Washington: As President Donald Trump continues high-stakes diplomatic meetings in Asia aimed at finalizing a trade deal with China, a domestic crisis is rapidly unfolding back home. The U.S. Department of Agriculture (USDA) announced that it will not tap into its $6 billion contingency fund to sustain food stamp benefits in November if the government shutdown continues leaving over 42 million Americans at risk of losing vital food assistance.
At the same time, U.S. Treasury Secretary Scott Bessent who also owns large tracts of soybean and corn farmland acknowledged the severe toll of the ongoing U.S. China trade dispute on American farmers, describing it as “a perfect storm.” The twin crises now threaten both the country’s poorest households and its struggling agricultural heartland, amplifying the domestic consequences of Washington’s geopolitical maneuvering.
In an official statement released Friday, the USDA confirmed that it will not use its contingency fund to issue Supplemental Nutrition Assistance Program (SNAP) benefits on November 1, citing a lack of congressional funding due to the ongoing shutdown.
“Senate Democrats have now voted 12 times to not fund the food stamp program. Bottom line, the well has run dry,” the agency declared on its website. “At this time, there will be no benefits issued November 01.”
The decision, first reported by CNN through an internal USDA memo, signals a severe escalation in the political standoff that has paralyzed federal operations for weeks. SNAP, which provides essential food assistance to millions of low-income Americans, will effectively halt without emergency funding.
When asked about the issue during his Asia trip, President Trump appeared to offer reassurance, telling reporters: “Yeah, everybody is going to be in good shape, yep.” However, the president’s brief remark conflicted with the USDA’s official position and provided no clear indication of how the administration plans to restore benefits.
Earlier this month, the agency instructed state officials to pause all November benefit processing, warning that existing funds were insufficient to cover full distributions. Without immediate congressional action, millions of families could face severe food insecurity within days.
While the nation grapples with a looming hunger crisis, Treasury Secretary Scott Bessent offered a rare personal reflection on how the trade war has impacted his own livelihood. Speaking on ABC’s This Week, Bessent said, “I’m actually a soybean farmer, so I have felt this pain, too.”
Bessent, whose estimated net worth exceeds $520 million, owns up to $25 million in soybean and corn farmland in North Dakota. According to his August financial disclosure, the land generates between $100,000 and $1 million in rental income, tied to the fluctuating prices of corn and soybeans through a revenue-sharing agreement.
He described the past year as one of the most difficult periods for U.S. farmers, with China’s boycott of American soybeans driving purchases “to almost zero” despite one of the largest harvests in decades. “It’s been a perfect storm,” Bessent admitted, acknowledging that many farmers are on the brink of bankruptcy.
Bessent expressed cautious optimism that the emerging U.S. China trade framework could reverse the damage. He said Beijing is expected to resume “substantial” soybean purchases as part of the deal taking shape this weekend, aiming to avert further tit-for-tat tariffs between the world’s two largest economies.
For many in the agricultural community, however, the optimism is tempered by anger over Trump’s $20 billion bailout of Argentina, a major soybean supplier to China amid the U.S. boycott. Farmers have criticized the move as a betrayal, claiming it undercut domestic producers who have borne the brunt of retaliatory tariffs and export losses.
The juxtaposition of Trump’s diplomatic negotiations abroad and the growing hardship at home underscores the complex balance of political power and economic pressure defining his presidency. While the White House seeks to project global strength through trade diplomacy, the shutdown’s ripple effects from food insecurity to farm bankruptcies are testing the administration’s domestic credibility.
With both the SNAP crisis and farm sector turmoil unfolding simultaneously, the administration faces mounting scrutiny from across the political spectrum. Lawmakers are urging an immediate resolution to prevent millions from going hungry while the nation’s farmers continue to weather unprecedented economic uncertainty.
As Treasury Secretary Bessent summed it up, “We are working toward solutions abroad, but the pain at home is real and it’s growing.”