On June 3, the House Appropriations Committee approved the Fiscal Year 2027 Interior, Environment and Related Agencies appropriations bill. The vote was 35-27. The committee-passed measure includes $30 million for the Wood Innovation Grant (WIG) program, which funds cutting edge wood manufacturing projects around the country. WIA was part of a coalition advocating for a “plus up” to $40 million, but we are pleased with this number and the committee’s recognition that WIG is an important program necessary to spur markets for wood products and the machines that process them. The measure also includes $18 million for the Community Wood Energy program, a $3 million increase over the current funding level. Community Wood also provides money for wood manufacturing, but its emphasis is on biomass heating and power projects. This program is critical for building markets for sawmill residuals. One final notable in this bill is language reauthorizing a provision directing the Environmental Protection Agency, the U.S. Department of Agriculture and the Department of Energy to recognize forest-based biomass fuels and energy as “carbon neutral” in any environmental or energy policymaking.

Farm Bill

Indications are that the Senate Agriculture, Nutrition and Forestry Committee is poised to release text of a Farm Bill reauthorization measure sometime this week. If a committee draft does emerge in the coming days, we will promptly prepare a summary and make that available. Recall, that the House approved its version of a Farm Bill reauthorization measure at the end of April on a 224-200 vote. We remain hopeful that the Senate will act expeditiously and that Congress delivers a final product to the President before the August recess.

WIA expects that the Senate’s version will resemble the House-passed product. Provisions we anticipate seeing include—

• Language reauthorizing the Wood Innovation and Community Wood Grant programs for 5 years.
• Provisions amending the Rural Innovation Stronger Economy (RISE) program to includeforestry and forest products sector-specific workforce/career path grants.
• Language providing relief to specialty crop producers, including $200 million for manufacturers of hardwood lumber and other domestic hardwood products. This provision is in response to the economic downturn in the hardwood industry which has been hampered by trade/tariff issues and competition from substitute products.

Trade/Tariffs

On June 1, the President signed a Proclamation adjusting certain metals tariffs to “more effectively address national security threats, spur investment in American agriculture, housing, and manufacturing, and facilitate U.S. production of related products.” 

• The Proclamation adjusts tariffs on agricultural equipment, like combines and harvesters, as well as certain other equipment, from 25% to 15%.  
• The Proclamation also expands the existing category of industrial equipment subject to a 15% tariff to include mobile industrial equipment, like bulldozers and forklifts, when imported from trade deal countries that are entitled to such treatment. 
• The Proclamation encourages foreign companies to use more U.S. steel and aluminum by allowing them to qualify for a 10% duty rate, if their capital equipment includes at least 85% U.S. melted and poured or smelted and cast steel or aluminum by weight. 
• These tariff changes took effect June 8 and are temporary, lasting until December 31, 2027.

Workforce/CTE

On June 9, the House Appropriations Committee approved the Fiscal Year 2027 Labor, Health and Human Services, Education, and Related Agencies Appropriations bill.

Overall, the legislation makes steep cuts to both the Department of Education (ED) and the Department of Labor (DOL). The bill would cut ED by approximately $8 billion (10%) and DOL by $3.7 billion (27%).  

In a positive development, the legislation includes an $8 million increase for CTE programs under the Perkins Act and would allow Perkins funds to continue to be used for postsecondary CTE programs. The Administration had requested that Perkins funds for postsecondary CTE be discontinued.

In other line items, Registered Apprenticeships will receive $290 million, an increase of $5 million and Strengthening Community College Training Grants will receive $75 million, an increase of $10 million.

We expect to see the Senate Appropriations Committee release text of its version of a FY 2027 Labor-HHS bill in the coming weeks.

Transportation

Last month, the House Transportation and Infrastructure Committee approved H.R 8870, the  BUILD America 250 Act, by a vote of 62-2. This measure would reauthorize our country’s highway, rail and transit programs for the next 5 years. The current highway bill expires September 30.

The committee’s action produced some key wins for the forest products value chain. In the positive column, state specific gross vehicle weight exemptions were included in the legislation that was first introduced May 19 and which served as the underlying bill for the markup. These include Arkansas, where logging vehicles with 5 axles would be allowed to travel on that state’s portion of the interstate at 85,000 pounds for up to 20 miles. The federal weight limit on interstate highways for trucks with 5 axles is 80,000 pounds which is in conflict with many states that allow higher weight limits on their state roads. Similar language also applies to logging trucks on 5 axles in Louisiana which would be able to operate on that state’s portion of the interstate at 88,000 pounds. The Louisiana language does not include the 20-mile limitation, however. Vehicles defined in both these provisions include those carrying “raw or unfinished forest products, including logs, pulpwood, biomass or wood chips.” The bill also grandfathers gross vehicle weight limits on certain state roads in Iowa that are slated to become interstate highways.

In the “manager’s amendment” that was offered and considered during committee deliberations, additional state specific gross vehicle weight provisions were added. Wisconsin was granted route-specific gross vehicle weight exemptions for logging trucks travelling on Interstate Route 39, Interstate 94 or the portion of Interstate Route 43 that connects Interstate 41 to State Highway 57. North Carolina was also afforded a weight exemption. Under that state’s provision, trucks carrying “unfinished or raw forest products, including logs, pulpwood, biomass or wood chips” would be able to operate at 90,000 pounds on North Carolina’s portion of the interstate highway system.

On the broader truck weight reform landscape, an amendment offered by Rep. Dusty Johnson (R-SD) that authorizes a voluntary 10-year pilot program whereby states may allow 91,000-pound trucks equipped with a 6^th axle to operate on the interstate was approved. This is a huge win for shippers who have long contended with trucks weighing out before they cube out and operating inefficiently on the highways at half or two-thirds full.

On April 30, the House of Representatives passed the Farm, Food and National Security Act (H.R. 7567) by a vote of 224-200. The House-passed measure includes the following provisions-

• Jobs in the Woods Act language. The bill modifies the Rural Innovation Stronger Economy (RISE) grant program to include the forestry and forest product sectors. RISE is a workforce development initiative that covers several industries but currently does not address our sector’s workforce needs.
• Wood innovation and wood energy funding. Reauthorizes and makes improvements to the Wood Innovation and Community Wood Grant programs. WIG in particular has been effective at standing up mass timber manufacturing facilities across the country.
• Biomass carbon neutrality. Requires USDA to assign a greenhouse gas emissions value of no greater than zero in any of its policymaking.
• Sustainability. Extends the Forest Inventory and Analysis (FIA) program, which is the Forest Service’s program to monitor the health and abundance of our country’s forested acres.

WIA is hopeful this action will kick start momentum in the Senate, where Senate Agriculture, Nutrition and Forestry Committee Chairman John Boozman (R-AR) has been signaling his desire to move a Farm Bill reauthorization measure out of his committee early summer. 

Career and Technical Education (CTE) Legislation Introduced

On May 7, Representative Glenn “GT” Thompson (R-PA) and Suzanne Bonamici (D-OR) Introduced legislation to create skill savings accounts. These two Members of Congress co-chair of the Congressional CTE Caucus. The bill, titled the Skill Savings Account Act (H.R. 8714), creates specialized savings accounts for workers of all ages to use for education expenses including workforce development and non-traditional learning opportunities. A press release announcing the legislation’s introduction may be found here. 

Specifically, this legislation would: 

• Create tax-free skill savings accounts to help underwrite qualified education expenses of workers. This would be a portable account that follows a worker throughout their career.
• Workers would be able to contribute to their own skill savings accounts and/or receive contributions from employers, family and friends, government agencies, tax authorities and community investment organizations.
• Funds can be used for apprenticeships, credentials, bootcamps, certificate programs and community college or university courses.
• The total amount contributed by the employer would not be able to exceed $5,250 and the total amount contributed by an employee could not exceed $10,000 in any calendar year.
• A skill savings account balance is capped at $50,000.

The bill was referred to the House Ways & Means Committee.

Workforce

On May 18, the Department of Education (ED) released its final rule for the implementation of Workforce Pell. Beginning July 1, eligible students will be able to use Pell Grants for approved high-quality, short-term workforce training programs. 

The final rule establishes the regulatory framework for the Workforce Pell Grant program. As authorized in H.R. 1, the One Big Beautiful Bill Act, eligible workforce programs must be between 150 and 599 clock hours and span at least eight but less than 15 weeks. Programs must lead to a recognized postsecondary credential that is stackable to a higher-level, for-credit program and prepares students for employment in high-skill, high-wage or in-demand occupations. 

To qualify for Workforce Pell eligibility, a program must have been in existence for at least one year and be offered by an accredited institution that has not faced a suspension, emergency action or program termination within the previous five years.

Trade

On May 12, Rep. Lloyd Doggett (D-TX), introduced the Trade Responsibly for Environmental Emissions (TREE) Act. The bill emulates a regulatory regime in the European Union known as EUDR (European Union Deforestation Regulation) by prohibiting importation into the U.S of commodities and products derived from lands affected by deforestation or forest degradation. 

Specifically, the bill prohibits import and sale in interstate commerce of “deforestation goods,” which includes cattle, cocoa, palm oil, rubber, soy, wood and derived products, from lands affected by deforestation or forest degradation since 2020. Importers would be required to file a due diligence statement with Customs and Border Protection (CBP) as part of the compliance process. Like the EUDR, a risk categorization list would be developed by the U.S. Trade Representative (USTR) designating countries’ risk levels. Countries with the highest risk, Level 1, would be subject to CBP inspection of at least 9% of imports; Level 2 countries would be subject to CBP inspection of at least 3% of imports; and Level 3 countries would be subject to CBP inspection of at least 1% of imports. Risk categorizations would be based on the rate of deforestation and forest degradation, the rate of the expanding agricultural lands and production trends for covered items.

This legislation is effectively dead in the current Congress, but WIA will continue to monitor. 

Today, the House Education and Workforce Committee will mark up H.R. 8210, the Stronger Workforce for America Act. The bill, which would reauthorize the Workforce Innovation and Opportunity Act (WIOA), was introduced April 6 by Committee Chairman Tim Walberg (R-MI) and is similar to WIOA reauthorization legislation that nearly passed last Congress. Recall that WIOA is the central federal statute the underpins most of the workforce development programs and infrastructure in the U.S.

Regarding Career and Technical Education (CTE), the measure modifies the membership of local workforce boards by adding an optional position for educators. It also modifies the functions of these boards to emphasize alignment of career pathways with local CTE programs.

The bill expands allowable statewide activities to include efforts to raise public awareness for CTE programs. This provision also encourages the development of stronger partnerships among educational institutions, with the goal of enhancing workforce-aligned programs and ensuring students are better connected to high-demand career opportunities.

The measure stands up a new Youth Apprenticeship Readiness Grant Program designed to increase participation in both pre-apprenticeship and registered apprenticeship programs. An eligible education and training provider, workforce development system entity, qualified intermediary or state agency in the state where the partnership is located would serve as the lead organization for the youth apprenticeship partnership.

One goal of previous WIOA reform efforts has been on requirements for eligible providers of training services and operators of one-stop employment resource centers. Providers of registered apprenticeships and providers of Workforce Pell programs would automatically be included on the list of eligible training providers. In addition, area career and technical education schools, institutions of higher education, joint-labor management organizations and public libraries could serve as one-stop operators. The bill does allow for virtual one-stop centers; however, local areas opting for a virtual one-stop would be required to have at least two physical affiliated locations.

The bill also authorizes $65 million in appropriations for the renamed Strengthening Community Colleges Workforce Development Grant Program. Community colleges applying for Strengthening Community Colleges grants would need to establish an industry partnership with one or more employers in in-demand industries to carry out grant activities. Priority would go to applicants with plans to serve individuals facing barriers to employment or incumbent workers in need of foundational skills, as well as projects that would use competency-based assessments to award credit for prior learning.

This version does include some new additions. Specifically, the bill also would create a pilot program to allow states and local workforce boards to pursue reforms to their workforce development systems via Make America Skilled Again Grants. According to the bill, a state, local area, or consortium of multiple local areas with an approved pilot project will receive its adult, dislocated worker, and youth funds as a consolidated grant for five years with increased flexibility through waivers of statutory and regulatory requirements. The Labor secretary could approve up to 10 statewide pilot projects and eight local area or consortium pilot projects and add two more states later.

For adult learners, the bill proposes a significant structural shift by transferring responsibility for Title II Adult Education programs from the Department of Education to the Department of Labor. There are also several provisions in the adult education section of the bill promoting Integrated Education and Training.

WIA will continue to be engaged in this legislation and keep you apprised of its progress.

Farm Bill

Next week, the full House is scheduled to consider the House Agriculture Committee-passed Farm Bill reauthorization legislation known as the Farm, Food and National Security Act of 2026. As we have mentioned, there are a number of positive policy provisions for WIA as well as the forestry and forest products value chain in the measure, including:

• Jobs in the Woods Act language—these provisions would authorize job training and workforce development programs specially tailored to the wood products and forestry sectors.

• Language renewing and revising both the Community Wood and Wood Innovation Grant Programs. These two initiatives have pumped meaningful dollars into projects across the country to modernize sawmills and increase deployment of cross laminated timber/mass timber manufacturing operations.

We expect the measure will pass and attention will turn to moving a Farm Bill reauthorization measure through the Senate.

Tariff Refunds

Last month Customs and Border Protection (CBP) signaled that it was readying an electronic system to process refunds of duties collected under the International Emergency Economic Powers Act (IEEPA). They made good on their commitment on April 13 by issuing instructions for importers to submit IEEPA tariff refund requests using the new Consolidated Administration and Processing of Entries (CAPE) tool within the Automated Commercial Environment (ACE) portal. The instructions may be found here.

Importers of Record (IORs) and brokers may submit eligible declarations beginning April 20. CAPE declarations will be validated, and refunds and interest payments will be consolidated and paid out in one lump sum.

Features of the new system include—

1. Mass Processing: CBP has designed the CAPE system to consolidate refunds of IEEPA tariffs rather than processing refunds on an entry-by-entry basis.

• For accepted entries on the CAPE declaration, all applicable IEEPA HTSUS Chapter 99 numbers will be removed.
• Duties owed will be recalculated as if the IEEPA duties were never owed. The projected refund will be the difference between the duties, taxes, and fees paid on the entry summary and the recalculated total.
• Once the mass processing is complete, unliquidated entries will be set to liquidate 45 days from the CAPE declaration acceptance date except for entries in suspended, extended or under review liquidation status.
• Liquidated entry summaries will reliquidate the next business day.

Scope of Phase One: In the first phase, CAPE will process most entries that are either unliquidated or up to 80 days past their liquidation date. Following review, the entries will be liquidated or reliquidated and refunds issued.

2. 60-90 Day Refunds: According to CBP, importers should expect that valid Phase One IEEPA refunds will be issued within 60 to 90 days following acceptance of a CAPE declaration unless a compliance concern activates further CBP review.

• Individual entry refunds will be consolidated and dispersed in one lump sum.
• Any unpaid debts to CBP will be deducted from the refund.

Unliquidated Entries: CBP is expected to update CAPE to accept entries not eligible for refunds during Phase One, including liquidated entries. CBP has not provided a timeframe for expanded deployment. FRA will continue to monitor developments and keep members informed.

To keep up to date on the latest, CBP will maintain all information on IEEPA Refunds and CAPE on a new IEEPA Duty Refunds page on CBP.gov.

There has been considerable activity in the trade and tariff space over the last month. As we signaled in February, a Supreme Court decision was imminent on the legality of the Trump Administration using the International Emergency Economic Powers Act (IEEPA) to impose tariffs on our trading partners. The decision in the case of Learning Resources v. Trump was made on February 20 whereby the Court ruled that IEEPA does not give the President the authority to impose tariffs under that statute. The Trump Administration responded quickly by issuing a new Executive Order imposing a 10 percent “Worldwide Tariff” on most goods entering the United States. A fact sheet on the announcement may be found here.

The tariff will remain in effect for up to 150 days unless Congress votes to extend it, which is unlikely. The morning after the announcement, however, President Trump posted on social media that he intends to raise the rate to 15 percent, but a follow-up EO has not yet been issued. As we mentioned in previous updates, the President has numerous tools at his disposal to pursue his tariff agenda. The statute he is using to impose the new 10-15 percent tariffs is Section 122 of the Trade Act of 1974. This law caps the tariff rate at 15 percent on imports and, again, limits duration of the tariff to 150 days without Congressional action. In order for tariffs to be legal under 122, there must be a “large and serious” balance of payment deficit; an “imminent and significant” dollar depreciation; or coordination with other countries to correct an “international balance-of-payments disequilibrium.”

In addition to Section 122, there is also tariff authority under Section 301 of the same law. To that end last week, the U.S. Trade Representative (USTR) announced an investigation into structural excess capacity and production in manufacturing sectors targeting China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India. USTR will open a docket for comments on March 17 through April 15 and hold a hearing on May 5. The 301 investigations will likely lead to the imposition of new tariffs on our trading partners in the neighborhood of the tariff regime that existed under IEEPA.

In a separate development, USTR launched an investigation into forced labor practices in 60 countries. The press release announcing the investigation may be found here.

According to the release, the investigation will determine whether policies and practices in these countries “failed to impose and effectively enforce a ban on the importation of goods produced with forced labor,” citing that “American workers and firms have been forced to compete against foreign producers who may have an artificial cost advantage gained from the scourge of forced labor.”

The list includes Argentina, Australia, Brazil, Canada, Chile, China, the EU, India, Japan, Mexico, Norway, Singapore, South Korea, Switzerland, Taiwan, the UK and Vietnam. USTR has requested consultations with the governments of these economies in connection with these investigations. Public comments and requests to appear at an April 28 hearing are due by April 15, 2026.

Regarding IEEPA Tariff Refunds….

According to sources, Customs and Border Protection (CBP) is making good progress in developing an automated system to administer IEEPA refunds. The capability CBP is developing is named “CAPE” with four integrated components:

• Claim Portal – the portal will be available only to importers and customs brokers with ACE Secure Data portal accounts. Once a refund claim is submitted through CAPE, ACE will validate that the request contains all required information and will conduct an entry-specific validation. As of March 11, the development of CAPE was 70% complete.
• Mass Processing – this component will calculate duties otherwise applicable to the entry as if the IEEPA duties had never been declared, while also confirming that the correct duties owed are listed on each entry. As of March 11, the development of the Mass Processing component was 40% complete.
• Review and Liquidation/Reliquidation – this component will automatically set entries to liquidate/reliquidate on a specified number of days after the refund claim has been accepted. It will update the entry summaries to reflect the new total duties paid and will automatically collect interest. As of March 11, the development of this component was 80% complete.
• Refunds – refunds will be consolidated by date and importer of record (or a party designated to receive refunds) and CBP will send refunds electronically to the designated bank account. As of March 11, this component was 60% complete.

Important note – Regarding disbursement of refunds, CBP notes that most importers have not taken the necessary steps to receive refunds electronically. You can access CBP’s enrollment process here to ensure that your refunds are delivered promptly and seamlessly.

