New Relief Fund Creates $50 Million Annual Lifeline for Logging Businesses Hit by Disasters

The Loggers Economic Assistance and Relief Act is setting up a direct payment program aimed squarely at timber harvesting and timber hauling businesses that take a major revenue hit from a declared disaster. Think of it as a financial safety net specifically for the folks who cut and haul wood, ensuring they can keep the lights on after a major unexpected event.

The 10% Rule: How the Payout Works

This isn't just for any bad year; it kicks in after a "major disaster," which includes insect infestations if the President declares them as such under the Stafford Act. To qualify, a timber business must prove it lost at least 10% of its usual gross revenue during any 30-day stretch or quarter compared to that same period the year before (Sec. 2). If they meet that 10% revenue drop threshold, the payment is simple: 10% of the gross revenue they did make during that affected period. For example, if a hauling company usually makes $100,000 in July but only made $85,000 this July due to a disaster—a 15% drop—they would qualify and receive $8,500 (10% of the $85,000 they earned).

Cash for Operations, Not Old Debts

There’s a strict rule on how this money can be used: it must go only toward operating expenses. The bill is clear that these funds are meant to keep the business running day-to-day—like paying for fuel, maintenance, or payroll—not for paying down old loans or making capital investments (Sec. 2). The goal is clearly to prevent short-term disaster shocks from causing long-term business failure. The Farm Service Agency (FSA) under the Secretary of Agriculture will manage this program, which is authorized to spend up to $50 million annually from fiscal year 2025 through 2029.

The Fast Track to Implementation

One detail that jumps out is the speed requirement for implementation. The Secretary of Agriculture has just 30 days to write up all the official program rules. To make this happen fast, the bill explicitly allows the Secretary to skip the usual public comment period required by federal administrative law (Sec. 2). While this guarantees quick relief for the logging industry, it means the public and industry stakeholders won't get a chance to weigh in on the fine print of the rules before they are finalized, which could lead to hiccups or unintended consequences down the road.

What This Means for the Industry and Taxpayers

For timber businesses, this provides a predictable, targeted relief mechanism that wasn't there before, offering a quick cash infusion precisely when revenue is tanking. It’s a huge benefit for an industry often dependent on good weather and healthy forests. However, this is a highly targeted program. Other businesses that suffer similar revenue losses from the same disaster—say, a local restaurant that relies on the loggers' business or a nearby construction company—won't qualify for this specific aid, even if they were equally impacted. Furthermore, the bill mandates that the Secretary report back to Congress annually, listing every business that received money and exactly how much, ensuring accountability for the $50 million authorized each year.