The Payments in Lieu of Taxes (PILT) Program: An Overview
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The Payments in Lieu of Taxes (PILT) Program: July 10, 2023
An Overview
Carol Hardy Vincent
The Department of the Interior’s (DOI’ An Overview
Updated November 19, 2025
(R46260)
Jump to Main Text of Report
s) Payments in Lieu of Taxes (PILT; 31 U.S.C. §§6901-
Specialist in Natural
6907) program provides compensation for certain tax-exempt federal lands, known as 6907) program provides compensation for certain tax-exempt federal lands, known as entitlement
Resources Policy
lands. PILT payments are made annually to . PILT payments are made annually to units of general local government—typically —typically
counties—that contain entitlement lands. PILT is only one of several federal programs that counties—that contain entitlement lands. PILT is only one of several federal programs that exist
to compensate counties and other local jurisdictions for the presence of federal lands within their compensate counties and other local jurisdictions for the presence of federal lands within their
boundaries. However, PILT applies to the broadest array of land types. PILT entitlement lands boundaries. However, PILT applies to the broadest array of land types. PILT entitlement lands
include most federal lands administered by the Bureau of Land Management, the National Park Service, and the U.S. Fish include most federal lands administered by the Bureau of Land Management, the National Park Service, and the U.S. Fish
and Wildlife Service, all in DOI, and by the U.S. Forest Service in the Department of Agriculture; federal water projects; and Wildlife Service, all in DOI, and by the U.S. Forest Service in the Department of Agriculture; federal water projects;
dredge disposal areas; and some military installations. In dredge disposal areas; and some military installations. InFY2023FY2025, the PILT appropriation was $, the PILT appropriation was $579645.2 million, and DOI .2 million, and DOI
distributed $distributed $578644.8 million in PILT payments to more than 1,900 counties across 49 states, the District of Columbia, Guam, .8 million in PILT payments to more than 1,900 counties across 49 states, the District of Columbia, Guam,
Puerto Rico, and the Virgin Islands.Puerto Rico, and the Virgin Islands.
PILT comprises three separate payment mechanisms, named after the sections of law in which they are authorized: Section PILT comprises three separate payment mechanisms, named after the sections of law in which they are authorized: Section
6902 (31 U.S.C. §6902), Section 6904 (31 U.S.C. §6904), and Section 6905 (31 U.S.C. §6905). Section 6902 payments are 6902 (31 U.S.C. §6902), Section 6904 (31 U.S.C. §6904), and Section 6905 (31 U.S.C. §6905). Section 6902 payments are
the broadest of the three payment mechanismsthe broadest of the three payment mechanisms; they. They account for nearly all of the funding disbursed under the PILT program account for nearly all of the funding disbursed under the PILT program
and are made to most of the counties receiving PILT funding. In contrast, Section 6904 and Section 6905 payments are
provided only under selected circumstances, account for a small fraction of PILT payments, and are made to a minority of
counties (most of which also receive Section 6902 payments). In addition, whereas Section 6902 payments are provided each
year based on the presence of entitlement lands, most payments under Section 6904 and Section 6905 are provided only for a
limited duration after certain land acquisitions.
Section 6902 paymentsand are made to most of the counties receiving PILT funding. They are determined based on a multipart formula (31 U.S.C. §6903) are determined based on a multipart formula (31 U.S.C. §6903). Payments and are calculated according to are calculated according to
several factorsseveral factors, including. These factors include (1) the number of acres of entitlement land present within the unit of local government (1) the number of acres of entitlement land present within the unit of local government’s
's jurisdiction; (2) a per-acre calculation determined by one of two alternatives (jurisdiction; (2) a per-acre calculation determined by one of two alternatives (Alternative A, also called the , also called the standard rate, or , or
Alternative B, also called the , also called the minimum provision); (3) a population-based maximum payment (ceiling); (4) selected prior-); (3) a population-based maximum payment (ceiling); (4) selected prior-
year payments made to the counties pursuant to certain other federal compensation programs; and (5) the amount year payments made to the counties pursuant to certain other federal compensation programs; and (5) the amount
appropriated to cover the payments. Section appropriated to cover the payments. Section 6902 payments are made each year based on entitled lands. Section 6904 and Section 6905 payments are provided to counties 6904 and Section 6905 payments are provided to counties only under selected circumstances—after the federal after the federal
acquisition of specific types of entitlement lands (Section 6904) or entitlement lands located in specific areas (Section 6905)acquisition of specific types of entitlement lands (Section 6904) or entitlement lands located in specific areas (Section 6905)
and. Payments are based on the fair market value of the acquisitions. are based on the fair market value of the acquisitions. If the appropriated amount is insufficient to cover the total
payment amounts authorized in Sections 6902, 6904, and 6905, payments are prorated in proportion to the authorized rate.
Before FY2008, PILT was funded through the annual discretionary appropriations process. In some of those They account for a small fraction of PILT payments, are made to a minority of counties (most of which also receive Section 6902 payments), and generally are provided only for a limited duration.
PILT has been funded through both discretionary and mandatory appropriations at various times. Before FY2008, PILT was funded through annual discretionary appropriations. In some years, the years, the
appropriation was less than the authorized full funding levelappropriation was less than the authorized full funding level, so each county received a prorated payment in those years.
Since FY2008 and counties received prorated payments. From FY2008 to FY2025, PILT has been funded entirely through mandatory appropriations for all , PILT has been funded entirely through mandatory appropriations for all years except three except three (FY2015, FY2016,
and FY2017)years. In FY2015, PILT was funded through both mandatory and discretionary funding. In FY2016 and FY2017, . In FY2015, PILT was funded through both mandatory and discretionary funding. In FY2016 and FY2017,
PILT was funded entirely through discretionary appropriations.
PILT is of perennial interest to many Members of Congress and stakeholders throughout the country, and many local
governments consider PILT payments to be an integral part of their annual budgets. Congress has considered topics and
legislation related to the eligibility of various federal lands for entitlement under PILT (such as Indian lands or other lands
currently excluded from compensation), amendments to the formula for calculating payments (especially under Section
6902), and issues related to funding PILT, among other matters.
Congressional Research Service
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Contents
Payments in Lieu of Taxes (PILT) Introduction .............................................................................. 1
PILT Authorizations and Appropriations ......................................................................................... 3
PILT Payments Under Section 6902 ................................................................................................ 6
Entitlement Lands ..................................................................................................................... 6
Calculating Section 6902 Payments .......................................................................................... 7
PILT Payments Under Sections 6904 and 6905 ............................................................................ 12
Section 6904 Payments ........................................................................................................... 13
Section 6905 Payments ........................................................................................................... 13
Issues for Congress ........................................................................................................................ 13
Figures
Figure 1. PILT Authorizations and Appropriations, FY1993-FY2023 ............................................ 5
Figure 2. Steps in Calculating PILT Section 6902 Payments (FY2023 Rates) ............................... 8
Figure 3. PILT Population-Based Ceiling Calculation .................................................................. 10
Figure 4. FY2023 PILT Population-Based Ceilings ...................................................................... 10
Tables
Table 1. PILT Appropriations, FY2014-FY2023 ............................................................................. 4
Contacts
Author Information ........................................................................................................................ 15
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Payments in Lieu of Taxes (PILT) Introduction
The Department of the Interior’s (DOI’PILT was funded entirely through discretionary appropriations. No FY2026 full-year appropriation for PILT had been enacted as of November 18, 2025. In recent years, DOI generally has made PILT payments to counties in June of the relevant fiscal year.
compensation for certain compensation for certain entitlement lands that are exempt from state and local taxes. that are exempt from state and local taxes.11 These These
include most federal lands administered by the Bureau of Land Management, the National Park include most federal lands administered by the Bureau of Land Management, the National Park
Service, and the U.S. Fish and Wildlife Service, all in DOI, and by the U.S. Forest Service in the Service, and the U.S. Fish and Wildlife Service, all in DOI, and by the U.S. Forest Service in the
Department of Agriculture; federal water projects; dredge disposal areas; and some military Department of Agriculture; federal water projects; dredge disposal areas; and some military
installations.installations.22 Enacted in 1976, Enacted in 1976,33 PILT is the broadest—in terms of federal land types covered—of PILT is the broadest—in terms of federal land types covered—of
several federal programs enacted to provide compensation to state or local governments for the several federal programs enacted to provide compensation to state or local governments for the
presence of tax-exempt federal lands within their jurisdictions.presence of tax-exempt federal lands within their jurisdictions.44
PILT was enacted in response to a shift in federal policy from one that prioritized disposal of PILT was enacted in response to a shift in federal policy from one that prioritized disposal of
federal lands—in which federal ownership was considered to be temporary—to one that federal lands—in which federal ownership was considered to be temporary—to one that
prioritized retention of federal lands, in perpetuity, for public benefit.prioritized retention of federal lands, in perpetuity, for public benefit.55 This shift began in the late This shift began in the late
19th19th century and has continued. Along with this shift came the understanding that, because these century and has continued. Along with this shift came the understanding that, because these
lands were exempt from state and local taxation and were no longer likely to return to the tax base lands were exempt from state and local taxation and were no longer likely to return to the tax base
in the foreseeable future, some compensation should be provided to the impacted local in the foreseeable future, some compensation should be provided to the impacted local
governments. Following several decades of commissions, studies, and proposed legislation, PILT governments. Following several decades of commissions, studies, and proposed legislation, PILT
was enacted to was enacted toameliorate this hardshipaddress this impact at least in part. at least in part.66 PILT payments generally can be used for PILT payments generally can be used for
“"any governmental purpose,any governmental purpose,”7"7 which may include assisting local governments with paying for which may include assisting local governments with paying for
local services, such as local services, such as“"firefighting and police protection, construction of public schools and firefighting and police protection, construction of public schools and
roads, and search-and-rescue operations.”8
1 The Department of Energy also implements a separate Payments in Lieu of Taxes (PILT) program, as authorized by
the Atomic Energy Act of 1954 (P.L. 83-703, 42 U.S.C. §2208), not discussed in this report. This report also does not
discuss the payments made to PILT counties through the Local Assistance and Tribal Consistency Fund (LATCF),
established in the American Rescue Plan (P.L. 117-2, Sec. 9901). Receiving PILT payments was one factor for
determining eligibility to receive a payment through the LATCF. Under the LATCF, eligible counties received $750
million in FY2022 and FY2023. In addition, certain eligible consolidated local governments are to receive $10.5
million in FY2023 and FY2024. For more information, see the Department of the Treasury’s LATCF website at
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/local-assistance-
and-tribal-consistency-fund.
2 31 U.S.C. §§6901-6907. PILT implementing regulations are provided at 43 C.F.R. Part 44. See “Entitlement Lands”
for more detail on the categories of entitlement lands.
3 PILT originally was enacted in 1976 through P.L. 94-565. In 1982, PILT was “revised, codified, and enacted” in Title
31 of the U.S. Code pursuant to Chapter 69 of P.L. 97-258. Subsequently, PILT has been amended multiple times.
4 Although PILT is the broadest of these compensatory programs, it is not the oldest, and PILT provides compensation
for defined entitlement lands only (31 U.S.C. §6901(1)). Other programs may include additional lands as defined by
those programs. Several of those programs may be partially offset in PILT through the consideration of prior-year
payments. Those programs are listed at 31 U.S.C. §6903(a)(1).
5 For more information, see Public Land Law Review Commission, One Third of the Nation’s Land: A Report to the
President and to the Congress, June 1970, pp. 235-241. This report was produced pursuant to P.L. 88-606.
6 For more information, see U.S. Congress, House Committee on Interior and Insular Affairs, Payments In Lieu of
Taxes Act, report to accompany H.R. 9719, 94th Cong., 2nd sess., May 7, 1976, H.Rept. 94-1106; and U.S. Congress,
Senate Committee on Interior and Insular Affairs, Providing for Payments to Local Governments Based upon the
Amount of Certain Public Lands Within the Boundaries of Each Such Government, report to accompany H.R. 9719,
94th Cong., 2nd sess., September 20, 1976, S.Rept. 94-1262.
7 31 U.S.C. §6902(a), 31 U.S.C. §6904(b), and 31 U.S.C. §6905(a) and (b)(3). Neither the law nor implementing
regulations define “governmental purpose.” However, both §6904 and §6905 require that certain funds provided
through these sections are made available to school districts and other local governmental units within the local
jurisdiction.
8 For more information, see Department of the Interior (DOI), Fiscal Year 2023 Payments In Lieu of Taxes, National
Summary, available at https://www.doi.gov/pilt (hereinafter, National Summary FY2023).
