NEW: Trump Threatens Survival of Initiative Baldwin Created to Support American Dairy

WISCONSIN – Today, Senator Tammy Baldwin (D-WI) is demanding the Trump Administration reverse course on a policy that threatens to shut down the Dairy Business Innovation Initiative, a program Senator Baldwin created to help small- and medium-sized dairy businesses expand their product line and diversify their revenue streams. On September 30, the U.S. Department of Agriculture (USDA) rolled out a new unattainable requirement that the four Dairy Business Innovation Initiative Centers, one of which is in Wisconsin , provide a 25 percent match for federal funding. All four centers – through which DBII funding is awarded – have warned they do not have the capital to comply with this requirement, threatening their ability to provide grants to family farms and small dairy businesses. “By requiring each Dairy Business Innovation Center to provide a match that Congress never intended and centers do not have the resources to meet, USDA is threatening the program’s survival and the success of the farmers and producers that it supports,” wrote Senator Baldwin in a letter to USDA Secretary Brooke Rollins. “This new financial hurdle comes at a time when dairy farmers are already struggling financially with fewer market opportunities and record-high fuel prices amid President Trump’s trade war and war in Iran. I urge USDA to reverse this new requirement and ensure that the Dairy Business Innovation Initiatives may continue providing a lifeline for dairy farmers and processors when they need it most.” Last month, USDA issued the Fiscal Year 2026 Notice of Funding Opportunity to the four Dairy Business Innovation Centers in Wisconsin, Vermont, Tennessee and California, and for the first time, attached a new requirement that the centers provide a 25 percent cash match—up to $1 million from each center—in order to receive federal funds that support dairy businesses. The centers have indicated they do not have the capital available to meet this new matching requirement, putting the future of the program at risk. This comes after the Trump Administration chose to freeze funding for the program in early 2025. USDA finally released funds after Baldwin demanded they restart payments that had already been awarded to farmers. In her letter, Senator Baldwin requested that USDA reissue the Notice of Funding Opportunity for the Dairy Business Innovation Initiatives without the new matching requirement. Senator Baldwin also highlighted how this new requirement comes as President Trump’s war in Iran and tariffs are jacking up the cost of diesel, fertilizer, and transportation for Wisconsin farmers. “The Administration’s decision to put new barriers in the way of assistance for dairy farmers comes when they can afford it the least. Wisconsin farmers do backbreaking work to produce world-class products that feed the world. The President came into office promising to support our farmers but instead has taken every opportunity to make their livelihoods increasingly more difficult. Between the trade war and unnecessary war in Iran, Wisconsin farmers are paying more for everything. I request that the Administration reverse course on this decision,” Senator Baldwin concluded. DBII is a lifeline for dairy farmers and processors, providing direct farm technical assistance, business consulting, strategic planning, marketing, product development, and distribution. DBI centers have awarded more than $106 million in grants to 911 dairy businesses since 2019. Additionally, a significant portion of Dairy Business Innovation funds are dedicated as small-dollar grants to small- and medium-sized, family-owned businesses. Senator Baldwin successfully created the DBI Initiatives through the Dairy Business Innovation Act in 2018 , which passed as part of the 2018 Farm Bill. “Many dairy farmers and processors are struggling to make it right now, faced with soaring fuel prices, the volatility of trade and tariffs, and a labor shortage. They need the support Dairy Business Innovation Initiatives provide now more than ever – and they know that adding a cost-share provision to the program will end it,” said Rebekah Sweeney, Wisconsin Cheese Makers Association senior director of programs and policy. “We are grateful Sen. Baldwin is giving voice to this concern, and we urge every member of Congress to work to see this provision removed – and full funding restored.” Full text of the letter can be found here . Dear Secretary Rollins, I am writing to raise serious concerns about the U.S. Department of Agriculture’s (USDA) newly imposed matching requirement on the Dairy Business Innovation Initiatives (DBII), which threatens to undermine a proven resource of funding that supports dairy farmers and processors in Wisconsin and across the country. By requiring each Dairy Business Innovation Center to provide a match that Congress never intended and centers do not have the resources to meet, USDA is threatening the program’s survival and the success of the farmers and producers that it supports. This new financial hurdle comes at a time when dairy farmers are already struggling financially with fewer market opportunities and record-high fuel prices amid President Trump’s trade war and war in Iran. I urge USDA to reverse this new requirement and ensure that the Dairy Business Innovation Initiatives may continue providing a lifeline for dairy farmers and processors when they need it most. Last month, USDA issued the Fiscal Year 2026 Notice of Funding Opportunity to the four Dairy Business Innovation Centers in Wisconsin, Vermont, Tennessee and California, and for the first time, attached a new requirement that the centers provide a 25 percent cash match—up to $1 million from each center. USDA indicated in their notice that the agency would only accept cash and would refuse any in-kind contribution, such as technical assistance, to meet the requirement. The centers do not have the capital available to meet this new matching requirement, putting the future of the program at risk. Congress has consistently supported the Dairy Business Innovation Initiatives on a bipartisan basis and has provided funding for the program without requiring centers to provide a cash match. By imposing this new requirement, USDA is adding a financial condition that Congress never intended and that could effectively bring a successful, bipartisan program to an end. I request that USDA reissue the Notice of Funding Opportunity for the Dairy Business Innovation Initiatives without the new matching requirement. These initiatives are a lifeline to dairy farmers and processors in over 40 states by providing direct farm technical assistance, business consulting, strategic planning, marketing, product development, and distribution. Additionally, a significant portion of Dairy Business Innovation funds are dedicated as small-dollar grants to small- and medium-sized, family-owned businesses. These dairy businesses provide job opportunities in rural communities and help their economies thrive. The Administration’s decision to put new barriers in the way of assistance for dairy farmers comes when they can afford it the least. Wisconsin farmers do backbreaking work to produce world-class products that feed the world. The President came into office promising to support our farmers but instead has taken every opportunity to make their livelihoods increasingly more difficult. Between the trade war and unnecessary war in Iran, Wisconsin farmers are paying more for everything. I request that the Administration reverse course on this decision Thank you for your time and attention to this matter. ###