The Trump administration is moving to shore up smaller U.S. beef processors with a planned $500 million aid package as tight cattle supplies continue to push beef prices to record highs.

The U.S. Department of Agriculture is preparing to provide up to $500 million in payments to small- and medium-sized meatpacking companies, The Wall Street Journal reported Tuesday, citing people familiar with the discussions.

The proposed funding would be directed to qualifying beef plants that maintain certain processing volumes, giving independent slaughterhouses a financial cushion as many face steep losses from historically high cattle costs.

Industry estimates show meat processors are losing about $300 per head of cattle, highlighting the financial pressure facing smaller operators.

The four largest U.S. beef processors (Tyson Foods, JBS, Cargill and National Beef, which is owned by Brazil-based MBRF Global Foods) would not be eligible for the payments. Together, those companies process about 85% of the nation's beef.

The planned assistance is the latest step by President Donald Trump to address soaring beef prices that have strained American families and businesses. Trump has directed senior advisers to develop options for easing costs while strengthening the domestic beef industry.

At the same time, the administration is taking a tougher look at the industry's biggest players.

The Justice Department has opened a criminal investigation into the nation's largest meatpackers as officials examine whether anticompetitive conduct has played a role in keeping beef prices elevated.

Years of drought, rising production costs, and widespread herd reductions have left the U.S. cattle inventory at its lowest level in decades, tightening supplies and driving up prices throughout the beef supply chain.

The USDA proposal is intended to help independent processors weather the shortage, preserve competition in the marketplace, and maintain processing capacity until cattle supplies recover, according to the Journal.

The administration has not formally announced the program, and details on eligibility and the timing of payments have not yet been released.

If approved, the plan would mark another Trump administration effort to bolster American agriculture while tackling one of the factors behind elevated grocery prices.