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roads, and search-and-rescue operations."8
The Office of the Secretary in DOI is responsible for the calculation and disbursement of The Office of the Secretary in DOI is responsible for the calculation and disbursement of
payments under PILT.payments under PILT.9 9 Payments under PILT are made annually to Payments under PILT are made annually to units of general local
government—typically counties, though other types of governmental units also may be used —typically counties, though other types of governmental units also may be used
(hereinafter, (hereinafter, counties refers to units of general local government)—containing refers to units of general local government)—containing entitlement lands. .
PILT comprises three separate payment mechanisms: Section 6902, Section 6904, and Section PILT comprises three separate payment mechanisms: Section 6902, Section 6904, and Section
6905 payments, all named for the sections of law in which they are authorized.6905 payments, all named for the sections of law in which they are authorized.1010 Section 6902 Section 6902
payments account for nearly all payments made through PILT. The Section 6902 amount for each payments account for nearly all payments made through PILT. The Section 6902 amount for each
county is calculated according to a statutory formula that is subject to a maximum payment based county is calculated according to a statutory formula that is subject to a maximum payment based
on the countyon the county’'s population (see s population (see "“PILT Payments Under Section 6902”).11").11 The remaining The remaining
payments are provided through Section 6904 and Section 6905 under selected circumstances and payments are provided through Section 6904 and Section 6905 under selected circumstances and
typically are limited in duration. typically are limited in duration.Through FY2023, PILT payments have totaled approximately
$11.4 billion.12
This report provides an overview of the PILT payment program and includes sections onThis report provides an overview of the PILT payment program and includes sections on
• PILT’ PILT's authorization and appropriations, which discusses the history of how s authorization and appropriations, which discusses the history of how
Congress has provided funding for PILT;Congress has provided funding for PILT;
•
Section 6902 payments, which includes a breakdown of how Section 6902 Section 6902 payments, which includes a breakdown of how Section 6902
payments are calculated;payments are calculated;
•
Section 6904 and Section 6905 payments, which outlines what situations result in Section 6904 and Section 6905 payments, which outlines what situations result in
payments under these mechanisms; andpayments under these mechanisms; and
•
issues for Congress, which discusses several topics that have been or may be of issues for Congress, which discusses several topics that have been or may be of
interest to Members of Congress when considering the PILT program.interest to Members of Congress when considering the PILT program.
Selected Terms Used in This Report
Authorized payment: the amount a county is eligible to receive based on the formula/requirements specified in : the amount a county is eligible to receive based on the formula/requirements specified in
statute, prior to any reductions for administrative costs or due to insufficient appropriations.statute, prior to any reductions for administrative costs or due to insufficient appropriations.
Entitlement lands: statutorily defined federally owned lands that are exempt from state and local taxes and are : statutorily defined federally owned lands that are exempt from state and local taxes and are
eligible to be the basis for determining a countyeligible to be the basis for determining a county’'s eligibility for PILT payments. This term is defined in statute at 31 s eligibility for PILT payments. This term is defined in statute at 31
U.S.C. §6901(1).U.S.C. §6901(1).
Full statutory calculation
Full statutory calculation: the sum of : the sum of authorized payments under Section 6902, Section 6904, and Section 6905 for all under Section 6902, Section 6904, and Section 6905 for all
counties in a given year.counties in a given year.
Inflation: used here to refer to the statutorily required annual adjustment to the : used here to refer to the statutorily required annual adjustment to the per-acre payment rates and the and the
population payment rate. The adjustment is made to reflect changes in the Consumer Price Index published by the . The adjustment is made to reflect changes in the Consumer Price Index published by the
U.S. Bureau of Labor Statistics of the Department of Labor for the previous 12 months ending June 30. This provision Bureau of Labor Statistics of the Department of Labor for the previous 12 months ending June 30. This provision
is required pursuant to 31 U.S.C. §6903(d).is required pursuant to 31 U.S.C. §6903(d).
Per-acre paymentratesrates: one of the two : one of the two dol ardollar amounts that are multiplied by the number of acres of amounts that are multiplied by the number of acres of entitlement land
as part of the formula to calculate the as part of the formula to calculate the authorized payment under Section 6902 (31 U.S.C. §6903(b)(1)). These rates under Section 6902 (31 U.S.C. §6903(b)(1)). These rates
are adjusted annually for are adjusted annually for inflation. In . InFY2023FY2025, the , the per-acre payment rates were $3. were $3.1546 per acre for Alternative A and per acre for Alternative A and
$0.45$0.50 per acre for Alternative B. per acre for Alternative B.
Population-based ceiling: the maximum payment a county is eligible to receive under Section 6902. This figure is : the maximum payment a county is eligible to receive under Section 6902. This figure is
calculated by multiplying the countycalculated by multiplying the county’'s population (as rounded or not rounded, pursuant to statute [31 U.S.C. s population (as rounded or not rounded, pursuant to statute [31 U.S.C.
§6903(c)(1)]) by the applicable §6903(c)(1)]) by the applicable population payment rate. Population payment rate: the dollar amount that is multiplied by a county'rate.
9 Although the DOI Office of the Secretary administers the payments, it relies upon data from federal agencies within
and outside of DOI (e.g., the federal land management agencies and the Census Bureau in the Department of
Commerce) and state agencies to calculate the annual payments.
10 These sections refer to 31 U.S.C. §§6902, 6904, and 6905.
11 PILT payments may be subject to additional requirements provided in appropriations laws. For example, provisions
for unit, set-aside, and minimum payments were all included in Title I of Division G in P.L. 117-328 for FY2023.
12 Figure in current dollars. National Summary FY2023, p. 5.
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Population payment rate: the dol ar amount that is multiplied by a county’s population to determine the s population to determine the population-
based ceiling, as provided in statute (31 U.S.C. §6903(c)(2)). The as provided in statute (31 U.S.C. §6903(c)(2)). The population payment rate declines with increasing declines with increasing
population. This rate is adjusted for population. This rate is adjusted for inflation..
Prior-year payments: payments received by a county for federally owned lands in its jurisdiction through certain : payments received by a county for federally owned lands in its jurisdiction through certain
federal compensation programs other than PILT. These programs refer to one of the federal compensation programs other than PILT. These programs refer to one of the“"payment law[s]payment law[s]”" listed in listed in
statute (31 U.S.C. §6903(a)(1)).statute (31 U.S.C. §6903(a)(1)).
Prorated payment: the actual payment received by a county when appropriated funds are insufficient to cover the: the actual payment received by a county when appropriated funds are insufficient to cover the
authorized payments. The . The prorated payment is determined by the amount appropriated for PILT that is available to is determined by the amount appropriated for PILT that is available to
cover payments and is proportional to the cover payments and is proportional to the authorized payment for each county. for each county.
Units
Units of general local government (hereinafter, referred to as hereinafter, referred to as county): jurisdictional entity eligible to receive payments jurisdictional entity eligible to receive payments
under PILT. These entities are most often counties but may include other jurisdictional units such as parishes, under PILT. These entities are most often counties but may include other jurisdictional units such as parishes,
boroughs, census areas, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. This term is defined boroughs, census areas, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. This term is defined
in statute at 31 U.S.C. §6901(2).in statute at 31 U.S.C. §6901(2).
Notes:
Notes: These terms are defined as used in this report and may be used differently elsewhere. Further, these These terms are defined as used in this report and may be used differently elsewhere. Further, these
terms may not be defined in statute, except where noted.terms may not be defined in statute, except where noted.
PILT Authorizations and Appropriations
Overview PILT has been funded through both discretionary and mandatory appropriations at various times. PILT has been funded through both discretionary and mandatory appropriations at various times.
PILT was funded through discretionary appropriations from its enactment in 1976 through PILT was funded through discretionary appropriations from its enactment in 1976 through
FY2007 andFY2007, in FY2015 (in part) in FY2015 (in part), and and in FY2016-2017. FY2016-2017. In other years,For many of the earlier years (e.g., FY1995-FY2007), the discretionary appropriations were not at the full authorized level, so each county received a prorated payment. PILT received mandatary appropriations PILT received mandatary
appropriations, namely for FY2008-FY2014, FY2015 (in part), and FY2018- for FY2008-FY2014, FY2015 (in part), and FY2018-FY2023.
More specifically, beginningFY2025. For most of these years (e.g., FY2018-FY2025), the appropriations essentially were at the full level calculated under the statute.12 In addition, since FY2008, PILT appropriations have been provided through both one-year and multiyear appropriations.
appropriations read as follows: appropriations read as follows:“"There are authorized to be appropriated for carrying out the There are authorized to be appropriated for carrying out the
provisions of this Act such sums as may be necessary: provisions of this Act such sums as may be necessary: Provided, That, notwithstanding any other , That, notwithstanding any other
provision of this Act no funds may be made available except to the extent provided in advance in provision of this Act no funds may be made available except to the extent provided in advance in
appropriation Acts.appropriation Acts.”13"13 In 1982, PILT was amended to provide an In 1982, PILT was amended to provide an “"Authorization of Authorization of
Appropriations”Appropriations" heading, which stated that heading, which stated that “"necessary amounts may be appropriated to the necessary amounts may be appropriated to the
Secretary of the Interior to carry out [PILT]Secretary of the Interior to carry out [PILT]”" and specified that and specified that “"amounts are available only as amounts are available only as
provided in appropriation laws.provided in appropriation laws.”14
"14
In 2008, legislation was enacted to provide mandatory appropriations for PILT for FY2008-In 2008, legislation was enacted to provide mandatory appropriations for PILT for FY2008-
FY2012. The legislation changed the heading of the programFY2012. The legislation changed the heading of the program’'s funding from s funding from “"Authorization of Authorization of
Appropriations” to “Funding”Appropriations" to "Funding" and amended the text to read and amended the text to read
For each of fiscal years 2008 through 2012-For each of fiscal years 2008 through 2012-
(1) each county or other eligible unit of local government shall be entitled to payment under (1) each county or other eligible unit of local government shall be entitled to payment under
this chapter; andthis chapter; and
(2) sums shall be made available to the Secretary of the Interior for obligation or
(2) sums shall be made available to the Secretary of the Interior for obligation or expenditure in accordance with this chapter.expenditure in accordance with this chapter.1515
Subsequently, PILTSubsequently, PILT’'s funding provision (31 U.S.C. §6906) was amended several times. s funding provision (31 U.S.C. §6906) was amended several times. For
instance, for each of FY2018 through FY2023Over the past several years, appropriations laws, appropriations laws typically provided funding for PILT by provided funding for PILT by
amending the authority provided in 31 U.S.C. §6906.amending the authority provided in 31 U.S.C. §6906.16 This was treated as mandatory spending. This was treated as mandatory spending.
Table 1 shows PILT appropriations over the 10 years from shows PILT appropriations over the 10 years fromFY2014FY2016 through through FY2023FY2025. The total . The total
payments to counties often were slightly different from the appropriations shown, in part because payments to counties often were slightly different from the appropriations shown, in part because
13 P.L. 94-565, §7.
14 P.L. 97-258, §6906.
15 P.L. 110-343, Div. C, Title VI, §601(c)(1).
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relatively small amounts of the total appropriations were authorized for program administration. relatively small amounts of the total appropriations were authorized for program administration.
For instance, of the For instance, of the$579$645.2 million appropriation for .2 million appropriation for FY2023FY2025, $0.4 million was authorized for , $0.4 million was authorized for
program administration. DOI distributed $program administration. DOI distributed $578644.8 million to counties for .8 million to counties for FY2023. FY2025.
Table 1. PILT Appropriations, FY2014-FY2023
FY2016-FY2025
(nominal dollars)(nominal dollars)
Fiscal
Year
Appropriation
Year
Statute
Funding Type
Appropriation (millions)
FY2014
P.L. 113-79
Mandatory
$437.3
FY2015
P.L. 113-235
Discretionary ($372.0
$439.5
mil ion)
P.L. 113-291
Mandatory ($33.0 mil ion
—
and $34.5 mil ion)a
FY2016
P.L. 114-113
Discretionary
$452.0
FY2017
P.L. 115-31
Discretionary
$465.0
FY2018
P.L. 115-141
Mandatory
$553.2
FY2019
P.L. 116-6
Mandatory
$515.1
FY2020
P.L. 116-94
Mandatory
$515.1
FY2021
P.L. 116-260
Mandatory
$529.7
FY2022
P.L. 117-103
Mandatory
$549.8
FY2023
P.L. 117-328
Mandatory
$579.2
Source: CRS, with data from listed public laws and relevant annual DOI reports, available at CRS, with data from listed public laws and relevant annual DOI reports, available at
https://www.doi.gov/pilt/resources/annual-reportshttps://www.doi.gov/pilt/resources/annual-reports.
