U.S. Forest Services announces distribution of FY 2025 Secure Rural Schools funding
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Zeke Lee
Andrew Nober
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Key Takeaways
On Apr. 14, the U.S. Forest Service (USFS) announced the distribution of $230.6 million to counties through the Secure Rural Schools (SRS) program for fiscal year (FY) 2025. The funding will support essential local government services in more than 700 counties nationwide. The FY 2025 payments announced by USFS were authorized by the Secure Rural Schools Reauthorization Act of 2025 (P.L. 119-58).
Prior to the law’s passage, the SRS program had expired. The law reauthorized the SRS program and directed the agency to make retroactive SRS payments for FYs 2024 and 2025. Counties received their first payments under the renewed program in February 2026. NACo strongly supported SRS program reauthorization and continues to advocate for permanent authorization for the program.
Payments to Counties
The SRS program provides funding that supports critical local government services like education, transportation and public safety to counties with National Forest System land. Since 2000, the Secure Rural Schools program has alleviated financial uncertainty in timber-dependent communities as they navigate fiscal challenges. USFS announced $230.6 million in funding would be disbursed to counties under Title I and Title III of the program and published a county-by-county breakdown of payments.
Federal land is untaxable, but counties still have government services responsibilities on and around federal land, and payments are especially vital for timber counties as they navigate economic transition and work towards long-term fiscal certainty.
Next Steps for Counties and Future Payment Elections
The SRS program is only authorized through FY 2026, meaning that counties will receive their final funding disbursements in spring 2027, once again leaving national forest counties with significant budgetary challenges. NACo is advocating for a long-term extension of the program beyond FY 2026, and county leaders should reach out to their members of Congress about the impact of SRS funding lapses on their communities.
The agency has also released guidance on those future payments. According to the USFS, payment and title allocation elections will open for FY 2026 SRS payments, and all required documentation along with estimated payment information will be sent to the States in May or June 2026. The first deadline — for payment elections (1908 Act vs. SRS) — is August 1, 2026. The second deadline — for Title I, II, and III allocations — is September 20, 2026.
Impact of FYs 2024 & 2025 SRS Funding on Future PILT Payments
The distribution of retroactive SRS funding may also impact some counties’ payments in lieu of taxes (PILT) allocations. Changes in the timing of federal payments may result in counties receiving multiple years of Secure Rural Schools (SRS) funding within a single fiscal year.
Because counties receive PILT disbursements from the formula’s “A-Side” based on prior-year federal payments, this can increase deductions in future PILT distributions. In addition, how SRS Title I funds are allocated between counties and school districts may further affect the total deduction, making both timing and distribution key considerations for local budgeting.
Key Dates for Counties:
- FY26 PILT (June 2026): Deductions will include FY24 1908 (25%) Forest Service payments distributed in April 2025.
- FY27 PILT (June 2027): Deductions will increase with the inclusion of FY24 SRS backfill (February 2026) and FY25 SRS payments (anticipated April 2026).
- FY28 PILT (June 2028): Deductions will incorporate FY26 SRS payments.
- Timing overlaps: When multiple payments are received in a single year-can temporarily increase prior-year payment deductions, resulting in less A-Side PILT funding for that given year.
- The share of SRS funds retained by the county versus distributed to schools will impact how much is counted toward the deduction.
For additional background, see National Center for Public Lands Counties (NCPLC) resources:
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