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Federal Pass-Through Funds

By federal statute, a portion of timber and mineral revenue generated from the national forests in Michigan is disbursed to the counties in which the forests are located. In accordance with law (P.A. 182 of 1990), counties must distribute mineral funds with a split of 75 percent going to local school districts for school purposes, and 25 percent to townships for the improvement of their roads.

An application process is not necessary because the revenues are flow-through and are disbursed in accordance with federal and state statutes.


Accounting Service Center, Michigan Department of Transportation: Elizabeth Flynn, at 517-335-3430 or


On Dec. 20, 2019, Congress passed spending bill P.L. 116-94 H.R. 1865 that included reauthorization of the Secure Rural Schools program. In FY 2020, the Michigan Department of Natural Resources received $2,998,601.08 in timber revenue, and $143,369.25 in gas revenues. These amounts are anticipated to remain around the same in FY 2021 for both revenue types.