. Notes: Appropriated amounts may include rescissions as provided in relevant statutes and adjustments from Appropriated amounts may include rescissions as provided in relevant statutes and adjustments from
prior years. Figures are presented in nominal prior years. Figures are presented in nominaldol arsdollars, though note that the PILT payment formula incorporates , though note that the PILT payment formula incorporates
an annual inflation adjustment.an annual inflation adjustment.
For FY2018 through For FY2018 throughFY2023FY2025, PILT funding was provided by amending 31 U.S.C. §6906 (, PILT funding was provided by amending 31 U.S.C. §6906 (“Funding”"Funding") each fiscal ) each fiscal
year. As a result, the funding for PILT was treated as mandatory spending in these years. These amendments year. As a result, the funding for PILT was treated as mandatory spending in these years. These amendments
required funding for PILT for each of these years to be provided at the amount of the required funding for PILT for each of these years to be provided at the amount of theful full statutory calculation.
statutory calculation.
a. For FY2015, the mandatory appropriations in P.L. 113-291 totaled $70.0 mil ion. This appropriation was
split, with $33.0 mil ion to be provided in FY2015 and $37.0 mil ion to be available in October 2015 (for
FY2015 payments, although paid in FY2016). Of the $70.0 mil ion in mandatory appropriations, the $37.0
mil ion available in October 2015 was subject to sequestration, which reduced the appropriated amount to
$34.5 mil ion.
Figure 1 shows the shows theauthorizations and appropriations for PILT from appropriations for PILT from FY1993 to FY2023. For
many of the earlier years during this period, PILT received discretionary appropriations that were
not at the full authorized level (e.g., FY1995-FY2007). In contrast, for most years when PILT
received mandatory appropriations, the appropriations essentially were at the full level calculated
under the statute (e.g., FY2018-FY2023).16 In addition, since FY2008, PILT appropriations have
been provided through both one-year and multiyear appropriations.
16 An exception is FY2013, when PILT appropriations were impacted by sequestration pursuant to the Balanced Budget
and Emergency Deficit Control Act (2 U.S.C. §§900 et seq.), as amended by the Budget Control Act of 2011 (P.L. 112-
25).
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Figure 1. PILT Authorizations and Appropriations, FY1993-FY2023
FY2016 to FY2025 in current and inflation-adjusted dollars. In current dollars, the appropriations generally increased throughout the 10-year period, with an anomalously high year in FY2018 and level funding from FY2019 to FY2020. In inflation-adjusted dollars, the appropriation was highest in FY2018. Thereafter, the appropriation fell annually through FY2022 and since then has risen annually.
(in current and inflation-adjusted estimated FY2023 dollars)
Source: CRS, with data from PILT National Summaries, CRS, with data from PILT National Summaries,FY1993FY2016 through through FY2023.
Notes: The authorized andFY2025.
Notes: The appropriated figures shown in bars reflect current (nominal) appropriated figures shown in bars reflect current (nominal) dol arsdollars. The line reflects . The line reflects
inflation-adjusted estimated FY2023 dol ars using the Office of Management and Budget’s GDP Chained Price
Index. The FY2013 and part of the FY2015 appropriations were subject to sequestration pursuant to the
Balanced Budget and Emergency Deficit Control Act (2 U.S.C. §§900 et seq.), as amended by the Budget Control
Act of 2011 (P.L. 112-25).
inflation-adjusted estimated mid-year 2025 dollars using the U.S. Bureau of Labor Statistics' Consumer Price Index, Series CUUR0000SA0, https://data.bls.gov/timeseries/CUUR0000SA0.
In addition to appropriating funding for the program, through the annual appropriations process In addition to appropriating funding for the program, through the annual appropriations process
Congress typically provides other guidance to DOI on implementing PILT. Such guidance has Congress typically provides other guidance to DOI on implementing PILT. Such guidance has
included minimum payment thresholds, set-asides for program administration, and provisions for included minimum payment thresholds, set-asides for program administration, and provisions for
prorating payments.prorating payments.1717 When appropriated funding is insufficient to cover the full amount of When appropriated funding is insufficient to cover the full amount of
authorized payments under Sections 6902, 6904, and 6905, counties typically receive a authorized payments under Sections 6902, 6904, and 6905, counties typically receive a
proportional payment known as a proportional payment known as a prorated payment..(Figure 1 shows the disparity between the
authorized amount and the appropriated amount in certain years.) Even in years in which Even in years in which
appropriations are set equal to 100% of the full statutory calculation, payments to counties may appropriations are set equal to 100% of the full statutory calculation, payments to counties may
be prorated if funding is set aside for purposes other than payments, such as administration.be prorated if funding is set aside for purposes other than payments, such as administration.
Some
In the past, some stakeholders and policymakers stakeholders and policymakers have expressed concern about changesexpressed concern about changes over time in the in the
appropriations authority and processes for PILT, due to the uncertainty that may accompany such appropriations authority and processes for PILT, due to the uncertainty that may accompany such
changes. Changes that have given rise to concerns include switching between discretionary and changes. Changes that have given rise to concerns include switching between discretionary and
mandatory appropriations, partial and full funding, and one and multiyear appropriations. Such mandatory appropriations, partial and full funding, and one and multiyear appropriations. Such
changes may have implications for counties that rely on PILT funding as part of their annual changes may have implications for counties that rely on PILT funding as part of their annual
budgets.
17 For example, in FY2023, provisions were included in P.L. 117-328, Division G, Title I, that barred payment if the
authorized payment is less than $100; authorized DOI to retain up to $400,000 for administrative expenses from the
authorized payment; directed that payments be reduced proportionally if the appropriated amount is insufficient; and
authorized corrections for prior over- or underpayments. Although similar provisions have been included in other
appropriations acts, the specific text of these provisions has varied over the years.
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budgets. PILT Payments Under Section 6902
Section 6902 payments are provided to counties across the United States to compensate for the Section 6902 payments are provided to counties across the United States to compensate for the
presence of entitlement lands within their boundaries. Section 6902 payments are provided to presence of entitlement lands within their boundaries. Section 6902 payments are provided to
states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands.states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands.1818 Section 6902 Section 6902
payments account for nearly all of the payments made under PILT. In payments account for nearly all of the payments made under PILT. InFY2023FY2025, 99., 99.929% of all % of all
PILT payments were made through Section 6902.PILT payments were made through Section 6902.1919 The payments generally can be used for any The payments generally can be used for any
governmental purpose, as noted.governmental purpose, as noted.2020 Further, more counties are eligible for Section 6902 payments Further, more counties are eligible for Section 6902 payments
than either Section 6904 or Section 6905 payments.than either Section 6904 or Section 6905 payments.
Entitlement Lands
There are nine categories of federal lands identified as entitlement lands in the PILT statute.There are nine categories of federal lands identified as entitlement lands in the PILT statute.21
1. 211. Lands in the National Park System (administered by the National Park Service, in Lands in the National Park System (administered by the National Park Service, in
DOI)DOI)
2.
2. Lands in the National Forest System (administered by the U.S. Forest Service, in Lands in the National Forest System (administered by the U.S. Forest Service, in
the U.S. Department of Agriculture (USDA))the U.S. Department of Agriculture (USDA))
3.
3. Lands administered by the Bureau of Land Management (BLM)Lands administered by the Bureau of Land Management (BLM)
4.
4. Lands in the National Wildlife Refuge System (NWRS) that are withdrawn from Lands in the National Wildlife Refuge System (NWRS) that are withdrawn from
the public domain (administered by the U.S. Fish and Wildlife Service, in DOI)the public domain (administered by the U.S. Fish and Wildlife Service, in DOI)22
5. 22
5. Lands dedicated to the use of federal water resources development Lands dedicated to the use of federal water resources development projects23
6. projects23
6. Dredge disposal areas under the jurisdiction of the U.S. Army Corps of EngineersDredge disposal areas under the jurisdiction of the U.S. Army Corps of Engineers
7.
7. Lands located in the vicinity of Purgatory River Canyon and Piñon Canyon, CO, Lands located in the vicinity of Purgatory River Canyon and Piñon Canyon, CO,
that were acquired after December 31, 1981, to expand the Fort Carson military that were acquired after December 31, 1981, to expand the Fort Carson military
reservation
8. reservation
8. Lands on which are located semi-active or inactive Army installations used for Lands on which are located semi-active or inactive Army installations used for
mobilization and for reserve component trainingmobilization and for reserve component training
9.
9. Certain lands acquired by DOI or the USDA under the Southern Nevada Public Certain lands acquired by DOI or the USDA under the Southern Nevada Public
Land Management Act (P.L. 105-263Land Management Act (P.L. 105-263)
)Some of these categories largely account for all of the lands managed by the relevant Some of these categories largely account for all of the lands managed by the relevant
administering agencies (e.g., categories 1-3). The U.S. Fish and Wildlife administering agencies (e.g., categories 1-3). The U.S. Fish and Wildlife Service's entitlement acreage entitlement acreage
excludes lands that were purchased as additions to the NWRS and lands that are not included in excludes lands that were purchased as additions to the NWRS and lands that are not included in
the NWRS. Some of the other categories are lands tied to specific laws or actions (e.g., categories the NWRS. Some of the other categories are lands tied to specific laws or actions (e.g., categories
18 31 U.S.C. §6901(2).
19 National Summary FY2023, p. 8.
20 31 U.S.C. §6902(a).
21 31 U.S.C. §6901(1).
22 Public domain lands “refers to public lands the United States obtained title to through treaty, purchase, or annexation
that have never left federal ownership.” For more information on public domain and acquired lands, see U.S. Fish and
Wildlife Service, Statistical Data Tables for Fish &Wildlife Service Lands (as of 9/30/2022), available at
https://www.fws.gov/library/collections/national-wildlife-refuge-system-annual-lands-reports.
23 This includes lands administered by the U.S. Army Corps of Engineers and the Bureau of Reclamation. National
Summary FY2023, p. 3.
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7 and 9) or may not include all, or even the majority of, lands administered by particular agencies 7 and 9) or may not include all, or even the majority of, lands administered by particular agencies
or departments (e.g., category 8).or departments (e.g., category 8).2424
Calculating Section 6902 Payments
Section 6902 payments are determined based on a multipart formula (Section 6902 payments are determined based on a multipart formula (seesee Figure 2). The DOI . The DOI
Office of the Secretary calculates PILT payments according to several factors, includingOffice of the Secretary calculates PILT payments according to several factors, including
• the number of entitlement acres;the number of entitlement acres;
•
a per-acre calculation determined by one of two alternatives (a per-acre calculation determined by one of two alternatives (Alternative A, also , also
called the called the standard rate, or , or Alternative B, also called the , also called the minimum provision););
•
a population-based payment (ceiling);a population-based payment (ceiling);
•
certain prior-year payments pursuant to other compensation programs; andcertain prior-year payments pursuant to other compensation programs; and
•
the amount available to cover PILT payments.the amount available to cover PILT payments.
To calculate a particular countyTo calculate a particular county’'s PILT payment, the DOI Office of the Secretary first must s PILT payment, the DOI Office of the Secretary first must
collect data from several federal agencies and the countycollect data from several federal agencies and the county’'s state to answer the following s state to answer the following
questions:questions:
• How many acres of eligible lands are in the county?How many acres of eligible lands are in the county?
•
What is the population of the county?What is the population of the county?25
• 25
What was the increase in the Consumer Price Index for the 12 months ending the What was the increase in the Consumer Price Index for the 12 months ending the
preceding June 30?preceding June 30?
•
What were the prior yearWhat were the prior year’'s payments, if any, to the county under the other s payments, if any, to the county under the other
payment programs of federal agencies?payment programs of federal agencies?26
• 26
Do any state laws require payments under other federal land compensation laws Do any state laws require payments under other federal land compensation laws
to be passed through to other local government entities, such as school districts, to be passed through to other local government entities, such as school districts,
rather than stay with the county government?
24 For FY2023, there were a total of 606.7 million entitlement acres, as shown in the National Summary FY2023, p.
304.
25 At 31 U.S.C. §6903(a)(2), PILT requires that population is “determined on the same basis that the Secretary of
Commerce determines resident population for general statistical purposes.” Pertinent regulations, at 43 C.F.R.
§44.21(a)(3), specify that the U.S. Census Bureau provides statistics on the population of each local government.
County population data in the National Summary FY2023 reflect the latest count by the U.S. Census Bureau, according
to DOI (p. 116).
26 Prior-year payment programs that may affect PILT payments are listed at 31 U.S.C. §6903(a)(1).
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Figure 2. Steps in Calculating PILT Section 6902 Payments (FY2023 Rates)
Sourcesrather than stay with the county government?FY2023FY2025 can be found in can be found in
Department of the Interior, Department of the Interior, Fiscal Year2023 2025 Payments In Lieu of Taxes, National Summary, June , June 20232025, pp. 9-11, , pp. 9-11,
available at https://www.doi.gov/available at https://www.doi.gov/pilt.
sites/default/files/documents/2025-06/2025nationalsummarypilt062025-508.pdf. Note: For more information on Box B (ceiling payments), For more information on Box B (ceiling payments),seesee Figure 3.
