NMPF Advocates on Tax Package with Farm and Border Spending in Mix
May 5, 2025
House and Senate Republicans in April adopted a budget blueprint to instruct congressional committees to begin working on legislation to renew the 2017 Tax Cuts and Jobs Act and include spending provisions, with dairy-related items an NMPF focus.
Republicans are writing this bill using the budget reconciliation process, which allows Congress to enact tax and mandatory spending legislation on a simple majority vote in the House and Senate. The Senate passed the budget resolution on April 5, and the House followed suit on April 10.
NMPF is prioritizing renewal of the Section 199A tax deduction as part of the process. Dairy cooperatives can claim the deduction based on their domestic manufacturing and pass the benefit back to their farmer owners. NMPF secured 51 dairy stakeholder signers on a March 24 letter led by the National Council of Farmer Cooperatives urging congressional leaders to make Section 199A permanent, and the provision was the main topic of April’s CEO’s Corner.
Outside of tax policy, Congress is likely to use this bill to adjust mandatory spending. The House and Senate Agriculture Committees may boost the farm commodity safety net, which would take one issue off the table for the pending farm bill. The Agriculture Committees are also likely to reduce overall spending from the Supplemental Nutrition Assistance Program, a change that Democrats would oppose. NMPF is in close contact with the committees as they develop their portion of the larger bill.
Republicans also are expected to increase border security-related funding, which could create an opportunity later this year for legislation that would finally address dairy’s agricultural workforce needs. Multiple members of Congress are drafting bills to address ag labor priorities, including allowing dairy farmers and other year-round employers to access the H-2A ag visa program.
NMPF will once again lead efforts in the dairy industry, in partnership with other agricultural stakeholders, to build the momentum and support for advancing much-needed ag workforce legislation.
