Obama administration reaches settlement for $1.25B in payments to black farmers
By Ben Evans, APThursday, February 18, 2010
USDA reaches new settlement with black farmers
WASHINGTON — The Obama administration has reached a deal with black farmers that could end a years-long stalemate over alleged racial discrimination by the Agriculture Department.
The agency is planning to announce a $1.25 billion fund Thursday to compensate African-Americans who say they were unfairly denied assistance from USDA.
If approved by Congress, it would be the second round of damages stemming from a class-action lawsuit originally settled in 1999. The new money is intended for people who were denied earlier payments, often over missed deadlines.
President Barack Obama requested the same amount in his budget last year, saying he hoped to close a painful chapter in the agency’s history that has lingered for years. But the funding stalled in Congress as settlement negotiations continued over issues such as lawyers’ fees and the process for distributing payments.
With a settlement in hand, officials believe they can win funding from Congress and begin distributing money soon. The agreement calls for a payment process similar to the original settlement in which claimants can win compensation without going to court.
Agriculture Secretary Tom Vilsack is planning to discuss the agreement on an afternoon conference call.
Tags: Barack Obama, Damages, Geography, North America, Settlement, United States, Washington
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May 29, 2010: 4:34 pm
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