We do not currently know when the system will be fully developed for deployment but will monitor and report as CBP provides updates. CBP expects to offer detailed guidance to users when the system is implemented.

Workforce

On March 9, the Department of Labor issued guidance aimed at accelerating development of Registered Apprenticeship programs and help scale these programs to meet demand.  In the announcement, Secretary of Labor Lori Chavez-DeRemer had this to say:

“As we work toward President Trump's goal of 1 million active apprentices, the Department of Labor's commitment to faster decisions, clearer standards, and greater flexibility will enable employers across all industries to launch high-quality Registered Apprenticeship programs and help more Americans access high-paying careers.” 

Farm Bill

Earlier this month, the House Agriculture Committee completed its markup of the Farm, Food and National Security Act of 2026. The Committee vote was 34-17, with 7 Democrats joining all Republicans on the committee to pass the legislation.

The Farm Bill is home to several programs that are critically important to the entire forest products value chain. This Farm Bill reauthorization cycle has been extraordinary in that the two main drivers of a Farm Bill rewrite—Title 1 which addresses row crop and dairy subsidies and Title 4 which houses the nutrition programs—were cleaved off and passed as part of the One Big Beautiful Bill Act that was signed by the President July 4 last year. This development left a number of forestry and forest products sector-supported programs authorized by the Farm Bill  in limbo. Among those programs left out of H.R. 1-the One Big Beautiful Bill Act—are the Wood Innovation Grant and Community Wood Grant programs, as well as all of the forest biomass energy incentive programs in the Farm Bill’s Energy Title.

The House Agriculture Committee-approved bill would do the following—

• Renews and updates both the Wood Innovation and Community Wood Grant programs. Both of these initiatives have pumped meaningful dollars into the rural economy to stand up innovative wood manufacturing facilities, upgrades at existing sawmills and deployment of biomass combined heat and power projects, among other things.
• Alters the Rural Innovation Stronger Economy (RISE)—a workforce development grant program—to include the forestry and forest products manufacturing sectors. This approach effectively bolts the Jobs in the Woods Act language onto an existing, nearly identical worker pathway program.
• Codifies the concept of biomass carbon neutrality and binds the U.S. Department of Agriculture to assign a greenhouse gas emissions factor of no more than zero to emissions from forest-based biomass energy. While the language does not cover the most critical agency—EPA—efforts are ongoing to expand this language to cover all of the federal government footprint as the bill proceeds.
• Reauthorizes and improves the Forest Inventory and Analysis program. FIA monitors the health of our country’s forest resource and its credible data is the centerpiece of the wood industry’s sustainability claims.

While the legislation received bipartisan support in committee, its future is uncertain as it moves forward in the legislative process. Ranking Member Angie Craig (D-MN) was critical of the measure leading up to and throughout the committee markup. Democrat Members of Congress have opposed cuts to the Supplemental Nutrition Assistance Program (SNAP) that were made as part of H.R. 1 last year.

In the Senate, Senate Agriculture, Nutrition and Forestry Committee Chairman John Boozman (R-AR) has signaled that he intends to markup a Farm Bill reauthorization measure in the coming months. However, legislating in the 119^th Congress will slow to a halt the closer we get to the November mid-term elections. Nevertheless, WIA will continue to work the process to secure our priorities in whatever Farm Bill product emerges later this year.

In late January, the Supreme Court did not issue a ruling on Learning Resources, Inc. v. Trump which is the case that will decide the legality of the Administration using the International Emergency Economic Powers Act (IEEPA) as justification for imposing tariffs on our trading partners. The next scheduled date for the Supreme Court to meet is later this week--February 20. The Administration has been consistent in its messaging that should the Supreme Court not rule in its favor, there are numerous other tools it may use to continue its tariff agenda. Among those tools are—

1. Section 301 of the Trade Act of 1974. Grants the US Trade Representative power to retaliate against foreign trade practices deemed "unreasonable," discriminatory, or in violation of trade agreements that burden U.S. commerce.
2. Section 232 of the Trade Expansion Act of 1962. There are numerous Section 232 investigations pending, including the robotics and industrial machinery 232 on which WIA submitted comments. Moreover, factoring in the inclusions process, 232 tariffs have the potential to be expansive, as long as a product contains steel, aluminum, copper, wood, semiconductors, critical minerals, or polysilicon; is an auto, truck, or plane part; or again is a robotic or industrial machinery.
3. Section 338 of the Tariff Act of 1930. This statute allows the President to impose tariffs on countries determined to have discriminated against U.S. commerce. The key here is that most countries have higher tariffs than the U.S.
4. Section 122 of the Trade Act of 1974. This law allows the President to impose tariffs up to 15% on imports for 150 days, subject to an extension by Congress. To take such an action there must be a “large and serious” balance of payment deficit; an “imminent and significant” dollar depreciation; or coordination with other countries to correct an “international balance-of-payments disequilibrium.”
5. Section 201 of the Trade Act of 1974. Allows the President to impose tariffs for four years (with one four-year extension). Tariffs are capped at 50% and must phase down after a year. Section 201 tariffs were imposed during the first Trump Administration. However, the process is more complicated than Section 232, requiring International Trade Commission (USITC) public hearings and comments. So far, no Section 201s have been initiated, unlike the 232 space.
6. The International Emergency Economic Powers Act (IEEPA). It is in the realm of possibility that while tariff authority is struck down under IEEPA, other trade levers such as quotas and embargoes could be allowed. Also licensing fees may also be permissible under this statute. The President suggested to reporters recently that “licenses” should be a focus.

The key question here is will Congress step in and try to reclaim some of its authority over tariffs and trade policy should the Administration continue to pursue an aggressive tariff policy. A $12 billion farm aid package was rolled out just before Christmas for the row crop producers whose markets have tanked in 2025 due to cratering tariff-related export demand. Another supplemental $15 billion proposal is now under negotiation to take care of specialty crops and others who were left out of the first tranche. Members of Congress are becoming anxious about the lack of trade deals that have been finalized and tariff “bailout fatigue” may be setting in which could prompt some more muscular intervention from Congress to moderate on the tariff front. 

Farm Bill

On Friday, House Agriculture Committee Chairman Glenn “GT” Thompson (R-PA) released Farm Bill reauthorizing language titled the Farm, Food and National Security Act of 2026. A committee markup of the measure is scheduled for February 23.

There are number of provisions in the proposal for which WIA has been advocating. In the Forestry Title,  the measure reauthorizes, renames and enhances the Community Wood Facilities Grant program which funds wood products manufacturing upgrades and bumps up the monetary level that could be awarded to individual facilities. It also reauthorizes and modernizes the Wood Innovation Grant program by reducing the non-federal match requirement, among other changes. WIG has been effective at helping stand up mass timber/cross laminated timber projects across the country.

In the Energy Title, the bill increases the loan amount level to $50 million under the Rural Energy for America Program and includes a number of other provisions that incentivize use of sawmill residuals for energy.

The committee will report the bill next week, but after that it faces an uncertain future. Republicans hold a razor thin majority in the House and, thus far, the Farm Bill rewriting process has not been a bipartisan exercise. Committee Ranking Member Angie Craig (D-MN) issued a statement Friday lambasting the measure as “failing to meet the moment” for farmers in that it does not address tariffs or include provisions to build markets for row crops, such as permitting year-round sales of E 15 gasoline. Moreover, the Senate Agriculture Committee has not produced a Farm Bill reauthorizing proposal and indications are that one is not forthcoming any time soon. WIA will keep you regularly apprised of progress on this process.

Transportation

WIA is hearing that the House Transportation and Infrastructure Committee is planning to hold a markup of comprehensive surface transportation reauthorization legislation in March. Reauthorizing this measure, known as the Highway Bill, will provide the legislative vehicle for truck weight reform proposals. One of the bills in the mix for consideration is the Safe Routes Act (H.R. 2166/S. 1063) led by Rep. Tony Wied (R-WI). This legislation would allow trucks travelling from the timber harvesting site to the consuming mill at the maximum gross vehicle weight on state roads to access the interstate when it makes sense to do so. We also expect to see Rep. Mike Collins (R-GA) introduce the FRESH Act—Freight Restriction Elimination for Safer Hauling Act—any day now. This measure is a close cousin to Safe Routes but would apply to a larger universe of commodities. Inclusion of either one of these proposals in the surface transportation reauthorization measure would be a win for the forest products value chain.  Both sponsors of the Safe Routes and FRESH Acts are members of the House Transportation and Infrastructure Committee which holds the pen on Highway Bill reauthorization. Finally, the Shippers Coalition will be introducing legislation to authorize a state pilot program to allow 91,000-pound vehicles equipped with a 6^th axle to travel on the interstate. This measure, aimed at trucks carrying finished products that often weigh out before they cube out, will also be under consideration for inclusion in the Highway Bill.

We are picking up positive signals that truck weight reform language is under active consideration as staff looks to compile a “chairman’s mark” that will be the subject of the markup. Numerous committee members have weighed in to support Safe Routes and Department of Transportation Secretary Sean Duffy—who was a sponsor of the bill when he served in the House—is also reportedly very active in negotiations with the Committee on substance in this bill. On the flip side, the Coalition Against Big Trucks was in town two weeks ago for its fly-in on Capitol Hill. This group is funded by the Class 1 railroads who have long opposed any truck size or weight reform. Of course, Safe Routes would not allow “bigger” trucks on the interstate, just those that are forced to travel all day every day on narrower, less safe state roads that intersect small towns and railroad crossings. This measure is a simple, common-sense tweak to an outdated, arbitrary 80,000-pound cap on our nation’s interstate highway system. Again, we will keep you apprised of developments.

CTE Resolution

On February 12, Representatives Glenn “GT” Thompson (R-PA) and Suzanne Bonamci (D-OR) were joined by Senators Tim Kaine (D-VA), Tammy Baldwin (D-WI), Ted Budd (R-NC) and Todd Young (R-IN) in introducing a Joint Resolution recognizing February as Career and Technical Education Month. The press release and statement from Members of Congress may be found here. 

January marks the beginning of the second half of the 119^th Congress. The first order of business is to pass the remaining Fiscal Year 2026 appropriations bills. Federal government funding runs out January 30 and while several appropriations measures have passed, there are a few key ones that have not been acted upon. This year presages to be a relatively short one legislatively speaking as the 2026 mid-term elections will be held in November and Members of Congress will be looking to spend more time than usual back in their states and districts to campaign. Expect a longer than normal August recess for the House and, currently, the Congressional calendar indicates that the House and Senate will not be in session for the entire month of October. That said, there are looming legislative deliverables that need attention, namely the Highway Bill which is up for reauthorization as it expires in September. Negotiations on this comprehensive bill are expected to include potential truck weight reform provisions which would allow heavier trucks to travel on our nation’s interstate highway system, a long-time priority for manufacturers looking to wring efficiencies out of their logistics and supply chains. As we have noted in previous updates, the Farm Bill is also on the table and the Fiscal Year 2027 appropriations cycle will kick off in earnest in March.

Appropriations—Wood Innovation Grants and CTE

Last Thursday, the full Senate passed a three bill “minibus” appropriations package that includes the Fiscal Year 2026 Interior, Environment and Related Agencies appropriations bill. The vote was 82-15. The measure awaits the President’s signature.

Notable for WIA, the bill funds the Community Wood Grant program at $15 million. Earlier versions of the legislation in the House were silent on Community Wood, meaning zero dollars for this program. So that is a win for Community Wood, an initiative that provides meaningful grants for sawmill upgrades and facilities that generate biomass heat and power.  

In addition, the legislation funds the Wood Innovation Grant program at $30 million. Authorizing and funding WIG has been a WIA priority as the program provides significant dollars to stand up innovative wood product manufacturing facilities across the country. Also notable is the bill reauthorizes a directive encouraging the Environmental Protection Agency, the U.S. Department of Agriculture and the Department of Energy to recognize forest-based biomass energy as carbon neutral in any of their environmental or energy policymaking. And finally, the bill increases funding slightly for the Forest Inventory and Analysis program—a Forest Service tool that tracks the health and sustainability of our country’s forested acres.

In other appropriations news, Congress has not yet finalized the Labor, Health and Human Services, Education and Related Agencies appropriations bill for Fiscal Year 2026. House and Senate negotiators are working to finalize funding legislation before January 30, when the current Continuing Resolution funding federal government operations expires. The Senate version of the bill keeps funding level for the Carl D. Perkins Career and Technical Education (Perkins) State Grant while the House version increases spending for this program by $25 million. Perkins is the main funding source for CTE programs across the country. Supporters are urging Congress to move forward with the increased funding level in the House bill, while also rejecting the House measure’s spending reductions in other areas that affect workforce development. A letter to Congress led by ACTE may be found here. 

Career and Technical Education

Earlier in January, the New Democrat Coalition unveiled its workforce and education agenda to “empower the next generation of American workers to achieve their potential with world-class K-12 education, concrete pathways to good-paying jobs, and robust support throughout their careers to adapt to the jobs of the future.” This coalition is a group of about 115 House Democrat Members of Congress that are center-left moderates known for working across the aisle on policy issues. A key plank in the agenda is around apprenticeships with the “New Dems” (as they are known) advocating the following--

Grow non-college pathways to good jobs.

• Scale earn-and-learn models and better integrate them into our workforce training infrastructure.
• Expand the use of registered apprenticeships across key sectors of the economy by making registered apprenticeship programs easier to start and scale for employers while ensuring quality, rigor, as well as strong and enforceable labor standards and worker protections.
• Better integrate pathways to registered apprenticeships into high school curriculum through vehicles like pre-apprenticeships and career and technical education programs, while maintaining strong and enforceable guardrails to prohibit youth on high-risk jobsites.
• Invest in growing and replicating innovative, proven workforce models and pilot programs on a larger scale, focusing on bringing those models to rural and Tribal schools.
• Ensure sustained funding to scale high-quality registered apprenticeships and other union-led training programs.

The vehicle for delivering on these goals is legislation reauthorizing the Workforce Innovation and Opportunity Act or WIOA. A WIOA reauthorizing measure almost became law at the end of the last Congress but failed at the 11^th hour. We remain hopeful that a WIOA bill will materialize in the coming weeks and will be monitoring action closely.

Tax-100 Percent Bonus Depreciation

Last week, the Internal Revenue Service issued guidance for taxpayers looking to take advantage of the full expensing/100 percent bonus depreciation benefit that was reinstated under the One Big Beautiful Bill Act (OBBBA) signed into law July 4 last year. Recall that the Tax Cuts and Jobs Act had phased this benefit down to 40 percent in 2025 and would have eliminated it completely in 2027. OBBBA restored bonus depreciation to 100 percent and made the provision permanent. This guidance applies to property acquired and placed in service after January 19, 2025 and also includes transition provisions.  

Trade

The U.S. Supreme Court is scheduled to meet today and tomorrow to issue rulings on cases it is considering. One of these rulings could be on the legality of the Trump Administration’s use of the International Emergency Economic Powers Act (IEEPA) as the basis for its “Liberation Day” tariffs imposed on our trading partners earlier this year. The consolidated cases before the Supreme Court that will decide this issue are VOS Selections Inc. v. Trump, Oregon v. Department of Homeland Security and Learning Resources v. Trump. Should the Court rule against using IEEPA as a basis for imposing tariffs, the Administration has signaled that it does intend to use other channels to pursue its tariff agenda. We will keep you apprised of developments in this space. 

European Union Deforestation Regulation (EUDR): 

Late in December, the European Parliament approved another 1-year implementation delay of its controversial EUDR, which was slated to take effect December 30. The action includes a requirement for the European Commission to review the law for impacts to business and opportunities for additional simplification by April 30, 2026. As mentioned in previous policy updates, the EUDR is problematic for entities looking to sell forest products into the European Union as it requires exact geolocation identifying the source of the wood used to make the product. Currently, compliance with that aspect is unachievable for companies in all links of the forest products value chain.

Among the key components of the measure are:

12-month implementation postponement for all operators: A one-year delay for all operators and traders until December 30, 2026, with an additional six-month extension for micro and small operators (until June 2027). This eliminates the Commission’s proposed grace period for large companies, offering instead a single, clear extension applicable across the board.

Commission simplification review: The Commission is tasked with conducting a simplification review by April 30, 2026, which will focus on reducing administrative burdens and proposing legislative amendments where necessary.

Streamlined due-diligence responsibilities within the EU: Only the first downstream operator in the EU supply chain will be responsible for collecting and retaining the reference number of the initial due diligence statement. They will not be required to pass the numbers further down the chain.

In addition, the measure includes some compliance simplification measures for operators within the EU only. While these are EU-entity specific, this development is significant as it signals an EU commitment to consider additional modifications and establishes a formal avenue to advance changes.

Both the House and the Senate are in session this week for the last time in 2025. The final act of legislative business for the year is passage of the National Defense Authorization Act (NDAA), an annual must-pass measure that funds our nation’s military operations and readiness. Congress will return the first week of January with a laser focus on passing a tranche of Fiscal Year 2026 appropriations measures before the temporary government funding Continuing Resolution expires January 30. The government funding package the ended the federal government shut down in November included three Fiscal Year 2026 spending measures. The package that the Senate is looking to move in January includes another five bills, which would represent roughly 90 percent of all federal government operational funding. This is important as passage of these bills would likely take off the table the likelihood of another government shutdown in late January. If the Senate does not move these bills, the prospects of another federal government funding lapse increase exponentially, particularly if Congress also does not address Affordable Care Act subsidies that are expiring at the end of this month.

Farm Bill

The process of rewriting and reauthorizing the Farm Bill, last updated in 2018, took an unusual turn this year. Partisan differences over spending levels, particularly for the nutrition title, resulted in only the largest spending-related Farm Bill items being included in the One Big Beautiful Bill Act (OBBBA) and signed into law. That action left the Farm Bill programs for which WIA advocates in limbo. House Agriculture Committee Chairman Glenn Thompson (R-PA) vowed to pursue a “Farm Bill 2.0” reauthorization package to address these orphan programs, but that effort never materialized. Instead, the remaining Farm Bill programs not reauthorized as part of the OBBBA were included in the federal government funding deal signed in November and extended through September 30, 2026. These programs include—

• Wood Innovation Grant Program
• Community Wood Grant Program
• Forest Inventory and Analysis Program

Chairman Thompson and his team have signaled their intention to pursue a Farm Bill rewrite early in 2026. WIA will be working this process to include the programs above as well as additional items, namely the Jobs in the Woods Act provisions that we successfully included in the House Agriculture Committee-passed Farm Bill product in 2024. JWA is legislation that would stand up job training programs around the country tailored specifically for the wood products industry. It is based on a successful forest products job training program at the University of Wisconsin-Stevens Point.

