US Democrats Demand Clarity on Musk's DOGE Approval of Farm Loans

A group of 16 Democratic U.S. senators, led by Senator Amy Klobuchar, has called on the U.S. Department of Agriculture (USDA) to explain a new policy requiring the Department of Government Efficiency (DOGE), led by Elon Musk, to review certain farm loans and guarantees before they are issued.

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The lawmakers expressed concerns about the potential for delays and financial uncertainty for farmers, particularly those applying through the USDA's Farm Service Agency (FSA). The policy mandates that loans over $500,000, or any size loans to formal entities like farm LLCs, must be approved by DOGE and the USDA's Chief Financial Officer.

The senators are seeking transparency on how these reviews are conducted and whether DOGE's oversight will extend to other USDA programs.

Aim to boost efficiency

The policy change, effective from an April 29 memo, is part of an executive order aimed at improving government cost efficiency. It requires that farm loans and loan guarantees exceeding $500,000, or any size loans to formal entities, be reviewed and cleared by DOGE employees and the USDA's Chief Financial Officer before issuance.

The USDA has stated that individual aid is mostly exempt from this process and that delays are minimal.