The Payer State Transparency Act requires the federal government to calculate and publicly report how much each state pays in federal taxes and how much each state receives in federal spending and contracts. The Secretary of Commerce will measure each state's federal tax burden by attributing individual income taxes to residents' home states and allocating business taxes based on where companies conduct operations, while the Office of Management and Budget will track federal outlays including defense contracts and federal spending distributed across states proportionally to where the work is performed. Congress and the public will receive a comprehensive annual report within 180 days of each calendar year, published on a public website, showing the state-by-state breakdown of federal tax contributions versus federal benefits received. This legislation affects all 50 states and aims to provide transparency about the fiscal relationship between each state and the federal government, though the bill does not specify any particular funding allocation or enforcement mechanism. The bill was introduced in December 2025 and referred to the House Committee on Oversight and Government Reform.
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