European Union Deforestation Regulation (EUDR)

The European Parliament is scheduled to vote this week on another one-year delay in implementing its controversial product sourcing disclosure mandate known as EUDR. The measure applies to a number of commodities (cattle, cocoa, soy, palm oil, rubber, coffee) in addition to wood. Regarding the latter, the EUDR would require entities looking to sell into the EU market to provide the exact geolocation of where timber was harvested to make the wood or pulp and paper product. U.S. companies are unable to comply with the mandate and have been taking their case directly to EU officials, as well as Congress and the White House. As part of their advocacy, groups are arguing the that the U.S. should be labeled a “no risk” country under the measure as deforestation is not an issue here. According to the U.S. Forest Service, the U.S. has more forested acres today than existed in the 1950s. It is unclear if the European Commission and Parliament will be open to changes to the law next year, but it appears all but certain that the December 30, 2025 implementation date will be pushed back one year.

Trade

The first week of December, the Office of the U.S. Trade Representative (USTR) held a hearing as part of the 6-year review of the United States-Mexico-Canada Agreement (USMCA). The law that codified the agreement was signed by President Trump in January 2020 and requires USTR to finalize a report at least 180 days before top trade officials from the United States, Canada and Mexico meet on July 1 next year to determine whether they want to renew the pact for another 16-year term. Based on that timeline, we should see report text sometime in early January. In terms of the report’s content, the USMCA law simply directs USTR to assess the agreement and make a recommendation on whether it should be extended. In addition, it calls upon the Trade Representative to lay out precisely what should be addressed in the 6-year review.

If the three countries do not agree to renew the pact for 16 years, it would be put on a path to expire in June 2036, unless the countries resolve outstanding concerns before then and decide to extend it.

A general theme of testimony at the hearing was that the overall framework of the USMCA agreement should be preserved, but that targeted updates to the pact be pursued. Areas of focus throughout the 2-day event were strengthening rules of origin, labor value content requirements and enforcement mechanisms.

In terms of enforcement, issues around transshipment and circumvention of Section 232 tariffs were flagged often during panelist testimony. Panelists from the steel and aluminum as well as forest products sectors cautioned that non-market economies like China are exploiting USMCA by routing raw materials and components through Canada and Mexico, where minimal processing or assembly qualifies them for preferential treatment under the agreement. The representative from the National Association of Manufacturers had this to say—

“The USMCA is foundational for manufacturing growth here at home. It expands sales opportunities throughout the North American market—and it strengthens our industry’s global competitiveness.” NAM’s testimony went on to note that Canada and Mexico purchase more than one-third of all American-made product exports and provide critical industrial inputs—materials, parts, machinery and equipment—that power American factories. Like other groups, NAM advocated for preserving the USMCA, but fine tuning the agreement in several areas. Specifically, the organization recommended--

• Further cutting red tape at the border;
• Promoting greater use of USMCA preferences, including by reducing compliance costs; and
• Addressing unfair competition by Mexico’s state-owned enterprises while shoring up protections for significant American investments in Mexico.

The other action it recommended is for the Administration to work with Canada and Mexico on regional economic security issues instead of leveling Section 232 tariffs.

Workforce Development/CTE

On December 9, the Senate Health, Education, Labor and Employment (HELP) Committee held a hearing titled Building Pathways: Advancing Workforce Development in the 21^st Century. Several familiar themes were underscored by the 4 panelists at the hearing. One CTE expert noted that current estimates project that the total number of high school graduates will peak this year and steadily decline through 2041. At the same time, the U.S. has  a rapidly aging population which is increasingly outpacing the growth of working-age adults. In manufacturing, this challenge has not only been recently quantified but will become even more urgent. Research from Deloitte and the Manufacturing Institute projects that between 2025 and 2033, the manufacturing sector will require 3.8 million new workers simply to keep pace with current and future needs. Yet up to 1.9 million of these positions may remain vacant without robust talent development strategies to support identifying new skilled talent. CTE presents an opportunity to close skills gaps while improving students' postsecondary and career readiness.

For policy considerations, several initiatives were mentioned. Among them were—

• Strengthen the Federal Investment in Career and Technical Education: Perkins V is the sole federal investment in CTE. Increased funding would ensure states, school districts and post-secondary institutions have the resources necessary to deliver high-quality CTE programming that meets the evolving needs of students and employers. This critical funding stream has not been meaningfully strengthened in two decades, having not kept up with inflation and growing learner demand that has emerged during this critical period in CTE’s modernization.
• Expand Youth Work-Based Learning Opportunities: Research consistently demonstrates that work-based learning experiences have powerful effects on student outcomes. Congress should support policies and funding that expand work-based learning opportunities for all youth, including skills competitions. Federal investments should recognize the full spectrum of work-based learning modalities, from career awareness activities in middle school through career preparation experiences like internships, apprenticeships and industry-validated competitive events in high school and beyond.
• Reauthorize the National Apprenticeship Act: Congress should update and reauthorize the National Apprenticeship Act to formalize a predictable and sustained federal investment in youth, pre-apprenticeship and registered apprenticeship programs. Updated legislation should recognize the continuum of career preparation experiences and create clear pathways that connect secondary and post-secondary CTE with apprenticeship opportunities.
• Grow the Pipeline of Skilled CTE Instructors: To meet the nation’s workforce and economic demands, it is essential to strengthen and expand the pipeline of skilled CTE instructors. Congress should support policies that make teaching a competitive and compelling career path for experienced tradespeople and industry professionals. This includes offering salary incentives, earned debt relief opportunities and streamlined transition-to-teaching programs that help skilled experts bring their real-world experience into the classroom.

Last Wednesday evening, the U.S. House of Representatives passed legislation (H.R. 5371) to end the longest government funding lapse in history—43 days. The vote was largely along party lines (222-209) and President signed the measure shortly thereafter. The bill extends funding for federal government operations through January 30, 2026, and includes full fiscal year 2026 appropriations for the Departments of Agriculture and Veterans Affairs, as well as Legislative Branch Operations. The package buys Congress 11 more weeks to finalize funding negotiations  on the remaining fiscal 2026 spending bills. To that end, the Senate plans to begin consideration this week of four appropriations bills reported out of committee earlier this year. These include Defense, Labor-HHS-Education, Commerce-Justice-Science and Transportation-HUD. Not yet on deck is the FY 2026 Interior, Environment and Related Agencies Appropriations bill, which funds critical programs such as the Wood Innovation and Community Wood Grant programs.

Farm Bill

The government funding deal also includes a one-year extension of the remaining provisions of the 2018 Farm Bill that were not reauthorized as part of the budget reconciliation Law (One Big Beautiful Bill Act or OBBBA) signed by the President July 4. Recall that the major policy and spending components that drive the Farm Bill rewriting process—row crop agriculture, dairy and nutrition programs—were enacted as part of OBBBA. Other provisions that do not enjoy mandatory funding were left out of that deal. For WIA, those include the Wood Innovation and Community Wood Grant programs, which provide critical funds to support innovative wood product manufacturing facilities (mass timber/cross laminated timber) across the country. These programs are now authorized through the end of the next fiscal year—September 30, 2026.

European Union Deforestation Regulation (EUDR)

A draconian European Union (EU) law is set to take effect December 30 that would upend forest products industry supply chains in the U.S. and around the world. The core issue with the EUDR is that manufacturers wishing to sell into the EU market would have to provide information as to the exact location where wood was harvested to make the product. The law applies to anything from fluff pulp to dimensional lumber to wood pellets. For U.S. producers of forest products, complying the with geolocation mandate as it is known is currently not feasible. The law applies to other commodities as well, (namely cattle, cocoa, coffee, palm oil rubber and soy) but WIA has been monitoring developments as they pertain to wood products.

The law was supposed to take effect last December, but the EU passed a one-year delay. Advocates are now looking to secure another one-year reprieve with some language that would improve the existing law so that it is workable.  A proposal is expected to be unveiled this week which would deliver on these objectives, but it still needs to be approved by the European Council, European Commission and ultimately Parliament.

Housing Legislation

Bipartisan legislation is pending in both the House and Senate that looks to increase housing starts and make home ownership more accessible. The legislation (S. 1686 and H.R. 2854) is the Neighborhood Homes Investment Act (NHIA) and is led by Senator Todd Young (R-IN) and Representative Mike Kelly (R-PA).

In many areas of the country, the cost to build or rehab a home exceeds the price at which the home could be sold once completed. The NHIA establishes a new tax credit which would help fill that “value gap” for developers, thus reducing their risk of loss and encouraging investments in new and rehabbed housing. The goal for this tax credit is to make homeownership more feasible and support broader revitalization and economic development strategies in disinvested urban and rural communities. The Neighborhood Coalition—one of the supporters of the bill--estimates that, if enacted, NHIA could result in 500,000 new starter homes nationwide.

Because NHIA focuses exclusively on single to 4-family unit structures, the impact on dimensional lumber and other wood products manufacturers could be considerable. Depending on the type of home built, Forest Economic Advisors estimates that this bill alone could result in additional 7 billion to 10 billion board feet of demand.

Career and Technical Education (CTE)

The theater has been relatively quiet on the workforce development/CTE front. However, on Wednesday, November 19, the House Education and Workforce Committee’s Subcommittee on Early Childhood, Elementary and Secondary Education will hold a hearing titled “From Classroom to Career: Strengthening Skills Pathways Through CTE. WIA will be on hand for the hearing.

Last year, Congress came close to reauthorizing the bedrock statute that underpins our workforce development infrastructure in the U.S. This is the Workforce Innovation and Opportunity Act (WIOA) that has not been updated since 2014. Bipartisan interest in WIOA reform and reauthorization exists as evidenced by hearings earlier in the year in the House and Senate that focused on WIOA improvements that would address challenges in connecting job seekers with available opportunities. A Stronger Workforce for America Act remains the focal point of discussions, including provisions to:

• Dedicate 50 percent of funding to skills training and supportive services
• Establish "critical industry skills funds" for upskilling workers in priority industries
• Enhance employer partnerships and streamline program accountability

Congress has also expressed strong interest in improving workforce data collection systems, which would allow states to better align training programs with labor market needs.

The federal government shutdown now enters its third week with more votes scheduled in the coming days on the House-passed Continuing Resolution. Republican and Democrat leaders remain far apart in negotiations thus far. The Capitol complex is fully accessible and WIA continues to meet with staff on our key priorities. The Senate is in session, while the House remains in recess.

Trade

WIA filed comments last week on the Section 232 Investigation into the national security impacts of imports of robotics and industrial machinery. Those comments may be found here. The Federal Register notice announcing the investigation and inviting comments noted that the investigation would include robots and programmable, computer-controlled mechanical systems, such as Computer Numerical Controlled (CNC) machining centers, turning and milling machines, grinding and deburring equipment, and industrial stamping and pressing machines. The investigation also includes automatic tool changers, jigs and fixtures, and machine tools for cutting, welding, and handling work pieces.

The notice included a number of questions on which commenters were asked to opine. Specifically, Commerce is seeking information on domestic production and demand, the role and risks of major foreign exporters and the impact of foreign government subsidies and trade practices on the robotics and industrial machinery market. The questions also probe into the effects of current trade policies related to robotics and industrial equipment and whether further measures, such as tariffs and quotas, are needed to protect national security. The impact of robotics and industrial machinery on U.S. manufacturing employment and whether the supply chain for such goods is susceptible to foreign exploitation or control are also areas of interest.

In other 232 developments, late last month the Trump Administration announced the completion of its Section 232 national security investigation into lumber, timber and derivative products which was originally opened in March. The Administration, in conjunction with the Department of Commerce, determined that wood products are being imported into the United States in such quantities and in such manner that it is affecting national security. As a result, President Trump is imposing a 10% tariff on softwood lumber; a 25% tariff on certain upholstered furniture that will increase to 30% on January 1st; and a 25% tariff on kitchen cabinets and vanities, which will increase to 50% on January 1st.

We expect to see the report from Commerce soon as well as formal Federal Register guidance, consistent with previous 232 investigation announcement rollouts. 

Other notable items are:

• Trading partners who negotiate with the United States to address the threat of wood imports to the national security of the United States may be able to secure an alternative to the pending tariff increases.
• The United Kingdom, the European Union, and Japan will enjoy more favorable treatment that reflects the terms of their trade deals with the United States.
  • The Section 232 tariff on subject wood imports from the United Kingdom will not exceed 10%.
  • The combined Section 232 tariff and most-favored nation tariff on subject wood imports from the European Union and Japan will not exceed 15%.
• Products that are not subject to these Section 232 tariffs will generally be subject instead to reciprocal tariffs.
• The treatment of products on the list of Potential Tariff Adjustments for Aligned Partners (PTAAP) remains unchanged unless an antidumping or countervailing duty order applies.
• Imports of hardwood do not appear to be impacted unless it is included as a component of furniture or cabinets. 

The fact sheet may be found here. 

Fix our Forests Act

The Senate Agriculture, Nutrition and Forestry Committee this week is considering the Fix Our Forests Act (S. 1462)—comprehensive federal forestry legislation to promote active management of our federally-owned forested landscapes. Among other items, the bill would—

• Simplify and expedite environmental reviews for forest management projects
• Make communities more resilient to wildfires by better coordinating existing grant programs and promoting new research
• Promote federal, state, tribal and local collaboration
• Deter frivolous litigation that delays essential forest management projects
• Create a framework for prioritizing treatments in the forests at the highest risk of wildfire and near vulnerable communities
• Encourage the adoption of state-of-the-art science and techniques for federal land managers
• Encourage active management to improve the safety of powerlines and other infrastructure
• Strengthen existing forest management tools like Good Neighbor Authority and Stewardship Contracting

Similar legislation passed the House last year.

Trade Relief for Forestry and Timber Sectors

Rep. Kat Cammack (R-FL) is leading a letter in the House (here) that advocates for including forestry and timber in any upcoming trade assistance package that the Administration develops. President Trump and U.S. Department of Agriculture (USDA) Secretary Brooke Rollins have been signaling in recent days that an aid package is under development to provide economic relief to soybean farmers and other row crop agriculture producers that have seen foreign markets erode this year. WIA is hearing from our contacts in the White House and at USDA that an aid package will be unveiled shortly after the federal government shutdown ends.

Both Houses of Congress are in session this week as lawmakers scramble to forge a deal on a government spending measure that would keep federal government agencies and departments open after the end of this month. House and Senate leaders are exploring options on a Continuing Resolution (CR) to buy more time for negotiations on a longer-term FY 2026 appropriations package. In the House, GOP leadership is floating a “clean” CR that would extend government funding through November 20. This may be paired with a 3 bill “minibus” appropriations package that would appropriate full year funds for several departments and agencies. House and Senate Democrat leaders have signaled that they would be on board with this approach if the CR includes extension of enhanced insurance subsidies under the Affordable Care Act, which may be a non-starter for some GOP members. House votes on a short-term CR are expected later this week.

Right now, both chambers are scheduled to be in recess next week, so the next few days will be critical in stopgap funding negotiations.

Trade

On September 9, the Supreme Court announced that it will take up the issue of whether the Administration’s imposition of tariffs on U.S. trading partners is legal under the International Emergency Economic Powers Act (IEEPA). On August 29, the U.S. Court of Appeals for the Federal Circuit ruled in a 7-4 decision that IEEPA does not authorize the President to impose sweeping tariffs on nearly all imported goods from nearly all U.S. trading partners. The Administration has appealed this decision and the Supreme Court announced that it will hear arguments beginning in early November. The tariffs will remain in place until the Supreme Court rules on the matter.

In other trade news, President Trump announced late last month that his Administration is conducting a “major Tariff Investigation on Furniture coming into the United States.” The post on Truth Social went on to say: "Within the next 50 days, that Investigation will be completed, and Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined. This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union. Thank you for your attention to this matter!"

Indications are that the President was referring to the ongoing Section 232 investigation into lumber, timber and derivative products and their potential national security impacts on imports of these products. This investigation was initiated March 1, and his announcement suggests that furniture will be a point of emphasis of the initiative.

WIA has been hearing from Administration officials that results of this Section 232 investigation would be unveiled any day. As soon as we see the report, we will have an analysis for you.

Regulatory

Earlier this month, the Trump Administration unveiled its first regulatory agenda for its second term. Known as the Unified Regulatory Agenda, this document previews the Administration’s priorities for all of the regulatory agencies and departments. The link to the agenda is here: Spring Agenda

Notable among the actions is a planned revisitation of the 2024 rule that tightened the fine particulate matter standard from 12 parts per cubic microgram to 9. That action brings large swaths of the country into nonattainment for this pollutant, which subsequently restricts economic activity in those areas. The agenda also signals that the Administration plans on repealing the greenhouse gas emissions standards for electric utilities and establishing a new definition of “Waters of the U.S.” Also notable is the Administration intends to pursue a heat illness and prevention rule, although it is unclear what types of requirements on employers are being contemplated.

For the Department of the Interior, modifications for listing endangered and threatened species are in the queue as are changes to how critical habitat is designated. And finally, repeal of the roadless rule is listed under USDA’s planned regulatory actions. This rule, which has been on the books since 2001, established prohibitions on road construction, road reconstruction and timber harvesting in inventoried roadless areas on National Forest System lands.

Farm Bill

WIA met personally with House Agriculture Committee Chairman Glenn Thompson (R-PA) at a mill tour in Northern Pennsylvania in late August. The discussion ranged from trade and tariffs to the Farm Bill. Regarding the latter, Chairman Thompson indicated he will be pushing hard to move a Farm Bill 2.0 in September. Recall that the commodity title programs (row crop, dairy) were addressed in the budget reconciliation bill signed July 4. The roughly 20 percent of the Farm Bill left unaddressed is what will be included in this follow-up Farm Bill effort. WIA priorities such as the Wood Innovation and Community Wood grant programs, as well as the Forest Inventory and Analysis program will be part of this fall’s Farm Bill negotiations. Chairman Thompson indicated that he is exploring the possibility of using tariff-derived revenue to fund his Farm Bill. 2.0 proposal. Details on the amount and whether this is an option remain unclear, but we will have a better understanding of the situation in the coming days.

Members of Congress have left town for the month of August after an action packed first seven months of the 119^th Congress. When they return to town September 2, they will be facing an immediate deadline to fund the government past September 30. That is when the current Continuing Resolution (CR) expires. While both chambers have moved on some appropriations measures, the likelihood of acting on all 12 appropriations bills before the end of September is near zero. That means another CR will be required. At this writing, odds of a government shutdown appear high related to partisan divide over a recent Democrat-opposed “rescissions” package that was enacted that claws back about $9 billion in already appropriated funds. This action followed closely on the heels of the budget reconciliation bill that was also passed despite unified Democrat opposition. A government funding CR will require 60 votes in the U.S. Senate, meaning a handful of Senate Democrats will have to vote for it. Given that Minority Leader Schumer is still taking heat from his caucus for agreeing to the last CR in March and averting a shutdown, the table appears set for a government funding lapse of some duration.

