Loggers Economic Assistance and Relief Act
Summary
The Loggers Economic Assistance and Relief Act aims to provide financial assistance to timber harvesting and hauling businesses that have experienced significant revenue losses due to major disasters. The bill establishes a payment program administered by the Secretary of Agriculture through the Farm Service Agency. It authorizes $50 million annually from 2025 to 2029 to fund these payments.
Eligible entities can receive payments if they demonstrate a loss of at least 10% in gross revenue within a 30-day period or quarter, compared to the previous year. The payments are capped at 10% of the eligible entity's gross revenue during the affected period and must be used for operating expenses.
Expected Effects
The act will provide direct financial relief to timber businesses affected by major disasters, helping them to cover operating expenses and potentially avoid closure. This could stabilize local economies dependent on the timber industry. The act also mandates reporting to Congress on the payments made, enhancing transparency.
Potential Benefits
- Provides financial assistance to timber harvesting and hauling businesses impacted by major disasters.
- Helps maintain jobs in the timber industry and related sectors.
- Stabilizes local economies dependent on timber harvesting.
- Requires transparency through annual reports to Congress.
- Addresses economic hardship caused by unforeseen disasters.
Potential Disadvantages
- The program's effectiveness depends on the accuracy of revenue loss assessments.
- The 10% payment cap might not fully compensate for severe revenue losses.
- The definition of 'major disaster' could be subject to interpretation, potentially leading to disputes.
- The program may create dependency on government assistance.
- Limited scope, focusing solely on timber businesses, potentially neglecting other affected industries.
Constitutional Alignment
The bill's alignment with the Constitution is primarily based on the General Welfare Clause (Article I, Section 8), which allows Congress to provide for the general welfare of the United States. Providing economic relief to businesses affected by disasters can be argued as promoting the general welfare. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
However, the Commerce Clause (Article I, Section 8) could also be invoked, as the timber industry often involves interstate commerce. The Necessary and Proper Clause (Article I, Section 8) grants Congress the power to enact laws necessary to execute its enumerated powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).