Contents

• Legislative History
• Applicable Lands
• Good Neighbor Authority Agreements and Contracts: Activities and Structure
• The Good Neighbor Authority for Recreation
• Timber Sales and Revenues
• Forest Service
• Bureau of Land Management
• Timber Revenues
• Issues for Congress

Under the Good Neighbor Authority, the Secretaries of Agriculture and the Interior (Secretaries) may authorize specified nonfederal partners to conduct land management projects on certain federal lands in pursuit of specified land management goals (see "Applicable Lands").¹ The authority allows agencies to collaborate with nonfederal partners to execute cross-jurisdictional land management projects. Partners may conduct commercial timber sales, retain any revenue, and use the revenue for specified purposes. Accordingly, the Good Neighbor Authority is often viewed as a tool for facilitating cross-boundary landscape management, leveraging partner resources, and increasing efficiency.²

Beginning in 2025, a related authority, colloquially known as the Good Neighbor Authority for Recreation, allows the Secretaries to authorize specified partners to conduct recreation enhancement or improvement services. This authority applies to Bureau of Land Management (BLM) and National Park System lands, both in the Department of the Interior (DOI), and National Forest System (NFS) lands, managed by the Forest Service (FS) in the U.S. Department of Agriculture (USDA).³

This CRS report provides background, statistics, and a brief overview of some issues related to these authorities, including issues related to timber sales and associated revenues.

Legislative History

Congress created the Good Neighbor Authority in 2001 as a pilot program for FS lands in Colorado (P.L. 106-291)⁴ and later expanded the pilot to include BLM lands in Colorado and FS lands in Utah (P.L. 108-447).⁵ In 2014, the authority permanently passed into law in P.L. 113-79.⁶ The permanent authority applied only to states. Before it approved the permanent authority, Congress had temporarily extended and expanded a version of the law in 2014; that version differed in its requirements and was superseded by the permanent authorization.⁷

In 2018, the authority was expanded by P.L. 115-334 to include counties, groups of counties, and federally recognized Indian Tribes (hereinafter referred to as counties and Tribes, respectively).⁸ Another 2018 law, P.L. 115-141, also authorized states to retain funds from timber sales made under the authority, subject to certain conditions, and authorized certain road restoration activities.⁹ In the 118^th Congress, several laws further amended the authority. Specifically, P.L. 118-234 authorized counties and Tribes to retain timber sale revenue, and P.L. 118-42 introduced provisions related to additional federal lands (see "Applicable Lands" below) and authorized the Good Neighbor Authority for Recreation.¹⁰

Applicable Lands

Under the Good Neighbor Authority, the Secretaries may enter into agreements or contracts (good neighbor agreements or GNAs) with states, counties or groups of counties, and Tribes to perform forest, rangeland, and watershed restoration work.

General use of the authority on NFS and BLM lands, and nonfederal land, has been established in law since the authority's permanent enactment in 2014. The authority also appears to allow good neighbor agreements with respect to other DOI lands, but definitions in the act raise a potential ambiguity about the authority's scope. Specifically, the act expressly authorizes only "the Secretary" to enter into good neighbor agreements. For DOI lands, "Secretary" is defined as "the Secretary of the Interior, with respect to Bureau of Land Management land." A 2024 amendment expanded the authority's definition of federal land to include National Park System lands, managed by the National Park Service (NPS), and national wildlife refuge lands, managed by the U.S. Fish and Wildlife Service (FWS).¹¹ Although both agencies are within DOI, because the definition of "Secretary" refers only to the Secretary of the Interior "with respect to [BLM] land," it is unclear whether the Secretary of the Interior could use the authority with respect to NPS and FWS lands. CRS did not locate policies, guidance, or examples on use of the authority issued by the NPS or FWS. Accordingly, the information on implementation in the remainder of this report pertains to the FS and the BLM.

Good Neighbor Authority Agreements and Contracts: Activities and Structure

Under the Good Neighbor Authority, authorized restoration services means complementary forest, rangeland, and watershed restoration services carried out on federal, nonfederal, or Tribal land, by either the applicable Secretary or the state, county, or Tribe, as applicable. Restoration services means

• treating insect- and disease-infested trees;
• reducing hazardous fuels;
• "any other activities to restore or improve forest, rangeland, and watershed health, including fish and wildlife habitat"¹²; and
• reconstruction, restoration, and repair of NFS, BLM, NPS, and national wildlife refuge-managed roads, and construction of NFS roads necessary to implement authorized forest restoration services.