The first step in calculating a countyThe first step in calculating a county’'s Section 6902 payment is to determine the number of s Section 6902 payment is to determine the number of
entitlement acres within the entitlement acres within thecountycounty (Figure 2, Box A). The acreage figures are reported to DOI Box A). The acreage figures are reported to DOI
by the various federal agencies that administer the entitlement lands.by the various federal agencies that administer the entitlement lands.
The next step is to calculate the population-based ceiling by multiplying the countyThe next step is to calculate the population-based ceiling by multiplying the county’'s population s population
by the population payment rate by the population payment rate (Figure 2, Box B). County population data are provided by the Box B). County population data are provided by the
U.S. Census Bureau. The population number for this calculation differs based on the countyU.S. Census Bureau. The population number for this calculation differs based on the county’s
's population level population level(Figure 3):
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• (Figure 3): For counties with populations fewer than 5,000, the countyFor counties with populations fewer than 5,000, the county’'s actual population is s actual population is
used in the calculationused in the calculation.
• .
For counties with populations equal to or greater than 5,000, the countyFor counties with populations equal to or greater than 5,000, the county’s
's population is rounded to the nearest 1,000, and this rounded population is used in population is rounded to the nearest 1,000, and this rounded population is used in
the calculation.the calculation.
•
All counties with populations greater than 50,000, regardless of their actual All counties with populations greater than 50,000, regardless of their actual
populations, are considered to have a population equal to 50,000 for the purposes populations, are considered to have a population equal to 50,000 for the purposes
of calculating the ceiling.of calculating the ceiling.
The population payment rate is adjusted annually for inflation based on the change in the The population payment rate is adjusted annually for inflation based on the change in the
Consumer Price Index for the 12 months ending on the preceding June 30.Consumer Price Index for the 12 months ending on the preceding June 30.27 The population
payment rate generally declines as population increases in 1,000-person increments. (Figure 4).28
27 As population increases in 1,000-person increments, the per capita payment rate generally decreases, although the ceiling generally increases (Figure 4).28 However, this is not always the case. For example, in However, this is not always the case. For example, inFY2023FY2025, payment rates for several , payment rates for several
populations were the same despite increasing populations, such as the rates for populations of populations were the same despite increasing populations, such as the rates for populations of
26,00026,000; people, 27,000 27,000; people, and 28,000 and 28,000 people, which are all $, which are all $107.94118.49 per person. For per person. For FY2023FY2025, the population , the population
payment rates ranged from $payment rates ranged from $212.03232.73 per person for counties with populations of less than per person for counties with populations of less than or equal to 5,000 to 5,000 to
$84.81$93.09 per person for counties with populations of per person for counties with populations of 50,000 or greater.29
less than or equal to 50,000.29 Counties with populations greater than 50,000 have the same ceiling as counties with populations of 50,000.
Some payment ceilings do not increase with increasing populations. For example, counties with Some payment ceilings do not increase with increasing populations. For example, counties with
populations of 50,000 have a lower ceiling than those with populations of 49,000 (49,000 × populations of 50,000 have a lower ceiling than those with populations of 49,000 (49,000 ×
FY2023FY2025 payment rate of $ payment rate of $86.75 = $4,250,75095.22 = $4,665,780; and 50,000 × ; and 50,000 × FY2023FY2025 payment rate of $ payment rate of $84.8193.09 = =
$4,240$4,654,500, or $,500, or $10,25011,280 less for the more populous county).
less for the more populous county).
27 31 U.S.C. §6903(d).
28 31 U.S.C. §6903(c)(2). Even though the population payment rate generally declines as county population size
increases, payment ceilings generally are higher for counties with larger populations. For example, in FY2023, the
population payment rate for a population of 5,000 was $212.03 and the rate for a population of 6,000 was $198.56, a
decrease of $13.47 in the rate for the more populous county. When multiplied by the population, however, the ceiling is
higher for the county with the larger population: 5,000 × $212.03 = $1,060,150, versus 6,000 × $198.56 = $1,191,360,
or $131,210 more for the more populous county. National Summary FY2023, p. 15.
29 The per capita payment rates are included in the PILT national summary each year. For example, the National
Summary FY2023, p. 15, includes the payment rates for FY2023.
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Figure 3. PILT Population-Based Ceiling Calculation
Source: CRS, with information from 16 U.S.C. §6903.
Figure 4. FY2023 PILT Population-Based Ceilings
Source: CRS, with data from Department of the Interior, Fiscal Year 2023 Payments In Lieu of Taxes, , National
Summary, , June 2025, p. 15,p. 15, available at https://www.doi.gov/https://www.doi.gov/pilt.
sites/default/files/documents/2025-06/2025nationalsummarypilt062025-508.pdf. Notes: Ceiling calculations for counties with populations greater than 5,000 are based on the county Ceiling calculations for counties with populations greater than 5,000 are based on the county’s
's population rounded to the nearest 1,000 (e.g., a county with a population of 8,499 would be credited with a population rounded to the nearest 1,000 (e.g., a county with a population of 8,499 would be credited with a
population of 8,000, whereas a county with a population of 8,500 would be credited with a population of 9,000). population of 8,000, whereas a county with a population of 8,500 would be credited with a population of 9,000).
Counties cannot be credited with a population above 50,000 (i.e., all counties with populations greater than Counties cannot be credited with a population above 50,000 (i.e., all counties with populations greater than
50,000 are, for the purposes of the ceiling calculation, treated as if they have a population of 50,000). The 50,000 are, for the purposes of the ceiling calculation, treated as if they have a population of 50,000). The
PILT National SummaryFY2023 FY2025 contains the per capita payment rates for the contains the per capita payment rates for the FY2023FY2025 payments. payments.
The next step is to calculate the payment level under Alternatives A and B The next step is to calculate the payment level under Alternatives A and B (Figure 2, BoxBox C). C).
Alternative A has a higher per-acre payment rate than Alternative B, but Alternative A is subject Alternative A has a higher per-acre payment rate than Alternative B, but Alternative A is subject
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to a deduction for prior-year payments. For to a deduction for prior-year payments. For FY2023FY2025, the per-acre payment rates were $3., the per-acre payment rates were $3.1546 per per
acre of entitlement land for Alternative A and $0.acre of entitlement land for Alternative A and $0.4550 per acre of entitlement land for Alternative B. per acre of entitlement land for Alternative B.
For calculations under Alternative A, DOI deducts certain prior-year payments. Qualifying prior-For calculations under Alternative A, DOI deducts certain prior-year payments. Qualifying prior-
year payments are those payments from the federal payment programs listed in statute:year payments are those payments from the federal payment programs listed in statute:30
• 30the Act of June 20, 1910 (ch. 310, 36 Stat. 557);the Act of June 20, 1910 (ch. 310, 36 Stat. 557);
•
Section 33 of the Bankhead-Jones Farm Tenant Act (7 U.S.C. §1012);Section 33 of the Bankhead-Jones Farm Tenant Act (7 U.S.C. §1012);
•
the Act of May 23, 1908 (16 U.S.C. §500), or the Secure Rural Schools and the Act of May 23, 1908 (16 U.S.C. §500), or the Secure Rural Schools and
Community Self-Determination Act of 2000 (16 U.S.C. §§7101 et seq.);Community Self-Determination Act of 2000 (16 U.S.C. §§7101 et seq.);31
• 31
Section 5 of the Act of June 22, 1948 (16 U.S.C. §§577g–577g-1);Section 5 of the Act of June 22, 1948 (16 U.S.C. §§577g–577g-1);
•
Section 401(c)(2) of the Act of June 15, 1935 (16 U.S.C. §715s(c)(2));Section 401(c)(2) of the Act of June 15, 1935 (16 U.S.C. §715s(c)(2));
•
Section 17 of the Federal Power Act (16 U.S.C. §810);Section 17 of the Federal Power Act (16 U.S.C. §810);
•
Section 35 of the Act of February 25, 1920 (30 U.S.C. §191);Section 35 of the Act of February 25, 1920 (30 U.S.C. §191);
•
Section 6 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. §355);Section 6 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. §355);
•
Section 3 of the Act of July 31, 1947 (30 U.S.C. §603); andSection 3 of the Act of July 31, 1947 (30 U.S.C. §603); and
•
Section 10 of the Act of June 28, 1934 (known as the Taylor Grazing Act) (43 Section 10 of the Act of June 28, 1934 (known as the Taylor Grazing Act) (43
U.S.C. §315i).U.S.C. §315i).
However, if a state has a However, if a state has a pass--through law that requires some or all of these prior-year payments law that requires some or all of these prior-year payments
to be paid directly to a sub-county recipient (e.g., a school district), the amount passed through to be paid directly to a sub-county recipient (e.g., a school district), the amount passed through
from these payments is not deducted from subsequent PILT payments in the following year.from these payments is not deducted from subsequent PILT payments in the following year.32
32
As noted, Alternative B is calculated without deducting prior-year payments, but it uses a lower As noted, Alternative B is calculated without deducting prior-year payments, but it uses a lower
per-acre payment rate.per-acre payment rate.
Once each alternative is calculated, the greater of the two is the Section 6902 authorized payment Once each alternative is calculated, the greater of the two is the Section 6902 authorized payment
for the county for the county (Figure 2,BoxBox D). However, if the per-acre calculated Section 6902 authorized D). However, if the per-acre calculated Section 6902 authorized
payment is greater than the population-based ceiling, then the population-based ceiling replaces payment is greater than the population-based ceiling, then the population-based ceiling replaces
the per-acre calculated amount.the per-acre calculated amount.3333
The Section 6902 authorized payments are calculated for every county, and this amount is added The Section 6902 authorized payments are calculated for every county, and this amount is added
to the Section 6904 and Section 6905 authorized payments (for more information on Sections to the Section 6904 and Section 6905 authorized payments (for more information on Sections
6904 and 6905, see 6904 and 6905, see "“PILT Payments Under Sections 6904 and 6905”"). This summed amount is ). This summed amount is
the full statutory calculation for a given fiscal year the full statutory calculation for a given fiscal year (Figure 2, Box E). DOI compares the full Box E). DOI compares the full
statutory calculation with the amount appropriated and available for PILT payments to determine statutory calculation with the amount appropriated and available for PILT payments to determine
whether Congress has provided funding to coverwhether the appropriated amount covers the full statutory the full statutory calculationcalculation (Figure 2, Box F).34 If sufficient funding is available, each county receives its authorized amount;35 (Figure 2, Box
30 31 U.S.C. §6903(a)(1).
31 For more information, see CRS Report R41303, The Secure Rural Schools and Community Self-Determination Act:
Background and Issues.
32 National Summary FY2023, p. 10. According to DOI
Only the amount of Federal land payments actually received by units of government in the prior fiscal year is
deducted. If a unit receives a Federal land payment but is required by State law to pass all or part of it to
financially and politically independent school districts, or to any other single or special purpose district,
payments are considered to have not been received by the unit of local government and are not deducted from
the Section 6902 payment.
33 If the population-based ceiling replaces the per-acre calculation under Alternative A, prior-year payments are then
deducted from the population-based ceiling to determine the final amount for Alternative A.
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F).34 If sufficient funding is available, each county receives its authorized amount;35 if funding is if funding is
insufficient, each county receives a prorated payment that is proportional to its authorized insufficient, each county receives a prorated payment that is proportional to its authorized
payment payment (Figure 2,Box G).36
The full statutory calculation and the amount available for PILT payments determine proration.
