Pasa Sustainable Agriculture Contract with USDA Reinstated After Trump-Era Freeze
Pasa Sustainable Agriculture has secured the reinstatement of a $59 million contract with the U.S. Department of Agriculture (USDA), following a year-long period of legal challenges and negotiations after the agreement was initially terminated by the Trump administration. The contract is part of the Biden administration’s Partnerships for Climate-Smart Commodities Program.
Contract Termination and Renegotiation
Shortly after President Trump took office in 2023, the federal government halted payments and ultimately terminated the five-year agreement with Pasa. Hannah Kinney Smith, Pasa’s executive director, stated, “I’m thrilled to say that after a year of lawsuits and appeals and repeatedly going back to USDA to renegotiate that, we did secure our contract.”
The renegotiated contract differs from the original. Whereas it no longer includes funding for payments related to climate and equity-focused farm investments, it continues to support conservation projects, as well as business and marketing initiatives for farms.
Impact on Pasa and Farmers
The contract termination had resulted in layoffs at Pasa, and the reinstatement allows for the re-employment of approximately half of the 60 staff members who were previously let go. Pasa initially aimed to assist 2,000 smaller farms across 15 states – from Maine to South Carolina – in addressing climate-related issues. These projects included measures to reduce flood risk, such as fencing cattle away from waterways, and the planting of perennial crops.
The original contract also allocated resources to benefit underserved farm producers, environmental justice organizations, minority-focused institutions of higher education, and tribal groups.
Prior to the termination, Pasa had funded 125 farm conservation projects and received 850 additional applications through the program. With approximately $50 million remaining under the renegotiated contract, Smith emphasized the importance of these funds for farmers, agricultural communities, and landscape preservation, particularly given the current volatile agricultural climate.
Legal Challenges and Government Response
Pasa joined a federal lawsuit in March 2025, alongside municipalities and other non-profit organizations, challenging President Trump’s funding freeze. While Smith believes the lawsuit and appeal weren’t the primary drivers of the government’s decision, she attributes the reinstatement to Pasa’s persistent efforts to renegotiate with the USDA. “I consider it’s more that we were so determined, and we kept going back and going back and going back, that the federal government realized that there was going to be a lot of pressure to have these funds be returned,” she said.
The USDA has not yet issued a public comment regarding the Pasa contract.
Next Steps
Pasa will release details regarding timelines, application processes, and farmer eligibility requirements in the coming weeks.