Trump unveils $12 billion farm aid package tied to tariffs. The White House announced a $12 billion relief package for farmers facing low crop prices and retaliatory tariffs linked to President Trump’s trade policies, with up to $11 billion routed through a new Farmer Bridge Assistance program at USDA and another $1 billion for uncovered commodities. The aid is expected to particularly target soybean producers, who have struggled after China halted U.S. soybean purchases in May and prices fell, and comes amid a reported rise in farm bankruptcies this year. Check out TPC’s tariff tracker for the latest in tariff policy developments.
Observers question IRS role in administering proposed tariff dividends. Tax policy analysts are raising concerns about whether the IRS should be tasked with delivering President Trump’s proposed “tariff dividends” of at least $2,000 per person to millions of moderate- and middle-income taxpayers. Tax Notes reports (paywall) on experts’ concern that another large payment program could pose a significant strain as the agency is already implementing the One Big Beautiful Bill Act, managing leadership turnover, and operating with a smaller workforce.
Gov. Abbott pitches eliminating school property tax on Texas homesteads. Gov. Greg Abbott (R) is making property tax reform a centerpiece of his re-election bid, including a proposal to phase out school property taxes on owner-occupied homes while capping appraisal growth and tightening limits on local spending and tax hikes. He argues that Texas can fully fund schools without raising other taxes by using what he describes as recurring budget surpluses that exceed the cost of replacing homestead school property tax revenue. Critics question whether future surpluses will reliably cover both education needs and other state priorities, but Abbott maintains that strong economic growth will provide “plenty of income” to support the cuts.
Gov. Green signals possible pullback on high-end income tax cuts in Hawaii. Gov. Josh Green (D) is warning that federal funding reductions and other federal actions could cost Hawaii an estimated $3 billion over six years, prompting him to reconsider portions of the state’s recently enacted, multi-year income tax cuts. The 2024 tax package phases in higher standard deductions and lower rates through 2031 but is projected to reduce revenues by more than $1 billion annually later in the decade, with a significant share of benefits going to higher-income households. Green says he may seek to limit or delay tax relief for taxpayers above certain income thresholds, potentially saving up to $1.8 billion that could be redirected toward priorities such as housing and food security.
Tax break for Kansas City’s historic plaza raises school revenue concerns. Developers of Kansas City’s historic Country Club Plaza are seeking a package of tax incentives that could cap property taxes for 30 years and divert most new sales tax revenue to pay for redevelopment, prompting pushback from Kansas City Public Schools (KCPS) and other local taxing entities. Under a draft plan from the Port Authority of Kansas City (Port KC), the project would receive an estimated $309 million in property tax relief, with KCPS projected to forgo about $188 million through 2054, along with roughly $110 million in redirected sales taxes for infrastructure.
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