Although there are additional adjustments made in the PILT proration calculation resulting from
small idiosyncrasies related to the requirements for PILT payments—namely, the requirement of a
minimum threshold of $100 for PILT payments37—the proration is fundamentally Box G). In addition, PILT payments are made only if they are $100 or greater.36
The full statutory calculation and the amount appropriated for PILT payments determine proration. The proration is the ratio of the the ratio of the
appropriated funding available for PILT payments to the full statutory calculation:appropriated funding available for PILT payments to the full statutory calculation:
As a result, counties may receive less than their authorized PILT payment in years when As a result, counties may receive less than their authorized PILT payment in years when
appropriated funding is insufficient to cover the full statutory calculation. This scenario can occur appropriated funding is insufficient to cover the full statutory calculation. This scenario can occur
even when total PILT appropriations match the full statutory calculation; this has been the case in even when total PILT appropriations match the full statutory calculation; this has been the case in
years with mandatory appropriations, when part of the appropriated amount is set aside for a use years with mandatory appropriations, when part of the appropriated amount is set aside for a use
other than county payments. For example, laws providing appropriations for PILT routinely have other than county payments. For example, laws providing appropriations for PILT routinely have
allowed DOI to retain a allowed DOI to retain a relatively small portion of PILT appropriations for administrative expenses.small portion of PILT appropriations for administrative expenses.38
37 PILT Payments Under Sections 6904 and 6905
Section 6904 and Section 6905 payments account for a small fraction of total PILT payments.Section 6904 and Section 6905 payments account for a small fraction of total PILT payments.3938 In FY2025 In
FY2023, these payments accounted for 0., these payments accounted for 0.081% of PILT payments ($% of PILT payments ($481,628 of $5780.5 million of $644.8 million in .8 million in
total payments made).total payments made).4039 When a county receives Section 6904 and/or Section 6905 payments, it is When a county receives Section 6904 and/or Section 6905 payments, it is
to disburse the funds to governmental units and school districts within the county in proportion to to disburse the funds to governmental units and school districts within the county in proportion to
the amount of property taxes lost because of the federal ownership of the entitled lands, as the amount of property taxes lost because of the federal ownership of the entitled lands, as
enumerated under these sections.enumerated under these sections.4140 The funds generally may be used for any governmental The funds generally may be used for any governmental
purpose, as noted.42
34 Congress provides funding for PILT through either discretionary or mandatory appropriations, or both, in any given
year. See “PILT Authorizations and Appropriations” for more information.
35 Payments may be subject to any additional provisions included in appropriations language, such as minimum
payment thresholds or adjustments for under- or overpayments in previous years. PILT provisions in appropriations
laws generally have required a minimum payment threshold of $100. For example, the FY2023 appropriations act
included a $100 minimum payment clause (P.L. 117-328, Division G, Title I).
36 The provision for a prorated payment is not included in the PILT statutory language (31 U.S.C. §§6901-6907), but it
has been included in certain appropriations laws for PILT. See, for example, P.L. 117-328, Division G, Title I.
37 The requirement of a minimum threshold of $100 for PILT payments typically is included in appropriations language
related to PILT (e.g., for FY2023, P.L. 117-328, Division G, Title I). It also is in regulation (43 C.F.R. §44.51).
38 For example, DOI is allowed to retain up to $400,000 of the appropriations for PILT for administrative expenses in
FY2023 (P.L. 117-328, Division G, Title I).
39 31 U.S.C. §§6904 and 6905.
40 National Summary FY2023, p. 8. This source reports §6904 and §6905 payments together, and further disaggregation
is not possible from the information provided.
41 43 C.F.R. §44.50.
42 31 U.S.C. §6904(b) and §6905(a) and (b)(3).
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Section 6904 Payments
purpose, as noted.41 Section 6904 Payments Section 6904 authorizes the Secretary of the Interior to make payments to counties that contain Section 6904 authorizes the Secretary of the Interior to make payments to counties that contain
certain lands, or interests in lands, that are part of the National Park System and National Forest certain lands, or interests in lands, that are part of the National Park System and National Forest
Wilderness Areas.Wilderness Areas.4342 However, Section 6904 specifies that these lands, or interests, are eligible However, Section 6904 specifies that these lands, or interests, are eligible
only if (1) they have been acquired by the U.S. government for addition to these systems and (2) only if (1) they have been acquired by the U.S. government for addition to these systems and (2)
they were subject to local property taxes in the five-year period prior to this acquisition.they were subject to local property taxes in the five-year period prior to this acquisition.44
43 Payment under Section 6904 is calculated as 1% of the fair market value of the land at the time it Payment under Section 6904 is calculated as 1% of the fair market value of the land at the time it
was acquired, not to exceed the amount of property taxes levied on the property during the fiscal was acquired, not to exceed the amount of property taxes levied on the property during the fiscal
year prior to its acquisition.year prior to its acquisition.4544 Further, Section 6904 payments are made annually Further, Section 6904 payments are made annually only for the five for the five
fiscal years after the land, or interest, is acquired by the U.S. government, unless otherwise fiscal years after the land, or interest, is acquired by the U.S. government, unless otherwise
mandated by law.mandated by law.
Section 6905 Payments
Section 6905 authorizes the Secretary of the Interior to make payments to counties that contain Section 6905 authorizes the Secretary of the Interior to make payments to counties that contain
lands, or interests in lands, that are part of the Redwood National Park and are owned by the U.S. lands, or interests in lands, that are part of the Redwood National Park and are owned by the U.S.
government or that are acquired by the U.S. government in the Lake Tahoe Basin under the Act of government or that are acquired by the U.S. government in the Lake Tahoe Basin under the Act of
December 23, 1980.December 23, 1980.4645 Section 6905 payments are paid at a rate of (1) 1% of the fair market value Section 6905 payments are paid at a rate of (1) 1% of the fair market value
of the acquired land or interests or (2) the amount of taxes levied on the land in the year prior to of the acquired land or interests or (2) the amount of taxes levied on the land in the year prior to
acquisition, whichever is less. Payments on these lands continue for five years or until payments acquisition, whichever is less. Payments on these lands continue for five years or until payments
have totaled 5% of the fair market value of the land, whichever is later.have totaled 5% of the fair market value of the land, whichever is later.47
46 Issues for Congress
PILT is of perennial interest to many Members of CongressPILT is of perennial interest to many Members of Congress, counties, and other and to stakeholders throughout the stakeholders throughout the
country. In particular, county governments are interested in the degree of certainty of PILT country. In particular, county governments are interested in the degree of certainty of PILT
payments and how payments are calculated, because many consider PILT payments to be an payments and how payments are calculated, because many consider PILT payments to be an
integral part of their annual budgets. integral part of their annual budgets.Congressional and stakeholder interests include questions of
how PILTQuestions about PILT center on how the program should be funded, what lands should be included as entitlement lands, and how should be funded, what lands should be included as entitlement lands, and how
authorized payment levels are calculatedauthorized payment levels are calculated under PILT, among others.
, among other issues. In addition, Congress may consider broader issues related to PILT. For instance, one issue is how PILT fits into the landscape of federal programs that compensate for the presence of tax-exempt federal lands.
Congress annually addresses questions of how funding should be provided to PILT. Congress has Congress annually addresses questions of how funding should be provided to PILT. Congress has
funded PILT through both discretionary and mandatory appropriations (see funded PILT through both discretionary and mandatory appropriations (see "“PILT Authorizations
and Appropriations”)"). PILT funding typically has been provided through the discretionary . PILT funding typically has been provided through the discretionary
appropriations process for one fiscal year at a time, even when the funding has been considered appropriations process for one fiscal year at a time, even when the funding has been considered
mandatory spending. mandatory spending. Although PILT has received funding each year since its enactment, the Although PILT has received funding each year since its enactment, the
appropriations process has created uncertainty among some stakeholders about the level of annual
43 31 U.S.C. §6904. For more information on the National Park System, see CRS Report R41816, National Park
System: What Do the Different Park Titles Signify?. For more information on wilderness areas, see CRS Report
RL31447, Wilderness: Overview, Management, and Statistics.
44 31 U.S.C. §6904(a).
45 31 U.S.C. §6904(c).
46 31 U.S.C. §6905. The Act of December 23, 1980, is P.L. 96-586.
47 43 C.F.R. §44.40. Payments may extend beyond five years when taxes levied in the year prior to acquisition account
for less than 1% of the fair market value of the acquired land. However, any portion of a payment not made because
Congress did not appropriate sufficient funds is not deferred to later payments.
Congressional Research Service
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link to page 9 The Payments in Lieu of Taxes (PILT) Program: An Overview
funding. Stakeholders have expressed a desire for more certainty in terms of both the guarantee of
funding and the amount of funding (i.e., the full statutory calculation).48
appropriations process has created uncertainty among some stakeholders about the level of annual funding. Some supporters have expressed a desire for more certainty in terms of both the guarantee of funding and the amount of funding (i.e., the full statutory calculation).47 However, the annual appropriations process can provide Congress the flexibility to assess PILT and to determine program funding in the context of other priorities, both in the annual Interior, Environment, and Related Agencies appropriations bill and government spending more generally.
Members of Congress typically contemplate the implications and tradeoffs of discretionary versus Members of Congress typically contemplate the implications and tradeoffs of discretionary versus
mandatory spending and may have different views than the counties that receive PILT payments. mandatory spending and may have different views than the counties that receive PILT payments.
Congress, for example, may weigh the flexibility of having discretion to review and fund PILT on Congress, for example, may weigh the flexibility of having discretion to review and fund PILT on
an annual basis through the appropriations process against the certainty of funding for specific an annual basis through the appropriations process against the certainty of funding for specific
activities that accompany mandatory appropriations.activities that accompany mandatory appropriations.4948 In recent Congresses, bills have been In recent Congresses, bills have been
introduced to amend how PILT is funded. For example, introduced to amend how PILT is funded. For example,legislation was introduced in the 116th
116th Congress Congressthatlegislation would have required mandatory funding for PILT would have required mandatory funding for PILT, either for a set period of time for a set period of time
(e.g., 10 additional years) or indefinitely.50
The question of which.49 As another example, 118th Congress legislation sought to require mandatory funding indefinitely.50
Which lands should be eligible for PILT payments lands should be eligible for PILT payments is alsoalso is of interest to many of interest to many
Members and stakeholders. Members and stakeholders.In law, entitlement lands are restricted to the listed federal land types
(see “Entitlement Lands”). However, thisOne question is whether to narrow, broaden, or retain the definition in law of entitlement lands (see "Entitlement Lands"). The current definition does not fully encompass the types of lands definition does not fully encompass the types of lands
that are that areheldmanaged by the federal government by the federal government, nor does it account for the full suite of lands or that are that are
exempt from state and local taxes. Although counties may receive compensation for some of exempt from state and local taxes. Although counties may receive compensation for some of
these theseother lands through other federal programs, not all federal lands exempt from taxation are lands through other federal programs, not all federal lands exempt from taxation are
covered by a federal compensation program. This might contribute to financial hardships for covered by a federal compensation program. This might contribute to financial hardships for
counties that otherwise might receive revenue from that land through taxation. counties that otherwise might receive revenue from that land through taxation.ToIn part to address this address this
concern, some Members of Congress have proposed amendingconcern, legislation has been introduced in recent Congresses to amend the definition of entitlement lands the definition of entitlement lands
under PILT. Among other proposals, in past Congresses, Members have introduced legislation
that would have amended PILT by expandingunder PILT. Among others, proposals sought to expand the definition of entitlement land to include the definition of entitlement land to include
• land land “"that is held in trust by the United States for the benefit of a federally that is held in trust by the United States for the benefit of a federally
recognized Indian tribe or an individual Indianrecognized Indian tribe or an individual Indian”;51
• ";51
lands under the jurisdiction of the Department of the Defense, other than those lands under the jurisdiction of the Department of the Defense, other than those
already included in PILT;already included in PILT;52
• 52
lands acquired by the federal government for addition to the National Wildlife lands acquired by the federal government for addition to the National Wildlife
Refuge System;Refuge System;5353 and and
•
lands administered by the Department of Homeland Security,lands administered by the Department of Homeland Security, 5454 among others. among others.
Amending the definition Amending the definition to expand the categories of entitlement lands could have several implications. Adding of entitlement lands could have several implications. Adding acrescategories of of
entitlement lands could increase the authorized amount of payments under PILT for the counties
in which those lands are located. Depending how the definition was amended, these entitlement lands would expand the authority for PILT payments to counties in which those lands are located. If mandatory payments are made to cover all additional qualifying lands, all counties with additional entitlement lands presumably would be evaluated for possibly higher payments. However, if the appropriations were not at the full authorized level, proration of payments might become more frequent across counties. Also, counties without additional entitlement lands (under any expansion of categories) might benefit less if appropriations are prorated, because the payments to counties with additional entitlement lands would increase. Further, depending how the definition was amended, additional additional
entitlement lands may be eligible for compensation under other federal compensation programs. entitlement lands may be eligible for compensation under other federal compensation programs.
In turn, this could further affect PILT payment calculations through the adjustment for prior-year In turn, this could further affect PILT payment calculations through the adjustment for prior-year
payments deducted from Alternative A.payments deducted from Alternative A.
48 National Association of Counties (NACo), Provide Full Mandatory Funding for
1.
The Department of the Interior (DOI) maintains a website with diverse information and resources on the Payments in Lieu of Taxes
(PILT) Program, February 1, 2023, at https://www.naco.org/resources/provide-full-mandatory-funding-payments-lieu-
taxes-pilt-program.
49 For more information, see CRS Report R44582, Overview of Funding Mechanisms in the Federal Budget Process,
and Selected Examples.