Assuming that a CR comes together at some point, the measure may include an extension of certain Farm Bill programs. While the budget reconciliation bill that was signed into law July 4 addresses major parts of the Farm Bill in areas such as commodity support, crop insurance, conservation and food assistance, it did not include the programs we care about. House Agriculture Committee Chairman Glenn “GT” Thompson (R-PA) has signaled his desire to move a “skinny” Farm Bill out of his committee that would reauthorize these remaining programs in September. The skinny bill would include the Community Wood and Wood Innovation Grant programs, the Forest Inventory and Analysis program, and workforce provisions to help the forestry and forest products sectors.

Wood Markets/Mass Timber

In late July, Senators Jim Justice (R-WV), Steve Daines (R-MT), Raphael Warnock (D-GA) and Martin Heinrich (D-NM) introduced the Forest Bioeconomy Act. This bipartisan legislation directs the U.S. Department of Agriculture (USDA), along with the Department of Energy (DOE), to expand research on the uses of low value commercial timber to support new wood products markets, sustain the wood products manufacturing sector and explore the viability/scalability of using wood and biomass as a feedstock for sustainable fuel.

A centerpiece of the bill would create a dedicated Office of Technology Transfer at the Forest Service to expand its commercialization of research findings and support the development of products using Forest Service research. The legislation also establishes a mass timber science and education program under the Forest Service. The program would be specifically targeted at responding to the needs of architects, real estate developers and the forest products industry. The program would, for example, connect researchers with private industry to make improvements in mass timber construction techniques for improved wildfire performance, structural stability and energy use. This research would complement the existing Wood Innovations Grant (WIG) program.

A press release announcing the bill’s introduction may be found here.

Trade

At 12:01 on August 7, new tariffs were imposed on about 90 countries ranging in rates from 10 to 50 percent. Products from the European Union, Japan and South Korea will be taxed at 15 percent, while imports from Taiwan, Vietnam and Bangladesh will be taxed at 20 percent. A special tariff rate of 50 percent will be imposed on India in about 3 weeks as punishment for India’s procurement of oil from Russia. The overall U.S. tariff rate is at its highest in almost a century.

Regarding trade with China, last Monday the President signed an executive order extending the tariff regime on China for another 90 days. The existing 90-day tariff truce was scheduled to expire the following day. That expiration date is now November 10. The EO heads off escalation of tariffs—now capped at 30 percent on Chinese imports and 10 percent on US goods—in an apparent effort to prevent economic disruption as we enter the critical holiday trading season.

Without the extension, US duties on Chinese goods could have jumped to 145 percent, while China’s retaliatory tariffs might have risen to 125 percent, effectively approaching a trade embargo.

The EO may be found here.

Sectors across the economy have been raising with the Administration the issue of manufacturing component parts that cannot be sourced within the U.S and whether tariff exemptions in these instances would be considered. Officials appear to understand that this is a legitimate claim and that supply chains are global and not confined to the U.S. However, no clear commitments on a tariff exemption process have been made. 

Department of Agriculture Reorganization Plan

On July 24, Agriculture Secretary Brooke Rollins unveiled a long-awaited reorganization plan for her department. The memo  View the Secretary Memorandum indicates that more than half of the 4,600 employees in the Washington, D.C. area will be moved out of the region and into one of 5 hubs around the country—Raleigh, NC; Kansas City, MO; Indianapolis, IN; Fort Collins, CO and Salt Lake City, UT. In addition, the Department will hold on to the Whitten Building where the Secretary’s office is located and the Yates Building where the Forest Service is housed but will vacate the sizable South building along Independence Avenue across from the Whitten Building. Notably, the 9 Forest Service regional offices will be phased out over the next year.

Greenhouse Gas Regulation
 
Last month, EPA Administrator Lee Zeldin unveiled his Agency’s proposal to rescind the 2009 Endangerment Finding. This was a landmark rulemaking during the Obama Administration that requires the Environmental Protection Agency to take action under the Clean Air Act to curb emissions of carbon dioxide, methane, and four other air pollutants from vehicles, power plants, and other industries. The EPA’s Endangerment Finding followed the Supreme Court’s 2007 decision in Massachusetts v. EPA, holding that greenhouse gases are air pollutants covered by the Clean Air Act.
 
The Endangerment Finding provided the basis for a panoply of greenhouse gas emissions regulations, including the electric vehicle mandate and emissions regulations for coal-fired and natural gas-fueled power plants.

Workforce

In late July before Congress left town for the August recess, Representatives Marie Gluesenkamp Perez (D-WA-03) and David Rouzer (R-NC-07) introduced the Jobs in the Woods Act (H.R. 4575) to address critical workforce shortages in the forestry and forest products sector and invest in the next generation of professionals in this value chain. Original House Cosponsors include Reps. Pete Stauber (R-MN-08), Chellie Pingree (D-ME-01), Brian Fitzpatrick (R-PA-01), and Glenn Thompson (R-PA-15).

The bill would authorize grants of between $500,000 and $2 million to stand up workforce  training modules tailored specifically for the forestry and wood products manufacturing sectors. Grants would be available to nonprofit organizations, state agencies and colleges. It is based on a successful program run by the University of Wisconsin-Stevens Point, and its goal is to promote similar programs in regions across the country.  

Senate companion legislation (S. 1336) was introduced in April 2025 by Senators Angus King (I-ME) and Jim Risch (R-ID), making this measure not only bipartisan, but bicameral. 

On July 7, President Trump signed an Executive Order executive order extending the deadline for forging trade deals with competing countries from July 9 to August 1. The action effectively extends the baseline additional 10 percent “reciprocal” tariff on all countries (except Mexico, Canada and China) until August. This pause is an extension of the original pause in the “reciprocal” tariffs that were announced on April 2. The pause has been in place since April 9.

The President sent letters to 14 countries that have not yet come to the table to negotiate a new trade agreement with the U.S. You can see the list of countries contacted and the new tariff rates here.

Although the White House has signaled that trade agreements are being forged, no new trade deals have been announced. The White House has hinted that some deals may be revealed in the coming days.

On July 12th, President Trump announced that letters had been issued to both the European Union and Mexico, notifying them of the United States' intent to impose 30% import tariffs beginning August 1st. The President also indicated that negotiations remain possible, suggesting the door is still open for alternative trade agreements. In response, the European Union has stated it will postpone any retaliatory action until at least August 6th.

Hearing on Forest Service Budget

The Senate Energy and Natural Resources Committee held a hearing last week on the U.S. Forest Service’s Fiscal Year 2026 budget. The proposed budget reduces funding for Forest Service functions and delegates wildfire management to the Interior Department. Forest Service Chief Tom Shultz was the sole witness.

During questioning, Senator Steve Daines (R-MT) asked Chief Shultz if the Forest Service would prioritize implementation of language in the recently enacted budget reconciliation legislation to increase timber production on federal lands. Chief Shultz responded that the USFS would take steps necessary to ensure that an increase of 250 million board feet of timber is produced from federal lands year over year going forward. 

Farm Bill

House Agriculture Committee Chairman Glenn Thompson (R-PA) appears to have moved off his goal of marking up Farm Bill reauthorization legislation before the August recess. He had signaled to committee staff in late June that he wanted to proceed on a Farm Bill markup in late July. He is now signaling that his committee will try to proceed in mid-September. The WIA team continues to advocate for full funding and authorization of the Wood Innovation and Community Wood grant programs, as well as a robust Forest Inventory and Analysis program and inclusion of Jobs in the Woods Act provisions.

Tax Recap

In early July, the House of Representatives passed H.R. 1, the budget reconciliation bill containing GOP policy priorities, by a vote of 218-14. It was sent to the President, who signed the measure into law on July 4. 

As we have noted during the process, the legislation revives and makes permanent key business tax incentives, including the research and development tax credit which expired in 2022. The 100 percent bonus depreciation benefit which has been phasing out is also made permanent. In addition, the 20 percent deduction for S-Corporations and other pass-through entities was also made permanent. That benefit was slated to expire at the end of 2025.

Other items of interest include—

• Sec. 179 expensing: Increases the maximum amount a taxpayer may expense under Sec. 179 to $2.5 million, reduced by the amount by which the cost of qualifying property exceeds $4 million.
• EBITDA: Restores the more favorable EBITDA standard for calculating interest deductibility. The current standard is EBIT.
• Estate Tax: Permanently increases the estate tax exemption to $15 million beginning in tax year 2026. This amount is indexed for inflation thereafter.
• State and Local Tax (SALT) Deduction: Provides a temporary new SALT deduction cap of $40,000, beginning in 2025. This cap phases out at a rate of 30 percent of adjusted gross income over $500,000, to a minimum cap of $10,000. Starting in 2026, the applicable cap and phase-out thresholds grow by 1 percent each year through 2029. In 2030, the cap reverts permanently to a maximum of $10,000.
• International Provisions: Permanently maintains the section 250 deduction and effective statutory tax rates on global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII) close to their current levels (they would increase in 2026 under current law) and makes other changes to the taxation of multinational businesses.

In addition to the tax provisions, there is language in the measure addressing federal forest management and timber production. These provisions do the following--

• Requires that the U.S. Forest Service award no fewer than 40 long-term timber contracts to private individuals or public/private entities during fiscal years 2025 through 2034. The intent is to enhance supply predictability for the forest products industry. However, the provision has drawn scrutiny from some stakeholders who caution that it may limit competition by concentrating access among fewer market participants. 
• For each fiscal year from 2026 through 2034, the Forest Service shall annually sell timber from National Forest System lands at a volume at least 250 million board feet greater than the volume sold in the preceding fiscal year. However, the total annual sale may not exceed the allowable sale quantity.

To offset costs associated with H.R. 1, the legislation eliminates the following clean energy credits—

• Sec. 25E previously owned clean vehicle credit (terminated after Sept. 30, 2025)
• Sec. 30D clean vehicle credit (terminated for vehicles acquired after Sept. 30, 2025)
• Sec. 45W qualified commercial clean vehicle credit (terminated after Sept. 30, 2025)
• Sec. 30C alternative fuel vehicle refueling credit (terminated after June 30, 2026)
• Sec. 25C energy-efficient home improvement credit (terminated after Dec. 31, 2025)
• Sec. 25D residential clean energy credit (terminated for expenditures made after Dec. 31, 2025)
• Sec. 179D energy-efficient commercial buildings deduction (terminated for property the construction of which begins after June 30, 2026)
• Sec. 45L new energy-efficient home credit (terminated after June 30, 2026)
• Sec. 45V clean hydrogen production credit (terminated after Jan. 1, 2028)
• Sec. 6426(k) sustainable aviation fuel credit (terminated after Sept. 30, 2025)

Transportation - FMCSA Policy on Driver Language Proficiency Enforcement

As of June 25, 2025, the Federal Motor Carrier Safety Administration (FMCSA) will begin strict enforcement of the longstanding requirement that commercial drivers must be able to read and speak English. This follows an April 2025 Executive Order that rescinds a 2016 interpretation, allowing for more discretion in enforcement.

Key changes include:

• Mandatory roadside English assessments with no interpreters or translation tools allowed.
• Drivers unable to converse or read road signs will be placed out-of-service immediately.
• FMCSA is also reviewing CDL issuance to non-domiciled drivers for compliance.

This shift signals a heightened regulatory emphasis on language competency as a safety requirement.

On Monday evening, the Senate Finance Committee unveiled its portion of the budget reconciliation bill. Finance is the panel that is in charge of fashioning the tax provisions in the comprehensive measure. The text tracks largely along the lines of what we were expecting, with a few deviations. Provisions in the text of concern to WIA are the following—

• 100 percent bonus deprecation/full expensing: As expected the bill not only restores this tax benefit allowing businesses to immediately expense 100 percent of capital investments in machinery and equipment but makes this provision permanent. Recall that the House-passed bill only extends full expensing for 5 years.
• Research & Development (R&D) Credit: The Senate’s text restores this tax benefit that expired in 2022, which up until that year, allowed businesses to fully write off their R&D costs in the same year in which those costs were incurred. As with full expensing, the Senate also opted to make this benefit permanent. The House-passed bill only extended it for 5 years.
• Section 199A: The Senate Finance Committee’s text, like the House, makes the 20 percent deduction for S-Corporations and other pass-through structures permanent. However, the House opted to bump this number up to 23 percent. The Senate holds it at 20 percent.
• Section 179: Like the House, the proposal increases the maximum amount a business may write off certain expenses to $2.5 million and increases the phaseout threshold amount to $4 million.
• EBITDA: The Senate mirrors the House approach in restoring EBITDA as the measure for calculating business interest expense. The current standard established by TCJA is EBIT, which is not as generous and serves to make companies less competitive, particularly in a high interest rate environment.
• Estate and Gift Tax Exemption: Like the House, the Senate bill permanently increases basic estate and gift tax exemption amount and the generation-skipping transfer tax exemption to $15 million.
• State and Local Tax (SALT) Deduction: The Senate opted to keep the current $10,000 cap on the SALT deduction, deviating from the House approach which raised it to $40,000.

Senate leaders hope to have the combined budget reconciliation package on the Senate floor next week to align with their goal of passing the bill through the upper chamber before the July 4 recess. That deadline seems like a stretch goal at this point however, as several GOP Senators have voiced concern with various provisions. Leadership also would prefer to avoid a formal conference committee with the House and so negotiations over the SALT issue and others will be front and center in the coming days. Senate Republicans do not like the House approach toSALT, but the handful of GOP lawmakers in the House from high SALT states have indicated that the $40,000 cap is nonnegotiable. 

European Union Deforestation Regulation (EUDR)

Earlier this month, staff from the Departments of Agriculture, Commerce and the U.S. Trade Representative hosted a roundtable to discuss forestry and forest product sector value chain concerns around compliance with the European Union Deforestation Regulation (EUDR). The discussion focused on a number of areas, particularly the inability for U.S. producers to meet EUDR’s strict geolocation requirements. The EUDR requires any wood or pulp and paper company selling into the EU market to identify down to the exact parcel where timber to make those products is harvested. Wood products manufacturers have been advocating with the Administration that this is a non-tariff trade barrier which needs to be addressed in the context of the ongoing trade negotiations with the European Union. WIA will keep you apprised of developments.

Trade

On June 3, the White House announced that it would raise tariffs on imports of steel and aluminum and derivative products to 50 percent beginning June 4 for all countries except the UK. The White House announcement may be found here. Estimates are that this action will result in $50 billion in tariff costs, effectively doubling the estimated impact of tariffs announced in March.

In other trade news earlier this month, President Trump announced that his negotiating team had reached a tentative deal with China on trade between the two countries. According to the Administration, tariffs on imports from China would be locked in at 55 percent, while China would impose a 10 percent tariff on U.S. goods entering the Chinese marketplace.

WIA Members Descend on Washington

Next week, a group of executives from WIA member companies will decamp to Washington, D.C. to advocate in support of our sector’s public policy priorities. Trade and tariffs will be top of mind, as will the tax bill which may be on the Senate floor the day our group is on Capitol Hill. We will also be discussing workforce challenges and the need for action on workforce development. Finally, we have some Farm Bill programs that we will be discussing with Members of Congress and their staff. The group will be divided into three teams and will have about 30 meetings over the course of the day on June 25.

If you have specific issues you would like raised next week, please let WIA staff know.

This morning, the House of Representatives voted 215-214 to advance a comprehensive budget reconciliation bill that encompasses GOP policy priorities. As we noted in our previous updates, the legislation includes robust tax provisions that revive and extend key business tax benefits, including full expensing, the research and development tax credit and the Section 199A deduction for S-Corporations and pass throughs. To pay for these provisions and others, the measure cuts spending for Medicaid and food assistance programs in addition to eliminating renewable energy tax credits authorized by the Inflation Reduction Act.

Key business tax benefit provisions included in the bill are—

• 100 percent bonus deprecation/full expensing: Language allows taxpayers to immediately expense 100 percent of capital investments in machinery and equipment made on or after January 20, 2025, and before January 1, 2030. House GOP leaders entered the reconciliation process hoping to extend this benefit permanently but opted for a 5-year extension based on cost concerns. We understand there is a strong appetite in the Senate to modify this provision to make it permanent.
• Research & Development (R&D) Credit: The provision allows taxpayers to fully write off their R&D costs in the same year in which those costs are incurred. Recall, this benefit expired in 2022. The bill makes the R&D credit retroactive to January 1, 2025, and extends it through December 31, 2030. Again, the Senate is interested in making this benefit permanent.
• Section 199A: The 20 percent deduction for S-Corporations and other pass-through structures expires at the end of this year. This benefit would not only be made permanent, but it is also increased to 23 percent.
• Section 179 : The proposal increases the maximum amount a business may write off certain expenses to $2.5 million and increases the phaseout threshold amount to $4 million.
• EBITDA: The bill restores EBITDA as the measure for calculating business interest expense. The current standard established by TCJA is EBIT, which is not as generous and serves to makecompanies less competitive, particularly in a high interest rate environment.
• FDII and GILTI:  Under the TCJA, after 2025, the foreign-derived intangible income (FDII) deduction was scheduled to be reduced from 37.5% of FDII to 21.875%, and the global intangible low-taxed income (GILTI) inclusion deduction amount was scheduled to be reduced from 50% to 37.5% under Sec. 259(a)(3). The bill would repeal those reductions.
• BEAT tax:  Under Sec. 59A, the base-erosion and anti-abuse (BEAT) tax is scheduled to increase from 10% to 12.5% after 2025, and regular tax liability will be reduced (and the BEAT minimum tax amount therefore increased) by the sum of all the taxpayer’s income tax credits for the tax year. The bill would eliminate that increase and the provision reducing regular tax liability by the sum of the taxpayer’s tax credits.

   

• Estate and Gift Tax Exemption: The basic estate and gift tax exemption amount and the generation-skipping transfer tax exemption would be permanently increased to $15 million. The Tax Cuts and Jobs Act of 2017 (TCJA) had temporarily increased it to $10 million (adjusted for inflation), but that increase is expiring next year. The $15 million exemption amount would be indexed for inflation after 2025.
• State and Local Tax (SALT) Deduction: Language in the bill raises the SALT deduction cap from $10,000 to $40,000.

The legislation now proceeds to the Senate where the upper chamber will attempt to revise the measure. Again, Senators have opined that they would like to make full expensing and the R&D credit permanent. But given the extremely narrow margin in the House—the bill passed by one vote—it will be interesting to see how the Senate proceeds knowing that significant revisions may disrupt the fragile framework in the lower chamber that enabled this bill to pass. WIA will be working with our Senate champions to encourage permanent extension of these two key business tax benefits.

Federal Forest Management

Included in the House Natural Resources Committee’s portion of the budget reconciliation package are provisions that direct both the U.S. Forest Service and the Bureau of Land Management to boost timber harvesting on lands these entities oversee by 25 percent over 2024 levels. House Natural Resources Committee Chairman Bruce Westerman (R-AR) is a strong proponent of forest heath and increasing active management of our federal forest landholdings. We will be tracking this provision as the budget reconciliation process moves forward.

