Federal Update - SRS Program, Wildfire Permitting Legislation, And More - California State Association of Counties (2024)

June 20, 2024

Senate Leaders Attempt to Fast-Track Legislation Extending the SRS Program

Senate leaders will attempt to advance legislation (S. 2581) this week that would extend the Secure Rural Schools and Community Self-Determination Act(SRS) program for three additional years. The measure is expected to come up under an expedited legislative process that would require unanimous consent from the Senate. If one senator objects, S. 2581 would not advance.

The program, which is now expired, provides assistance to rural counties and school districts affected by the decline in revenue from timber harvests on federal lands. Earlier this year, 29 California counties received a combined total of $32.5 million in SRS funding. Absent congressional action, those will be the final payments made under the program.

It should be noted that an SRS extension has already been approved by the Senate Energy and Natural Resources Committee. Across Capitol Hill, a House companion bill (H.R. 5030) has been gaining momentum as well. In fact, the bill text is currently included as part of the lower chamber’s Farm Bill reauthorization.

House Lawmakers Introduce Bipartisan Wildfire Permitting Legislation

On June 18, House Natural Resources Committee Chairman Bruce Westerman (R-AK) and Congressman Scott Peters (D-CA) introduced bipartisan legislation – the Fix Our Forests Act (H.R. 8790) – that seeks to restore forest health, increase resiliency to catastrophic wildfires, and protect communities.It would accomplish this by expediting environmental reviews, limiting lawsuits, and increasing the pace and scale of forest restoration projects.

Specifically, and among other things, H.R. 8790 would enable agencies to adopt categorical exclusions – or specific exemptions from full National Environmental Policy Act (NEPA) review – for certain forest management projects. In an effort to deter frivolous litigation, the measure would prevent courts from stopping a project unless substantial environmental harm can be proven. It also would require litigants to sue within 120 days and to have participated in the public comment process. Finally, the Fix Our Forests Act would promote intergovernmental collaboration by creating a new Fireshed Center made up of representatives from different agencies. Looking ahead, Chairman Westerman is expected to schedule committee action on the legislation in the coming weeks.

Bipartisan Legislation Introduced to Stabilize Funding for Crime Victims Fund

Senators Dick Durbin (D-IL) and Lisa Murkowski (R-AK) recently introduced bipartisan legislation (S. 4514) that seeks to stabilize the dwindling balance of the Victims of Crime Act (VOCA) Crime Victims Fund (CVF). Specifically, the CSAC-endorsed bill would redirect unobligated funds collected through the False Claims Act to the CVF through Fiscal Year 2029. A House companion bill (H.R. 8061) is cosponsored by over 64 members of the lower chamber, including ten members of the California congressional delegation.

The CVF is a non-taxpayer source of funding that is financed by monetary penalties associated with federal criminal convictions and penalties from federal deferred prosecution and non-prosecution agreements. Deposits into the CVF fluctuate based on the number of criminal cases that are handled by the U.S. Department of Justice (DOJ), with Congress deciding how much to release from the CVF on an annual basis. VOCA grants support a variety of locally administered victim services programs, including crisis intervention, domestic violence shelters, services for victims of human trafficking, and services for elder victims and victims with disabilities. VOCA grants also fund victim compensation programs, which help survivors pay medical bills and make up for missed wages. Additional information and background on the CVF can be accessed here.

While deposits into the CVF fluctuate annually depending on the number and type of cases prosecuted by DOJ, the Fund has seen dramatic declines in recent years. According to DOJ’s Office for Victims of Crime, the CVF’s end-of-year balance for fiscal year 2024 was $1.2 billion — a 90 percent decrease since fiscal year 2017. In 2024, VOCA assistance programs will absorb a $600 million cut in funding compared to last year.

In California, this year’s VOCA cut will significantly impede the ability of county district attorneys (DA) to provide essential services to victims of crime, as the funding reductions are expected to result in DA offices eliminating victim advocate positions. These victim advocates frequently assist individuals on scene when incidents occur and provide crisis intervention and emergency assistance, including providing emergency funding and emergency housing coordination in situations when a victim needs to leave their residence immediately due to safety concerns. Likewise, VOCA cuts will dramatically impact the ability of local non-profit agencies to provide a wide array of essential crime victim services, including counseling and behavioral health, as well as shelter and emergency housing services. The full text of the bill is availablehere.

