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Congress moves to revive secure rural schools after 2023 funding cliff

Congress moves to revive secure rural schools after 2023 funding cliff

Rule Changes
By Newzino Staff | |

A bipartisan scramble to backfill two lost years of money for counties built on federal forests.

January 6th, 2026: Lead House sponsor Doug LaMalfa dies at 65

Overview

President Donald Trump signed the Secure Rural Schools reauthorization into law on December 18, 2025, ending a two-year funding cliff that had devastated more than 700 forested counties. The bill directs the USDA Forest Service to deliver retroactive payments for FY2024 and FY2025 within 45 days of enactment—by early February 2026—and extends the program through FY2026. Counties that had cut sheriffs' patrols, closed schools, and delayed road repairs are now budgeting for an influx of roughly $280 million per year.

The victory came at a cost: lead House sponsor Doug LaMalfa died unexpectedly on January 6, 2026, less than three weeks after seeing his bill become law. The bipartisan achievement—passing 399–5 in the House after unanimous Senate approval—represents a rare example of rural relief cutting through partisan gridlock, but the FY2026 expiration date means counties face yet another funding cliff within 18 months unless Congress acts again.

Key Indicators

700+
Counties relying on Secure Rural Schools payments
Rural counties in 41 states and Puerto Rico receive SRS funds tied to federal forest land.
$281M
FY2023 Secure Rural Schools payments
Final authorized SRS payments before the lapse, distributed to more than 700 counties.
63%
Average cut since SRS lapse
Counties reverted to a 1908 timber-sharing formula, losing roughly two‑thirds of expected funding.
$177M+
Estimated funding lost in 2024–2025 gap
Senators estimate counties missed at least $177 million during the lapse.

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Debate Arena

Two rounds, two personas, one winner. You set the crossfire.

People Involved

Marie Gluesenkamp Perez
Marie Gluesenkamp Perez
U.S. Representative (D–Washington), SRS House co-lead (House co-sponsor and vocal champion for reauthorization)
Doug LaMalfa
Doug LaMalfa
U.S. Representative (R–California), House SRS lead sponsor (Deceased; led House SRS reauthorization until his death on January 6, 2026)
Joe Neguse
Joe Neguse
U.S. Representative (D–Colorado), House SRS co-lead (Bipartisan co-author of House reauthorization bill)
Mike Crapo
Mike Crapo
U.S. Senator (R–Idaho), sponsor of S.356 (Lead Senate author of Secure Rural Schools Reauthorization Act of 2025)
Ron Wyden
Ron Wyden
U.S. Senator (D–Oregon), SRS co-architect (Longtime SRS champion for Oregon timber counties)
Donald Trump
Donald Trump
President of the United States (Signed SRS extension into law on December 18, 2025)

Organizations Involved

Secure Rural Schools Program
Secure Rural Schools Program
Federal program
Status: Core but recently lapsed revenue program for forest counties

Federal payments that replace lost timber revenue for counties hosting national forest lands.

National Association of Counties (NACo)
National Association of Counties (NACo)
Advocacy association
Status: Leading county lobbying campaign for SRS renewal

County governments’ main lobby in Washington, central to the SRS reauthorization push.

Timeline

  1. Lead House sponsor Doug LaMalfa dies at 65

    Political loss

    Rep. Doug LaMalfa (R-CA), who co-authored and championed the House SRS reauthorization bill, died unexpectedly following a medical emergency at his residence. His death narrowed the GOP House majority to 218–213.

  2. Trump signs SRS reauthorization into law

    Legislative enactment

    President Trump signs S.356, the Secure Rural Schools Reauthorization Act of 2025, authorizing payments through FY2026 and triggering a 45-day deadline for USDA to deliver back payments for FY2024–2025.

  3. Counties and school districts celebrate House passage

    Local impact

    Baker County commissioners, Klamath County leaders, and Skamania school officials publicly celebrate the reauthorization. Klamath County, which funds its entire patrol division through SRS, had made five D.C. trips to lobby for renewal.

  4. House passes SRS reauthorization, bill heads to Trump

    Legislative vote

    The House approves the Secure Rural Schools extension through FY2026, with back pay for FY2024–2025. Gluesenkamp Perez, a key co-sponsor, hails the vote as “beyond overdue” for timber communities.

  5. Local coverage highlights broken promises and looming cuts

    Media

    An Oregon Capital Chronicle story describes repeated Senate passage, House inaction, and districts like Klamath County planning without money they’ve relied on for a quarter century.

  6. Bipartisan bloc urges House leaders to stop stalling

    Political pressure

    Sens. Crapo and Wyden and Reps. LaMalfa and Neguse lead 80+ lawmakers in a letter warning that SRS counties have seen average cuts of 63% and lost at least $177 million since the lapse.

  7. Oregon counties warn they are “sinking” without SRS

    Local impact

    An Oregon Public Broadcasting investigation details sheriff layoffs, deteriorating roads, and fears of losing basic services as timber counties await SRS renewal and lose timber revenue sharing in a new budget law.

  8. Senate unanimously passes S.356

    Legislative vote

    The Senate approves S.356 by unanimous consent, sending the SRS extension to the House, where it is initially held at the desk.

  9. LaMalfa and Neguse launch House companion bill

    Legislation

    Reps. Doug LaMalfa and Joe Neguse introduce the Secure Rural Schools Reauthorization Act in the House, joined by a bipartisan bloc including Gluesenkamp Perez.