Farm Bill

Prospects for reauthorizing the Farm Bill are appearing bleaker by the day. House leaders opted to include certain Farm Bill programs in the House Agriculture Committee’s portion of the budget reconciliation bill. The good news side of this approach is that the bill includes double funding for the Market Access and Foreign Market Development programs. These two funding sources support the American Hardwood Export Council which exists to open up markets overseas for U.S. produced hardwood lumber products. The bad news is that the reconciliation process may only be used for programs that currently receive mandatory funding. Most of the Farm Bill programs that WIA supports are funded with discretionary money and have been omitted from this effort. Further challenging the reauthorization effort is the fact that the budget reconciliation process has left Democrats out of the negotiation—making for strained political relationships at least in the short term.  WIA will nevertheless continue to advocate for full funding and renewal of key Farm Bill programs like the Wood Innovation and Community Wood grant programs and the Jobs in the Woods Act—relatively new legislation that was included in the House Agriculture Committee-passed Farm Bill reauthorization bill last Congress.

Career and Technical Education

Senator Richard Blumenthal (D-CT) is circulating a letter among his Senate colleagues urging increased funding for the Perkins state grant program to support CTE in the Fiscal Year 2026 Labor, Health and Human Servies and Education appropriations bills. This effort comes on the heels of a successful letter that was finalized late last month in the House led by Representatives Glenn “GT” Thompson (R-A) and Suzanne Bonamici (D-OR). That bipartisan letter was signed by 78 Members of Congress and sent to the Chair and Ranking Member of the House Appropriations Committee’s Labor, HHS, Education and Related Agencies Subcommittee.

On April 2, President Trump announced a slate of new tariffs to be imposed on countries throughout the world that sell into the U.S. market. The initial announcement imposed a 10 percent tariff on all countries beginning April 5. In addition, individualized “reciprocal” tariffs on countries with which the United States has the largest trade deficits would be imposed April 9.  In a welcome development on the day reciprocal tariffs would take effect, the President announced a pause and reduction of the reciprocal tariffs his administration has levied against more than 75 countries. However, he doubled down against China, raising tariffs to 145 percent, which are now in effect. China immediately announced retaliatory tariffs of 125 percent on U.S. imports.

The pause will last 90 days and the tariff rate during that period for targeted countries is 10 percent.

Wood and Wood Energy Grants

Rep. Marie Gluesenkamp Perez (D-WA) reintroduced the Community Wood Facilities Assistance Act in April. The legislation (H.R. 2517), among other things, would double the authorization for the Community Wood grant program from $25 to $50 million annually. This program funds  grants for biomass heating and power projects across the country as well as funding for innovative wood product manufacturing facilities. Rep. Gluesenkamp Perez is joined by Rep. Chellie Pingree (D-ME) and Rep. Dan Newhouse (R-WA) as cosponsors. This measure serves as a marker bill for potential inclusion in a Farm Bill reauthorization measure which will hopefully come together later this year. The press release with more details on the legislation can be found here. 

Jobs in the Woods Act

Senators Angus King (I-ME) and Jim Risch (R-ID) have introduced the bipartisan Jobs in the Woods Act (S.1336), which seeks to address workforce challenges in the forestry and forest products manufacturing sector. This legislation directs the U.S. Department of Agriculture (USDA) to create a competitive grant program to stand up career pathway training programs in forestry operations, lumber and sawmilling It is modeled after a successful program developed by the University of Wisconsin-Stevens Point. Eligible entities encompass nonprofit organizations, state governments, Indian tribes, local government units, and higher education institutions. The USDA is directed to prioritize applicants that focus on tackling workforce aging and youth migration issues, collaborating with secondary schools to engage students, and demonstrating effective workforce placement and hiring strategies in the forest products sector. Senators King and Risch are joined by original cosponsors, including Senators Mike Crapo, Susan Collins, Amy Klobuchar, Jeff Merkley, Jeanne Shaheen, and Tina Smith. Notably, provisions of the Jobs in the Woods Act were incorporated into the House version of the Farm Bill last Congress. A press release on the bill may be found here. 

The co-chairs of the bipartisan House Career and Technical Education (CTE) Caucus, Reps. Glenn “GT” Thompson (R-PA) and Suzanne Bonamici (D-OR), are circulating a “Dear Colleague” letter addressed to the House Labor, Health and Human Services and Education Appropriations Subcommittee. The letter requests increased funding for Perkins state grants in the FY 2026 Labor, Health and Human Services, and Education appropriations bill. The letter notes that “The Perkins Act is the primary source of federal funding for state and local CTE programs. In every Congressional district, CTE programs play a vital role in providing learners and workers pathways that lead to high-wage, high-skill, and in-demand career fields, including sectors of our economy that are currently experiencing critical workforce shortages such as the information technology, healthcare, and the skilled trades fields.”

The FY 2026 Congressional appropriations process is in its nascent stages, but WIA will be working with our Congressional champions on securing needed funding for CTE.

Transportation

Rep. Mike Collins (R-GA) will soon reintroduce his FRESH Act or Freight Restriction Elimination for Safer Hauling Act of 2025. The bill is a close cousin to the Safe Routes Act and would simply allow trucks hauling “perishable commodities” to access the interstate highway system at weights in excess of 80,000 pounds. Many states allow heavier rigs to travel on their state roads, but these rigs are forbidden from accessing the interstate due to the 80,000-pound maximum gross vehicle weight limit. The term eligible commodity list in the bill includes raw logs and forest products, pulp wood, chips and biomass. The Safe Routes Act (H.R. 2166), sponsored by Rep. Tony Wied (R-WI), takes the same approach but applies only to logging trucks.

Both Collins and Wied are members of the House Transportation and Infrastructure Committee which will be writing the next highway bill that is up for reauthorization next year.

Tax/Budget Reconciliation

Just before leaving Washington for a two-week Easter recess last Thursday, the House approved a compromise budget resolution which begins the process (budget reconciliation) to restore and extend key business tax incentives critical to WIA members. Budget reconciliation is a parliamentary procedure that allows enactment of legislation with a simple majority vote in the Senate instead of the customary 60 vote threshold. A comprehensive budget reconciliation bill will be the vehicle for the Republican majority to revive and extend key business tax benefits that have been phasing out or have outright expired. These benefits include 100 percent bonus depreciation which allows manufacturers to write off the full costs of investments in machinery and equipment in the same year those costs are incurred. This benefit was reduced by 20 percent in 2023, 2024 and again in 2025. It is slated to fully phase out in 2027 unless extended. Also to be included is the Research and Development tax credit which expired in 2022 and restoring more favorable interest deductibility for companies (EBIT to EBITDA). Finally, the bill will extend the Section 199A tax benefit for S-Corporations and other pass-through structures which is scheduled to expire at the end of this year.  WIA has been meeting with key lawmakers in both the House and Senate for over a year advocating for restoring and extending these critical benefits.

Last week, the House and Senate passed a 6 month Continuing Resolution (CR) to fund the federal government through the end of the fiscal year. It had appeared earlier in March that we were headed for a federal government shutdown on March 14 when existing funds expired, but House Speaker Mike Johnson (R-LA) was able to hold his slim GOP majority together to pass the measure through the lower chamber. Following that vote, Senate Minority Leader Chuck Schumer (D-NY) signaled he would vote for the CR and it ultimately passed the Senate and was signed by the President. The Fiscal Year 2026 appropriations process will ramp up in Congress in the coming days.

Trade

Last Wednesday, the European Union (EU) announced its proposed retaliatory tariffs on U.S. products as a result of US tariffs on European steel and aluminum. The European Commission’s statement may be found here. The list of products targeted by the EU is extensive, and includes many wood products like lumber, veneer, molding, flooring, plywood, OSB, casks, and more. These tariffs would go into effect in April, after a consultation period this month.

The European Commission (EC) is holding "Stakeholder Consultations," where industry can provide feedback on the proposed tariffs through an online survey. At this time, US exporters as well as their European importers are encouraged to fill out the online consultation form to encourage the exemption of U.S. forest products from this trade dispute.

The EC has launched this survey seeking the views of those affected by the tariffs, with a deadline for submissions of March 26th. The full list of products included in this trade action is available on the survey page, and forest products begin with HS code "44". Commentson these proposals will be accepted until March 26th and we expect the counter-tariffs to go into effect in mid-April.

In earlier trade action March 1, President Trump issued an executive order titled " Addressing the Threat to National Security from Imports of Timber, Lumber," which initiates a Section 232 investigation under the Trade Expansion Act of 1962. This investigation aims to determine whether imports of timber, lumber, and derivative products, such as paper and furniture, pose a threat to U.S. national security. The order emphasizes vulnerabilities in the domestic wood supply chain and seeks to address them through potential measures like tariffs, export controls, or incentives to enhance domestic production. It highlights the vital role of the wood products industry in supporting national defense, economic stability, and industrial resilience.

The Department of Commerce leads on all 232 investigations and Commerce’s report, including recommendations to mitigate threats and strengthen the industry, is due no later than November 26th. Among the factors to be examined in the investigation are: 

• the current and projected demand for timber and lumber in the United States;
• the extent to which domestic production of timber and lumber can meet domestic demand;
• the role of foreign supply chains, particularly of major exporters, in meeting United States timber and lumber demand;
• the impact of foreign government subsidies and predatory trade practices on United States timber, lumber, and derivative product industry competitiveness;
• the feasibility of increasing domestic timber and lumber capacity to reduce imports; and
• the impact of current trade policies on domestic timber, lumber, and derivative product production, and whether additional measures, including tariffs or quotas, are necessary to protect national security.

Initiation of the 232 investigation does not necessarily predicate additional tariff action, but engagement from the entire forest products supply chain will be critical. We will keep you posted on opportunities to comment.

In other trade news, the President announced earlier this month that the 25 percent tariffs on Canada and Mexico that kicked in on March 4 would be paused until April 2—coincidentally the same day that the reciprocal tariffs will take effect, according to the President. Regarding the latter, these tariffs would be imposed on trading partners at a rate equivalent to the duty assessed on U.S. goods entering those markets. Clearly the situation on the trade front is fluid and we will do our best to report on developments as they happen.

Tax

On March 10, Representatives Ron Estes (R-KS) and John Larson (D-CT) reintroduced the American Innovation and R&D Competitiveness Act. The bill, which boasts 64 original cosponsors, would permanently allow for companies to fully expense their research and development (R&D) costs in the year in which those costs are incurred. Recall that this benefit expired in 2022, forcing companies to amortize these costs over a 5-year period. The bill revives the so-called R&D tax credit retroactively to 2022 and will be a centerpiece of discussion as the budget reconciliation tax package is forged in the weeks and months ahead.

EPA

Last week, Environmental Protection Agency Administrator Lee Zeldin announced a number of regulatory reform initiatives aimed at relieving compliance burdens on the regulated community. Of the 31 deregulatory actions that were announced, WIA is paying particular attention to plans to revisit the particulate matter (PM) 2.5 standard that was tightened last year. Recall, that the National Ambient Air Quality Standard (NAAQS) for PM was ratcheted down from 12 micrograms per cubic meter (µg/m³) to 9 µg/m³. This action threatened to bring large swaths of the country into nonattainment for the pollutant, resulting in barriers to obtaining new permits to expand operations, for example.

On the same day, Administrator Zeldin announced that EPA will work with the Army Corps of Engineers to review the definition of “waters of the United States” or WOTUS. The action aims at revising the definition in a way that provides farmers, forest landowners, businesses and states with clear and simplified direction for compliance. WOTUS has been litigated and debated for years and has led to expanded interpretation on what types of waters are under federal Clean Water Act jurisdiction—forcing landowners to obtain federal permits for wet areas on or near their land that could be interpreted to be a so-called “jurisdictional waters”—meaning they are covered by Clean Water Act protections and thus subject to discharge permits.

Jobs in the Woods Act/Workforce Development

Congresswoman Marie Gluesenkamp Perez (D-WA-3) is set to reintroduce the Jobs in the Woods Act in the coming weeks. She previously introduced this legislation during the 118th Congress alongside former Representative Lori Chavez-DeRemer, who is now the Secretary of the Department of Labor. The Jobs in the Woods Act requires the Department of Agriculture (USDA) to award competitive grants to eligible entities to conduct career pathway training programs in forestry, logging and sawmilling operations. We will keep you posted on developments and recruitment of a Republican co-lead in the House.  

In the broader workforce development space, the House Small Business Committee reported seven bills last week, one of which was H.R. 1642, the “Connecting Small Businesses with Career and Technical Education Graduates Act of 2025.”  – introduced by Committee Chairman Rep. Roger Williams (R-TX). The committee approved the bill unanimously 28-0. 

The legislation amends the Small Business Act to add a requirement for Small Business Development Centers (SBDCs) and Women’s Business Centers (WBCs) to educate small businesses on identifying career opportunities for graduates of career and technical education programs. It also requires SBDCs and WBCs to assist graduates of such programs who want to start a small business of their own. WIA will continue to support and monitor this bill as it progresses.

Federal Forst Lands/Timber Production

On March 1, President Trump issued an Executive Order the "Immediate Expansion of American Timber Production " aimed at boosting domestic timber production while addressing forest health, wildfire mitigation, and economic benefits. Key directives include:

• Updated Guidance: Within 30 days, the Secretaries of the Interior and Agriculture must issue revised guidance to enhance timber production and forest management.
• Streamlined Approvals: A strategy to expedite forest management project approvals under the Endangered Species Act (ESA) is to be developed within 60 days.
• Timber Sales Targets: A four-year plan setting annual timber sale goals for federal lands is due within 90 days.
• NEPA Categorical Exclusions: Within 180 days, the administration will explore using categorical exclusions under the National Environmental Policy Act (NEPA) to accelerate timber production approvals.
• Wildfire Mitigation: Improved forest management practices aim to reduce wildfire risks and enhance ecosystem health.

The order emphasizes the importance of sustainable forest management to mitigate wildfire risk and increase timber production and improve the efficiency of ESA consultations between federal agencies which often delay forest management actions.

In more federal forest policy news, last Thursday, the Senate Agriculture Subcommittee held a hearing to take testimony on the Fix Our Forests Act ( H.R. 471), which passed the House on a bipartisan vote in January. The legislation is a comprehensive bill that aims to restore forest health, increase resiliency to wildfires, and protect communities. It does so by expediting federal environmental analyses on proposed forest management plans, reducing frivolous lawsuits and increasing the pace and scale of forest restoration projects.

Container Ship Fees

On February 21, the U.S. Trade Representative (USTR) announced it would propose fees on Chinese ships and operators calling on U.S. ports in response to China’s growing maritime influence, which the Administration deems to be an unreasonable risk to U.S. commerce. The fees, which could be up to $1.5 million, are causing major concern up and down the manufacturing and retailing supply chain. 

The proposal follows a trade investigation into China’s practices in the maritime, logistics and shipbuilding industries that began under the Biden administration and concluded with a report just four days before the President took office. The inquiry concluded that Beijing was unfairly dominating the sectors and said “urgent action” was needed to address the issue. 

Specifically, the measures include port entrance fees of up to $1 million per ship owned by a Chinese vessel operator or up to $1,000 per net ton of a vessel’s capacity. For international maritime transport operators whose fleets are comprised solely of Chinese ships, the port entrance fee would amount to $1.5 million, according to USTR. For operators with fleets comprised of 50 percent or more Chinese-built vessels, the charge will be up to $1 million per vessel entrance to a US port. The fee would be reduced if the percentage is below 50.

Corporate Transparency Act

In a welcome development, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced that it is ceasing enforcement of the Corporate Transparency Act (CTA) while it crafts a new set of regulations that will ultimately narrow the scope of the reporting regime. The CTA’s reporting requirements were scheduled to take effect once again beginning March 21.

FinCEN announced that it will not issue any fines or penalties or take any other enforcement actions against any companies based on any failure to file or update beneficial ownership information (BOI) reports pursuant to the Corporate Transparency Act by the current deadlines. No fines or penalties will be issued, and no enforcement actions will be taken, until a forthcoming interim final rule becomes effective and the new relevant due dates in the interim final rule have passed. This announcement continues Treasury’s commitment to reducing regulatory burden on businesses, as well as prioritizing under the Corporate Transparency Act reporting of BOI for those entities that pose the most significant law enforcement and national security risks. [Emphasis added.]

FinCen also made clear that a new proposed rule will be unveiled next month and will likely include significant changes to the existing reporting regime:

No later than March 21, 2025, FinCEN intends to issue an interim final rule that extends BOI reporting deadlines, recognizing the need to provide new guidance and clarity as quickly as possible, while ensuring that BOI that is highly useful to important national security, intelligence, and law enforcement activities is reported.

FinCEN also intends to solicit public comment on potential revisions to existing BOI reporting requirements. FinCEN will consider those comments as part of a notice of proposed rulemaking anticipated to be issued later this year to minimize burden on small businesses while ensuring that BOI is highly useful to important national security, intelligence, and law enforcement activities, as well to determine what, if any, modifications to the deadlines referenced here should be considered.

Corporate Transparency Act
Early last week, legislation to extend the deadline for an estimated 32 million small businesses to report their beneficial ownership information (BOI) as mandated by the Corporate Transparency Act (CTA) passed the U.S. House unanimously.

The House passed  H.R. 736, Protect Small Businesses From Excessive Paperwork Act of 2025 , 408–0. The bill, which proceeds to the Senate next, extends the deadline for filing BOI reports to January 1, 2026. The deadline for most reports previously was January 1, 2025, but the reporting requirements have been caught up in numerous court cases and are now on hold.

Senate Banking Committee Chairman Tim Scott (R-SC) introduced a companion bill in the Senate on Tuesday. Both bills only affect reporting companies that existed before January 1, 2024. Companies formed after that date are not affected.

Workforce

Next week, Senators Jim Risch (R-ID) and Angus King (I-ME) are expected to reintroduce the Jobs in the Woods Act—legislation that authorizes grants to stand up training programs to attract workers into the forestry, logging and forest products manufacturing sectors. The bill is modeled after a highly successful training program developed at the University of Wisconsin-Stevens Point that features a mobile sawmill that travels to local and community colleges to allow students to obtain hands-on experience.

Provisions of the legislation were folded into the House Agriculture Committee-passed Farm Bill legislation last year which stalled before it received a House floor vote. We anticipate that the Jobs in the Woods Act legislation will ride on Farm Bill reauthorizing legislation in the 119^th Congress.

