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House GOP want to use tax-cut package to authorize sale of hundreds of thousands of acres of public land in Nevada and Utah

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Rep. Mark Amodei, R-Nev., chairman of the House Appropriations Subcommittee on the Legislative Branch, speaks at the Capitol in Washington, Oct. 2, 2023.
Rep. Mark Amodei, R-Nev., chairman of the House Appropriations Subcommittee on the Legislative Branch, speaks at the Capitol in Washington, Oct. 2, 2023.J. Scott Applewhite—AP
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House Republicans added a provision to their sweeping tax cut package authorizing sales of hundreds of thousands of acres of public lands in Nevada and Utah, prompting outrage from Democrats and environmentalists who called it a betrayal that could lead to drilling, mining and logging in sensitive areas.

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Republicans on the House Natural Resources Committee adopted the land sales proposal early Wednesday morning. The initial draft had not included it amid bipartisan opposition.

The land sale provision was put forward by Republican Reps. Mark Amodei of Nevada and Celeste Maloy of Utah.

The parcels could be used for economic development, mining and infrastructure projects such as the expansion of an airport and a reservoir in Utah, according to local officials and plans for the areas.

Some sites would be considered for affordable housing, which is much needed in fast-growing parts of Nevada.

The sites include up to 200,000 acres (80,000 hectares) in Clark County Nevada, which includes Las Vegas, according to Nevada Democratic Sen. Catherine Cortez Masto. That’s less than 1% of more than 50 million acres (20 million hectares) of federal land overall in the state.

Also included is land in Pershing County, Nevada, where Amodei has advocated for selling or exchanging about 350,000 acres of public lands and allowing sales to mining companies.

Cortez Masto in a statement called it “a land grab to fund Republicans’ billionaire giveaway tax bill.”

“In the dead of night, Representative Mark Amodei pushed House Republicans to move forward with an insane plan that cuts funding from water conservation and public schools across Nevada,” she said.

The parcels in Utah would be sold at fair market value to local governments and make up only a third of 1% of public lands in the state, according to Maloy’s office.

“The sales from these small parcels of land will generate significant federal revenue, and have broad local support. It’s a tailored, parochial budgetary measure,” said House Natural Resources Committee spokesperson John Seibels.

Colorado Republican Rep. Jeff Hurd voted against the provision.

The Nevada parcels are also in Lyon and Washoe Counties. The Utah parcels are in the western portion of the state, including around the city of St. George and near Zion National Park.

Seibels said the land sales provision resulted from a “community-driven effort” by the impacted counties.

The sales provision advanced as the Natural Resources committee voted 26-17 to allow increased leasing of public lands for natural resource extraction, while clearing the path for more development by speeding up government approvals.

Republicans said the overall bill would generate at least $18 billion in new revenue and savings.

Royalty rates paid by companies to extract oil, gas and coal would be cut, reversing former Democratic President Joe Biden’s attempts to curb fossil fuels to help address climate change.

The measure is part of Trump’s big bill of tax breaks, spending cuts and beefed-up funding to halt migrants. House Speaker Mike Johnson has set a goal of passing the package out of his chamber by Memorial Day. All told, 11 different House committees are crafting portions of the bill.

Montana Rep. Ryan Zinke, a Republican and former Interior secretary in the first Trump administration, had said before the vote that he was drawing a “red line” on federal land sales.

“It’s a no now. It will be a no later. It will be a no forever,” said Zinke, whose state includes large parcels of federally owned lands. He is not on the Natural Resources Committee but his office said he would oppose any legislation to sell lands that reaches the House floor.

About 1 million square miles is under federal control. Most of that land is in Alaska and Western states. That includes 63% in Utah and 80% in Nevada.

Zinke and Rep. Gabe Vasquez, D-N.M., are leading a new bipartisan Public Lands Caucus intended to protect and expand access to America’s public lands. The caucus launched with a Wednesday news conference hours after the resources panel vote.

Asked about the land sale provisions, Zinke said he understood frustrations over restrictions on logging and mineral extraction. But he indicated federal lands should remain under government management.

“I prefer the management scheme and I give as an example a hotel. If you don’t like the management of a hotel, don’t sell the hotel; change the management,” he said.

Oil and gas royalty rates would drop from 16.7% on public lands and 18.75% offshore to a uniform 12.5% under the committee-passed bill, which still faces a vote in the full House and Senate once it is incorporated into the final legislative package. Royalties for coal would drop from 12.5% to 7%.

The measure calls for four oil and gas lease sales in the Arctic National Wildlife Refuge over the next decade. It also seeks to boost the ailing coal industry with a mandate to make available for leasing 6,250 square miles of public lands — an area greater in size than Connecticut.

Republican supporters say the lost revenue would be offset by increased development. It’s uncertain if companies would have an appetite for leases given the industry’s precipitous decline in recent years as utilities switched to cleaner burning fuels and renewable energy.

Interior Secretary Doug Burgum and Housing and Urban Development Secretary Scott Turner in March proposed using “underutilized” federal land for affordable housing. Turner said some 7 million homes are needed. Officials under Biden also sought to use public lands for affordable housing, although on a smaller scale.

The agencies have not yet released more details of the plan.

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
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