Payer State Transparency Act of 2025
- Bill Number
- H.R. 6741
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-12-16: Referred to the House Committee on Oversight and Government Reform.
- Last Updated
- 2026-01-09T16:09:33Z
AI-Generated Summary
Purpose This legislation aims to increase transparency by requiring annual calculations of how much each state contributes in federal taxes versus how much it receives in federal spending, allowing for a state-by-state comparison of net fiscal impacts.
Key Provisions
- Federal tax burden calculation: The Secretary of Commerce, through the Bureau of Economic Analysis, must determine each state's federal tax burden annually. Taxes paid by individuals are assigned to their state of residence; taxes paid by businesses are allocated proportionally based on the share of the business's economic activity occurring in that state.
- Federal outlays calculation: The Director of the Office of Management and Budget, working with the Council of Economic Advisers and the Secretary of the Treasury, must calculate total federal spending received by each state each fiscal year. Federal contract awards are allocated proportionally based on where the work under the contract is performed.
- Annual joint report: Within 180 days after the start of each calendar year, the Secretary of Commerce and the OMB Director must submit a report to Congress detailing these calculations and publish it on a publicly accessible Bureau of Economic Analysis website.
- The term "State" refers only to the 50 states.
Significant Changes to Existing Law This bill introduces new mandatory reporting requirements for federal tax burdens and outlays on a state-by-state basis. No prior law requires this specific, ongoing, publicly reported calculation using the described allocation methods for individuals, businesses, and contracts.
Potential Impacts
- Government agencies: The Bureau of Economic Analysis, Office of Management and Budget, Council of Economic Advisers, and Treasury Department gain new annual data-collection and reporting responsibilities, which may require additional resources or coordination.
- Citizens and states: Provides public data that could inform discussions on federal fiscal flows between states, though the bill does not alter tax rates, spending levels, or distributions.
- International relations: No direct effects identified.
Main Stakeholders Affected
- Congress (recipient of annual reports).
- Federal agencies responsible for calculations and publication (Commerce Department, OMB, Treasury, Council of Economic Advisers).
- State governments and residents (through increased availability of fiscal impact data).
- Businesses and taxpayers (as their payments form the basis of the calculations).
Notable Legal, Constitutional, or Political Implications The bill imposes administrative duties on executive branch agencies without creating new regulatory authority or altering constitutional taxing and spending powers. It promotes greater public access to government data but does not resolve or address any existing legal disputes.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Schakowsky, Janice D. [D-IL-9], Rep. Gottheimer, Josh [D-NJ-5], Rep. García, Jesús G. "Chuy" [D-IL-4]
Recent Actions
- 2025-12-16: Referred to the House Committee on Oversight and Government Reform.
- 2025-12-16: Introduced in House
- 2025-12-16: Introduced in House
Bill Versions
- Payer State Transparency Act of 2025 — issued 2025-12-16 — PDF (3 pages)