As of July 31, 2026, federal policy presents both opportunities and risks for ABMA members. Expanded timber and wildfire-treatment activity could improve fiber availability and support mill investment, while continued lumber tariffs and EPA’s new air-emissions requirements could affect costs, competition and compliance obligations. Trucking changes are comparatively modest, while two pending forest-products bills warrant continued monitoring.

Federal Timber Supply and Wildfire Policy

The administration’s timber initiative offers the largest potential long-term benefit to sawmills, particularly those near federal forests. Executive Order 14225 directs USDA and the Department of the Interior to increase federal timber production, reduce sale-delivery times, streamline Endangered Species Act and National Environmental Policy Act processes, and establish four-year timber-sale targets for Forest Service and Bureau of Land Management lands.

USDA subsequently designated 112.646 million acres—59% of National Forest System lands—as an emergency situation because of wildfire, insect and disease risks. The designation can expedite salvage and sanitation harvests, hazardous-fuels removal and environmental review. This could increase available fiber, but actual benefits will depend on sale volume, project execution, transportation access and local processing capacity.

USDA is addressing the capacity side through its Timber Production and Expansion Guaranteed Loan Program. In March 2026, the department announced $115.2 million for sawmills and wood-processing facilities in eight states.

Section 232 Lumber Tariffs

A 10% tariff remains in place on certain imported softwood timber and lumber. Planned increases affecting certain downstream wood products were postponed until January 1, 2027, while negotiations with trading partners continue. For domestic mills, the tariff may improve competitive positioning against imports. It can also create uncertainty for producers purchasing imported logs or lumber and affect downstream demand through higher material costs. Country-specific agreements remain a key variable.

EPA Emissions Standards for Lumber Kilns

EPA’s July 6 final rule amends the Plywood and Composite Wood Products hazardous-air-pollutant standards. It affects 219 major-source facilities, including 126 producing kiln-dried lumber. Covered pollutants include formaldehyde, methanol, hydrogen chloride, mercury, polycyclic aromatic hydrocarbons and dioxins/furans.

For lumber kilns, EPA finalized work practices intended to minimize over-drying. Covered facilities must establish kiln operation-and-maintenance plans, conduct annual burner tune-ups for direct-fired kilns, and use an approved temperature-, moisture- or site-specific compliance option. Major-source mills should promptly evaluate applicability, operating procedures, monitoring systems, record-keeping and potential capital or staffing needs.

Additional Policy Risks and Opportunities to Watch

• Fix Our Forests Act: H.R. 471 passed the House       and remains pending in the Senate. It would expand fire shed management, stewardship contracting, Good Neighbor Authority and categorical       exclusions, potentially accelerating forest treatments and timber       delivery.
• SAWMILL Act: H.R. 6277 would authorize       up to $220 million in loan guarantees for eligible sawmills and       wood-processing facilities near priority restoration lands. It has been       introduced but not enacted.
• Trucking: FMCSA eliminated the       requirement to carry a paper ELD operator’s manual, effective July 22, 2026. The agency describes the effect as de minimus. The more consequential proposed heavy-truck speed-limiter mandate was withdrawn in 2025.