ESFPA E-News

The President's Proposed 2026 Spending Plan

President Trump's proposed 2026 budget plan includes significant cuts to non-defense domestic spending and increases in national security, including defense and border security. The plan proposes a $163 billion reduction in non-defense spending while increasing defense spending by 13% to $1.01 trillion and investing $175 billion in Homeland Security to secure the border. While much of the 2026 budget was originally cast by the Biden Administration, President Trump does get to propose his changes, and he certainly has done that. The President is taking 90% of the pain out of 30% of the budget by focusing on discretionary domestic spending.  For now, he is focused on leaving entitlement programs (SS and Medicaid) alone and increasing spending on defense and border control. This is very much what he has touted for months. Here is the press release and cover letter from the Director of the Office of Management a & Budget which provides a high-level summary of the plan.

Expect to see more details on the full FY 2026 presidential budget in the coming weeks and months; however, Congress will ultimately decide which of these proposals will survive the appropriations process. Still, the president's FY 2026 request offers clear insight into the administration's policy trajectory. The federal budget is due by October 1.

We will also start to see this week the reorganization plans that the President has required every federal agency to undertake. On February 11, 2025, President Trump’s Executive Order Implementing the President’s “Department of Government Efficiency” Workforce Optimization Initiative (Workforce Optimization) “commence[d] a critical transformation of the Federal bureaucracy.” It directed agencies to “eliminat[e] waste, bloat, and insularity” in order to “empower American families, workers, taxpayers, and our system of Government itself.” President Trump required that “Agency Heads shall promptly undertake preparations to initiate large-scale reductions in force (RIFs), consistent with applicable law.”  While taking a little longer than originally anticipated we will be seeing roll outs of these reorganization plans this week.  USDA is due to release their plan any day as will all Executive Branch agencies. We will see reductions in force (RIFs) as well as reassignment of staff mostly out of Washinton D.C. into field offices. We fully anticipate some major changes and, in turn, impacts.

House Votes to End California Ban on Gas Vehicles

Dozens of House Democrats joined Republicans to block California's plan to prohibit the sale of new gas-powered vehicles by 2035, a measure adopted by state leaders to reduce greenhouse gas emissions and mitigate climate change. The vote struck down the California policy that aimed to bolster a transition to electric vehicles (EVs), viewed as more sustainable than traditional gas-powered vehicles. It would have required auto dealers to begin increasing the number of electric vehicles. A total of 34 House Democrats voted to block California's plan. New York Democrats that voted to block California include:

• Laura Gillen (New York)
• Timothy Kennedy (New York)
• Joe Morelle (New York)
• Josh Riley (New York)
• Pat Ryan (New York)
• Tom Suozzi (New York)

The vote struck down the California policy that aimed to bolster a transition to electric vehicles. The Senate Parliamentarian has said such a vote is not legal. Nothing says the Congress can’t amend the Clean Air Act stopping California from adopting stricter policy, but that would be broader and likely more difficult to pass. We will have to see how the Senate responds. Depending on what happens this could affect New York’s ban which merely adopts the California standard.

Forest Inventory Assessment Sign-On Letter

ESFPA was invited to sign-on to a letter to Congress requesting stable funding for the national Forest Inventory Assessment Program (FIA). The letter appears to have had some impact as most FIA funding was preserved under the President's Budget for 2026 while lots of other federal research funding is being slashed. 

The push now is for Congress to ensure FIA funding is fully restored as they work on the budget through this summer.

Click the link below to read the full letter:

Industry Snapshot

Farm Credit East recently published “Industry Snapshots” based on recent happenings with National policy, markets and the economy in the agriculture, forestry and commercial fishing sectors. 

The snapshot provides a detailed overview of current U.S. economic conditions, focusing on the impacts of newly announced tariffs and trade disputes under the Trump administration. The U.S. imposed significant tariffs on imports from many countries, especially China, which has triggered retaliatory tariffs that threaten American exports—particularly agricultural goods.

It also highlights the mixed effects on the Northeast farm economy, with some sectors like softwood lumber and vegetables seeing potential gains, while most—especially dairy, grains, and hardwood—face negative consequences. Broader macroeconomic forecasts predict higher inflation, lower GDP, and increased recession risk. Additionally, it discusses the impact of Highly Pathogenic Avian Influenza (HPAI) in dairy cattle, ongoing agricultural and timber market conditions, and the outlook for key commodities such as milk, grains, potatoes, and seafood.

Click the link below to read the full article:

USDA Acts to Boost Timber Production

USDA has announced $23 million in grants to support transporting hazardous fuels – such as dead or downed trees – from national forests to processing facilities. Through the USDA Forest Service’s Hazardous Fuels Transportation Program, these grants will reduce the hazardous fuels that pose wildfire threats to communities, critical infrastructure, and recreation areas.

"President Trump has directed his cabinet to unleash domestic production of our natural resources, including timber. Our nation is blessed with an abundance of resources, and there is no reason we cannot responsibly harvest and use these products right here at home. Investments like these are delivering on our commitment to protect communities, make forests healthier and more resilient," said Secretary Rollins. "Removing hazardous fuels not only reduces wildfire risk but also creates opportunities for businesses and workers in the wood products industry. These grants also reflect the Forest Service’s dedication to active forest management, and we will continue working to keep our forests productive, sustainable, and safe for future generations."

This work directly supports President Trump’s Executive Order on increasing domestic timber production as well as Secretary Rollins’ direction to have the Forest Service (PDF, 2.9 MB) ramp up active forest management on national forests to improve forest health, reduce wildfire risk, and support rural prosperity.

Unlike high-value wood, which is typically used in construction and furniture manufacturing, low-value wood has more limited applications, with fewer facilities able to process it into useful products like soil-enriching materials, renewable energy sources like electricity and heat, and sustainable construction solutions such as cross-laminated timber. The Hazardous Fuels Transportation Program aims to help businesses, non-profits, and state, local, and tribal governments make use of the dead trees, fallen branches, and dense undergrowth that would go to waste or fuel catastrophic wildfires.

The Forest Service will accept applications through June 20, 2025. Information about webinars will be available soon on the Forest Service Timber Transportation website. To expedite wildfire mitigation and forest restoration efforts, projects in areas covered by Emergency Situation Determinations (ESDs) will be prioritized in the selection process. These authorities allow the Forest Service to act swiftly in high-risk firesheds by expediting project approvals and reducing administrative delays, ensuring that hazardous fuel reduction efforts reach the most vulnerable communities and landscapes.

Planting a Tree Can Seem Like an Easy Win for the Planet but are We Missing the Forests for the Trees?

Recently, an article was published by Alicia Cramer, Chief Operating Officer of US Endowment for Forestry and Communities, which highlights the idea that true forest sustainability requires responsible long-term management, not just tree planting, to ensure ecological health and economic viability.

The article emphasizes that while tree planting is often seen as a simple and positive environmental act, true forest sustainability requires more than just planting. It stresses the importance of long-term forest management, especially practices like thinning, which support healthy tree growth and resilience. However, declining markets for low-value wood have reduced incentives for such management, harming both forests and forest-dependent communities.

The article warns against superficial sustainability efforts and cites past environmental missteps, like the spread of kudzu, as cautionary tales. Ultimately, it advocates for responsible, economically informed forest stewardship that balances planting, harvesting, and long-term ecological health.

"Planting should not be done simply for the sake of optics. By adhering to non-specific initiatives that are sustainable in name only, we perpetuate our own crisis."

Click the link below to read the full article: