With Trump at the helm, Iowa and Nebraska’s GDP shrank in the first quarter of 2025.

 A US Bureau of Economic Analysis report found that Iowa and Nebraska, the “Corn Belt,” were tied for the biggest GDP losses in the first quarter of 2025, with both economies contracting by more than 6% because of Trump’s reckless trade policies and chaotic economic agenda. Now, Trump’s billionaire-first budget bill threatens to devastate both Iowa and Nebraska’s economy even more.

In response to data showing Iowa’s and Nebraska’s economies are rapidly weakening, DNC Chair Martin released the following statement:

“Donald Trump is destroying America’s farming backbone — and he hasn’t even been in office for much more than six months. Since the beginning of the year, Trump has sent Iowa and Nebraska’s economy spiraling, and families across the corn belt are paying the price. As Iowans and Nebraskans reel from inflation, job losses, and farm-killing tariffs, they are bracing for even worse. The billionaire-first budget bill that Republicans passed into law to make Trump happy will put rural hospitals and nursing homes at risk of closure and hollow out America’s heartland. Trump promised he’d deliver a ‘Golden Age’ for America. Instead, he’s well on his way to delivering a rural recession. 

DNC Vice Chair and Association of State Democratic Committees President Jane Kleeb released the following statement:

“As a Nebraskan who lives in a rural town, I’ve seen firsthand how Nebraska’s economy is shrinking and how our family farmers and ranchers are hurting. Trump is to blame because he is delivering a one-two punch with his chaotic trade war and devastating billionaire-first budget that is slashing jobs and sending prices soaring. Trump promised he’d deliver a ‘Golden Age’ for America. Instead, our economy is shrinking, with more pain for working families on the horizon.”

Iowa and Nebraska tied for the largest losses of Gross Domestic Product in the first quarter of 2025, as states across the country struggled to maintain their economic output under the Trump administration.

Nebraska Examiner: “Nebraska and Iowa tied for the states with the largest losses of Gross Domestic Product in the first quarter of 2025, of 6.1%, according to a report from the U.S. Bureau of Economic Analysis.

“Most remaining states also saw their GDP’s shrink, though by smaller amounts.”

“This is a rare economic output decrease for the U.S. as a whole — the first decrease during the first quarter since 2022, according to Stateline reporter Tim Henderson.”

In the first quarter with Trump in office, farmers are especially hurting.

Newsweek: “It’s the Worst Time to Be an American Farmer in Decades”

“America’s farmers are locked in a generational crisis, fending off an array of threats that could jeopardize food supplies and spell financial disaster for those often hailed as the ‘backbone of the nation.’”

The Guardian: Trump vowed to help US farmers. These four say his policies are ‘wreaking havoc’

As families struggle in Trump’s economy, Trump’s billionaire-budget threatens to wreak even more havoc.

The Commonwealth Fund: “How Medicaid and SNAP Cutbacks in the ‘One Big Beautiful Bill’ Would Trigger Big and Bigger Job Losses Across States”

“In 2029, cuts to Medicaid and SNAP would cause state gross domestic products to fall by $154 billion, 18 percent more than the $131 billion they would save the federal government. The cuts would result in the loss of 1.22 million jobs nationwide, equivalent to a 0.8-percentage-point increase in the unemployment rate. 

“States with higher rates of poverty would likely be harmed more. State and local tax revenues would fall by $12 billion. Additional fallout from budget cuts to the health insurance marketplaces and the sequestration of Medicare funding will further harm the economy and employment.”