Tax

A considerable amount of activity is happening in the tax space. On the macro level, House and Senate leaders have started the budget reconciliation process which will enable them to pass GOP policy priorities through the Senate with only a simple majority vote instead of the usual 60 vote threshold. On Thursday, the House Budget Committee approved a comprehensive budget resolution by a 21-16 party-line vote. Committee approval of the resolution—the first step in moving a budget reconciliation package— provides significant momentum in the House Republican leadership’s effort to enact President Trump’s domestic policy priorities in a single bill. The measure would extend key business tax benefits of the Tax Cuts and Jobs Act (including 100 percent bonus depreciation and the research and development tax credit), as well as appropriate funds for border security and provisions that advance energy exploration and development policies. In the Senate, Republican leadership continues to pursue a two-bill approach, with the Senate Budget Committee acting last week to move a budget resolution that addresses border security and energy. Senate leaders—who may pursue Senate passage of this proposal this week--would prefer to address these issues in the first package and follow-up with a second bill dedicated solely to tax. The concern among House leaders with the 2-bill approach is that the second bill may never materialize. House Speaker Johnson is trying to manage several competing factions in his own party which currently only holds a one seat majority in the House. His current thinking is that he will only be able to hold his fragile caucus together for a vote on a single, comprehensive measure.

The House is in recess this week for the Presidents Day holiday but will be back in the capital the following week, during which it is expected to consider the House Budget Committee-passed resolution. 

In other tax news, Senate Majority Leader John Thune (R-SD) last week led 45 of his Senate colleagues, including Sen. Mike Crapo (R-ID, chairman of the Senate Finance Committee, in reintroducing legislation that would permanently repeal the federal estate tax, commonly known as the death tax. Thune, who has long made estate tax repeal a priority, led the Senate’s attempt to repeal the estate tax while Congress considered the Tax Cuts and Jobs Act (TCJA) in 2017. Although the final version of the TCJA did not repeal the estate tax, the law effectively doubled the individual estate and gift tax exclusion to $10 million (approximately $13.9 million in 2025 dollars) through 2025, which prevents more families and generationally-owned businesses from being affected by this tax. The increased exclusion expires at the end of 2025, which increases uncertainty and planning costs for family-owned businesses.  

And finally, earlier in January legislation making the Section 199A deduction for S-Corporations and other pass-through tax structures permanent was reintroduced. Recall this 20 percent deduction expires at the end of 2025. Known as the Main Street Tax Certainty Act, the legislation is identical to bills introduced in the House and Senate last Congress led by Senator Steve Daines (R-MT) and Rep. Lloyd Smucker (R-PA-11). The legislation boasts 152 cosponsors in the House and 33 cosponsors in the Senate. The effort is bicameral and bipartisan, which bodes well for its inclusion in a tax reconciliation bill that will be assembled in the coming weeks (see above).

Regulatory Reform Legislation

On February 12, the House approved legislation (H.R. 77) to dramatically expand Congress’s ability to roll back regulations approved by the prior administration. Currently, Congress may pass a Congressional Review Act (CRA) resolution that overturns on a case-by-case basis regulations  adopted in roughly the last 6 months of the previous President’s term. H.R. 77 would expand on this authority to apply to those regulations adopted during the previous year of a President’s final year in office and allow Congress to bundle many rules together and overturn them in a single vote.

The final vote was 212-208. Reps. Henry Cuellar (D-TX) and Brian Fitzpatrick (R-PA) were the only Democrats to support the measure.

Nominations

In a bipartisan vote last Thursday, the Senate voted 72-28 to confirm Brooke Rollins to serve as US Department of Agriculture Secretary. This is a key cabinet position as her Department oversees and administers Wood Innovation Grants as well as the Community Wood grant program—both support mass timber/cross laminated timber projects across the country. USDA also administers a suite of renewable energy programs that promote biomass heat and power projects at sawmills and other forest products manufacturing facilities. Moreover, USDA houses the Forest Service that is responsible for managing our federal forest lands and the Forest Inventory and Analysis program which keeps tabs on the health of the U.S. forest resource.

Up next week in committee is former Rep. Lori Chavez-DeRemer to become the next Secretary of Labor. Chavez-DeRemer is a moderate Republican who was eager to reach across the aisle during her time in Congress and work with like-minded Democrats on policy issues. She was the lead Republican in the House on the Jobs in the Woods Act legislation and was a member of the House Problem Solvers Caucus. Several Republican Senators are expected to vote “no” on her nomination due to her support for pro-labor union legislation known as the PRO Act, however she will pick up Democrat support and is expected to be confirmed.

The situation regarding imposition of tariffs on our trading partners remains fluid. Shortly after President Trump was sworn into office on Monday, his Administration announced that it would “study” potential tariffs on China, Canada and Mexico. Later that evening in an interview, the President indicated that he would seek 25 percent tariffs on Canada and Mexico beginning February 1. In preparation, Canadian government officials have been meeting with House and Senate leaders announcing the Canadian government’s intention to impose retaliatory tariffs aimed at products made in states that form the base of President Trump’s support should tariffs on Canadian imports be imposed.

Meanwhile, U.S. companies whose supply chains rely on parts from both countries are also sounding the alarm with elected officials here in D.C. WIA is on hand and following developments closely.

Federal Forest Management/Wildfires

Congressman Bruce Westerman (R-AR) and Representative Scott Peters (D-CA) reintroduced the Fix Our Forests Act late last week. The swift reintroduction in the 119th Congress underscores the urgent need to enhance forest management projects to mitigate wildfire risks. The full House is scheduled to take up the legislation Wednesday, in part as a response to the California wildfires. We expect a Senate version of the bill to be introduced in the coming weeks. The House passed the Fix Our Forests Act in September 2024 with bipartisan support.

Among other things, the bill would:   

• Simplify and expedite environmental reviews for forest management projects.
• Make communities more resilient to wildfires by better coordinating existing grant programs and promoting new research.
• Promote federal, state, tribal and local collaboration.
• Deter frivolous litigation that delays essential projects.
• Create a framework for prioritizing treatments in the forests at the highest risk of wildfire and near vulnerable communities.
• Encourage the adoption of state-of-the-art science and techniques for federal land managers.
• Encourage active management to improve the safety of powerlines and other infrastructure.
• Strengthen existing policy tools like Good Neighbor Authority and Stewardship Contracting.
• Support wildland firefighters and their families by ensuring continuity in casualty assistance programs.

"As tragic wildfires rage in Los Angeles, we're working in Washington to help prevent these types of catastrophes in the future with the Fix Our Forests Act. It's time to take an all-hands-on-deck approach and use proven science to restore our forests to a healthy state and protect communities in the wildland-urban interface from wildfires. This legislation will leave our nation's forests more resilient and ensure they can be responsibly enjoyed and managed for generations to come." - House Committee on Natural Resources Chairman Bruce Westerman (R-AR-04), who is himself a forester.

Tax

Republican leaders announced last week that a budget resolution would be ready for consideration in early February. This is important as passage of a budget resolution kicks off the budget reconciliation parliamentary process that GOP leadership intends to use to extend or make permanent the business tax benefits enacted by the Tax Cuts and Jobs Act of 2017. Included in the resolution will be “instructions” to the relevant Congressional policy committees to assemble legislation to change spending, revenues, deficits or the debt limit by specific amounts. Each committee  then compiles legislation to achieve its target, and if more than one committee is told to act, the Budget Committee bundles each measure into one large bill.

The current timeline has the House acting on the resolution in early February with the Senate following suit mid-month. Speaker Johnson’s goal is to have budget reconciliation legislation ready in April with final passage complete by Memorial Day. This timeline may be optimistic, however. Recall that the TCJA was enacted at the very end of President Trump’s second year in office, so these efforts are complicated and take time to mature. The other issue under discussion is whether there will be two reconciliation packages or just one. Senate leadership has been advocating for a first reconciliation bill to address border security, energy production and military readiness, with a second follow-on package dealing solely with tax. The situation is fluid.

Items to be included in a tax reconciliation bill are extension of the 100 percent bonus depreciation tax benefit, extension of the research and development tax credit and renewing the 20 percent deduction for S-Corporations and pass through entities.  Regarding the latter, WIA signed onto a letter last week in support of legislation that is going to be introduced by Senator Steve Daines (R-MT) and Representative Lloyd Smucker (R-PA) known as the Main Street Tax Certainty Act of 2025. This bill would make permanent the Section 199A deduction for pass throughs. You can read the letter here.

The WIA team will be actively engaged in the process moving forward over the next several weeks and will keep you regularly informed of developments.

Corporate Transparency Act (CTA)

On January 15, Representative Warren Davidson (R-OH) and Senator Tommy Tuberville (R-AL) reintroduced their bicameral CTA repeal bill, dubbed the Repealing Big Brother Overreach Act. The legislation is only 3 pages and was introduced with 68 cosponsors in the House.

As we have noted, the CTA reporting obligations took effect last year, but a nationwide court injunction was put in place late last year and implementation of the law is on hold until the Supreme Court rules on the matter. A one-year delay in the compliance deadline was part of the initial Continuing Resolution to fund the government in December but fell out of the final package that was signed into law. We will keep you apprised of the action on this important issue.

Congress is racing to tie up some critical loose ends this week before gaveling out the 118^th Congress and leaving town for the rest of the year. Primary among them is funding the federal government. House and Senate negotiators finally forged a deal late Tuesday on a  Continuing Resolution (CR) to extend federal government operations into mid-March of next year. Also included in the 1, 547-page measure is at least one key WIA policy deliverable and a couple of other notable policy provisions. They are:

• Reauthorization of WIOA—the CR includes provisions of the Stronger Workforce for America Act (H.R. 6655), which updates the Workforce Innovation and Opportunity Act (WIOA). This comprehensive statute underpins all our country’s workforce development programs and has not been reauthorized since 2014. Among other things, the bill would—

• Dedicate 50 percent of the adult and dislocated worker funding toward upskilling workers through “individual training accounts” (ITAs), on-the-job learning, and wrap-around supports, while redirecting an existing funding stream toward ITAs for displaced workers. 
• Prioritize employer-led initiatives that equip workers with the skill sets to fill jobs in critical industries and help the currently employed workforce upskill to avoid displacement and advance their careers.
• Streamline the “eligible training provider list” to focus on outcomes and ensure eligible programs are aligned with the skill and hiring demands of employers. 
• Strengthen and fully implement the performance accountability system in the law to hold states and local workforce boards accountable for achieving positive labor market outcomes for program participants.

Working to reauthorize WIOA has been a WIA policy priority for the last couple of years. The other two items that are notable are—

• A one-year extension of the Farm Bill. This action was essential as the House and Senate could not come together this year on a broader 5-year reauthorization measure. As part of this extension, farmers and forest landowners will receive significant funding for relief from natural disasters and wildfire. But this action buys time for new leadership in the 119^th Congress to forge consensus on a broader 5-year bill.
• A one-year delay in implementation of reporting requirements under the Corporate Transparency Act. The CTA took effect at the beginning of 2024 and Beneficial Ownership Information reports for companies formed prior to January 1, 2024 are due January 1, 2025. If the CR is enacted in its current form, this deadline would be pushed back one year. The CTA is an anti-money laundering statute that requires small businesses with less than $5 million in revenue and fewer than 20 employees to file reports on their ownership. Fines for not filing total almost $600 per day and noncompliance could result in a prison sentence.

House Speaker Mike Johnson (R-LA)’s whip team is working the phones today to find enough votes to pass this measure on Friday. Elements of this package may be altered or eliminated as this process unfolds. We will keep you apprised of developments.

House Leadership Developments

Last week the House Republican Steering Committee selected Rep. Brett Guthrie (R-KY) over Rep. Bob Latta (R-OH) to be the next Chairman of the influential House Energy and Commerce Committee. This panel leads on most environmental issues related to air, water and waste, as well as energy supply and efficiency policy. We have worked closely with Mr. Guthrie and his team since he took office in 2008. He is a solid, pragmatic legislator that is well liked by his peers and those in the government affairs realm. This committee will be active next year in considering Congressional Review Act resolutions to overturn some of the Biden Administration’s rules and regulations in the environmental policy space, among other areas. One rule in particular that may be an area of focus is the particulate matter 2.5 standard. EPA opted to tighten the National Ambient Air Quality Standard (NAAQS) from the existing 12 parts per cubic meter down to 9 (μg/m3) which is considered background level for the pollutant. PM 2.5 is essentially fine dust that is produced by engine exhaust or virtually any activity that causes fine particles to become airborne—construction, manufacturing, logging and vehicle traffic, among others. Tightening the standard to 9 brought enormous swaths of the country into nonattainment for the pollutant, which makes obtaining a permit to expand a facility and grow a business in these areas much more difficult.

Also last week, the Steering Committee gave Rep. Tim Wahlberg (R-MI) the nod to head the House Education and Workforce Committee next year. Walberg prevailed over Rep. Burgess Owens (R-UT) for the top spot on this key panel. In his social media posts after receiving the news, incoming Chairman Walberg emphasized that addressing the workforce challenges of U.S. employers will be one of his key objectives.

In other committee leadership news, Rep. Rick Crawford (R-AR) dropped out of the race to Chair the House Transportation and Infrastructure Committee next Congress. He had initiated a challenge to current Chairman Sam Graves (R-MO), who was term limited in that role but was pursuing a waiver from the rule. Once the Republican Steering Committee granted the waiver, Crawford opted to end his bid. The T&I Committee leads on policy issues associated with trucking—importantly the issue of truck weight reform to make truck transportation more efficient and cost effective.    

On the Democrat side, two moderate lawmakers on the House Agriculture Committee challenged current Chairman David Scott (D-GA) for the Ranking Member position on committee next Congress. Scott is 79 and there has been a whisper campaign for several months among his colleagues about whether he can meet the challenge of negotiating a Farm Bill reauthorization. Representatives Jim Costa (D-CA) and Angie Craig (D-MN) stepped forward and it was announced on December 16 that Rep. Craig would fill the top Democrat seat on the panel next year. 

The other important committee leadership race is for Ranking Member of the House Natural Resources Committee. Current Ranking Member Raul Grijalva (D-AZ) decided to step down from his post after Rep. Jared Huffman (D-CA) announced he was running against him. Shortly thereafter, Rep. Melanie Stansbury (D-NM) announced that she was also running for the top Democrat slot on the panel. This committee leads on all issues associated with forestry and forest management, including timber harvesting on federal lands. The Democrat Steering and Policy Committee announced earlier this week that Rep. Huffman would be the new Ranking Member next year.

Looking ahead to 2025, a new Administration and the 119^th Congress

As expected, the Congressional calendars for the 119^th Congress came out the first week of December and based on the number of days that Congress has penciled in to be in Washington, 2025 is looking to be a very busy year. The typical cadence for Members of Congress is to parachute into D.C. late Monday or early Tuesday. Starting Tuesday, they attend committee hearings and markups, fundraise, cast votes and then, when the lure of jet fumes becomes too much to bear, call it a wrap on Thursday and head back home Thursday afternoon. According to the new calendars, which will not be the case next year. There will be a  number of Fridays where both Houses are in session and incoming Senate Majority Leader Thune has been telling his colleagues to prepare for weekend work as well. We shall see, but the incoming leadership has identified a number of consequential, challenging policy issues to address—some of which are discussed below—and maximizing their time in Washington will be essential to make meaningful progress on any of them.

Tax

As we have noted many times over the course of this year, 2025 is shaping up to be historic in the tax space. Tax lobbyists that we attend meetings with are dubbing 2025 as the “Super Bowl of Tax” and “Taxmageddon.” While we anticipated that tackling expired and expiring business tax benefits would be the first item out of the gate next year as part of a budget reconciliation package, it appears that President-elect Trump and Republican leadership are going to first pursue some of the other issues on which he campaigned. Incoming Senate Majority Leader John Thune (R-SD) announced in early December that he would like to see the outlines of a budget reconciliation bill within the first 30 days after President-elect Trump takes office. According to leadership staff we have spoken to, the GOP will pursue two distinct reconciliation packages next year. The first will focus on energy, border security and military readiness/defense. Specifics on policies that will fall into these tranches are not yet clear. The second package will focus singularly on tax and extending the business tax benefits enacted by the Tax Cuts and Jobs Act (TCJA).

The appeal of using the budget reconciliation process is that it circumnavigates the 60-vote threshold in the Senate--meaning that only a simple majority is needed to clear the upper chamber. As Republicans will hold 53 Senate seats in the 119^th Congress, these measures are certain to pass barring any GOP defections. Reconciliation has fairly strict parameters but has been used often in situations where one party controls both chambers of Congress and the White House.

The Wood Industry Association’s priorities in the second reconciliation bill will be restoring the full expensing tax benefit that has been phasing out over the last few years and is scheduled to take another 20 percent haircut in January. The plan is to restore 100 percent bonus depreciation back to 100 percent and do so retroactively. The other piece is reviving and extending the research and development (R&D) tax credit. As part of the Tax Cuts and Jobs Act (TCJA), the ability of businesses to fully expense R&D costs in the same year those costs were incurred expired in 2022. Currently, those R&D costs have to be amortized over a 5-year period—essentially making investments in your business more expensive. Again, the plan is to restore and extend full expensing of R&D costs and make restoration of this key tax benefit retroactive. Also riding on this second train will be extending the 20 percent tax deduction for S-Corporations and other pass-through tax structures. This benefit was also put in place by the TCJA in an effort to introduce some semblance of tax parity between the rate larger C corporations negotiated and that which is assessed to smaller Main Street businesses. Unfortunately, this benefit expires at the end of 2025 and its extension is critical. To provide perspective, 62 percent of all private sector jobs are anchored by pass-through businesses. To put a finer point on it, 88 million people in this country show up for work every day at a business that is structured as a pass-through. It is a tax structure that is popular in our sector and WIA will be working with our allies in the business community and Congress next year to ensure that this deduction is carried forward.

Farm Bill

As mentioned above, the politics simply did not align between Democrats and Republicans this year on a Farm Bill rewrite. Party leadership remained so far apart on spending priorities that forging consensus was unachievable. We remain hopeful that new leadership—potentially on both the Agriculture Committees—will yield different results in the new Congress. Senator Amy Klobuchar (D-MN) will be new in the Ranking Member slot on the Senate Agriculture, Nutrition and Forestry Committee. She and incoming Chairman John Boozman (R-AR) have a good working relationship and both have proven to be champions on key issues to the forestry and forest products sectors. In the House, Chairman GT Thompson (R-PA) will continue on as Chairman, but there may be a new Ranking Member (discussed above). This issue will be settled before Congress leaves for the year.

While a new Farm Bill was not enacted in 2024, it was not an “all for naught” exercise. Many provisions that surfaced in the House and Senate Farm Bill proposals were positive, including legislative fully supporting grant programs at the Department of Agriculture that incentivize innovative wood product manufacturing like mass timber/CLT. The House Agriculture Committee passed bill also includes forestry and forest products workforce development provisions that will help enhance the supply of trained employees that can work in wood machinery manufacturing facilities and sawmills. WIA looks to build on this progress in 2025 and we remain optimistic that a new Farm Bill will be signed into law sometime next year. 

