Senator Baldwin is urging federal officials to dismantle a newly introduced 25 percent matching funds requirement that targets regional Dairy Business Innovation Initiative centers.

A major policy shift by the U.S. Department of Agriculture (USDA) is creating friction for local agriculture, prompting quick action from lawmakers. Senator Tammy Baldwin (D-WI) is urging federal officials to dismantle a newly introduced 25 percent matching funds requirement that targets regional Dairy Business Innovation Initiative (DBII) centers.

Under the revised funding structure, announced September 30, the four operating DBII centers—including Wisconsin's Dairy Business Innovation Alliance—must secure up to $1 million each in local matching dollars to qualify for federal grants. Industry experts and program operators caution that the centers lack the liquid capital needed to fulfill this obligation, which could effectively shutter direct grant streams to small and medium dairy operations.

The program, established under the 2018 Farm Bill through Senator Baldwin's Dairy Business Innovation Act, has funneled over $106 million across 911 separate grants to small- and medium-sized family dairy businesses since its launch. These investments back vital operational needs, including marketing, product line diversification, processing tech upgrades, and direct technical consulting. Stakeholders emphasize that forcing a cost-share burden during a climate of high fuel expenses, trade tariffs, and ongoing labor constraints places an unsustainable strain on dairy farmers and processors. In a formal appeal to USDA Secretary Brooke Rollins, Baldwin requested an immediate reissuance of the Fiscal Year 2026 Notice of Funding Opportunity without the new matching mandate, ensuring continuous support for local agricultural supply chains.