House Panel Advances FY25 Homeland Security Spending Bill

Last week, the House Appropriations Committee voted along party lines to advance the fiscal year 2025 spending bill for the Department of Homeland Security. In all, the measure would provide $94.4 billion in discretionary funding for the department, an increase of nearly $4 billion. When excluding offsetting collections and major disaster funding, the total in the bill amounts to $64.8 billion, which is nearly $800 million above current levels.

Among other things, the legislation would provide over $28 billion (an increase of $2.8 billion) for the Federal Emergency Management Agency (FEMA), including $22.7 billion for disaster relief. With regard to federal assistance, the measure would provide $360 million each for the Assistance to Firefighters Grant (AFG) program and the Staffing for Adequate Fire and Emergency Response (SAFER) grant program, an increase of $36 million for both programs. In addition, the DHS funding measure would provide $18.3 billion for U.S. Customs and Border Protection (CBP), a decrease of $1.4 billion from the FY 2024 enacted level. It should be noted that no funding would be provided for the Shelter and Services Program, which provides funding to county governments and non-profits in areas experiencing an influx of migrants. It would, however, provide $600 million for construction of the southern border wall.

In addition, the bill provides $10.5 billion for U.S. Immigration and Customs Enforcement (an increase of over $960 million) and provide for a total of 50,000 detention beds (8,500 above current levels). A summary of the bill is availablehere. A summary prepared by Democrats on the panel can be accessed here.

Senate Panel Looks to Improve Access to Financing for Transit-Oriented Development

On June 18, the Senate Appropriations Committee’s Subcommittee on Transportation and Housing and Urban Development held a hearing entitled, “Unlocking Department of Transportation (DOT) Financing for More Transit-Oriented Housing Development.” The hearing was an opportunity for lawmakers to explore ways that Congress and the administration can improve access to financing for transit-oriented development (TOD). TOD projects include public infrastructure or economic development projects (including affordable and workforce housing and commercial development) located near transit, passenger rail, or multimodal stations.

The FAST Act expanded eligibility under DOT’s Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation & Improvement Financing (RRIF) programs to include TOD projects and related infrastructure. To be eligible for loans through these programs, TOD projectsmust comply with the TOD-specific eligibility criteria, the general provisions of the TIFIA and RRIF programs, and all applicable federal requirements (Generalinformation on the RRIF and TIFIA programs can be found in theCredit Programs Guide).

The hearing underscored the need for coordinated efforts between federal, state, and local governments, as well as the private sector, to effectively utilize DOT financing tools to promote transit-oriented housing. It also highlighted the potential of such developments to address housing shortages, reduce traffic congestion, and support economic development.

Among those to testify before the panel was Dr. Morteza Farajian, Executive Director of the Build America Bureau, who explained the role of the DOT in facilitating financing for TOD. Dr. Farajian also highlighted several programs and initiatives within the Build America Bureau that can help expand the public sector’s capacity to finance and deliver infrastructure. This includes the Rural Project Initiative, which provides fixed interest rates at half the U.S. Treasury rate for rural communities. The Bureau also has the ability to pay for or waive advisory fees.

In addition to Dr. Farajian, the committee heard from Dr. Tracy Hadden Lohfrom the Brookings Institute, who specializes in real estate and transportation. She provided insights into the economic and social benefits of transit-oriented development (TOD). She also suggested several reforms to help improve access to financing. Among other things, Dr. Loh suggested lowering the local match requirements for TIFIA projects and to provide exemptions to Buy America requirements to encourage more TOD projects.

Finally, Mr. Adhi Nagraj, Chief Development Officer at McCormack Baron Salazar, discussed practical challenges and opportunities in financing and developing TOD projects. He highlighted the importance of public-private partnerships and innovative financing mechanisms to make these projects viable.

Federal Update - SRS Program, Wildfire Permitting Legislation, And More - California State Association of Counties (2024)
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