Land and Water Conservation Fund (LWCF): Frequently Asked Questions

Land and Water Conservation Fund (LWCF): Frequently Asked Questions

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November 23, 2022
Land and Water Conservation Fund (LWCF):
Frequently Asked Questions
What Is the Land and Water Conservation Fund?
recreation (54 U.S.C. §200305). It provides for formula
The Land and Water Conservation Fund Act of 1965
(traditional) grants. Appropriations laws also have funded
(LWCF Act; 54 U.S.C. §§200301 et seq.) was enacted to
competitive grants to states. (For more information on
help preserve, develop, and ensure access to outdoor
formula and competitive grants, see “How Does the State
recreation resources. The law created the Land and Water
Outdoor Recreation Grant Program Work?”)
Conservation Fund (LWCF) in the Department of the
Treasury as a dedicated funding source to implement its
In addition, the LWCF can be used for “accounts and
stated outdoor recreation goals. Similar to other special
programs” that received appropriations from the LWCF
funds in the federal budget, the LWCF is an accounting
under P.L. 116-94, the Further Consolidated Appropriations
mechanism to link dedicated receipts with the spending of
Act, 2020 (54 U.S.C. §200303(a)). That law contained
those receipts.
appropriations for the Forest Legacy Program, Section 6 of
the Endangered Species Act (i.e., Cooperative Endangered
How Does the LWCF Get Revenue?
Species Conservation Fund grants), the American
The LWCF Act credits the LWCF with revenues totaling
Battlefield Protection Program, and the Department of the
$900 million annually. The revenues come from three
Interior’s Appraisal and Valuation Services Office.
sources: (1) surplus federal property sales, (2) the federal
motorboat fuel tax, and (3) revenues from oil and gas leases
The $900 million in revenue under the LWCF Act can be
on the U.S. outer continental shelf (OCS). Since the early
used for all purposes discussed in this section (e.g., land
1990s, nearly all revenues deposited in the LWCF have
acquisition, outdoor recreation grants to states, and other
been from OCS receipts.
programs). By contrast, revenue under GOMESA is
directed only to the formula grant program under “financial
In addition to the $900 million, the LWCF receives 12.5%
assistance to states.” (Formula grants also have received
of the revenues from qualified OCS leases, up to a specified
funding under the LWCF Act.) Figure 1 shows the
cap, under the Gulf of Mexico Energy Security Act of 2006
historical LWCF appropriations by major purpose.
(GOMESA; P.L. 109-432, Div. C, §105). The maximum is
$125 million annually in most years.
Figure 1. LWCF Appropriations, FY1965-FY2022
(in billions of dollars, not adjusted for inflation)
Is LWCF Funding Discretionary or Mandatory?
All revenue in the LWCF is available without subsequent
appropriation and thus is mandatory spending. Prior to the
enactment of the Great American Outdoors Act (GAOA;
P.L. 116-152), the revenue under the LWCF Act was
available only if appropriated in subsequent law and thus
was considered discretionary spending. The revenue under
GOMESA has always been mandatory.
What Can Money in the LWCF Be Used For?
Of the total funding under the LWCF Act and GOMESA,

