Oregon Public Broadcasting

The billion-dollar subsidy for rural Western counties may not be winding down permanently, after all.

The county timber payments program disproportionately helps rural Oregon.  It was extended last year as part of the Wall Street bailout package.

But the extension was to last for just three years.

Thursday, Oregon’s new Democratic Senator, Jeff Merkley, said he's revived the discussion of county payments.

Julie Edwards is a spokeswoman for Merkley.

Julie Edwards: “Counties can rely on payments for the next few years, but we also have to be looking ahead, to the future. What happens after that? What this means is that county payments is on the agenda, is on the radar screen for Congress moving forward.”

Merkley and Senator Ron Wyden added a provision to the federal budget that's being discussed in the Senate budget committee.

Budget watchers warn the provision is only a very initial step toward funding future county payments -- but it would remove some political hurdles later on.

The program began almost a decade ago to supplement rural counties for loss of timber revenue.