50 For example, S. 2480 would have required mandatory PILT funding through FY2029, and H.R. 3043 would have
required mandatory PILT funding indefinitely. Both bills were introduced in the 116th Congress.
51 For example, H.R. 7251 in the 110th Congress.
52 For example, H.R. 4710 in the 113th Congress.
53 For example, S. 2626 in the 113th Congress.
54 For example, H.R. 543 in the 112th Congress.
Congressional Research Service
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The Payments in Lieu of Taxes (PILT) Program: An Overview
The authorized payment level under Section 6902, which accounts for nearly all payments under
PILT, is calculated pursuant to the statutory requirements. This section has remained largely
unchanged since the requirement to adjust for inflation was added in 1994, among other
changes.55 The inflation adjustment clause has resulted in increasing payment and ceiling rates
since that time. Congress at times has considered whether the current formula is the best means of
calculating payments under PILT or whether the formula should be amended. For example, in the
116th Congress, bills were introduced that would have adjusted the payment structure for counties
with a population of less than 5,000.56 This adjustment would have had implications for how
population would be incorporated into calculating PILT payments. In the 117th Congress, bills
were introduced that would have directed the Secretary of the Interior to develop, study, and
report on a modeling tool to calculate tax equivalency payments.57
In addition to the above issues, Congress may consider other issues related to PILT and how the
program fits into the landscape of federal programs that compensate for the presence of tax-
exempt federal lands.58
Author Information
Carol Hardy Vincent
Specialist in Natural Resources Policy
Acknowledgments
Katie Hoover, former CRS Specialist in Natural Resources, was the previous author of this report.
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.
55 P.L. 103-397Program (PILT): https://www.doi.gov/pilt. The Department of Energy also implements a separate PILT program, as authorized by the Atomic Energy Act of 1954 (P.L. 83-703, 42 U.S.C. §2208), not discussed in this report. This report also does not discuss time-limited payments made to PILT counties through the Local Assistance and Tribal Consistency Fund (LATCF), established in the American Rescue Plan Act of 2021 (P.L. 117-2, Sec. 9901). Receiving PILT payments was one factor for determining eligibility to receive a payment through the LATCF. For more information, see the Department of the Treasury's LATCF website at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/local-assistance-and-tribal-consistency-fund.
2.
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9.
10.
11.
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15.
16.
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22.
Public domain lands "refers to public lands the United States obtained title to through treaty, purchase, or annexation that have never left federal ownership." See U.S. Fish and Wildlife Service (FWS), Statistical Data Tables for Fish & Wildlife Service Lands (as of 9/30/2024), p. 1, at https://www.fws.gov/sites/default/files/documents/2025-08/2024_annual_report_of_lands_data_tables_v2.pdf. Other FWS lands are acquired, for instance through purchase or donation. For more information on public domain and acquired lands, see U.S. Fish and Wildlife Service, Statistical Data Tables for Fish &Wildlife Service Lands (as of 9/30/2024). Information on FWS authorities to acquire and dispose of lands is contained in CRS Report RL34273, Federal Land Ownership: Acquisition and Disposal Authorities, coordinated by Carol Hardy Vincent.
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55.
P.L. 103-397 amended 31 U.S.C. §6903 in several ways, including to add a requirement to adjust for inflation. Since amended 31 U.S.C. §6903 in several ways, including to add a requirement to adjust for inflation. Since
then, §6903 has been amended once. Specifically, P.L. 106-393 amended the definition of payment law at 31 U.S.C. then, §6903 has been amended once. Specifically, P.L. 106-393 amended the definition of payment law at 31 U.S.C.
§6903(a)(1)(C) to add the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. §§7101 et §6903(a)(1)(C) to add the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. §§7101 et
seq.) to the list of payment lawsseq.) to the list of payment laws, which are included in determining prior-year payments. which are included in determining prior-year payments.
56 For example,
56.
See, for instance, S. 2108 and H.R. 3716S. 2108 and H.R. 3716 in the 116th Congress and S. 1175 in the 119th Congress.
57.
in the 116th Congress.
57 For example, S. 1008 and H.R. 2755 For example, S. 1008 and H.R. 2755 in the 117th Congress.
in the 117th Congress.
58 For more discussion on these issues, see CRS Report R42439, Compensating State and Local Governments for the
Tax-Exempt Status of Federal Lands: What Is Fair and Consistent?.
Congressional Research Service
R46260 · VERSION 14 · UPDATED
15
Contents
- Payments in Lieu of Taxes (PILT) Introduction
- PILT Authorizations and Appropriations
- Overview
- History
- PILT Payments Under Section 6902
- Entitlement Lands
- Calculating Section 6902 Payments
- PILT Payments Under Sections 6904 and 6905
- Section 6904 Payments
- Section 6905 Payments
- Issues for Congress
Figures
Summary
The Department of the Interior's (DOI's) Payments in Lieu of Taxes (PILT; 31 U.S.C. §§6901-include most federal lands administered by the Bureau of Land Management, the National Park Service, and the U.S. Fish include most federal lands administered by the Bureau of Land Management, the National Park Service, and the U.S. Fish
and Wildlife Service, all in DOI, and by the U.S. Forest Service in the Department of Agriculture; federal water projects; and Wildlife Service, all in DOI, and by the U.S. Forest Service in the Department of Agriculture; federal water projects;
dredge disposal areas; and some military installations. In dredge disposal areas; and some military installations. In
distributed $distributed $
Puerto Rico, and the Virgin Islands.Puerto Rico, and the Virgin Islands.
6902 (31 U.S.C. §6902), Section 6904 (31 U.S.C. §6904), and Section 6905 (31 U.S.C. §6905). Section 6902 payments are 6902 (31 U.S.C. §6902), Section 6904 (31 U.S.C. §6904), and Section 6905 (31 U.S.C. §6905). Section 6902 payments are
the broadest of the three payment mechanismsthe broadest of the three payment mechanisms
several factorsseveral factors
's jurisdiction; (2) a per-acre calculation determined by one of two alternatives (jurisdiction; (2) a per-acre calculation determined by one of two alternatives (Alternative A, also called the , also called the standard rate, or , or
Alternative B, also called the , also called the minimum provision); (3) a population-based maximum payment (ceiling); (4) selected prior-); (3) a population-based maximum payment (ceiling); (4) selected prior-
year payments made to the counties pursuant to certain other federal compensation programs; and (5) the amount year payments made to the counties pursuant to certain other federal compensation programs; and (5) the amount
appropriated to cover the payments. Section appropriated to cover the payments. Section 6902 payments are made each year based on entitled lands. Section 6904 and Section 6905 payments are provided to counties 6904 and Section 6905 payments are provided to counties only under selected circumstances—after the federal after the federal
acquisition of specific types of entitlement lands (Section 6904) or entitlement lands located in specific areas (Section 6905)acquisition of specific types of entitlement lands (Section 6904) or entitlement lands located in specific areas (Section 6905)
appropriation was less than the authorized full funding levelappropriation was less than the authorized full funding level
PILT is of perennial interest to many Members of Congress and stakeholders throughout the country. Issues for Congress include how PILT should be funded—whether through discretionary or mandatory appropriations (or both). Another issue relates to the eligibility of various federal lands for entitlement under PILT, including whether to maintain, restrict, or expand the types of lands for which compensation can be provided. Still another issue is whether the current PILT formula is the best means of calculating payments or whether the formula should be amended (e.g., related to payments for small counties or to approximate tax equivalency).
Payments in Lieu of Taxes (PILT) Introduction
The Department of the Interior's (DOI's) Payments in Lieu of Taxes (PILT) program provides s) Payments in Lieu of Taxes (PILT) program providescompensation for certain compensation for certain entitlement lands that are exempt from state and local taxes. that are exempt from state and local taxes.
include most federal lands administered by the Bureau of Land Management, the National Park include most federal lands administered by the Bureau of Land Management, the National Park
Service, and the U.S. Fish and Wildlife Service, all in DOI, and by the U.S. Forest Service in the Service, and the U.S. Fish and Wildlife Service, all in DOI, and by the U.S. Forest Service in the
Department of Agriculture; federal water projects; dredge disposal areas; and some military Department of Agriculture; federal water projects; dredge disposal areas; and some military
installations.installations.
several federal programs enacted to provide compensation to state or local governments for the several federal programs enacted to provide compensation to state or local governments for the
presence of tax-exempt federal lands within their jurisdictions.presence of tax-exempt federal lands within their jurisdictions.4
federal lands—in which federal ownership was considered to be temporary—to one that federal lands—in which federal ownership was considered to be temporary—to one that
prioritized retention of federal lands, in perpetuity, for public benefit.prioritized retention of federal lands, in perpetuity, for public benefit.
19th
lands were exempt from state and local taxation and were no longer likely to return to the tax base lands were exempt from state and local taxation and were no longer likely to return to the tax base
in the foreseeable future, some compensation should be provided to the impacted local in the foreseeable future, some compensation should be provided to the impacted local
governments. Following several decades of commissions, studies, and proposed legislation, PILT governments. Following several decades of commissions, studies, and proposed legislation, PILT
was enacted to was enacted to
local services, such as local services, such as
payments under PILT.payments under PILT.
government—typically counties, though other types of governmental units also may be used —typically counties, though other types of governmental units also may be used
(hereinafter, (hereinafter, counties refers to units of general local government)—containing refers to units of general local government)—containing entitlement lands. .
PILT comprises three separate payment mechanisms: Section 6902, Section 6904, and Section PILT comprises three separate payment mechanisms: Section 6902, Section 6904, and Section
6905 payments, all named for the sections of law in which they are authorized.6905 payments, all named for the sections of law in which they are authorized.
payments account for nearly all payments made through PILT. The Section 6902 amount for each payments account for nearly all payments made through PILT. The Section 6902 amount for each
county is calculated according to a statutory formula that is subject to a maximum payment based county is calculated according to a statutory formula that is subject to a maximum payment based
on the countyon the county
payments are provided through Section 6904 and Section 6905 under selected circumstances and payments are provided through Section 6904 and Section 6905 under selected circumstances and
typically are limited in duration. typically are limited in duration.
Selected Terms Used in This Report
Authorized payment: the amount a county is eligible to receive based on the formula/requirements specified in : the amount a county is eligible to receive based on the formula/requirements specified in
statute, prior to any reductions for administrative costs or due to insufficient appropriations.statute, prior to any reductions for administrative costs or due to insufficient appropriations.
Entitlement lands: statutorily defined federally owned lands that are exempt from state and local taxes and are : statutorily defined federally owned lands that are exempt from state and local taxes and are
eligible to be the basis for determining a countyeligible to be the basis for determining a county
U.S.C. §6901(1).U.S.C. §6901(1).
counties in a given year.counties in a given year.
Inflation: used here to refer to the statutorily required annual adjustment to the : used here to refer to the statutorily required annual adjustment to the per-acre payment rates and the and the
population payment rate. The adjustment is made to reflect changes in the Consumer Price Index published by the . The adjustment is made to reflect changes in the Consumer Price Index published by the
U.S. Bureau of Labor Statistics of the Department of Labor for the previous 12 months ending June 30. This provision Bureau of Labor Statistics of the Department of Labor for the previous 12 months ending June 30. This provision
is required pursuant to 31 U.S.C. §6903(d).is required pursuant to 31 U.S.C. §6903(d).
Per-acre payment
as part of the formula to calculate the as part of the formula to calculate the authorized payment under Section 6902 (31 U.S.C. §6903(b)(1)). These rates under Section 6902 (31 U.S.C. §6903(b)(1)). These rates
are adjusted annually for are adjusted annually for inflation. In . In
Population-based ceiling: the maximum payment a county is eligible to receive under Section 6902. This figure is : the maximum payment a county is eligible to receive under Section 6902. This figure is
calculated by multiplying the countycalculated by multiplying the county
§6903(c)(1)]) by the applicable §6903(c)(1)]) by the applicable population payment rate. Population payment rate: the dollar amount that is multiplied by a county'
based ceiling, as provided in statute (31 U.S.C. §6903(c)(2)). The as provided in statute (31 U.S.C. §6903(c)(2)). The population payment rate declines with increasing declines with increasing
population. This rate is adjusted for population. This rate is adjusted for inflation..
Prior-year payments: payments received by a county for federally owned lands in its jurisdiction through certain : payments received by a county for federally owned lands in its jurisdiction through certain
federal compensation programs other than PILT. These programs refer to one of the federal compensation programs other than PILT. These programs refer to one of the
statute (31 U.S.C. §6903(a)(1)).statute (31 U.S.C. §6903(a)(1)).