the LWCF Act mandates that not less than 40% is to be
Sources: FY1965-FY2013: Department of the Interior, Office of
used for “federal purposes” and not less than 40% is to be
Budget. FY2014-FY2022: annual Interior Budget in Brief and documents
used to provide “financial assistance to states” (54 U.S.C.
accompanying the annual appropriations bill.
§200304(b)). The primary federal purpose is land
acquisition by the four major federal land management
How Is the $900 Million Under the LWCF Act
agencies: Bureau of Land Management (BLM), U.S. Fish
Allocated?
and Wildlife Service, Forest Service, and National Park
The LWCF Act prescribes a procedure for allocating the
Service (NPS). Of the annual appropriations under the
$900 million in annual revenue under the LWCF Act (54
LWCF Act, a portion (not less than 3% or $15.0 million,
U.S.C. §200303(c)). The President is to include “detailed
whichever is greater) is to be used for acquisitions that
account, program, and project allocations” for the full
foster access to federal land for recreational purposes (54
amount available, generally as part of the annual budget
U.S.C. §200306(c)).
submission to Congress. However, the law also provides
that appropriations acts may specify an “alternate
With regard to “financial assistance to states,” the LWCF
allocation,” including “allocations by account, program,
Act sets out a state matching grant program for outdoor
and project.” If alternate allocations are not enacted before
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Land and Water Conservation Fund (LWCF): Frequently Asked Questions
enactment of “the Act making full-year appropriations for
project’s total costs. The state project sponsor bears the
the Department of the Interior, Environment, and Related
remaining cost.
Agencies for the applicable fiscal year,” the President has
the authority to make allocations.
NPS administers two types of grants—formula (traditional)
and competitive. The LWCF Act sets out the formula grant
Is There Any Money Currently in the LWCF?
program under “financial assistance to states” (54 U.S.C.
Yes. From FY1965 through FY2022, about $43.9 billion
§200305). The program receives appropriations under both
has been credited to the LWCF under both the LWCF Act
the LWCF Act and GOMESA. The Secretary of the Interior
and GOMESA. Nearly half that amount—about $21.6
divides appropriations among states in accordance with a
billion—has been appropriated, leaving an unappropriated
formula in the LWCF Act (54 U.S.C. §200305(b)) that
balance of approximately $22.3 billion in the fund. (Figures
requires a portion of the appropriations to be divided
were derived primarily from data provided by the
equally among states. The remaining funds are apportioned
Department of the Interior, Office of Budget.) The balance
based on need, as determined by the Secretary, taking into
accumulated because through FY2020, the $900 million in
account certain factors. In practice, state population has
revenue that accrued annually under the LWCF Act was
been the biggest factor. States can use formula grants for
available only if appropriated in subsequent law; annual
outdoor recreation planning, acquisition of lands and
appropriations laws typically appropriated considerably
waters, and facility development.
less. The balance is to remain credited to the fund until
appropriated or otherwise reduced by law.
The LWCF Act does not specify a competitive grant
program, although appropriations laws since FY2014 have
What Changes Were Made Recently to the LWCF?
provided LWCF Act funding for competitive grants.
GAOA made the $900 million in annual revenue for the
(Competitive grants do not receive funding under
fund (under the LWCF Act) available as mandatory
GOMESA.) NPS has awarded grants pursuant to these
spending; before GAOA, these funds were available only if
appropriations through an Outdoor Recreation Legacy
appropriated in subsequent law. GAOA also provided
Partnership Program. Under grant announcements for the
direction on the purposes for which the funding can be
program, states can use the grants for land acquisition or
used. Further, the law set out a procedure for allocating the
development in urbanized areas meeting certain criteria.
funding, delineating the roles of the President and of
Criteria have prioritized areas underserved in terms of
Congress. (See “How Is the $900 Million Allocated?”)
outdoor recreation and areas with sizeable populations that
are economically disadvantaged, among other factors.
Section 3001 of P.L. 116-9, the John D. Dingell, Jr.,
Conservation, Management, and Recreation Act, made
Both formula and competitive grants must meet certain
permanent the LWCF Act provisions that provide for $900
criteria prescribed in the LWCF Act. Criteria include a
million in revenue to be deposited in the fund annually (54
requirement for states to use lands for outdoor recreation in
U.S.C. §200302). To foster parity between federal and state
perpetuity, except with the Secretary of the Interior’s
purposes, the law provided that not less than 40% of
approval for a conversion (54 U.S.C. §200305(f)(3)).
funding be used for each of “federal purposes” and
“financial assistance to states” and specified a portion of
What Are Issues for Congress Related to the LWCF?
funding for recreational access acquisitions (see “What Can
Various issues have been under debate. Opinions differ
Money in the LWCF Be Used For?”). Other amendments
regarding how to allocate LWCF funds among current
identified criteria for agencies to consider in selecting lands
programs, and there is debate over whether to alter the
to acquire, such as management efficiencies and
fund’s purposes to broader, narrower, or different priorities
recreational value, and altered the apportionment of funds
(e.g., facility maintenance). Another area of focus is
for the state grant program to treat the U.S. territories and
whether to codify in law the Outdoor Recreation Legacy
the District of Columbia (DC) the same as states.
Partnership Program, which makes competitive grants to
states for outdoor recreation, and the terms and conditions
Does the LWCF Authorize Agencies to Acquire Land?
of any such program. Congress also continues to oversee
The LWCF is primarily a funding source for land
the Administration’s development and implementation of
acquisitions. The LWCF Act bars appropriations from the
LWCF guidance, the selection of projects that receive
fund from being used for acquisition “unless the acquisition
LWCF monies, and administration of the program.
is otherwise authorized by law,” although appropriations
For Further Reading
can be used for pre-acquisition work under certain
circumstances (54 U.S.C. §200306(b)). The four major
CRS Report R46563, Land and Water Conservation Fund:
federal land management agencies’ authorities to acquire
Processes and Criteria for Allocating Funds
lands derive from other laws and differ among the agencies;
CRS Report RL33531, Land and Water Conservation
they range from relatively broad general authority (BLM) to
Fund: Overview, Funding History, and Issues
no general authority (NPS).
CRS Report R46957, Recreational Access Acquisitions:
How Does the State Outdoor Recreation Grant Program
Overview and Recent Funding History
Work?
CRS In Focus IF11636, The Great American Outdoors Act
The LWCF provides grants to states (including U.S.
(P.L. 116-152)
territories and DC) for outdoor recreation purposes. Federal
CRS Report RL34273, Federal Land Ownership:
payments to states generally are limited to 50% or less of a
Acquisition and Disposal Authorities
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Land and Water Conservation Fund (LWCF): Frequently Asked Questions

Carol Hardy Vincent, Specialist in Natural Resources
Policy
IF12256

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