Rural counties get two federal checks for land they can't tax. One went dark for two years.
Summary
The Interior Department sent $733 million to more than 1,900 local governments this year, on the normal annual schedule. A parallel Forest Service program that owed a similar sum let its authorization lapse for nearly two years — and by the time Congress released the backlog, a Washington school district had already cut 21 jobs and closed its only middle school.
Two programs, one purpose
PILT is the older and steadier of the two. The Interior Department paid $733 million to more than 1,900 state and local governments in 49 states, the District of Columbia, Puerto Rico, Guam, and the Virgin Islands for 2026 — up from $644.8 million in 2025. The formula is fixed by statute: entitlement acres times a per-acre rate, adjusted for population and prior payments. Since the program began in 1977, Interior has distributed $13.4 billion this way, drawn against the roughly $18.7 billion Interior collects each year from grazing, drilling, and other commercial activity on public land.
SRS pays out through the Forest Service instead, and it funds a narrower but more locally specific set of things. It dates to 2000, when Congress had to stop timber-revenue-sharing payments from collapsing alongside the timber harvests that funded them, by decoupling county payments from current logging revenue and pegging them to a historical baseline. More than 700 counties, across the U.S. and Puerto Rico, currently participate.
View data as table
| Title I — roads & schools | $215.8M | 85% of FY2025 payment |
|---|---|---|
| Title II — land-restoration projects | $22.8M | 9% |
| Title III — county public safety | $14.8M | 6% |
| Total | $253.5M | distributed April 14, 2026 |
Of the $253.5 million Forest Service payment for FY2025, 85% — $215.8 million — is Title I money, which counties put toward roads and school budgets directly. Another 9% funds Title II land-restoration projects chosen by local Resource Advisory Committees. The remaining 6%, Title III, pays for search and rescue, wildland firefighting, and law-enforcement patrols — the closest thing SRS has to a public-safety budget line.
What "on time" and "two years late" look like side by side
SRS's authorization lapsed after 2023, and Congress did not act again until the Secure Rural Schools Reauthorization Act of 2025 (P.L. 119-58) was signed December 18, 2025 — nearly two years later. The law ordered the Forest Service to make counties whole retroactively. It did: the FY2024 payment, for a fiscal year that had closed in September 2024, went out February 20, 2026; the FY2025 payment followed April 14, 2026. Both, verified against the Forest Service's own payment reports, came in almost exactly the same size as the FY2025 breakdown above.
View data as table
| PILT, FY2026 | $733M | Interior Dept., paid June 23, 2026 |
|---|---|---|
| SRS, FY2024 | $253.9M | USDA Forest Service, paid Feb. 20, 2026 |
| SRS, FY2025 | $253.5M | USDA Forest Service, paid Apr. 14, 2026 |
The dollar totals land close together — SRS pays out roughly a third of what PILT does nationally. The difference that matters is the date. PILT's $733 million went out this June, the same month it always does. SRS's money for two straight fiscal years sat unauthorized until a single bill released it all at once, more than a year after the first of those two years had already closed its books.
What the gap cost one district
Congress eventually paid every dollar SRS formula owed. Counties and school boards could not run on that promise while it was unresolved. In Skamania County, Washington, the Stevenson-Carson School District had built an $830,000 SRS payment into its budget; when it didn't arrive, the district cut its 2025–26 budget by $1.85 million, eliminated 21 staff positions — teachers, counselors, paraeducators, and administrators — and closed Wind River Middle School, sending 40 sixth-graders to the elementary school and 117 seventh- and eighth-graders early into high school. The Forest Service's back payment arrived months later. The closed school did not reopen.
The takeaway
- Two programs, one job, two different track records. PILT and SRS both exist to replace property tax revenue counties can't collect on federal land. PILT paid on schedule. SRS didn't authorize a payment for nearly two years.
- The eventual math worked out almost exactly. The Forest Service's FY2024 and FY2025 back payments — $253.9 million and $253.5 million — matched what the SRS formula owed. The lapse cost time, not money, in the end.
- Time was the cost that couldn't be refunded. A district that had to guess whether $830,000 was coming cut 21 jobs and closed a school before the answer arrived. The eventual check didn't reopen it.
- The clock is already running again. SRS's reauthorization expires at the end of FY2026; the next payment isn't due until spring 2027.
Dollar figures for SRS are Forest Service fiscal-year totals verified directly against the agency's own payment reports (ASR-18-01); PILT figures are Interior Department calendar-year announcements for the federal fiscal year indicated. The Skamania County figures describe one district's budget and are not a national tally of SRS-lapse job losses.
Sources
- U.S. Department of the Interior — press release, Interior Department Announces $733 Million to Support Communities (June 23, 2026): FY2026 PILT total, recipient count, and cumulative program history since 1977. doi.gov
- U.S. Department of the Interior — Payments in Lieu of Taxes program overview: eligible jurisdictions, formula basis, and administering agencies. doi.gov/pilt
- Forest Service — Secure Rural Schools Program overview: program history, the 2000 shift from current timber revenue to a historical baseline, and county/territory coverage. fs.usda.gov
- Forest Service — Secure Rural Schools, Payments: the full index of official payment reports, including the FY2024 and FY2025 "Final Title I, II, and III Reports" (ASR-18-01) used for this piece's Title breakdown and back-pay totals, cross-checked directly against the downloaded PDFs. fs.usda.gov
- Forest Service — Secure Rural Schools, Categories: statutory uses of Title I, Title II, and Title III payments, including Title III's public-safety uses. fs.usda.gov
- National Association of Counties — reporting on the signing of the Secure Rural Schools Reauthorization Act of 2025 (P.L. 119-58) and the length of the preceding authorization lapse. naco.org
- Columbia Gorge News — reporting on the Stevenson-Carson School District's budget cuts, staff layoffs, and the closure of Wind River Middle School after the loss of its Secure Rural Schools payment. columbiagorgenews.com
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A county with a national forest or a Bureau of Land Management field office inside its borders cannot tax that land — it is federal property. Washington compensates for that in two separate ways: Payments in Lieu of Taxes (PILT), run by the Interior Department, and the Secure Rural Schools program (SRS), run by the Forest Service. Both exist for the same reason — neither has a natural constituency loud enough to guarantee it survives a budget fight — but in 2026 one of them worked exactly as designed and the other did not.