Prorated payment: the actual payment received by a county when appropriated funds are insufficient to cover the: the actual payment received by a county when appropriated funds are insufficient to cover the
authorized payments. The . The prorated payment is determined by the amount appropriated for PILT that is available to is determined by the amount appropriated for PILT that is available to
cover payments and is proportional to the cover payments and is proportional to the authorized payment for each county. for each county.
under PILT. These entities are most often counties but may include other jurisdictional units such as parishes, under PILT. These entities are most often counties but may include other jurisdictional units such as parishes,
boroughs, census areas, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. This term is defined boroughs, census areas, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. This term is defined
in statute at 31 U.S.C. §6901(2).in statute at 31 U.S.C. §6901(2).
terms may not be defined in statute, except where noted.terms may not be defined in statute, except where noted.
PILT Authorizations and Appropriations
Overview PILT has been funded through both discretionary and mandatory appropriations at various times. PILT has been funded through both discretionary and mandatory appropriations at various times.
PILT was funded through discretionary appropriations from its enactment in 1976 through PILT was funded through discretionary appropriations from its enactment in 1976 through
No FY2026 full-year appropriation for PILT had been enacted as of November 18, 2025. In recent years, DOI typically has made PILT payments to counties in June of the relevant fiscal year.
History Beginning in FY1976, the authority for PILT to receive discretionary in FY1976, the authority for PILT to receive discretionaryappropriations read as follows: appropriations read as follows:
provisions of this Act such sums as may be necessary: provisions of this Act such sums as may be necessary: Provided, That, notwithstanding any other , That, notwithstanding any other
provision of this Act no funds may be made available except to the extent provided in advance in provision of this Act no funds may be made available except to the extent provided in advance in
appropriation Acts.appropriation Acts.
Secretary of the Interior to carry out [PILT]Secretary of the Interior to carry out [PILT]
provided in appropriation laws.provided in appropriation laws.
FY2012. The legislation changed the heading of the programFY2012. The legislation changed the heading of the program
this chapter; andthis chapter; and
(2) sums shall be made available to the Secretary of the Interior for obligation or expenditure in accordance with this chapter.expenditure in accordance with this chapter.15
amending the authority provided in 31 U.S.C. §6906.amending the authority provided in 31 U.S.C. §6906.16 This was treated as mandatory spending. This was treated as mandatory spending.
Table 1 shows PILT appropriations over the 10 years from shows PILT appropriations over the 10 years from
payments to counties often were slightly different from the appropriations shown, in part because payments to counties often were slightly different from the appropriations shown, in part because
For instance, of the For instance, of the
program administration. DOI distributed $program administration. DOI distributed $
Fiscal
Year
Statute
Funding Type
FY2016
Discretionary
$452.0
FY2017
Discretionary
$465.0
FY2018
Mandatory
$553.2
FY2019
Mandatory
$515.1
FY2020
Mandatory
$515.1
FY2021
Mandatory
$529.7
FY2022
Mandatory
$549.8
FY2023
Mandatory
$579.2
FY2024
Mandatory
$621.6
FY2025
Mandatory
$645.2
https://www.doi.gov/pilt/resources/annual-reportshttps://www.doi.gov/pilt/resources/annual-reports
. Notes: Appropriated amounts may include rescissions as provided in relevant statutes and adjustments from Appropriated amounts may include rescissions as provided in relevant statutes and adjustments from
prior years. Figures are presented in nominal prior years. Figures are presented in nominal
an annual inflation adjustment.an annual inflation adjustment.
For FY2018 through For FY2018 through
year. As a result, the funding for PILT was treated as mandatory spending in these years. These amendments year. As a result, the funding for PILT was treated as mandatory spending in these years. These amendments
required funding for PILT for each of these years to be provided at the amount of the required funding for PILT for each of these years to be provided at the amount of the
Figure 1 shows the shows the
Figure 1. PILT Appropriations, FY2016-FY2025
(in current and inflation-adjusted estimated 2025 dollars)
Source: CRS, with data from PILT National Summaries, CRS, with data from PILT National Summaries,
Congress typically provides other guidance to DOI on implementing PILT. Such guidance has Congress typically provides other guidance to DOI on implementing PILT. Such guidance has
included minimum payment thresholds, set-asides for program administration, and provisions for included minimum payment thresholds, set-asides for program administration, and provisions for
prorating payments.prorating payments.
authorized payments under Sections 6902, 6904, and 6905, counties typically receive a authorized payments under Sections 6902, 6904, and 6905, counties typically receive a
proportional payment known as a proportional payment known as a prorated payment..
appropriations are set equal to 100% of the full statutory calculation, payments to counties may appropriations are set equal to 100% of the full statutory calculation, payments to counties may
be prorated if funding is set aside for purposes other than payments, such as administration.be prorated if funding is set aside for purposes other than payments, such as administration.
appropriations authority and processes for PILT, due to the uncertainty that may accompany such appropriations authority and processes for PILT, due to the uncertainty that may accompany such
changes. Changes that have given rise to concerns include switching between discretionary and changes. Changes that have given rise to concerns include switching between discretionary and
mandatory appropriations, partial and full funding, and one and multiyear appropriations. Such mandatory appropriations, partial and full funding, and one and multiyear appropriations. Such
changes may have implications for counties that rely on PILT funding as part of their annual changes may have implications for counties that rely on PILT funding as part of their annual
budgets. PILT Payments Under Section 6902
Section 6902 payments are provided to counties across the United States to compensate for the Section 6902 payments are provided to counties across the United States to compensate for the
presence of entitlement lands within their boundaries. Section 6902 payments are provided to presence of entitlement lands within their boundaries. Section 6902 payments are provided to
states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands.states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands.
payments account for nearly all of the payments made under PILT. In payments account for nearly all of the payments made under PILT. In
PILT payments were made through Section 6902.PILT payments were made through Section 6902.
governmental purpose, as noted.governmental purpose, as noted.
than either Section 6904 or Section 6905 payments.than either Section 6904 or Section 6905 payments.
Entitlement Lands
There are nine categories of federal lands identified as entitlement lands in the PILT statute.There are nine categories of federal lands identified as entitlement lands in the PILT statute.
administering agencies (e.g., categories 1-3). The U.S. Fish and Wildlife administering agencies (e.g., categories 1-3). The U.S. Fish and Wildlife Service's entitlement acreage entitlement acreage
excludes lands that were purchased as additions to the NWRS and lands that are not included in excludes lands that were purchased as additions to the NWRS and lands that are not included in
the NWRS. Some of the other categories are lands tied to specific laws or actions (e.g., categories the NWRS. Some of the other categories are lands tied to specific laws or actions (e.g., categories
or departments (e.g., category 8).or departments (e.g., category 8).24
Calculating Section 6902 Payments
Section 6902 payments are determined based on a multipart formula (Section 6902 payments are determined based on a multipart formula (
Office of the Secretary calculates PILT payments according to several factors, includingOffice of the Secretary calculates PILT payments according to several factors, including
collect data from several federal agencies and the countycollect data from several federal agencies and the county
questions:questions:
Figure 2. Steps in Calculating PILT Section 6902 Payments (FY2025 Rates) Sources: CRS, based on PILT statute (31 U.S.C. §§6901-6907). Payment rates for CRS, based on PILT statute (31 U.S.C. §§6901-6907). Payment rates for
Department of the Interior, Department of the Interior, Fiscal Year
available at https://www.doi.gov/available at https://www.doi.gov/
sites/default/files/documents/2025-06/2025nationalsummarypilt062025-508.pdf. Note: For more information on Box B (ceiling payments), For more information on Box B (ceiling payments),
entitlement acres within the entitlement acres within the
by the various federal agencies that administer the entitlement lands.by the various federal agencies that administer the entitlement lands.
by the population payment rate by the population payment rate (Figure 2, Box B). County population data are provided by the Box B). County population data are provided by the
U.S. Census Bureau. The population number for this calculation differs based on the countyU.S. Census Bureau. The population number for this calculation differs based on the county
's population level population level
the calculation.the calculation.
of calculating the ceiling.of calculating the ceiling.
Consumer Price Index for the 12 months ending on the preceding June 30.Consumer Price Index for the 12 months ending on the preceding June 30.
27 As population increases in 1,000-person increments, the per capita payment rate generally decreases, although the ceiling generally increases (Figure 4).28 However, this is not always the case. For example, in However, this is not always the case. For example, in
populations were the same despite increasing populations, such as the rates for populations of populations were the same despite increasing populations, such as the rates for populations of
26,00026,000
payment rates ranged from $payment rates ranged from $
populations of 50,000 have a lower ceiling than those with populations of 49,000 (49,000 × populations of 50,000 have a lower ceiling than those with populations of 49,000 (49,000 ×
Figure 3. PILT Population-Based Ceiling Calculation
Source: CRS, with information from 16 U.S.C. §6903.
Figure 4
. FY2025 PILT Population-Based CeilingsFigure is interactive in the HTML report version.
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sites/default/files/documents/2025-06/2025nationalsummarypilt062025-508.pdf. Notes: Ceiling calculations for counties with populations greater than 5,000 are based on the county Ceiling calculations for counties with populations greater than 5,000 are based on the county
's population rounded to the nearest 1,000 (e.g., a county with a population of 8,499 would be credited with a population rounded to the nearest 1,000 (e.g., a county with a population of 8,499 would be credited with a
population of 8,000, whereas a county with a population of 8,500 would be credited with a population of 9,000). population of 8,000, whereas a county with a population of 8,500 would be credited with a population of 9,000).
Counties cannot be credited with a population above 50,000 (i.e., all counties with populations greater than Counties cannot be credited with a population above 50,000 (i.e., all counties with populations greater than
50,000 are, for the purposes of the ceiling calculation, treated as if they have a population of 50,000). The 50,000 are, for the purposes of the ceiling calculation, treated as if they have a population of 50,000). The
PILT National Summary
Alternative A has a higher per-acre payment rate than Alternative B, but Alternative A is subject Alternative A has a higher per-acre payment rate than Alternative B, but Alternative A is subject
acre of entitlement land for Alternative A and $0.acre of entitlement land for Alternative A and $0.
year payments are those payments from the federal payment programs listed in statute:year payments are those payments from the federal payment programs listed in statute:
to be paid directly to a sub-county recipient (e.g., a school district), the amount passed through to be paid directly to a sub-county recipient (e.g., a school district), the amount passed through
from these payments is not deducted from subsequent PILT payments in the following year.from these payments is not deducted from subsequent PILT payments in the following year.
per-acre payment rate.per-acre payment rate.
for the county for the county (Figure 2,
payment is greater than the population-based ceiling, then the population-based ceiling replaces payment is greater than the population-based ceiling, then the population-based ceiling replaces
the per-acre calculated amount.the per-acre calculated amount.33
to the Section 6904 and Section 6905 authorized payments (for more information on Sections to the Section 6904 and Section 6905 authorized payments (for more information on Sections
6904 and 6905, see 6904 and 6905, see "
the full statutory calculation for a given fiscal year the full statutory calculation for a given fiscal year (Figure 2, Box E). DOI compares the full Box E). DOI compares the full
statutory calculation with the amount appropriated and available for PILT payments to determine statutory calculation with the amount appropriated and available for PILT payments to determine
insufficient, each county receives a prorated payment that is proportional to its authorized insufficient, each county receives a prorated payment that is proportional to its authorized
payment payment (Figure 2,
appropriated funding available for PILT payments to the full statutory calculation:appropriated funding available for PILT payments to the full statutory calculation:
appropriated funding is insufficient to cover the full statutory calculation. This scenario can occur appropriated funding is insufficient to cover the full statutory calculation. This scenario can occur
even when total PILT appropriations match the full statutory calculation; this has been the case in even when total PILT appropriations match the full statutory calculation; this has been the case in
years with mandatory appropriations, when part of the appropriated amount is set aside for a use years with mandatory appropriations, when part of the appropriated amount is set aside for a use
other than county payments. For example, laws providing appropriations for PILT routinely have other than county payments. For example, laws providing appropriations for PILT routinely have
allowed DOI to retain a allowed DOI to retain a relatively small portion of PILT appropriations for administrative expenses.small portion of PILT appropriations for administrative expenses.
37 PILT Payments Under Sections 6904 and 6905
Section 6904 and Section 6905 payments account for a small fraction of total PILT payments.Section 6904 and Section 6905 payments account for a small fraction of total PILT payments.
total payments made).total payments made).
to disburse the funds to governmental units and school districts within the county in proportion to to disburse the funds to governmental units and school districts within the county in proportion to
the amount of property taxes lost because of the federal ownership of the entitled lands, as the amount of property taxes lost because of the federal ownership of the entitled lands, as
enumerated under these sections.enumerated under these sections.
purpose, as noted.41 Section 6904 Payments Section 6904 authorizes the Secretary of the Interior to make payments to counties that contain Section 6904 authorizes the Secretary of the Interior to make payments to counties that contain
certain lands, or interests in lands, that are part of the National Park System and National Forest certain lands, or interests in lands, that are part of the National Park System and National Forest
Wilderness Areas.Wilderness Areas.
only if (1) they have been acquired by the U.S. government for addition to these systems and (2) only if (1) they have been acquired by the U.S. government for addition to these systems and (2)
they were subject to local property taxes in the five-year period prior to this acquisition.they were subject to local property taxes in the five-year period prior to this acquisition.
