Reauthorization of the Secure Rural Schools Payments in the Infrastructure Investment and Jobs Act

Reauthorization of the Secure Rural Schools Payments in the Infrastructure Investment and Jobs Act

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INSIGHTi

Reauthorization of the Secure Rural Schools
Payments in the Infrastructure Investment and
Jobs Act
Updated February 1, 2022
Section 41202 of the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58) reauthorized payments
pursuant to the Secure Rural Schools and Community Self-Determination Act (SRS; P.L. 106-393, as
amended, 16 U.S.C. §§7101-7153). Formula-based SRS payments are made to counties containing
national forests—managed by the U.S. Forest Service (FS)—and counties in Oregon containing the
Oregon and California Railroad (O&C) lands and Coos Bay Wagon Road (CBWR) lands—managed by
the Bureau of Land Management (BLM).
Background
State and local governments are authorized to receive payments through various programs due to the
presence of federal land within their jurisdictions. Some of these payment programs are based on the
revenue generated from specific land uses and activities; other payments are based on acreage of federal
land or nonrevenue factors. For example, Congress authorized counties to receive a portion of annual
revenue generated on O&C lands (43 U.S.C. §2605), CBWR lands (43 U.S.C. §2621), and national
forests (16 U.S.C. §500). Revenue-generating activities include timber sales and grazing permits, among
others, although Congress has designated some activities as exempt from revenue-sharing requirements.
Timber sales have been the largest historical source of revenue. In the 1990s, federal timber sales began to
decline, which led to reduced payments to the counties. In response, Congress enacted SRS as a
temporary alternative to the FS and BLM revenue-based payments, starting in FY2001. SRS payments
were reauthorized annually through FY2020, except for FY2016 (Figure 1). The IIJA reauthorized
payments for FY2021-FY2023.
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Figure 1. Total SRS Payments by FS and BLM
(FY2001-FY2020)

Source: FS data: annual All Service Receipts: Title I, II, and III Region Summary (ASR-18-3) Report; BLM data: SRS Official
Payment reports.
Notes: Bars reflect nominal dol ars. Line reflects total SRS payments adjusted to constant (FY2021) dol ars using the GDP
Chained Price Index from the White House Office of Management and Budget, Table 10.1, “Gross Domestic Product and
Deflators Used in the Historical Tables—1940-2026,” in Historical Tables. The x-axis is the receipt year. SRS payments
were not authorized for the FY2016 receipt year.
Counties with eligible lands can elect to receive either the revenue-based payments or the SRS payments.
Most counties have elected the SRS payment. Prior to the IIJA, Congress had frozen the payment
elections each county made for the FY2013 payment and continued that election through the FY2020
payment. The bulk of the SRS payment goes to the counties containing FS lands, because national forests
are located in more counties than the O&C and CBWR lands.
SRS payments are determined by a formula based on revenue generated between FY1986 and FY1999,
federal land acreage, and county income. Because payments are based on historic revenue, fluctuations in
current revenue streams do not affect SRS payments. Congress has changed the SRS payment formula
several times. For example, Congress amended the formula so the payment declined by 10% annually
from FY2008 to FY2011 (P.L. 110-343, §601) and again amended the formula so the payment declined
by 5% annually from FY2012 to FY2020 (P.L. 112-141, §100101). The IIJA removed the annual decline
and established a set annual payment amount.
The SRS payment is divided into three parts. Title I payments are to be used for roads and school
purposes for the FS payment and are available for a broader range of governmental purposes for the BLM
payment. Title II payments are retained by the agency for projects on or benefitting the federal lands
within the county. Title III payments are to be used for specified purposes. Requirements for how a
county may allocate its payment among the titles vary depending on the payment amount, but most of the
payment goes toward Title I. Prior to the IIJA, Congress had frozen the payment allocations chosen by
each county for the FY2013 payment and continued that allocation through the FY2020 payment.
The program is funded through mandatory spending, with funds coming first from agency receipts and
then from the Treasury. SRS payments are disbursed after the fiscal year ends, so FY2021 payments are to
be made in FY2022.

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SRS Reauthorization in the IIJA
The IIJA reauthorized SRS payments for three years: FY2021, FY2022, and FY2023 (payments to be
made in FY2022, FY2023, and FY2024). The IIJA set the payment level as equal to the payment made in
FY2017 (around $282 million). However, counties that received an FY2017 payment may receive a
different payment amount for each of those three years, because the payment formula is based on the total
number of counties that receive an SRS payment, meaning each county’s payment may vary based on the
number of participating counties. The IIJA ended the freeze on payment elections, but the timing of the
reauthorization was such that all counties will default to receiving the SRS payment for FY2021 and
FY2022. Counties will have the opportunity to elect between the SRS and revenue-sharing payments for
the FY2023 payment.
The IIJA also ended a freeze on payment allocations, meaning counties will have the opportunity to
reallocate their SRS payment among the three titles. The reauthorization’s timing was such that counties
will not be able to do so for the FY2021 payment and all counties will receive the default allocation (80%
to Title I; 20% to Title II). The IIJA authorized the use of Title III funds (for FY2022/FY2023) for
broadband access or other technology related to education and prohibited the use of Title III funds for
lobbying-related activities.
The IIJA amended SRS provisions related to appointing members of Resource Advisory Committees
(RACs). Previously, SRS required RAC members to be appointed by the Secretary of Agriculture or the
Secretary of the Interior. Under the National Pilot Program (NPP) established in the IIJA, the FS Chief or
BLM Director nominates RAC members, with automatic approval after 30 days if the applicable
Secretary does not act on the nomination. The IIJA also renamed an existing pilot program as the
Regional Pilot Program (RPP). The RPP allows the applicable Secretary to select a regional forester as an
applicable designee to appoint members of RACs chartered in Arizona and Montana. The NPP is
available to RACs chartered in all other states.

Author Information

Katie Hoover

Specialist in Natural Resources Policy

Disclaimer
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IN11818 · VERSION 5 · UPDATED