Amends subsection (b) of 16 U.S.C. 2204 by inserting additional text (specific insertion text not provided in the section).

Adds a new section (designated '408 Emergency forest watershed program') to Title IV of the Agricultural Credit Act of 1978 establishing an emergency forest watershed program, including definitions, authority for the Secretary (acting through the Chief of the Forest Service) to undertake measures on National Forest System land, agreement and payment rules, waived matching requirements, liability and assumption of risk provisions, coordination with the Natural Resources Conservation Service, and NEPA emergency-response treatment.