  10. Crapo introduces Secure Rural Schools Reauthorization Act of 2025

    Legislation

    Sen. Mike Crapo files S.356 to extend SRS payments through FY2026, provide retroactive payments for FY2024–2025, and extend project authorities through 2028–2029.

  11. Final SRS checks go out under old authority

    Implementation

    The Forest Service distributes more than $232 million in SRS payments for FY2023 to 745 counties, noting that the program is only authorized through 2023.

  12. SRS authorization lapses at end of FY2023

    Policy

    Congress fails to renew SRS beyond FY2023. Statutory authority expires, setting up a funding cliff for payments due after early 2024.

  13. Infrastructure law extends SRS through 2023

    Legislation

    The Bipartisan Infrastructure Law reauthorizes Secure Rural Schools for fiscal years 2021–2023, briefly restoring predictability after previous short-term extensions.

  14. Congress creates Secure Rural Schools program

    Legislation

    President Clinton signs the Secure Rural Schools and Community Self-Determination Act, replacing unstable timber-receipt sharing with formula payments to forest counties for 2001–2006.

Scenarios

1

Trump Signs SRS Bill, Back Pay Starts Flowing to Rural Counties

Discussed by: National Association of Counties, AASA, Oregon Capital Chronicle, congressional sponsors’ statements

Given the bill’s unanimous Senate support and broad, bipartisan House vote, plus the relatively small price tag compared with other federal programs, the most straightforward path is Trump signing S.356. Treasury and the Forest Service would then have 45 days to send out back payments for FY2024–2025 and lock in FY2026, easing immediate budget crises for sheriffs, road departments, and school districts. The win would be framed as proof that Congress can still deliver for rural America, but with another cliff looming after 2026.

2

Short-Term Fix Becomes the New Normal, Counties Yo-Yo Every Few Years

Discussed by: CRS reports, county associations, long-run coverage in OPB and Oregon Capital Chronicle

Even if Trump signs this extension, nothing in S.356 makes SRS permanent or automatic. The pattern since 2006—short reauthorizations, last-minute brinkmanship, and occasional lapses—likely continues. Counties would again face uncertainty by 2026, forced to budget year-to-year and postpone long-lived investments. Analysts warn that this rollercoaster discourages local tax reform and economic diversification, while Congress prefers episodic “saves” that generate press releases without committing to a truly stable revenue-sharing system.

3

Congress Replaces SRS With a New Permanent Federal-Land Revenue Deal

Discussed by: Policy analysts at groups like the Center for American Progress, occasional Hill hearings on PILT and SRS reform

Some analysts argue that the repeated crises over SRS and related programs like Payments in Lieu of Taxes show the need for a unified, permanent formula that pays counties for federal land ownership without periodic brinkmanship. That could mean folding SRS into an expanded PILT-type program or indexing payments to local service demands, not timber history. This would require bipartisan agreement on new baselines and offsets and would invite scrutiny of how counties tax themselves, so it remains a long shot absent a broader budget or public-lands bargain.

4

Payment Delivery Delays Trigger Fresh County Budget Crises

Discussed by: County budget officers quoted in Oregon Capital Chronicle and OPB, National Association of Counties implementation tracking

The law gives USDA 45 days—until early February 2026—to calculate and distribute back payments for two fiscal years to 745 counties. If the Forest Service misses that deadline or phases payments over multiple months due to administrative complexity, counties that have already adopted bare-bones FY2026 budgets may face cash-flow gaps, forcing them to borrow or further cut services despite the reauthorization technically being in place.

Historical Context

2006 Expiration and Early SRS Reauthorization Fights

2000–2007

What Happened

The original Secure Rural Schools law was written as a six-year bridge from 2001–2006. When it neared expiration, western counties warned of massive budget holes, and Congress wrangled over how long to extend it and at what funding levels, eventually passing short-term renewals rather than a permanent fix.

Outcome

Short Term

Counties avoided immediate collapse but saw payments ratcheted down and tied to broader budget deals.

Long Term

SRS evolved into a chronically temporary program, leaving rural budgets at the mercy of Washington cycles.

Why It's Relevant Today

Shows that today’s 2023–2025 lapse is part of a long-running pattern of brinkmanship rather than an aberration.

2013 Sequestration Cuts to SRS and PILT

2013–2014

What Happened

Automatic federal budget sequestration sliced payments from Secure Rural Schools and the Payments in Lieu of Taxes program, even after checks had gone out. Agencies clawed back money from counties, and lawmakers rushed in with bills to shield SRS from across‑the‑board cuts.

Outcome

Short Term

Counties suddenly had to repay part of funds they had already budgeted, forcing mid‑year adjustments.

Long Term

The episode cemented SRS’s reputation as both essential and politically vulnerable, deepening demands for more predictable treatment.

Why It's Relevant Today

Illustrates how SRS can be collateral damage in national budget fights, echoing today’s struggle to get basic reauthorization through a polarized Congress.

Long Battles Over PILT: Paying Counties for Untaxed Federal Land

1976–present

What Happened

Congress created the Payments in Lieu of Taxes program in 1976 so the federal government could compensate counties for tax-exempt public lands. Like SRS, PILT has seen repeated funding scares, short-term fixes, and battles over whether payments should be mandatory or discretionary.

Outcome

Short Term

Most years, Congress has found money to keep PILT going, but sometimes only after bruising fights.

Long Term

PILT and SRS together form a fragile patchwork that underpins rural budgets where the federal government owns most of the land.

Why It's Relevant Today

Helps explain why forested counties view SRS reauthorization not as a bonus program but as part of a broader, unresolved question: who pays for the costs of America’s public lands.

27 Sources: