New report warns Arizona could face nearly $1 billion economic loss if public lands shift to state control
In celebration of Arizona Public Lands Day this Saturday, April 4, conservation leaders are urging residents to take a closer look at what’s at stake for the state’s public lands.
A newly released report, Fiscal Impact of Transferring Federal Lands to Arizona, raises awareness about the significant economic and fiscal risks associated with state legislative proposals to transfer federally managed lands to state control.
Backed by the Arizona Trail Association, Arizona Wildlife Federation, and The Nature Conservancy – and conducted by the Grand Canyon Institute – the report highlights the critical role federal public lands play in supporting Arizona’s economy, outdoor recreation industry, and local communities.
Currently, the federal government invests roughly $800 million each year to manage public lands across Arizona. If those lands were transferred to the state, Arizona taxpayers would assume an estimated $797 million in annual costs, placing a significant strain on state finances. This figure includes funding tied to national parks such as Grand Canyon National Park, Petrified Forest National Park, and Saguaro National Park.
“These lands, and the trails that connect Arizona’s communities, are essential to our identity and way of life, and are vital to our economy,” stated Matthew Nelson, Executive Director of the Arizona Trail Association. “Shifting management to the state would mean replacing nearly $800 million in federal support annually, forcing difficult choices such as increased taxes and cuts to essential services. But what’s more likely is that the state would choose to sell these lands, prioritizing short-term profit over long-term stewardship. Public lands need to remain in public hands, and our federal agencies are the best equipped to do just that.”
Key findings from the report include:
- Federal public lands contribute approximately $5.2 billion annually to Arizona’s economy, driven largely by tourism and outdoor recreation.
- Transferring fire mitigation and forest management responsibilities alone could cost the state an estimated $470 million annually.
- Reduced investment in wildfire prevention could have long-term economic consequences, including declining property values and disruptions to recreation and tourism.
- Arizona could face a projected $975 million drop in GDP under land transfer scenarios.
“We strongly support maintaining federal stewardship of America’s public lands and the long‑standing commitment to protect them,” said Christian Stumpf, External Relations Director for The Nature Conservancy in Arizona. “As the report makes clear, keeping these lands in federal ownership is essential to preserving their conservation, access, and long‑term care. A large‑scale transfer to the state would place significant fiscal and management burdens on the state, and could jeopardize the shared responsibility to safeguard these treasured places for Arizonans today and for generations to come.”
“Arizona’s public lands should remain under federal management rather than shifting costs to state taxpayers,” commented Scott Garlid, Executive Director of the Arizona Wildlife Federation. “State control would require Arizona to cover all expenses for wildfire suppression, forest management, and BLM operations, resulting in ongoing costs that would far exceed any new revenue. This change would eliminate over $100 million in annual federal investment and add tens of millions in deferred maintenance costs, turning public lands from a shared national asset into a long-term state liability.”
Past legislative efforts to transfer federal lands have repeatedly failed due to the substantial financial and operational burdens they would impose. While no current legislation this session advances such a transfer, conservation leaders warn that similar proposals continue to re-emerge, making public awareness critical.
Outdoor recreation leaders say the risk extends beyond budgets to access, infrastructure, and quality of life.
“Arizona’s public lands aren’t just part of our business; they’re places we ride and care deeply about,” said Chris Reichel of Revel Bikes. “This report makes the stakes clear: transferring federal lands would bring high new costs to the state, shrink the economy, and put trails, access, and recreation infrastructure at risk. We’ve seen how underfunded stewardship leads to reduced access and lost opportunities. Federal lands contribute $5.2 billion to Arizona’s economy; we’d like to keep it that way. These lands belong to all of us, and the current framework makes that possible.”
For Arizona Public Lands Day and beyond, the conservation groups encourage more public awareness around the importance of maintaining federal stewardship of public lands to ensure continued economic benefits, responsible management, and long-term conservation.