Trade

The President-elect’s campaign rhetoric over the last year or so has been pretty consistent on the international trade front. He has vowed that from Day One of his second Presidency he plans to get tough with our trading partners and rely heavily on his favorite tool to level the international playing field—tariffs. It is difficult to ascertain at this point whether the President-elect is using the threat of tariffs simply to bring our trading partners to the negotiating table or if he really is preparing to impose tariffs on China, Mexico, Canada and European Union countries in January. WIA is keeping a close eye on developments in this space as trade has been a top tier issue for us in the past.

There will of course be many other policy issues that surface next year, but these three are top of mind for WIA and the ones for which we are preparing. The new Congress-the 119^th-will gavel in January 3 when newly elected Members are sworn in and then the action starts. As always, the WIA team is here and engaged and will be communicating developments regularly as the Congressional and new Administration’s agenda takes shape.  

European Union Deforestation Regulation (EUDR)

The first week of December, the European Union tentatively agreed to delay the implementation of the EU Deforestation Regulation (EUDR) for large businesses until December 30, 2025, and for smaller businesses (up to 250 employees) until June 30, 2026. The provisional agreement required endorsement by the EU Council and the EU Parliament, which occurred on December 17. The proposed amendment to add a "no risk" category to the EUDR was not approved. This issue has been a major concern for solid wood producers—and really every link in the forest products value chain—as the EUDR’s requirement that all fiber entering the EU marketplace be traced back to the exact parcel where it was harvested.  While no entity can satisfy this requirement, the one-year delay is at least some positive news and buys time for resolution of the issue.  

Public opinion polling on the state of the Presidential race over the last few months consistently showed that November 5 promised to be a nail biter. In fact, commentators and political experts were forecasting that we would not see final Presidential results until days after the election. In discussions we had before election day, it was noted that in these close contests, the results often break hard in one candidate’s direction. That turned out to be true on election night. It was pretty clear early in the evening that the Trump/Vance ticket was going to hold swing states that were on the margin (Georgia and North Carolina) and prevail in key battlegrounds like Pennsylvania. Michigan and Wisconsin were called for Trump the next day. In fact, the President-elect swept all the swing states and currently has 312 Electoral votes—needing only 270—and won the popular vote. He will be sworn in January 20.

As expected, the GOP regained control of the U.S. Senate with 53 seats in the 100-seat chamber, picking up seats in West Virginia, Ohio, Pennsylvania and Montana. Two other close races in Nevada and Arizona were called for Democrats giving them 47 seats.

For the first time in 17 years, Senate Republicans have selected a new leader. As you know, Mitch McConnell stepped aside and the race for the top leadership spot was between Senators John Thune (R-SD) and John Cornyn (R-TX) to be his successor. Senator Rick Scott (R-FL) was also in the running, but his bid was seen as a long shot. In a secret ballot held early afternoon today, Thune prevailed and will lead what is shaping up to be an ambitious Republican agenda heading into 2025.

Democratic Senator Chuck Schumer (D-NY) will move to minority leader in 2025. The House leadership will also remain intact with current House Speaker Mike Johnson (R-LA) and current Minority Leader Hakeem Jeffries (D-NY) continuing to lead their parties. There are a handful of races that have yet to be called and so House control remains an open question.

In addition to party leadership changes, important moves on key committees of interest to WIA will also occur. In January, Senator John Boozman (R-AR) will take the helm of the Senate Agriculture, Nutrition and Forestry Committee. As you know, this panel has been working on reauthorizing the Farm Bill and will continue those efforts in the 119^th Congress as it is unlikely a Farm Bill will be negotiated and passed in the Lame Duck Congressional session occurring in November and December. The current committee chair, Senator Debbie Stabenow (D-MI), is retiring which will allow Senator Amy Klobuchar (D-MN) to move up as the Ranking Member on this committee. Both Boozman and Klobuchar have been strong supporters of our sector. Not only have they been avid proponents of the Wood Innovation and Community Wood Grant programs—two key WIA policy priorities--but also supportive of policies that would deem sawmill residuals (biomass) as “carbon neutral” from an emissions/Clean Air Act perspective.   Carbon neutrality language is being negotiated as part of the next Farm Bill to complement an existing appropriations policy rider that has been reauthorized every year since 2017.

The Senate Environment and Public Works Committee will also be under new leadership with Senator Shelley Moore Capito (R-WV) moving from Ranking Member to Chairman. Senator Capito has also been an enduring champion of the wood and forest products industry and appreciative of the jobs our sector supports in her home state. The panel she will chair has the lead on EPA-related issues (air, water and waste) as well as transportation and supply chain issues like truck weight reform. The current Chairman—Senator Tom Carper (D-DE)—is retiring and the role of Ranking Member may be filled by Sen. Jeff Merkley (D-OR).

On the Senate Energy and Natural Resources Committee, current Ranking Member John Barrasso (R-WY) would ordinarily slide into the Chairman’s role, but he is running unopposed for Senate Republican Whip and will not be serving on this panel in the 119^th Congress. This committee takes the lead on timber supply and federal forest issues. Likely to take the Chairmanship is Senator Mike Lee (R-UT). Current Chairman Joe Manchin (D-WV) is retiring, and that role may be filled by Senator Martin Heinrich (D-NM).

Regarding appropriations, industry ally Sen. Susan Collins (R-ME) will chair that key panel.  Senator Collins has been the lead champion on many wood and forest products industry policy priorities in her time in the Senate. Current Chair Sen. Patty Murray (D-WA) is expected to be the Ranking Member.

Finally on the Senate Finance Committee, the existing Chair and Ranking Member will flip with Senator Mike Crapo (R-ID) leading the panel and Senator Ron Wyden (D-OR) moving to the Ranking spot. Again, as we have noted, tax policy will be a primary focus of Congress and the Administration next year and Finance holds the pen in the upper chamber on all things tax related. 

In the House, there about 11 races that have yet to be called, but as of this writing Republicans had 216 and Democrats 208 seats in the 435 Member lower chamber. Several of the seats that have not been decided are in California, which is historically slow counting votes. At fundraisers WIA has attended prior to the election, both Republican and Democrat lawmakers opined that the party that wins the White House would also take the House. Currently, most pundits believe the Republicans will prevail and enter 2025 with a very slim majority in the House. However, Democrat leadership in the House we spoke to remain hopeful that the remaining ballots that are being counted will break their way and Democrats will take the lower chamber. Either way, the majority will be a slim one for either party.

Assuming the House does remain in GOP, a few key Members of Congress that are strong champions of our sector will remain in key positions of influence. Primary among them is Rep. Glenn “GT” Thompson (R-Pa), Chairman of the House Agriculture Committee. His panel produced a Farm Bill reauthorization measure that was reported out of committee on a bipartisan basis, but never saw floor action. That bill included language reauthorizing and funding both the Wood Innovation and Community Wood Grant programs as well as beneficial forestry and forest management provisions and biomass carbon neutrality language. Rep. Thompson’s district includes National Forest System lands and is heavily populated with hardwood sawmills. GT is also a strong proponent in the workforce development space and is cochair of the House Career and Technical Education Caucus.  He has been a true champion on all of our issues, and we look forward to working with him and his team as they continue their work in these critical roles. 

Likewise, Rep. Bruce Westerman (R-AR) will continue to chair the House Natural Resources Committee—the panel in the House that leads on federal forest and timber-related policy issues as well as the Endangered Species Act. Mr. Westerman is the only Member of the House with a forestry degree and his district is also home to scores of wood and pulp and paper product manufacturing facilities. He has been the lead for the GOP on climate related matters with his Trillion Trees Act that promotes tree planting and wood markets to help reduce and sequester greenhouse gas emissions.  We look forward to our continued work with him and his committee staff.

The all-important Energy and Commerce Committee will be under new leadership as current Chairman Cathy McMorris-Rodgers is retiring and there is a two-way race to succeed her. Vying for the gavel are Brett Guthrie (R-KY) and Bob Latta (R-OH). The E&C Committee leads on all EPA related matters impacting air, water and waste. WIA has a good relationship with both these lawmakers.

And finally, the House Ways & Means Committee, which holds the pen on all tax matters including all of the expired and expiring business credits, will be led by Rep. Jason Smith (R-MO).

The Lame Duck session of the 118^th Congress convened on November 12. We expect very little in the way of substantive legislating save for a Continuing Resolution to fund the government into March of 2025. The National Defense Authorization Act will also be passed, but action on a Farm Bill and tax policy will be punted to the 119^th Congress which convenes January 3.

As the WIA team looks to next year with a new Congress and a new Administration, we intend to remain laser focused on our key federal public policy priorities. These include:

• The Farm Bill: Enacting a final reauthorization bill that renews and funds grant programs to promote wood product markets, including innovative products like mass timber/CLT.
• Tax: Restoring key business tax benefits that have been allowed to lapse or begin phasing out, including 100 percent bonus depreciation and the research and development tax credit, as well as extending the 20 percent tax deduction for pass throughs that expires at the end of 2025.
• Workforce Development: Passing bipartisan Workforce Innovation and Opportunity Act reauthorization legislation that fully funds workforce development and apprenticeship programs.

One area of concern with the incoming Administration is its campaign rhetoric around tariffs. While some industry sectors benefited from tariffs during the first Trump Administration, retaliatory tariffs imposed by China on lumber and log exports during the first Trump Administration were devastating for many in the forest product supply chain. Tariffs on inputs to make our machinery is also an area of concern and we will be monitoring developments closely on this front.

As with every election, there will be many new faces in the House and Senate in the 119^th Congress. The WIA team is preparing materials now that will be useful in our introductory meetings with these officials after they are sworn into office in January.

With Congress in recess and the regulatory agencies relatively quiet for the moment, we thought we would provide a snapshot of how the race stands for control of Congress and the White with less than a month to go before the pivotal November 5 election.

Starting with the U.S. Senate, Democrats currently control the upper chamber by a single seat—51-49. With Senator Joe Manchin’s (D-WV) retirement announcement late last year, the Senate is effectively tied headed into the election with that open seat certain to flip to Republican. That leaves four races on which to focus—Michigan, Ohio, Wisconsin and Montana.

In Michigan, Rep. Elissa Slotkin (D-MI) is looking to fill the seat being vacated by Senator Debbie Stabenow, who announced she was retiring after this session of Congress. Slotkin is polling ahead of her Republican opponent former Congressmen Mike Rogers (R-MI), but the race is tight and is in the “toss up” category in the well-respected Cook Political report’s analysis. Likewise in Ohio, incumbent Senator Sherrod Brown (D-OH) is running ahead of his Republican challenger Bernie Moreno, but the race is within the polling margin of error and Cook has had this race in the toss up category for some time. In Wisconsin, sitting Senator Tammy Baldwin (D-WI) had a 7-point lead based on polls back in August, but that race has tightened considerably and it too is within the margin of error. Her opponent, Eric Hovde, has consolidated the Republican base and many independents in a state that is evenly divided. Senator Ron Johnson (R-WI) was reelected to his seat in 2022 by a single point. Lastly, Montana is looking to be the state most likely to determine control of the Senate. Senator Jon Tester (D-MT) is trailing in the polls by about 6-8 points. However, Senator Tester has proven to be resilient over the last few election cycles and the rare Democrat who can win in a red state. Recall Senator Susan Collins (R-ME) pulled out a victory in 2022 after polls showed her trailing by the same margin a month out from election day. But most political analysts are predicting a Republican pick-up and Cook has this race in the “lean Republican” column.

Other races to watch include the Texas Senate seat held by Senator Ted Cruz (R-TX). This race is surprisingly close as Congressman Collin Alred’s (D-TX) campaign has found traction. The Democrat Senatorial Campaign Committee—the political campaign funding arm for Senate Democrats--has redirected considerable dollars to support Allred, which suggests that Democrats see a real opportunity in the Lone Star state. Cook has this race as lean Republican. Finally, Senator Deb Fischer (R-NE) is in a surprisingly close race with Independent challenger Dan Osborn. A poll conducted in September actually had Osburn leading Sen. Fischer 45%-44%. Analysts still believe that Senator Fischer will pull this out, but the race is certainly worth watching.

The bottom line is that, barring any surprises, it is looking likely that the U.S. Senate will switch control to Republican, albeit by the slimmest of margins.

In the House, Republicans hold a narrow 220-212 majority in the lower chamber. There are 3 vacancies. Twenty-six races are currently in the “toss up “category—12 held by Democrats and 14 held by Republicans—and these races are the ones to watch that will determine control of the House. Election forecast model 538 gives Democrats and Republicans an even chance at controlling the chamber. It is literally a jump ball. At a number of political events that WIA has attended over the last few months, Members of Congress from both parties have said that whoever wins the Presidential contest will likely determine control of the House.

A few races to watch include Rep. Jared Goden (D-ME), who is in a dead heat with Republican former NASCAR driver Austin Theriault. Golden has been a champion in the House for the forestry and forest products supply chain. He sits on the House Small Business Committee and is a member of the House Working Forests Caucus as well as the House Construction Procurement Caucus. Another close one is Washington’s 3^rd District, where incumbent Marie Gluesenkamp Perez is facing off with Joe Kent in this swing district. Congresswoman Gluesenkamp Perez-owner of an auto repair and machine shop-- has been a strong champion of workforce development programs that serve small businesses. She is also the author of legislation to accelerate deployment of innovative wood building product (mass timber) manufacturing. She too sits on the House Small Business Committee and House Agriculture Committee. One other to follow closely on election night is Rep. Marc Molinaro’s (R-NY) race with Democrat Josh Riley. This House race is the most expensive in the country and polling shows the two in a dead heat. Rep. Molinaro sits on three key committees of importance for WIA—Small Business, Agriculture and Transportation & Infrastructure. He and his staff have always been very accessible and receptive to our advocacy outreach.

And finally, at the Presidential level, it is looking increasingly like Pennsylvania will determine our next President. Given its 19 Electoral College votes and history showing that Pennsylvania results align closely with Michigan and Wisconsin, analysts are predicting that whichever candidate prevails in the Keystone State will be our next President. Current polling shows the race for the Commonwealth within the margin of error. In fact, that is the case with all 6 of the other swing states—Michigan, Wisconsin, Arizona, Georgia, Nevada and North Carolina. Across the board—Senate, House and Presidential—this election promises to be historically close. And let us not forget that we may yet have an “October Surprise” that may surface in the next few weeks that may weigh on the outcome. In any event, the next month  promises to be an incredibly interesting ride.

European Union Deforestation Regulation (EUDR)

The U.S. forestry and forest products sector received some good news earlier this month when the European Commission announced a 12-month delay in implementation of EUDR, pushing the effective date for large companies to December 30, 2025. The proposal must first be adopted by both the EU Parliament and the EU Council, though most acts are adopted during the first reading.

The additional time is meant to provide impacted companies adequate time to phase in their solutions, ensuring smooth implementation from the start. The Commission noted that constant concerns expressed by global partners—including the U.S. government-- regarding their ability to comply with EUDR’s requirements played a role in the delay. The EU Commission made clear that this extension in no way puts into question the objectives or the substance of the law.

The one-year delay—assuming it is enacted—is helpful, but the fact remains that tracing trees used to make wood products back to the exact parcel where they were harvested is problematic and this requirement is a linchpin of the EU law. We will keep you apprised of developments.

Corporate Transparency Act (CTA)

The upcoming Lame Duck session of Congress following the election—the last gasp of the 118^th Congress—may include action on delaying implementation of the Corporate Transparency Act. As we have written about, this little-known law that took effect this year imposes burdensome filing and recordkeeping requirements on small to medium-sized businesses. FinCen—the arm of the U.S. Department of Treasury in charge of implementing the CTA—came out earlier in October with data showing the vast majority of businesses required to file under the CTA have not done so – despite just three months left before the year-end filing deadline. The fact of the matter is that compliance obligations have not been well communicated by FinCen and the chorus of policymakers calling for a one-year delay is growing. Penalties for non-compliance can be up to $590 per day and up to 2 years in jail.

The CTA is unique in that it explicitly targets the very companies least equipped to shoulder its regulatory burdens. Among its various exemptions, the statute includes a carve out for entities whose revenue exceeds $5 million and which employ more than 20 full-time employees. Companies not meeting those thresholds – essentially every small business currently operating in America today – must comply. FinCEN estimates that more than 32 million such entities will be affected by the new law just this year, with an additional 6 million each subsequent year as new businesses are formed.

In September, Rep. Zach Nunn (R-GA) introduced H.R. 9278 which would postpone the CTA reporting requirement for one year. The bill—the Protect Small Businesses from Excessive Paperwork Act—is pending in the House Financial Services Committee.

Tax

Senator Ron Wyden (D-OR), Chairman of the Senate Finance Committee-the tax writing panel in the upper chamber, said earlier this month that revising and updating tax law governing pass through entities like S-Corporations and partnerships should be a priority next year when Congress debates business tax benefit extension. Chairman Wyden has long been vocal in his suspicion of pass throughs and partnerships as a tax avoidance channel for upper income taxpayers. In 2021, he unveiled a legislative proposal to close what he and his team on the committee deemed “loopholes” in pass through tax law that should be closed.

Currently, pass through business structures comprise 95 percent of all U.S. businesses and 62 percent of private sector workers. The House Ways & Means Committee has established a number of tax “teams” to identify policy solutions to the upcoming 2025 tax cliff when most of the Tax Cuts and Jobs Act (TCJA) tax benefits expire.  One of these is the Main Street Tax Team led by Rep. Lloyed Smucker (R-PA) which is tasked with formulating plans for a number of expiring tax benefits including the Sec. 199A 20 percent deduction for S-Corporations and other pass-through business structures. Without Congressional action, that deduction will lapse at the end of next year. Rep. Smucker is also the sponsor of House legislation (H.R. 4721) to make the Sec. 199A deduction permanent, which makes him a great fit for this effort.

In another tax development, Senate Democrat staff familiar with Senator Wyden’s plans indicated that Senate Democrats intend to have a tax package reflecting Kamala Harris’s priorities ready on “day one” of a Harris Presidency. The goal is to have a jump start on negotiations over tax policy in the new Congress with a new President. Specifics are sparse at this point, but WIA will be meeting with key staff in the coming weeks to ascertain specific areas of tax policy that will be prioritized in the package. 

OSHA’s Heat Standard
Late last month, the Occupational Safety and Health Administration (OSHA) published its long-awaited workplace heat standard. The notice may be found here.

In its narrative supporting the proposal, OSHA cites a Bureau of Labor Statistics study which found that 1,042 U.S. workers died due to occupational exposure to environmental heat between 1992 and 2022, averaging 34 deaths per year. Most of the reported fatalities involved workers in the manufacturing, agriculture, landscaping, construction, postal and delivery service sectors. 

Overall, the proposed standard would require employers to create a plan known as a HIIPP (Heat Injury and Illness Prevention Plan) to evaluate and control heat hazards in their workplace. Specifically, the proposed standard would apply to all employers and would apply when employees are exposed to heat indexes of 80 degrees—defined as the “initial heat trigger”—for more than fifteen minutes in any sixty-minute period. Employers with outdoor work sites would be required to monitor the temperature continuously to evaluate employee exposure to heat. For indoor work sites, employers would be required to identify areas where the heat index could be 80 degrees or more and include a temperature monitoring plan in their written HIIPP. The proposal imposes additional obligations on employers when the high heat trigger-90 degrees-is reached. 

