Washington update: Shutdown risks, tariffs back in play and funding freezes impacting irrigation

Congress is facing another funding deadline, trade disputes are resurfacing and key agricultural programs remain stalled due to federal funding freezes. Here’s what’s happening in Washington and how these developments could impact the irrigation industry. 

Government shutdown looming 

With the latest funding deadline set for March 14, Congress has yet to reach a deal to keep the government running. The primary sticking point is a disagreement over spending authority—House Republicans are pushing to ensure that President Trump adheres strictly to congressional appropriations, while Democrats are resisting any language that limits executive spending discretion. 

A year-long continuing resolution is being considered as a fallback option, but such a move would lock in current funding levels and prevent new investments in infrastructure, water conservation and agriculture programs. A shutdown remains a real possibility if no agreement is reached. 

Nathan Bowen, vice president of policy and industry advancement at the Irrigation Association, emphasized the risks of continued uncertainty: 

“A shutdown would create real disruptions for the industry, particularly in programs that support conservation and water infrastructure investments. Delayed funding and regulatory uncertainty make it difficult for businesses and producers to plan effectively.” 

Tariffs set to take effect March 4 

After an initial delay, the Trump administration has confirmed that new tariffs on imports from Canada, Mexico and China will go into effect on March 4. These include: 

• 25% tariffs on most imports from Canada and Mexico 

• 10% tariffs on Canadian energy products 

• a tariff increase on Chinese imports from 10% to 20% 

Trump is expected to announce March 4 — during his address to a joint session of Congress — whether these tariffs will proceed as planned or face further delays. Commerce Secretary Howard Lutnick indicated over the weekend that negotiations with Canadian and Mexican officials on border security and drug interdiction efforts could influence the administration’s final decision. While the March 4 implementation remains the official timeline, adjustments or reductions could still be on the table.

Separately, tariffs on steel and aluminum imports from all countries are set to take effect March 12. For the irrigation industry, these tariffs could drive up costs on imported components such as controllers, valves and piping materials, increasing expenses for manufacturers, distributors and end users.  

“The return of tariffs adds another layer of uncertainty at a time when inflation and supply chain disruptions are already impacting the industry,” Bowen said. “We’re closely monitoring any potential retaliatory measures that could affect agricultural exports and irrigation product demand.” 

The potential for countermeasures from trading partners could further pressure the farm economy, which is already projected to see declining income in 2025. 

Funding freeze hits conservation and ag programs 

Federal funding for key conservation and agriculture programs remains in limbo due to a White House directive pausing disbursements under the Inflation Reduction Act. 

While the U.S. Department of Agriculture recently released $20 million in frozen funds to honor existing farmer contracts, a significant portion of IRA funding remains on hold. This uncertainty affects programs such as the Environmental Quality Incentive Program (EQIP) and the Conservation Stewardship Program (CSP), which support farmers investing in more efficient irrigation and water management practices. 

Bowen highlighted the importance of ensuring stability in federal conservation funding: 

“Programs like EQIP and CSP provide essential resources for farmers looking to improve efficiency and adopt better water management strategies. Uncertainty around federal funding makes it harder for producers to commit to long-term investments in conservation.” 

What comes next? 

The IA will continue monitoring legislative and regulatory developments in Washington, particularly as they relate to funding for conservation initiatives, trade policy and industry regulation. 

With the IA Advocacy Summit scheduled for March 25-27 in Washington, D.C., industry professionals have an opportunity to engage directly with policymakers and advocate for policies that support irrigation, water conservation and agricultural sustainability. 

“We need to ensure that irrigation professionals have a seat at the table in these discussions,” Bowen said. “Decisions being made now will have lasting effects on our industry, and it’s critical that we make our voices heard.”