In the case of unneeded NFS roads (as defined at 36 C.F.R. §212.5(b), as in effect on March 23, 2018), these roads must be decommissioned in accordance with the applicable travel management plan no later than three years after the restoration services are completed.¹³ No similar stipulation applies to BLM, NPS, or national wildlife refuge-managed roads.

For the purposes of the authority overall, "federal land" does not include designated wilderness areas, wilderness study areas, or areas where removal of vegetation is prohibited by an act of Congress or by presidential proclamation.¹⁴ Construction, reconstruction, repair, and other work involving buildings, public works, and other infrastructure are not permitted.

The FS and the BLM structure GNAs in a variety of ways. The FS may use a cooperative agreement or contract called a master agreement (MA), which describes the collaborative framework between the federal agency and the partner.¹⁵ FS MAs serve as an umbrella for supplemental project agreements (SPAs), which outline the specific terms and conditions for implementation of individual projects. The BLM and the FS also use stand-alone agreements and contracts, which fulfill both functions for the purpose of a single project.¹⁶ GNA duration is not addressed in statute, although FS and BLM policies limit GNA duration to 10 years.¹⁷ There is no limit to the number GNAs a partner may enter.

In FY2025, according to data provided by the FS legislative affairs office, the FS had a total of 540 GNAs: 426 with 39 states, 50 with counties, 45 with Tribes, and 19 with "other" state or county organizations (such as soil and water conservation districts).¹⁸ The BLM does not publicly report GNA statistics beyond timber harvesting statistics (see "Timber Sales and Revenues"). Partner groups report the use of GNAs for a variety of diverse activities, such as hazardous fuels reduction, invasive weed control, reforestation, aquatic organism passage, seed collection, road repair and decommissioning, and timber sales.¹⁹

The Good Neighbor Authority for Recreation

In 2025, Congress authorized the provision of law colloquially called the Good Neighbor Authority for Recreation through Section 351 of P.L. 118-234.²⁰ Under the Good Neighbor Authority for Recreation, the Secretaries may enter into agreements or contracts with states, counties, and tribes to perform recreation enhancement or improvement services across NFS, BLM, and National Park System land. Recreation enhancement or improvement services means "establishing, repairing, restoring, improving, relocating, constructing, or reconstructing new or existing" recreation infrastructure, such as trails, campgrounds, visitor centers, picnic areas, boat launches, and shooting ranges.²¹ It is also defined to mean creating, improving, or restoring access to existing recreation facilities or areas.

Policy guidance on use of this authority is available for BLM. BLM's policy groups the Good Neighbor Authority for Recreation together with the Good Neighbor Authority, referring to them together as the Good Neighbor Authority.²² Due partly to the recency of its passage, there are limited examples of implementation of this provision; in particular, an example on FS lands from January 2026 specifies it is the "first of its kind."²³

Timber Sales and Revenues

Timber harvesting under the Good Neighbor Authority on NFS and BLM lands has been established since shortly after the authority's initial enactment (see Figure 1). Questions remain about whether the Good Neighbor Authority authorizes timber harvesting on National Park System and national wildlife refuge lands.

Unlike NFS and BLM lands, there is no broad underlying authority to harvest timber on National Park System and national wildlife refuge lands, and timber harvesting on these lands is rare.²⁴ The Good Neighbor Authority itself does not explicitly authorize timber harvesting, but provisions in the authority relate to timber harvesting. For example, the authority authorizes activities to achieve a range of end goals (see "Good Neighbor Authority Agreements and Contracts: Activities and Structure"), some of which may be accomplished through timber harvesting.²⁵ Provisions related to "monies received" under the Good Neighbor Authority explicitly apply to the National Park System and FWS land, which may include timber sale revenues.²⁶ Prior to enactment, Congress considered legislation that would have explicitly authorized timber harvesting under the Good Neighbor Authority on FWS lands; however, that legislation differed substantially in its construction compared with what was enacted in P.L. 118-234.²⁷ CRS did not locate policies, guidance, or examples on use of the authority for timber harvesting issued by the NPS or FWS. The information on timber sales in the remainder of this report pertains to the FS and the BLM.

