The program designated aid to about 15,000 borrowers who receive loans directly from the federal government or have their bank loans guaranteed by the U.S.D.A.
The law was intended to help remedy years of discrimination that nonwhite farmers have endured, including land theft and the rejection of loan applications by banks and the federal government. Biden, who was propelled to power by Black voters and now must make good on promises to improve their fortunes. It also poses a political problem for Mr.
The legal limbo has created new and unexpected financial strains for Black farmers, many of whom have been unable to make investments in their businesses given ongoing uncertainty about their debt loads. The Biden administration has not appealed the injunctions but a spokeswoman for the Agriculture Department said it was continuing to defend the program in the courts as the cases move forward. A class-action lawsuit against the U.S.D.A. The payments, which also are supposed to cover tax liabilities and fees associated with clearing the debt, were expected to come in phases beginning in June.īut the entire initiative has been stymied amid lawsuits from white farmers and groups representing them that questioned whether the government could offer debt relief based on race.Ĭourts in Wisconsin and Florida have issued preliminary injunctions against the initiative, siding with plaintiffs who argued that the debt relief amounted to discrimination and could therefore be illegal. In May 2021, the Agriculture Department started sending letters to borrowers who were eligible to have their debt cleared, asking them to sign and return forms confirming their balances. While the president has pledged to pursue policies to promote racial equity and correct decades of discrimination, legal issues have complicated that goal. Smith, 43, said in an interview.īlack farmers across the nation have yet to see any of Mr. “I trusted the government that we had a deal, and down here at the end of the day, the rug gets pulled out from under me,” Mr. Months after signing the paperwork he received a notice informing him that the federal government intended to “accelerate” foreclosure on his 46-acre property and cattle if he did not start making payments on the loans he believed had been forgiven. He then purchased more equipment for his ranch, believing that he had been given a financial lifeline. Smith, a Black father of four who owes about $200,000 in outstanding loans on his ranch, quickly signed and returned documents to the Agriculture Department last year, formally accepting the debt relief. The legislation included $4 billion of debt forgiveness for Black and other “socially disadvantaged” farmers, a group that has endured decades of discrimination from banks and the federal government. Little did he know how much longer he would have to wait. WASHINGTON - For Brandon Smith, a fourth-generation cattle rancher from Texas, the $1.9 trillion stimulus package that President Biden signed into law nearly a year ago was long-awaited relief.
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