Publication in the Federal Register kicks off a 120-day public comment period which ends on December 30. 

Workforce Development
Last Wednesday, the House Ways & Means Committee marked up and passed a package of bills including one measure that seeks to promote workforce development. The legislation, H.R. 9461 sponsored by Rep. Lloyd Smucker (R-PA), authorizes an income tax credit for individuals that contribute to workforce development and apprenticeship training programs. Eligible organizations receiving contributions must provide services defined in the Workforce Innovation and Opportunity Act – including occupational skills training, on-the-job training, skills upgrading and retraining, entrepreneurial training, and adult education and literacy activities. The credit would max out at the lesser of either $150,000 or 25 percent of a taxpayer’s liability. The bill was reported from committee on a 22-15 vote.

This legislation builds on action taken by the committee in July, when the Ways and Means Committee marked up legislation that expanded 529 accounts to help parents save for their child’s education and strengthen workforce opportunities for students wishing to learn a skill or trade.

Port Strike
Businesses up and down the supply chain are following developments closely on the looming strike by workers at all maritime container ports along the East and Gulf Coasts. A letter is circulating for association signatures that is expected to be sent to President Biden next week asking for the Administration to engage with the parties to negotiate a new labor agreement so that port closures are avoided. In addition to the business community letter, House Republicans led by House Transportation and Infrastructure Committee’s Coast Guard and Maritime Transportation Subcommittee Chairman Daniel Webster (R-FL) are circulating this letter to the President urging the Administration to intervene in the negotiations. 

By way of background, the current Master Contract between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) is set to expire September 30. Unfortunately, negotiations on a new contract are at a stalemate due to proposed wage increases for union employees and the adoption of automated technologies at ports. The parties are talking, but little progress on a final deal has been made. 

Farm Bill
WIA met with committee staff on the Senate Agriculture, Nutrition and Forestry Committee earlier this month to discuss provisions of interest to our sector in the Farm Bill and prospects for a reauthorization bill passing later this year. Ranking Member Boozman (R-AR) continues to tell groups that a Farm Bill rewrite is possible in the Lame Duck session of Congress following the election. However, actual legislative text has not been shared between Democrats and Republicans on committee and it appears that marking up and passing a bill in a short Lame Duck session would be a stretch. The good news is that the summaries that have been provided describing Democrat and Republican proposals that would be included in the next Farm Bill are all positive for the wood products sector. The proposals notably feature robust funding for both the Wood Innovation Grant and Community Wood Grant programs. The House Agriculture Committee-passed bill treats these programs similarly and is supported by the wood products sector. WIA will keep you apprised of developments and the progress of our advocacy in this space for the remainder of 2024 and into 2025 if necessary. 

European Union Deforestation Regulation – More Countries Request Delay of Implementation
Germany and Brazil joined a growing chorus of countries in requesting that the European Union delay  implementation of its highly controversial EU Deforestation Regulation (EUDR) set to take effect at the end of this year. German Chancellor Olaf Scholz requested the EU delay implementing the new regulation, asserting that it could create serious trade disruptions and create hardships for many sectors, including the forest products industry. Recall that this regulation, which is slated to take effect December 30, 2024, requires commodities (including wood) to show that they are “deforestation free” in order to enter the EU stream of commerce.  

Mauro Vieira, Brazil Miniter of Foreign Affairs in a letter that was sent to the European Commission leadership stated that “The implementation of the European Union's anti-deforestation regulation (EUDR), scheduled to begin at the end of 2024, is a matter of serious concern for various Brazilian export sectors and for the Brazilian government. Brazil is one of the EU’s main suppliers of most of the products targeted by the legislation, which account for over 30% of our exports to the Union. To avoid any negative impact on our trade relations, we request that the EU refrain.” 

The U.S. Department of Agriculture will be sending a delegation later this month to visit European Union countries and EU officials to discuss this issue and the challenges it will present to U.S. exporters.  

The 2024 Presidential election took an interesting, but not unexpected, turn over the weekend with President Biden ending his bid for reelection. This development was looking inevitable heading into the weekend with an increasing number of Democrat Senators and House members publicly calling for him to step aside. Gaming this potential scenario out last week, it was anticipated that Biden’s replacement would be decided by delegates at an open convention in August. But late Sunday and into Monday, most if not all of the would-be contenders fell in line with endorsements of Vice President Harris. This has been and will be a truly extraordinary election cycle and, for those interested in politics and the political process, it does not get more fascinating than this. All eyes now are on her pick of a running mate in the coming days. Mostly governors and former governors from swing states have surfaced as potential picks. Vice President Harris was polling slightly better that President Biden in a match-up with former President Trump before this weekend’s development. But now that this looks like an actual versus theoretical contest, pollsters are feverishly putting out surveys in the field to gauge the state of play. 

Port Strike
WIA continues to monitor developments on labor contract negotiations that impact ports along the East and Gulf Coasts. A statement released earlier this month by the International Longshoremen’s Association (ILA) indicated that the threat of a strike after the current Sept. 30 contract expiration deadline is "growing more likely" as the negotiations remain at an impasse. ILA’s chief negotiator said that the maritime employers represented by United States Maritime Alliance (USMX) "are running out of time" to negotiate a new master contract agreement and avoid a coastwide work stoppage across 36 ports from Maine to Texas.

Contract talks broke down after ILA learned that Maersk-owned APM Terminals and Maersk Line were using an "auto gate" system at Alabama's Port of Mobile, which powers the gate that enables trucks to enter and exit a terminal and be autonomously processed without union labor. Upon this discovery, the ILA said in June that it would not meet with USMX until the auto gate issue is resolved. Talks have not resumed in the weeks since, however USMX was out with a press release last week assuring customers that it intends to return to the negotiating table “to avoid any further disruption to the cargo flow and/or damage to our nation’s economy.”

WIA joined 158 other trade associations in signing a letter to President Biden urging his Administration to provide all the support necessary to bring the parties together so that a new master contract may be forged. That letter may be found here. 

Obviously, a port strike would have enormous ramifications up and down the supply chain. We will keep you apprised of progress of contract talks. 

Chevron Deference
Earlier in July, the Supreme Court ruled 6-3 on a case with far-reaching consequences for federal agencies and the regulated community. In Loper Bright Enterprises v. Raimondo, the Court effectively repealed the 40 year old Chevron Deference which gave federal regulatory agencies and departments wide latitude in interpreting federal statutes. The ruling is seen as a considerable victory for the regulated community. A group that provided an analysis shortly after the ruling was issued had this to say—

“As a general matter, the Loper decision is likely to cause federal agencies to exercise greater restraint when interpreting statutes. During the past several Administrations, federal agencies (of both political parties) appeared to become more aggressive in adopting strained interpretations of statutes in order to accomplish political objectives. This practice is likely to end. Under Loper, companies can likely expect more predictability and stability in the interpretations given the federal statutes governing their operations.“

A number of associations were circulating a letter to President Biden urging him to pause all rulemakings until a thorough review of these proposals—both under development and those recently finalized—is conducted to ensure that they comply with the letter and spirit of the Loper decision.

OSHA Employer Heat Standard Proposed Rule 
This month, the Biden administration announced it would publish a proposed rule to protect workers from extreme heat. The Occupational Safety and Health Administration (OSHA) submitted the rule to be published in the Federal Register, which will likely occur in the coming days.

The measure proposes two thresholds for worker protection. At 80 degrees, employers would have to provide employees with drinking water and shaded or cooled break areas. If the heat index reaches 90 degrees or above, workers would have mandatory 15-minute breaks every two hours, and supervisors would need to monitor workers for signs of heat illness and remind workers to drink water. In situations where employees are working alone, supervisors would be required to contact them every 2 hours. Employers would be required to identify heat hazards, develop emergency response plans related to heat illness, and train employees and supervisors on the signs and symptoms of such illnesses.

Worker protections in the proposal would apply for both indoor and outdoor employees and would cover a wide array of workplaces, including wood machinery manufacturers. The National Association of Manufacturers posted on social media that the proposal "adds to the regulatory onslaught facing manufacturers in America." The group called for "a heat standard that provides greater flexibility."

WIA will either be submitting formal comments on this proposal or joining comments prepared by some of the larger trades impacted by this action.

Endangered Species Act
House Natural Resources Committee Chairman Bruce Westerman (R-AR) intends to introduce legislation this week that would comprehensively reform the Endangered Species Act (ESA). This statute has long been used by environmental groups as a tool to curtail forest management on public and private lands. Chairman Westerman’s legislation seeks to soften the impact of ESA listing decisions on landowners by, among other things, requiring USFWS to establish objective, incremental recovery goals for listed species.

The 38-page discussion draft of the ESA Amendments Act of 2024 was rolled out at a hearing last week. A section-by-section summary of the bill suggests that it seeks to restore a number of definitions that were put in place through regulations adopted during the Trump Administration. One of these definitions is “critical habitat” which is a key piece in determining the impact of a listing decision. A recent example is the Northern Longeared Bat (NLEB). A few years ago, the U.S. Fish and Wildlife Service had proposed listing the NLEB as “endangered” and the definition of critical habitat was so broad that it would have precluded any timber harvesting or landscape disturbance in the bat’s 40 state range during roosting months. Advocacy efforts prevailed in rolling that action back, but it pointed out the need for ESA reform.

In addition to codifying important definitions, the bill will establish an environmental baseline to measure successful outcomes and incentivize the recovery of listed species. According to the sponsor, the bill will also promote species conservation on private and public lands and create greater transparency and accountability in the ESA regulatory process. This issue is more of an upstream one for WIA, but we are monitoring developments in this space.

On June 12, the Senate Health, Education, Labor and Pensions (HELP) Committee held a hearing to receive input on the Workforce Innovation and Opportunity Act (WIOA), our nation’s bedrock statute that authorizes and funds workforce development and apprenticeship programs around the country. Recall that the House earlier this spring passed WIOA reauthorization legislation (A Stronger Workforce for America Act-H.R. 6655) by an overwhelming margin with broad bipartisan support. While a comprehensive Senate WIOA reauthorization bill has not been unveiled, several “marker” bills have been introduced and we have been told that Senate HELP Committee staff have been in active discussions with their counterparts in the House. While not always the case, holding a hearing typically means that introduction of a comprehensive bill is imminent. We are close to the process and will update you on this effort as soon as we know more.

During the hearing, it was evident that Senators are eager to move on a reauthorization bill that makes needed changes to WIOA. The statute has not been renewed since 2014 and both witnesses and Senators noted that the economy and status of the workforce has changed considerably over the last decade. Another common theme from witnesses is that WIOA needs more funding. When factoring inflation, Congress has steadily cut investments in workforce programs, career and technical Education, and adult education programs over the past twenty years and the U.S. is ranked near the bottom of all OECD countries in spending on workforce development.

One witness noted that only 175,831 individuals received training services under WIOA in program year 2022—a relatively small group for what is supposed to be the federal government’s premier training program. As a point of contrast, six million Pell grants were provided to students under the Higher Education Act for the 2022-2023 academic year. It was pointed out that Pell grants have led to far more training opportunities for qualified individuals, are far easier to access and provide much more significant support. It was also noted that the appropriations for WIOA formula programs should be increased, but a much greater share of those funds should be used for training services in conjunction with the critical wraparound support that make it possible for potential employees to utilize these training services.

The importance of industry and sector partnerships was also a point of emphasis among the witnesses. A common theme was that Congress should support industry or sector partnerships that help businesses engage in the public workforce system. Each local community has a local economy and employers in those communities are best able to identify what skills and training are needed and what trends are emerging in a given industry. A witness from the Chicago Jobs Council had this to say—"We never want to train people for jobs that no longer exist or have declined while we’re working on developing training programs. It’s critical to involve employers on the front end to ensure that does not happen. Industry or sector partnerships bring together local businesses, unions and worker organizations, community colleges, training providers, and community organizations to develop industry-specific workforce strategies and provide training that supports local and regional demand.”

Farm Bill

Last week, Ranking Member of the Senate Agriculture, Nutrition and Forestry Committee John Boozman (R-AR) introduced a summary of the Republican version of Farm Bill reauthorization legislation. What was unveiled appears to be similar to the House Farm Bill reauthorization legislation that passed out of committee earlier this spring. Notably for WIA, the bill would bolster both the Community Wood and Wood Innovation Programs that strive to accelerate deployment of building projects utilizing mass timber and other innovative wood products. 

Senator Boozman’s release of this summary is seen as an attempt to jump start negotiations with Committee Chairman Debbie Stabenow (D-MI). Democrats and Republicans have been far apart on negotiations, particularly around spending on supplemental nutrition assistance programs and reprogramming Inflation Reduction Act funding into the bill’s conservation programs.

The Farm Bill extension that was enacted last year expires September 30. It is difficult to envision a scenario where a comprehensive Farm Bill is forged in the coming weeks to meet that deadline. We expect another extension and action on this front possibly after the election or more likely in 2025.

European Union Deforestation Regulation (EUDR)

A relatively little known, but draconian mandate was enacted in the EU that threatens to preclude any wood product made in the U.S. from being sold into the EU market beginning January 1, 2025. Known as the EUDR, the law requires wood products manufacturers (and manufacturers of other commodities like pulp and paper) to provide exact geolocation data indicating the precise area in which trees were harvested to produce the product. No U.S. producer can meet this level of tracing granularity and trade groups have been sounding the alarm. In recent months there have been numerous calls to delay implementation of the EUDR, with perhaps the loudest calls for delay coming from within the EU itself. Some government officials and many industry groups have become alarmed that implementation challenges will undermine the competitiveness of European industry and contribute to inflationary pressures in the food sector. EUDR also applies to soy, palm oil, cattle, cocoa, coffee and rubber.  

The first signs of internal dissent came in March in a letter sent to the European Commission signed by six European wood industry organizations calling for EUDR implementation delay. Signatories to this letter were the European Confederation of Woodworking Industries (CEI-Bois), the European Furniture Industries Confederation (EFIC), the European Organization of the Sawmill Industry (EOS), the European Panel Federation (EPF), the European Timber Trade Federation (ETTF), and the European Federation of the Parquet industry (FEP). This was followed by a similar letter signed by 19 wood trade organizations in France sent to the French Environment Minister.

Numerous Congressional letters have been sent to U.S. Trade Representative Tai urging her and her team to work with her EU counterparts to head off any trade disruptions that the EUDR would certainly cause if allowed to take effect next year. WIA is monitoring the issue and will keep you apprised of developments.

Congressional Outreach

Presidential election years typically result in a shortened Congressional calendar to allow Members of Congress ample time to campaign and 2024 is proving to be no exception to this rule. Last week, the House was in recess. The Senate was in session for a couple of days but then left town in advance of the Juneteenth federal holiday and will not be returning to Washington until July 8. The Republican National Convention is in mid-July and both Houses are out that week as well. Moving into August, Members of Congress will be taking their annual month-long August recess where they will be back in their states and districts. They return to Washington after Labor Day and are here through September but then leave again for the entire month of October through the November election. The bottom line is there are just not a lot of days left in the 118^th Session of Congress for lawmakers to legislate. To borrow a line from the infamous Yogi Berra, “It’s gettin late early.”

What this means is we are likely looking at a scenario yet again where meaningful action on our policy priorities is punted to the Lame Duck session of Congress following the election or into 2025. Our federal advocacy efforts will proceed unabated, however, and we continue to meet with key staff in the House and Senate to discuss pathways for enactment of our policy deliverables. One benefit of Members of Congress being back in their states and districts for prolonged periods of time is that it affords ample opportunities for facility tours. For the next few months, federal lawmakers up for reelection in November will be seeking out photo opportunities with local job creators and their employees. Now is the time to make your voices heard by inviting your Representative or Senator to tour your operation and having a conversation about what Congress can do—or not do—to help your business. If you are interested in setting up a tour at your manufacturing site with a Member of Congress, WIA staff stands ready to assist you in this effort. 

Tax

Earlier in June, Rep. Brad Wenstrup (R-OH) introduced the S-Corporation Modernization Act of 2024 (H.R. 8614). The legislation, which has been introduced in previous Congresses, seeks to make improvements to the S-Corporation tax model which over 5 million small businesses across the country currently utilize. In short, the bill authorizes reforms to help S corporations operate more easily, which would improve their ability to raise capital. 

One of its key provisions modifies the passive income rules. The tax code currently imposes an additional tax on S corporations that previously converted from being a C corporation (typically utilized by larger companies) if more than 25 percent of the S corporation’s income is passive in nature (such as rents, royalties, dividends, interest and annuities). This provision would implement a 2001 recommendation by the Joint Committee on Taxation (JCT) that this threshold be increased to 60 percent and that the rules be changed so that an S corporation paying this tax does not lose its S corporation status. 

Another provision addresses S corporation individual retirement account (IRA) shareholders. Specifically, language in the bill would permit individuals to own shares in an S corporation through an IRA. Current law allows for IRA ownership of S corporation stock, but only if the S corporation is a bank and the stock was held by the IRA as of October 22, 2004. As under current law, the IRA would be required to pay Unrelated Business Income Tax on its share of the S corporation’s income. A significant percentage of banks are currently organized as S corporations. 

There are a number of other provisions in the legislation, text for which is not yet available as it was just introduced. Rep. Wenstrup sits on the House Ways & Means Committee, which is the panel with sole jurisdiction over tax policy in the lower chamber. We expect this bill to be in the mix next year when tax policy deliberations intensify in advance of the tax policy “cliff” that looms at the end of 2025.

Federal Forest Management

A few weeks ago, Senators Cynthia Lummis (R-WY), John Barrasso (R-WY), John Thune (R-SD) and Mike Rounds (R-SD) sent a letter to U.S. Forest Service Chief Randy Moore criticizing the Service for reductions in the federal timber sale program. That letter may be found here.

The Senators point out that, without a dependable supply of logs, sawmills in proximity to national forests are closing across the country. The letter correctly notes that there is more standing timber on the Black Hills National Forest than there was in the 1970s and 80s and that reduction in forest management only results in wildfire outbreaks and disease and insect infestation in overstocked stands. The letter closes with the following questions to Chief Moore with a June 28 deadline for the Service to respond--

• What is the Forest Service doing to increase timber harvest levels on the Black Hills National Forest?
• What are the main drivers of the timber target shortfalls since 2018?
• What resources does the agency need to increase timber harvest levels on the Black Hills National Forest? If the agency needs additional funding, please provide a specific amount and breakdown of how it will be used to increase timber harvest levels above 63,000 CCF.
• How many years will it take for the agency to ramp up to harvest levels to meet the collaboratively identified 120,000 CCF target?
• Will the agency commit to preventing further economic harm to the forest products industry by providing a consistent supply of timber?