The FS and the BLM have the general authority to harvest timber on NFS and BLM lands.²⁸ Other laws also may govern timber harvesting on these lands, such as restrictions on how timber sales may be designed and conducted. The Good Neighbor Authority waives some of these legal requirements. Accordingly, FS and BLM timber sales under the Good Neighbor Authority may be conducted differently from timber sales under other agency authorities, and many responsibilities may be delegated to the nonfederal partner on a given GNA.

The Good Neighbor Authority requires the Secretaries to provide or approve any silvicultural prescriptions (e.g., what trees may be cut) and marking guides.²⁹ Other differences vary by agency, and are described below.

Forest Service

FS timber sales are subject to a number of specific statutory requirements, including the following:

• sales of timber at not less than appraised fair market value, generally through a competitive, open bidding process;³⁰
• advertisement of all timber sales with an appraised value of $10,000 or more, unless the Secretary of Agriculture determines that extraordinary conditions exist;³¹
• designation of timber by marking, prescription, or description;³² and
• supervision of FS timber sales by USDA employees.³³

The Good Neighbor Authority statutorily waives some of these requirements, particularly the requirement to advertise timber sales and the requirement for FS personnel to supervise timber sales.³⁴ The authority also waives the requirement that sales be designated by marking, description, or prescription, but instead specifies that the Secretary of Agriculture shall provide or approve all silvicultural prescriptions and marking guides.³⁵

FS policy addresses federal timber compliance requirements for states, but not counties or Tribes. Specifically, FS policy broadly specifies that state sales of FS timber use state procedures and requirements, as long as the FS concurs:

When National Forest System timber will be sold by the State under a good neighbor agreement, the State may follow its regular sale preparation, contracting, administration, and other procedures when they meet Forest Service objectives and applicable regulations, are acceptable to the responsible Line Officer, and are agreed to in the good neighbor agreement.³⁶

FS policy is also to "rely on State contracting procedures that are acceptable to the Forest Service for advertising, marking/designation, and supervision to ensure accountability."³⁷ FS policy allows other federal compliance requirements to be met by contract provisions or monitoring provisions enforced by states, such as export controls, payment or payment guarantees, and fire liability.³⁸ Timber sold by states under GNAs uses state legal instruments (e.g., permits, contracts) approved by the FS.³⁹ Timber sold by states under GNAs may be appraised either by the FS or the state, in which case the appraisal must still follow FS regulatory requirements for minimum value.⁴⁰

Figure 1. Forest Service Timber Volume Sold Under GNAs, in Million Board Feet (MMBF)

Source: Email from the Forest Service (FS) to CRS, May 14, 2020, and Forest Service FY2022-FY2026 budget justifications. Notes: The FS reported that there was no timber volume sold under a Good Neighbor contract or agreement prior to FY2016.

In FY2024, about 258 million board feet (MMBF) of FS timber, or about 9% of the agencywide total, was sold under GNAs (see Figure 1).⁴¹ It is unclear how much revenue this represents, as FS timber harvesting data do not include revenues for timber sold under GNAs.⁴²

Bureau of Land Management⁴³

In contrast to the FS, BLM has relatively few specific statutory requirements for timber sales; instead, most statutes are general in nature.⁴⁴ BLM sets out many requirements for timber sales in regulation, including sales of timber at not less than appraised fair market value⁴⁵ and advertisement of all timber sales greater than 250 thousand board feet (MBF) in size, except in specified public interest circumstances.⁴⁶ BLM policy allows all of these requirements to be waived if a partner sells BLM timber. Specifically, BLM policy states that

GNA may entail a cooperating entity assisting the BLM with tasks such as layout, marking, cruising, appraising, awarding, and administering the sale of timber or other forest products for the BLM. The BLM may have the cooperating entity, through a contract or agreement, provide services to help prepare forest product sales that the BLM would conduct using standard BLM procedures. The BLM may also delegate the entire forest product sale process to the cooperating entity to implement using their procedures, in which case the BLM timber sale regulations (43 CFR 5400 - 5474) and policies including policies on the cruising, appraising, and minimum prices are waived.⁴⁷

