A Senate proposal to sell off up to 3 million acres of federal land to help fund former President Donald Trump’s sweeping tax cuts and spending plans has been blocked by the Senate parliamentarian. The decision is a significant win for conservationists and environmental groups, who had raised alarms over the environmental and public access implications of the land sale.
The proposal, part of a broader legislative package to implement Trump’s $4.2 trillion tax cut, aimed to generate billions of dollars through the sale of public land managed by the Interior Department and the U.S. Forest Service. The revenue would have helped offset the costs of the tax cuts and a Trump-backed initiative to build housing on federal lands, which Republicans argue could ease the nation’s housing crisis by providing cheaper land for development.
However, the Senate parliamentarian ruled that the land sale plan falls outside the bounds of the reconciliation process—a fast-track legislative method that allows certain budget-related measures to bypass the filibuster and pass with a simple majority. Because the proposal did not meet the strict budgetary requirements of the process, it cannot be included in the final package.
Senator Mike Lee (R-Utah), a key advocate for the proposal, has indicated he is revising the plan to reduce its scope. He said the updated version would exclude Forest Service lands, potentially narrowing the political and legal challenges it faces. Still, the ruling represents a significant setback for Republicans aiming to use federal land as a fiscal lever.
Other elements of the Senate bill also failed to meet the rules of reconciliation. These include provisions to automatically approve liquefied natural gas export permits, impose new fees on renewable energy projects on public lands, and eliminate environmental review requirements for offshore oil and gas drilling projects.
Democrats are continuing to challenge additional parts of the bill, including controversial measures that would mandate oil and gas leasing in Alaska’s National Petroleum Reserve. They argue that the broader package undermines environmental protections and prioritizes fossil fuel interests over climate goals.
For now, the parliamentarian’s decision puts a key component of the Republican land and energy strategy on hold, highlighting the limitations of using the budget process to push through sweeping policy changes.
