Federal Wildfire Policy in Flux: New Fire Service Launched Without Funding, FEMA Grants Denied for Oregon's Biggest Fires

Even as tens of thousands of acres burn and tens of millions of dollars in suppression costs mount across the Pacific Northwest, federal wildfire policy is navigating significant turbulence — from a newly created firefighting agency awaiting funding to contested decisions on federal cost-sharing for Oregon's most expensive fires of the decade.

FEMA Denies Cost-Share on Two Major Oregon Fires

Oregon Governor Tina Kotek applied to the Federal Emergency Management Agency (FEMA) for fire management assistance grants on five major fires this season. FEMA's program provides a 75 percent federal cost share on qualifying wildfire suppression costs, with the state responsible for the remaining 25 percent. While three of Oregon's applications were approved, the Trump administration denied assistance on two of the state's largest fires.

The denials are particularly significant given the scale of Oregon's fire season. The Big Grass Fire alone has already cost more than $41 million in suppression expenses; without federal cost-sharing, the state absorbs the full burden of those costs. Oregon officials have expressed frustration with the denials, and the decision has added fuel to a broader debate about how the federal government allocates fire suppression cost-sharing during historically severe seasons.

States can appeal FEMA fire management assistance grant denials, and it was not immediately clear whether Oregon intends to do so.

U.S. Wildland Fire Service: Launched, But Unfunded

A 2026 secretary's order from the Department of the Interior created the U.S. Wildland Fire Service (USWFS), a new consolidated agency intended to bring together the wildland firefighting functions of the Bureau of Land Management, the U.S. Fish and Wildlife Service, the National Park Service, and the Bureau of Indian Affairs under a single organizational umbrella.

The consolidation was intended to streamline command, improve coordination, and modernize the federal firefighting workforce. However, as of mid-August 2026, Congress has not passed legislation formally authorizing or funding the USWFS, leaving the new agency operating in a legal and budgetary limbo. Critics argue that creating a new agency structure without securing its funding first could disrupt existing operations and create confusion in the field during a critical fire season.

Washington's $120 Million State Investment

Washington state has taken a more proactive approach to fire season funding. The state legislature appropriated $120 million for firefighting in 2026 — double the previous year's budget — reflecting the severity of predicted conditions and the lessons of recent destructive seasons. This investment funded pre-positioning of firefighting resources, expanded National Guard training, and improvements to state coordination infrastructure before the season began.

New Congressional Legislation

On August 6, 2026, new wildfire readiness legislation — H.R. 10061 — was introduced in the House of Representatives. The bill addresses wildfire readiness and recovery, safe communities, and wildland firefighter safety. It is currently in the early stages of the legislative process and has not yet been scheduled for committee action.

Separately, bipartisan legislation — the Wildfire Emergency Preparedness Act — is advancing in Congress with provisions related to firefighting workforce capacity and resource pre-positioning. The International Association of Fire Fighters (IAFF) has also been pushing for the Protecting Firefighters and Advancing State-of-the-Art (PFAS) Alternatives Act, which would fund development of PFAS-free protective gear for firefighters.

The Cost of This Season