Accordingly, in contrast to the FS, BLM policy allows appraisal and minimum pricing policies to be waived. Other policies are the same across the two agencies, such as requirements that BLM provide or approve all silviculture prescriptions and marking guidelines for timber sold.⁴⁸

The most timber the BLM has ever offered for sale in a single fiscal year under GNAs was about 11 MMBF; in most years, it is between 3 MMBF and 5 MMBF.⁴⁹ This may relate to the fact that the FS manages more forest than the BLM.⁵⁰

Timber Revenues

Through FY2028, funds received by states, counties, and Tribes from the sale of timber under a GNA may be retained and used for the following specified purposes:

• to carry out authorized restoration services as part of the GNA under which the revenues were received; if funds remain, they may be used for
• authorized restoration services under other GNAs; or
• authorized recreation services under the "Good Neighbor Authority for Recreation Act."⁵¹

There is no law named the "Good Neighbor Authority for Recreation Act." The Office of the Law Revision Counsel notes that this phrase may refer to the provision of law enacting the Good Neighbor Authority for Recreation, Section 351 of the EXPLORE Act (P.L. 118-234), which is titled "Good Neighbor authority for recreation." No short title was formally enacted for P.L. 118-234, Section 351. CRS did not locate agency policies addressing the use of timber sale revenues under the Good Neighbor Authority for recreation services, so it is unclear how the agencies may interpret this reference. Congress has considered legislation to clarify the reference to "the Good Neighbor Authority for Restoration Act" (e.g., in Section 8238 of S. 5526), which changes the reference to refer to Section 351 of the EXPLORE Act.

Timber sale revenues under GNAs are not applied to calculations of FS or BLM revenue-sharing payments.⁵² In addition, any payment made to the Secretary by a county under a GNA is not considered to be monies received from FS, BLM, National Park System, or FWS land. This may have the effect of exempting such monies from the agencies' revenue-sharing laws (if any), depending on any provisions specific to the laws applicable to each agency.

Issues for Congress

Historically, compared with states, fewer counties and Tribes have made use of GNAs. This may be due to the shorter amount of time that counties and Tribes have been authorized partners (since 2018), and the even shorter amount of time that counties and Tribes have been authorized to retain timber sale revenues (since 2025).⁵³ Other factors influencing whether counties and Tribes enter into GNAs might include funding, staffing, or other resource capability concerns.

Treatment of timber sale revenues under the Good Neighbor Authority has been the subject of debate. Timber sale revenues under GNAs, including any carried balances by nonfederal partners, are not systematically reported at the federal level. Accordingly, it is unclear exactly how much revenue partners have generated from timber sales under GNAs, how this compares to what the FS and BLM would have otherwise received, and what amounts are available for expenditure by partners and for what purposes. In addition, some have expressed concerns that revenue from GNA projects is not subject to FS and BLM revenue-sharing laws, pointing to potential reductions in revenue-sharing payments.⁵⁴ However, allowing timber sale revenues to be retained by partners, while also being counted toward revenue-sharing payments, could be viewed as constituting a double payment if a partner were to receive a revenue-sharing payment.

As discussed above, uncertainties remain regarding the 2024 extension of the Good Neighbor Authority to National Park System and national wildlife refuge land. It is unclear whether the Secretary of the Interior may invoke the Good Neighbor Authority on National Park System and national wildlife refuge lands (see "Applicable Lands"). Similarly, it is unclear whether the Good Neighbor Authority may be used to authorize timber harvesting on such lands (see "Timber Sales and Revenues"). In addition, it is unclear whether, or how, timber sale revenues from the Good Neighbor Authority may be applied to projects under the Good Neighbor Authority for Recreation. These questions may be resolved as agencies develop or issue policies or provide additional use cases concerning these provisions. Congress also has introduced legislation that aims to resolve some of these ambiguities, such as provisions in the Senate discussion draft of the farm bill to correct references to Section 351 of the EXPLORE Act.⁵⁵

Footnotes