Oregon Public Broadcasting

Residents in Oregon’s rural counties are holding their collective breath Wednesday.

A $200 million annual government subsidy to rural Oregon received a key endorsement in a senate committee Tuesday.

But even supporters say the bill is far from reality – it must now navigate a tough path from a full Senate vote, to House agreement, and finally presidential approval.

The subsidy is included in a package of tax credits for renewable energy.

Democratic Senator Ron Wyden says this deal would extend the funding for four years.

Sen Ron Wyden: “It gives us breathing space. Certainly, if one were to just jam our rural communities and say, ‘Look we’re just going to cut you off, that’s going to be the end of it’, there’d by immense suffering. We get some breathing room to look at other economic options where our rural communities can have good-paying jobs.”

Wyden authored the original bill. It reimbursed rural counties for money they lost after timber sales dried up in the early 1990s.

The money to pay for the extension would come partly from increased taxes on oil companies.

Both Republican and Democratic senators say passage is likely on the floor of the U.S. Senate.

But House supporters, including Springfield Democrat Peter Defazio say the bill faces a more uncertain future in their chamber.