To establish a Tariff Response and Damages to Exports fund, and for other purposes.
- Bill Number
- H.R. 3982
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2025-06-12: Referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2025-07-23T13:36:51Z
AI-Generated Summary
Purpose
The legislation, H.R. 3982, aims to create a dedicated fund to financially support U.S. agricultural producers harmed by international trade disruptions, such as tariffs or reduced export opportunities. It uses revenues from import duties on agricultural goods to compensate affected farmers without needing additional taxpayer money.
Key Provisions
- Establishment of the Fund: Creates the "Tariff Response And Damages to Exports Fund" (TRADE Fund) within the U.S. Treasury's general fund. Funds are available to the Secretary of Agriculture without further congressional approval or yearly spending limits.
- Funding Source: The President can transfer revenues from customs duties (taxes on imported goods) on items listed in chapters 1 through 24 of the Harmonized Tariff Schedule of the United States (HTSUS), which covers agricultural products like food, beverages, and raw materials.
- Use of Funds: The Secretary of Agriculture must distribute payments to eligible agricultural producers (farmers or ranchers) who suffer losses from:
- Export competition or decreased exports.
- Tariff or non-tariff barriers (trade restrictions) imposed by foreign countries.
- Higher costs for production inputs (e.g., feed, equipment) needed for crops or livestock.
- Reporting Requirements: By 60 days after each fiscal year ends, the Secretary must report to key congressional committees (House and Senate Agriculture and Appropriations Committees) on:
- Total revenues added to the fund.
- Economic effects of trade disruptions on producers.
- Details of assistance provided.
- Termination: The fund's authorities expire on September 30, 2030, with any unused balances permanently canceled (rescinded).
Significant Changes to Existing Law
This bill introduces a new mechanism not previously specified in U.S. trade or agricultural laws. It repurposes specific tariff revenues directly into a dedicated aid fund, bypassing traditional annual appropriations processes. It does not amend existing statutes but adds a standalone program tied to the HTSUS, potentially streamlining aid for trade-related agricultural losses compared to ad-hoc disaster or market assistance programs.
Potential Impacts
- On Government Agencies: The Department of Agriculture gains new flexibility to disburse funds quickly for trade aid, reducing reliance on emergency appropriations. The Treasury handles fund management, and the President has discretion over deposits, which could influence budget priorities.
- On Citizens: Primarily benefits U.S. farmers and ranchers by providing direct payments to offset trade-related financial losses, potentially stabilizing rural economies and food production. It does not directly affect non-agricultural sectors or general taxpayers, as funding comes from import duties.
- On International Relations: By using foreign import tariffs to fund domestic aid, it may signal a protectionist stance, possibly escalating trade tensions with countries exporting agricultural goods to the U.S. It could indirectly support U.S. exporters by helping producers weather foreign barriers.
Main Stakeholders Affected
- Agricultural Producers: Farmers and ranchers exporting goods or facing import competition, who receive direct compensation.
- Federal Agencies: U.S. Department of Agriculture (administers payments), Department of the Treasury (manages the fund), and the Executive Branch (President decides deposits).
- Congress: House and Senate committees on Agriculture and Appropriations oversee reporting and could influence future extensions.
- International Trading Partners: Countries facing U.S. tariffs on their agricultural exports, as their payments indirectly fund U.S. aid programs.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on Congress's constitutional authority (Article I, Section 8) to impose tariffs and regulate commerce, ensuring the fund is funded through existing duty collection without violating spending rules. The sunset clause promotes fiscal accountability by limiting the program's duration.
- Constitutional: Aligns with separation of powers, as Congress establishes the fund and reporting, while the executive implements it; no apparent challenges to due process or equal protection, as aid targets verifiable trade harms.
- Political: Could appeal to agricultural states by addressing trade vulnerabilities (e.g., from retaliatory tariffs), but may draw criticism for using trade revenues protectionistically, potentially complicating WTO (World Trade Organization) compliance or bilateral trade negotiations. The bill's referral to Ways and Means and Agriculture committees highlights its intersection of trade and farm policy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Fields, Cleo [D-LA-6], Rep. Higgins, Clay [R-LA-3]
Recent Actions
- 2025-06-12: Referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-06-12: Referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-06-12: Introduced in House
- 2025-06-12: Introduced in House
Bill Versions
- To establish a Tariff Response and Damages to Exports fund, and for other purposes. — issued 2025-06-12 — PDF (4 pages)