H.R. 197 would direct the Forest Service to exchange 18 acres of federal land in the Chippewa National Forest for 37 acres of nonfederal land owned by a private corporation, if it seeks such an exchange. The land exchange would be subject to valid existing rights and would need to be finalized within one year of receiving a formal offer from the corporation.
If the appraised value of the federal land exceeds that of the nonfederal parcel, the act would require the corporation to pay an amount equal to the difference in value. In the opposite case, the excess value of the nonfederal land would be considered a donation by the corporation to the United States. The corporation also would be responsible for all administrative and legal costs associated with the land exchange.
Funds received by the Forest Service from cash equalization payments are recorded in the budget as offsetting receipts (that is, as reductions in direct spending) and deposited in the Treasury. Based on information from the Forest Service, CBO expects that the nonfederal land would have a higher value, so no payments would be made.
Using information from the Forest Service, CBO estimates that under current law, the 18 acres of federal land will generate about $6,000 in receipts over the 2026-2035 period from a special-use permit. Those fees are recorded in the budget as offsetting receipts and can be spent without further appropriation. On that basis, CBO estimates that enacting H.R. 197 would increase direct spending by a negligible amount over the 2026-2035 period.
The CBO staff contact for this estimate is Emilia Oliva. The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.
Phillip L. Swagel
Director, Congressional Budget Office