WASHINGTON, D.C. – Yesterday, the Department of the Interior announced that it would be disbursing $733 million in Payments in Lieu of Taxes (PILT) program funding for 2026 to 1,900 State and local governments across the nation. The Congressional Western Caucus strongly supports this program, and several Members released supportive statements which you can read here:
"From libraries to firefighters, local governments rely on land revenues to fuel services in rural towns across America. The Trump Administration's action today fulfils a promise to rural counties. I'm thrilled to see the Administration putting Rural America first," said Chair Celeste Maloy.
"I am pleased to see that the Department of the Interior has released more than $7 million in Payments in Lieu of Taxes (PILT) funding to communities across Central Washington. These resources act as a lifeline to support public safety, emergency readiness, and educational resources in counties that have land owned by the federal government. Without this funding, local governments wouldn’t have the resources to provide critical services to rural communities. I thank Secretary Burgum for releasing these funds in a timely manner," said Chairman Emeritus Dan Newhouse.
“PILT makes sense since the government collects more than $20.7 billion in revenue ANNUALLY from commercial activities on public lands, and in Oregon, millions of federally owned acres pay no state or local tax but place substantial demands on state and county governments. It is extremely good news that Oregon’s PILT payments have been increased by 67.6%, helping offset increases in necessary public lands expenditures by state and local governments," said Vice Chair Cliff Bentz.
“Wyoming taxpayers work around the clock every year in a state where roughly half the land remains under federal jurisdiction. I am pleased to see the Trump Interior Department follow through on a request I made with several House colleagues last year to return local communities’ hard-earned income for services provided in regions with an outsized federal footprint," said Vice Chair Harriet Hageman.
“Colorado’s Third District is home to millions of acres of federal land, which means local governments often cannot rely on the same property tax base as other communities to fund essential services. That is why the $35,461,992 in PILT funding coming to Colorado’s Third District is so important—it helps counties support roads, public safety, emergency services, and other critical local needs. I appreciate the Department of the Interior’s continued commitment to honoring this important partnership with rural America," said Vice Chair Jeff Hurd.
“Today’s PILT distribution announcement by the Department of the Interior is welcome news, and I am happy to see the federal government return more than $7 million in PILT payments to Minnesota,” said Vice Chair Pete Stauber. “Since nearly all of Minnesota’s federal land lies within the Eighth District, the bulk of these payments will support local governments in my district. I look forward to seeing these funds strengthen rural education, public safety, and infrastructure for the communities that need them most.”
“Public lands are meant to be managed by a multiple-use mandate that allows for public access for recreation, economic development, and conservation. But with years of declining timber sales and economic activity, the counties that host them have been forced to bear the financial burden of management and lost tax revenue,” said Vice Chair Ryan Zinke. “Western Montana is nearly 80% federal lands. The counties cannot shoulder this burden alone. I fought nonstop to permanently and fully fund PILT and ensure full funding to counties to maintain roads, support law enforcement, fund emergency services, and keep property taxes affordable for local families.”
“Arizona’s counties shoulder the burden of hosting vast amounts of federally owned land that cannot be taxed locally. PILT payments help ensure our communities have the resources they need to fund essential services such as public safety, emergency response, roads, and schools. I appreciate the Department of the Interior’s commitment to honoring this obligation and delivering these funds to Arizona counties. Rural communities should never be penalized for supporting America’s public lands,” stated Congressman Paul Gosar.
“Virginia’s Ninth District is home to numerous local jurisdictions that include federal lands. Because of this arrangement, activities on those lands are tax-exempt and local governments are limited in its collection of tax revenues," said Congressman H. Morgan Griffith. “I am a proud supporter of the PILT program to help local communities. As someone who voted to reauthorize PILT payments, I am delighted to see more than $2.3 million in PILT funds go to Ninth District communities.”
“On behalf of rural Arizonans, I am grateful to President Trump and Secretary Burgum for today’s PILT funding announcement. With the federal government owning vast amounts of land across western states, these disbursements are critical for funding the services our communities depend on. Arizona’s strong allocation makes a real and lasting difference in offsetting the tax revenue that federal land ownership displaces. I’m proud to advocate for this important funding, as well as other critical programs for rural Arizona like the Secure Rural Schools program," said Congressman Eli Crane.
“PILT funding is critical for Montana counties that provide essential services while containing large amounts of federal land. These payments help support roads, law enforcement, emergency response, and other local needs in communities where the federal government is a major landowner," said Congressman Troy Downing. "Montana should not be left carrying the cost of maintaining access and services on behalf of the federal government, and I’m glad to see over $50 million in funding going back to our state and counties.”
“Here in Colorado’s Fifth Congressional District, we are home to multiple military installations, national forests, and other sources of federally owned land. As a result, El Paso County cannot collect tax revenue from these lands to support critical services such as a roads, public safety and education. Thanks to the Trump Administration, we are returning this lost revenue through the Payments in Lieu of Taxes program to counties across Colorado," said Congressman Jeff Crank.
