsets were struck down.
The Senate proposal already marks a retreat from the House-passed version, which would have made all states pay at least 5% of SNAP benefit costs, with higher percentages for those with high error rates — potentially saving up to $128 billion. The Senate plan, in contrast, targets only states with high error rates, requiring them to contribute 5% to 15% of costs. This approach was crafted as a compromise to ease concerns among state officials and some GOP senators about the financial strain on states with persistent error issues.
Republicans must now wait for the parliamentarian to review the new language. If approved, it would resolve a major obstacle as GOP leaders race to finalize the bill and secure needed savings. If not, they may have to strip the provision entirely or identify alternative budget cuts — an outcome that could further complicate already tense negotiations over SNAP’s future and the broader budget package.
Senate GOP scrambles to finalize tax bill details before vote... Senate Republican leaders are racing to wrap up negotiations on their major tax package, aiming for a floor vote by the end of the week — but last-minute disagreements over state-and-local tax (SALT) deductions and Medicaid provisions are raising doubts about the schedule. Senate Majority Leader John Thune (R-S.D.) said the Senate remains “on schedule,” but ongoing talks over a SALT cap — still unresolved between the House’s $40,000 deduction and the Senate’s $10,000 proposal — and Medicaid-related changes could push the process into the weekend. Lawmakers are also bracing for a “vote-a-rama” packed with Democratic amendments and further parliamentary rulings, complicating the path forward.
Key sticking points include:
- SALT deduction: House Republicans support a $40,000 cap, while Senate Republicans may offer the same amount but with a lower income threshold.
- Rural hospitals: Discussions continue over aid for rural hospitals to offset Medicaid provider tax changes, but the details remain murky and may not satisfy holdout senators like Josh Hawley (R-Mo.).
- Energy tax credits: Productive negotiations have taken place over clean-energy tax credits originally part of the Inflation Reduction Act, but agreement on healthcare and Medicaid measures is still pending.
House Appropriations panel advances divisive FY 2026 Ag funding bill... The House Appropriations Committee narrowly approved a $25.5 billion fiscal year (FY) 2026 Agriculture spending bill, advancing the measure by a 35-27 vote despite Democratic resistance and sharp debate over proposed cuts to food and farm programs. The party-line vote followed contentious discussions on how the House reconciliation bill would affect Supplemental Nutrition Assistance Program (SNAP) retailers and farmers’ access to healthcare, with Democrats unsuccessfully pushing for further economic impact studies.
The bill allocates $21.9 billion for USDA — a decrease of $807 million from FY 2025 — and $6.8 billion for the Food and Drug Administration, partly funded by user fees.
Democrats centered their criticism on the reconciliation bill, which would impose a new baseline state cost-share for SNAP benefits, potentially rising to 25% for states with high payment error rates. Rep. Adriano Espaillat (D-N.Y.) warned that such changes could force many independent grocery stores in low-income areas to close, given their reliance on SNAP revenue. His amendment, which would have required USDA to report on the economic impact to these retailers, was defeated 28-34.
The bill’s SNAP allocation stands at $118.1 billion, though Republicans signaled that figure will be updated once reconciliation changes are finalized. The Senate is weighing a less stringent cost-sharing plan, with a cap at 15% and only applying to states with elevated error rates, but Senate Ag Chairman John Boozman (R-Ark.) said Monday that the proposed 2028 implementation date may be delayed following advice from the parliamentarian.
Democrats also spotlighted the impact of Medicaid cuts on farmers. Rep. Mark Pocan (D-Wis.) proposed an amendment for a Government Accountability Office report on the potential harm to rural healthcare and the farm supply chain; that measure was also voted down.
Republicans, led by Appropriations Agriculture Subcommittee Chair Andy Harris (R-Md.), argued the reforms are needed to address ballooning deficits and federal debt, calling the state cost-share and tighter work requirements “reasonable.” Next step: The full House is expected to consider the bill later this summer, with major SNAP and Medicaid provisions still in flux as bicameral negotiations continue.