A Federal judge in Florida has issued a preliminary injunction that halts the implementation of the program to provide debt forgiveness to socially disadvantaged farmers. U.S. District Judge Marcia Morales Howard halted the program, saying it does not do away with racial discrimination.
“Congress also must heed its obligation to do away with governmentally imposed discrimination based on race,” Morales Howard said. “It appears that in adopting Section 1005's strict race-based debt relief remedy Congress moved with great speed to address the history of discrimination, but did not move with great care.”
The provision referenced by the judge would have USDA's Farm Service Agency (FSA) pay up to 120% of direct and guaranteed loan outstanding balances as of January 1, 2021, for socially disadvantaged farmers and ranchers. However, the judge indicated that USDA could still continue preparations to deliver the debt relief until the program is found “constitutionally permissible.”
The program had already been on hold die to a separate restraining order in Wisconsin, but this Florida decision is seen as a nationwide suspension of the program.
The suit in Florida was brought by white farmer Scott Wynn who said he had federal farm loans and could not apply for the debt forgiveness as he was white.