“I’m happy to see the Department of the Interior allocate more than $8.4 million in Payments in Lieu of Taxes (PILT) funding across Kern, Tulare, and Kings Counties for 2026,” said Congressman David G. Valadao. “With millions of acres of federally managed land throughout the Central Valley, these payments help ensure our local governments have the resources necessary to support public safety, maintain roads and infrastructure, and provide other essential services. I’ll continue working with local leaders and advocating for the federal resources our communities need to remain strong and be prepared for the future.”
"Payments in Lieu of Taxes (PILT) is a critically important program that rural communities across my home state of Idaho depend on because 62 percent of the land within our borders is owned and managed by the federal government. However, much like Secure Rural Schools (SRS), PILT has become increasingly difficult to garner support for in Congress because it is viewed as a subsidy. While I am pleased to see these needed payments released, I will continue advocating for long-term solutions that ensure Idahoans are in the driver's seat of our economic prosperity and that they have a stronger voice in the management of our cherished public lands," said Congressman Russ Fulcher.
“As Chairman of the House Interior and Environment Appropriations Subcommittee, I have the unique opportunity to influence federal policies that directly impact Idaho and support rural counties. Payments in Lieu of Taxes (PILT) funding is critical for Idaho, and I have remained committed to ensuring this lifeline for our communities is fully funded. I'm pleased to see that Idaho counties will receive nearly $50 million this year, and I look forward to seeing how this funding will benefit essential services like roads, education, and law enforcement in our rural communities,” said Congressman Mike Simpson.
“Today, California was awarded $80 million in PILT payments, of which millions of dollars will go directly to counties in California’s Third Congressional District,” said Congressman Kevin Kiley. “In districts like mine, where the majority of the land is owned by the federal government, PILT is essential for funding public services. This funding will go a long way and I’m happy to see PILT’s continued success.”
"California's rural communities, including those across the Central Valley, depend on federal lands for their economic vitality. PILT funding is critical to ensuring local governments can fund the services our residents rely on," said Congressman Vince Fong. "I'm appreciative of the Department of Interior’s decision to send $733 million in funds and I’m glad to see nearly $80 million coming back to California that will go towards advancing counties like Kern, Tulare, Kings, Fresno, and more."
“PILT payments help rural communities and towns in and around federal lands backfill their budgets with funding that would otherwise be garnered through property taxes. This is important to the Commonwealth of Pennsylvania and will ensure our local governments are supported," said Congressman Glenn "GT" Thompson.
"The Trump administration’s Department of Interior is supporting rural communities by awarding several counties in Southern Illinois more than $1.2 million this year to keep schools funded, roads maintained, and emergency services running. These resources can help provide a lifeline for rural communities like ours, and will make a real and positive difference," said Congressman Mike Bost.
“The PILT funding by the Department of Interior enables Oklahoma to preserve federal lands and provide essential community services,” said Congressman Frank Lucas. “Secretary Burgum’s willingness to parter with local governments allows them to best serve American citizens, and local economies are benefiting greatly as a result.”
“Arizona’s rural communities are scoring a huge win with $51.5 million in Payments of Lieu of Taxes (PILT) funding, securing our state as among the nation’s top 10 earners of PILT," said Congressman Juan Ciscomani. “PILT truly safeguards our ability to fund public safety, build local infrastructure, and invest in education, even when federal land limits the tax base so we can fund critical core public resources such as firefighting and police protection, construction of public schools and roads, and search-and-rescue operations. This vital investment delivers real results for rural Arizonans back home in my district who need it most. I’m grateful for the Administration’s strong commitment to PILT and tackling the unique challenges facing Western states like Arizona. I’ll keep fighting to guarantee Southern Arizona’s counties have the resources and certainty to serve our residents and grow our local economies.”
Policy Digest
Since 1977, the U.S. Department of the Interior (DOI) has distributed more than $13.4 billion to U.S. states and territories as Payments in Lieu of Taxes (PILT). For Fiscal Year 2026 (FY26), DOI has announced that it is distributing $733,041,949 to over 1,900 local governments across the U.S. under the PILT program. These Federal payments are designed to compensate state and local governments in counties where there are tax-exempt federal lands administered by the Bureau of Land Management, Bureau of Reclamation, National Park Service, U.S. Fish and Wildlife Service, U.S. Forest Service, U.S. Army Corps of Engineers, and Utah Reclamation Mitigation and Conservation Commission.
The PILT program is funded through DOI’s $20 billion annual revenue from commercial activities on public lands. While federal agencies are primarily responsible for the management of federal lands, local governments provide essential services and support in these national parks, wildlife refuges, and recreation areas, for which they are otherwise not significantly compensated. PILT funding is therefore intended to offset the lost revenue from tax-exempt federal lands and to compensate local governments for the vital services they provide on federal lands, including through public safety, housing, social services, and transportation.
PILT payments are calculated based on the acres of federal lands and population in qualifying localities, with consideration for funds received by the locality in the prior fiscal year under certain other Federal land revenue-sharing programs. Rural counties, especially those in the West, disproportionately contain federal lands and rely upon PILT payments to provide municipal services, with states in the Mountain West typically receiving over $50 million each, annually, in PILT payments.
You can find the Department of the Interior's press release
here, and their National Summary for Fiscal Year 2026,
here.
