Timber Harvesters, Haulers, and Landowners Market Disruptions Relief Act

Bill Number

H.R. 7195

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Agriculture and Food

Status

Introduced

Latest Action

2026-05-20: Referred to the Subcommittee on Forestry and Horticulture.

Last Updated

2026-06-11T08:07:18Z

AI-Generated Summary

Purpose of the Legislation

This bill, titled the "Timber Harvesters, Haulers, and Landowners Market Disruptions Relief Act," aims to offer financial support to small businesses involved in harvesting and transporting forest products (like timber) when they face major market problems, such as factory closures or trade barriers. The goal is to help these businesses stay operational during economic disruptions in the timber industry.

Key Provisions

• Declaration of Market Disruption: The Secretary of Agriculture (through the Farm Services Agency) can declare a "market disruption" within 14 days of a petition from a state governor or the Chief of the Forest Service. A market disruption includes events like:
• Closure of processing facilities reducing capacity by at least 20% in a region (state or sub-state area).
• Trade barriers cutting national exports by 50% for certain products.
• A 50% drop in timber prices over two years.
• Loss of market access for 20% of a region's area over 10 years.
• Any other major threat to timber operations.
• Financial Assistance Payments:
• After declaration, the Secretary publishes a funding notice and accepts applications within 30 days.
• Eligible businesses apply with a simple form; approvals or denials come within 30 days.
• Initial Payment: Up to $20,000 per business shortly after approval.
• Second Payment: On September 30 of the disruption year, an additional amount to cover up to 30% of revenue loss (based on estimated vs. prior-year revenue).
• Subsequent Payments: For up to 5 years, if conditions haven't improved, eligible businesses get 50% of prior payments if requested by the original petitioner.
• Payments may be prorated if funds are limited.
• Eligibility for Businesses:
• Must be a harvesting business, hauling business, or landowner profiting from timber sales.
• Suffered revenue loss from the disruption.
• Earned at least $35,000 in federal taxable income from forest products the year before.
• At least 75% of revenue from harvesting or hauling.
• Landowners must have sold significant volumes (e.g., 1 million board feet of sawtimber) in 4 of the last 5 years.
• Use of Funds: Limited to operational costs (e.g., payroll, fuel, equipment repairs, debt) or expanding to new markets in the forest sector.
• Procedures:
• Appeals go to the USDA's National Appeals Division within 30 days of denial, with a decision in another 30 days.
• Fraudulent applications lead to denial of funds and fines.
• The Secretary must create the application form within 60 days, skipping usual public comment and paperwork rules for speed.
• Reporting and Funding: Annual reports to Congress on payments and activities. Funding comes from anti-dumping and countervailing duties (tariffs on unfairly priced imports) collected on Canadian softwood lumber imports, appropriated each fiscal year.

Significant Changes to Existing Law

This bill introduces a new program without directly amending prior laws. It creates a dedicated relief mechanism for timber businesses, funded specifically by trade duties on Canadian lumber—a novel tie-in to existing U.S. trade enforcement. It also allows expedited rulemaking by waiving standard federal requirements for public input (under the Administrative Procedure Act) and paperwork approvals (under the Paperwork Reduction Act), enabling faster rollout than typical USDA programs.

Potential Impacts

• On Government Agencies: The USDA (via Farm Services Agency) gains new administrative duties, including quick declarations, application reviews, and payments, potentially straining resources but supported by dedicated tariff revenue. Annual reporting adds oversight burdens.
• On Citizens and Businesses: Provides direct financial relief to small, rural timber operations, helping prevent closures, job losses, and economic decline in forest-dependent communities. Could stabilize local economies but benefits are capped and targeted, so not all affected parties qualify.
• On International Relations: Funding from duties on Canadian softwood lumber imports reinforces U.S. trade policies against perceived unfair practices, potentially escalating tensions with Canada but also signaling support for domestic industries amid ongoing lumber trade disputes.

Main Stakeholders Affected

• Primary Beneficiaries: Forest product harvesting businesses, hauling companies, and timber landowners meeting revenue and sales thresholds—often small, family-run operations in rural areas.
• Petitioners and Oversight: State governors and the U.S. Forest Service Chief, who initiate declarations and request ongoing aid.
• Administrators: U.S. Department of Agriculture (Secretary and Farm Services Agency), handling applications, payments, and appeals.
• Broader Groups: Timber industry workers, rural communities reliant on forestry, and U.S. taxpayers (indirectly, via tariff-funded program rather than general funds).
• International: Canadian lumber exporters, as the funding source depends on U.S. duties against their imports.

Notable Legal, Constitutional, or Political Implications

• Legal: The waiver of notice-and-comment rulemaking and paperwork rules could face challenges for bypassing public participation, though justified for emergency relief. Fraud provisions strengthen enforcement but rely on Secretary discretion for fines. Definitions of "market disruption" are broad, giving the Secretary flexibility that might lead to inconsistent applications across regions.
• Constitutional: No direct issues, as it involves Congress's spending power and commerce regulation; funding from duties aligns with trade authority under Article I.
• Political: Ties relief to anti-Canada trade measures, appealing to domestic industry protectionism but risking partisan divides on trade policy. Supports rural constituencies in timber states, potentially influencing agricultural committee dynamics, while the self-funding via tariffs avoids new appropriations debates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Allen, Rick W. [R-GA-12]

Cosponsors (2)

Rep. Fine, Randy [R-FL-6], Rep. Goodlander, Maggie [D-NH-2]

Recent Actions

• 2026-05-20: Referred to the Subcommittee on Forestry and Horticulture.
• 2026-01-22: Referred to the House Committee on Agriculture.
• 2026-01-22: Introduced in House
• 2026-01-22: Introduced in House

Bill Versions

• Timber Harvesters, Haulers, and Landowners Market Disruptions Relief Act — issued 2026-01-22 — PDF (10 pages)