Commentary: Will the Real USDA Reorganization Plan Please Stand Up?

A March 2025 USDA reorganization plan, made fully public only in July 2026 through a lawsuit, called for cutting Rural Development staff by 47% and Food and Nutrition Service staff by 46%, alongside eliminating or consolidating at least 41 programs and more than 23,000 positions. The plan also floated shifting Rural Development loan programs to the Small Business Administration or HUD, and converting direct loans to guaranteed loans.

In a more recent court filing, a top USDA official said the plan 'does not reflect USDA's current plans,' while separately, in a June 2026 public briefing, officials said no state offices would close. The Section 502 direct loan program has helped more than two million low- and moderate-income rural families become homeowners since 1950, a function critics say would be gutted if the original plan proceeds.

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