The Department of the Interior has announced that over 1,900 state and local governments will receive a total of $644.8 million in Payments in Lieu of Taxes (PILT) funding for 2025. These payments are designed to offset costs associated with maintaining community services on federal lands, which local governments cannot tax.
PILT payments apply to tax-exempt federal lands managed by various bureaus within the Department of the Interior, including the Bureau of Land Management, Bureau of Reclamation, National Park Service, and U.S. Fish and Wildlife Service. Additionally, they cover lands managed by the U.S. Forest Service, U.S. Army Corps of Engineers, and Utah Reclamation Mitigation and Conservation Commission. The payments are calculated based on federal land acreage within each jurisdiction and its population.
Secretary of the Interior Doug Burgum stated, “The Trump administration is committed to empowering local communities and ensuring that the federal government is a strong partner, not an obstacle.” He emphasized that PILT payments support essential services such as public safety, infrastructure, and education in rural areas.
Since their inception in 1977, PILT payments have totaled more than $12.6 billion distributed to states, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands.
The Department collects over $20.7 billion annually from commercial activities on public lands. A portion is shared with states and counties while the remainder goes into the U.S. Treasury to fund various federal activities including PILT payments.
Individual payment amounts may fluctuate yearly due to changes in acreage data updated by federal agencies; prior-year revenue-sharing reported by state governors; and inflation adjustments based on U.S. Census Bureau data.
A detailed list of funding allocations by state and county can be found on the Department’s Payments in Lieu of Taxes page.