43 Payment under Section 6904 is calculated as 1% of the fair market value of the land at the time it Payment under Section 6904 is calculated as 1% of the fair market value of the land at the time it
was acquired, not to exceed the amount of property taxes levied on the property during the fiscal was acquired, not to exceed the amount of property taxes levied on the property during the fiscal
year prior to its acquisition.year prior to its acquisition.
fiscal years after the land, or interest, is acquired by the U.S. government, unless otherwise fiscal years after the land, or interest, is acquired by the U.S. government, unless otherwise
mandated by law.mandated by law.
Section 6905 Payments
Section 6905 authorizes the Secretary of the Interior to make payments to counties that contain Section 6905 authorizes the Secretary of the Interior to make payments to counties that contain
lands, or interests in lands, that are part of the Redwood National Park and are owned by the U.S. lands, or interests in lands, that are part of the Redwood National Park and are owned by the U.S.
government or that are acquired by the U.S. government in the Lake Tahoe Basin under the Act of government or that are acquired by the U.S. government in the Lake Tahoe Basin under the Act of
December 23, 1980.December 23, 1980.
of the acquired land or interests or (2) the amount of taxes levied on the land in the year prior to of the acquired land or interests or (2) the amount of taxes levied on the land in the year prior to
acquisition, whichever is less. Payments on these lands continue for five years or until payments acquisition, whichever is less. Payments on these lands continue for five years or until payments
have totaled 5% of the fair market value of the land, whichever is later.have totaled 5% of the fair market value of the land, whichever is later.
46 Issues for Congress
PILT is of perennial interest to many Members of CongressPILT is of perennial interest to many Members of Congress, counties, and other
country. In particular, county governments are interested in the degree of certainty of PILT country. In particular, county governments are interested in the degree of certainty of PILT
payments and how payments are calculated, because many consider PILT payments to be an payments and how payments are calculated, because many consider PILT payments to be an
integral part of their annual budgets. integral part of their annual budgets.
authorized payment levels are calculatedauthorized payment levels are calculated
funded PILT through both discretionary and mandatory appropriations (see funded PILT through both discretionary and mandatory appropriations (see "
and Appropriations
appropriations process for one fiscal year at a time, even when the funding has been considered appropriations process for one fiscal year at a time, even when the funding has been considered
mandatory spending. mandatory spending. Although PILT has received funding each year since its enactment, the Although PILT has received funding each year since its enactment, the
mandatory spending and may have different views than the counties that receive PILT payments. mandatory spending and may have different views than the counties that receive PILT payments.
Congress, for example, may weigh the flexibility of having discretion to review and fund PILT on Congress, for example, may weigh the flexibility of having discretion to review and fund PILT on
an annual basis through the appropriations process against the certainty of funding for specific an annual basis through the appropriations process against the certainty of funding for specific
activities that accompany mandatory appropriations.activities that accompany mandatory appropriations.
introduced to amend how PILT is funded. For example, introduced to amend how PILT is funded. For example,
116th Congress Congress
Members and stakeholders. Members and stakeholders.
that are that are
exempt from state and local taxes. Although counties may receive compensation for some of exempt from state and local taxes. Although counties may receive compensation for some of
these these
covered by a federal compensation program. This might contribute to financial hardships for covered by a federal compensation program. This might contribute to financial hardships for
counties that otherwise might receive revenue from that land through taxation. counties that otherwise might receive revenue from that land through taxation.
entitlement lands may be eligible for compensation under other federal compensation programs. entitlement lands may be eligible for compensation under other federal compensation programs.
In turn, this could further affect PILT payment calculations through the adjustment for prior-year In turn, this could further affect PILT payment calculations through the adjustment for prior-year
payments deducted from Alternative A.payments deducted from Alternative A.
Still another issue for Congress has been whether the current formula is the best means of calculating payments under PILT or whether the formula should be amended. The authorized payment level under Section 6902, which accounts for nearly all payments under PILT, is calculated pursuant to statutory requirements. These provisions of law have remained largely unchanged since the requirement to adjust for inflation was added, among other changes, in 1994.55 The inflation adjustment clause has resulted in increasing payment and ceiling rates since that time. Legislative proposals have sought to amend the PILT payment formula. For example, bills have been introduced to adjust the payment structure for counties with a population of less than 5,000.56 This adjustment would have implications for how population would be incorporated into calculating PILT payments. As another example, in the 117th Congress, bills were introduced that would have directed the Secretary of the Interior to develop, study, and report on a modeling tool to calculate tax equivalency payments.57
Footnotes
31 U.S.C. §§6901-6907. PILT implementing regulations are provided at 43 C.F.R. Part 44. See "Entitlement Lands" in this report for more detail on the categories of entitlement lands.
PILT originally was enacted in 1976 through P.L. 94-565. In 1982, PILT was "revised, codified, and enacted" in Title 31 of the U.S. Code pursuant to Chapter 69 of P.L. 97-258. Subsequently, PILT has been amended multiple times.
Although PILT is the broadest of these compensatory programs, it is not the oldest, and PILT provides compensation for defined entitlement lands only (31 U.S.C. §6901(1)). Other programs may include additional lands as defined by those programs. Several of those programs may be partially offset in PILT through the consideration of prior-year payments. Those programs are listed at 31 U.S.C. §6903(a)(1).
For more information, see Public Land Law Review Commission, One Third of the Nation's Land: A Report to the President and to the Congress, June 1970, pp. 235-241. This report was produced pursuant to P.L. 88-606.
For more information, see U.S. Congress, House Committee on Interior and Insular Affairs, Payments In Lieu of Taxes Act, report to accompany H.R. 9719, 94th Cong., 2nd sess., May 7, 1976, H.Rept. 94-1106; and U.S. Congress, Senate Committee on Interior and Insular Affairs, Providing for Payments to Local Governments Based upon the Amount of Certain Public Lands Within the Boundaries of Each Such Government, report to accompany H.R. 9719, 94th Cong., 2nd sess., September 20, 1976, S.Rept. 94-1262.
31 U.S.C. §6902(a), 31 U.S.C. §6904(b), and 31 U.S.C. §6905(a) and (b)(3). Neither the law nor implementing regulations define "governmental purpose." However, both §6904 and §6905 require that certain funds provided through these sections be made available to school districts and other local governmental units within the local jurisdiction.
DOI, Fiscal Year 2025 Payments In Lieu of Taxes, National Summary, p. 2, https://www.doi.gov/sites/default/files/documents/2025-06/2025nationalsummarypilt062025-508.pdf (hereinafter PILT National Summary FY2025).
Although the DOI Office of the Secretary administers the payments, it relies upon data from federal agencies within and outside of DOI (e.g., the federal land management agencies and the Census Bureau in the Department of Commerce) and state agencies to calculate the annual payments.
These sections refer to 31 U.S.C. §§6902, 6904, and 6905.
PILT payments may be subject to additional requirements provided in appropriations laws. For example, provisions for unit, program administration, and minimum payments were included for FY2024 (P.L. 118-42, Division E, Title I).
An exception is FY2013, when PILT appropriations were impacted by sequestration pursuant to the Balanced Budget and Emergency Deficit Control Act (2 U.S.C. §§900 et seq.), as amended by the Budget Control Act of 2011 (P.L. 112-25).
P.L. 94-565, §7.
P.L. 97-258, §6906.
P.L. 110-343, Division C, Title VI, §601(c)(1).
For example, for FY2024, see P.L. 118-42, Division E, §114.
For example, in FY2024, provisions were included in P.L. 118-42, Division E, Title I, that barred payment if the authorized payment is less than $100; authorized DOI to retain up to $0.4 million for administrative expenses from the authorized payment; directed that payments be reduced proportionally if the appropriated amount is insufficient; and authorized corrections for prior over- or underpayments. Although similar provisions have been included in other appropriations acts, the specific text of these provisions has varied over the years.
31 U.S.C. §6901(2).
PILT National Summary FY2025, p. 8.
31 U.S.C. §6902(a).
31 U.S.C. §6901(1).
This includes lands administered by the U.S. Army Corps of Engineers and the Bureau of Reclamation. PILT National Summary FY2025, p. 3.
For FY2025, there were a total of 606.7 million entitlement acres, as shown in the PILT National Summary FY2025, p. 304.
At 31 U.S.C. §6903(a)(2), PILT requires that population is "determined on the same basis that the Secretary of Commerce determines resident population for general statistical purposes." Pertinent regulations, at 43 C.F.R. §44.21(a)(3), specify that the U.S. Census Bureau provides statistics on the population of each local government. County population data in the PILT National Summary FY2025 reflect the latest count by the U.S. Census Bureau, according to DOI (p. 116).
Prior-year payment programs that may affect PILT payments are listed at 31 U.S.C. §6903(a)(1).
31 U.S.C. §6903(d).
31 U.S.C. §6903(c)(2). Even though the population payment rate generally declines as county population size increases, payment ceilings generally are higher for counties with larger populations. For example, in FY2025, the population payment rate for a population of 5,000 was $232.73 and the rate for a population of 6,000 was $217.95. Thus the rate is $14.78 less for the more populous county. When multiplied by the population, however, the ceiling is higher for the county with the larger population: 5,000 × $232.73 = $1,163,650, versus 6,000 × $217.95 = $1,307,700. Thus the payment is $144,050 more for the more populous county. PILT National Summary FY2025, p. 15.
The per capita payment rates are included in the PILT national summary each year. For example, the PILT National Summary FY2025, p. 15, includes the payment rates for FY2025.
31 U.S.C. §6903(a)(1).
For more information, see CRS Report R41303, The Secure Rural Schools and Community Self-Determination Act: Background and Issues.
PILT National Summary FY2025, p. 10. According to DOI
Only the amount of Federal land payments actually received by units of government in the prior fiscal year is deducted. If a unit receives a Federal land payment but is required by State law to pass all or part of it to financially and politically independent school districts, or to any other single or special purpose district, payments are considered to have not been received by the unit of local government and are not deducted from the Section 6902 payment.
If the population-based ceiling replaces the per-acre calculation under Alternative A, prior-year payments are then deducted from the population-based ceiling to determine the final amount for Alternative A.
In the past, Congress has provided funding for PILT through either discretionary or mandatory appropriations, or both, in any given year. See "PILT Authorizations and Appropriations" for more information.
Payments may be subject to any additional provisions included in appropriations language, such as adjustments for under- or overpayments in previous years.
The requirement of a minimum threshold of $100 for PILT payments typically is included in appropriations language related to PILT. For example, the FY2024 appropriations act included a $100 minimum payment clause (P.L. 118-42, Division E, Title I). It also is in regulations (43 C.F.R. §44.51).
For example, DOI was allowed to retain up to $0.4 million of the appropriations for PILT for administrative expenses in FY2024 (P.L. 118-42, Division E, Title I).
31 U.S.C. §6904 and §6905.
PILT National Summary FY2025, p. 8. This source reports §6904 and §6905 payments together, and further disaggregation is not possible from the information provided.
43 C.F.R. §44.50.
31 U.S.C. §6904(b) and §6905(a) and (b)(3).
31 U.S.C. §6904. For more information on the National Park System, see CRS Report R41816, National Park System: What Do the Different Park Titles Signify? For more information on wilderness areas, see CRS Report RL31447, Wilderness: Overview, Management, and Statistics.
31 U.S.C. §6904(a).
31 U.S.C. §6904(c).
31 U.S.C. §6905. The Act of December 23, 1980, is P.L. 96-586.
43 C.F.R. §44.40 and 43 C.F.R. §44.41. Payments may extend beyond five years when taxes levied in the year prior to acquisition account for less than 1% of the fair market value of the acquired land. However, any portion of a payment not made because Congress did not appropriate sufficient funds is not deferred to later payments.
National Association of Counties (NACo), Provide Full Mandatory Funding for the Payments in Lieu of Taxes (PILT) Program, February 1, 2023, at https://www.naco.org/resources/provide-full-mandatory-funding-payments-lieu-taxes-pilt-program, and NACo, U.S. Department of the Interior announces PILT funding of $644.8 million to be distributed to counties, June 30, 2025, at https://www.naco.org/news/us-department-interior-announces-pilt-funding-6448-million-be-distributed-counties.
For more information, see CRS Report R44582, Overview of Funding Mechanisms in the Federal Budget Process, and Selected Examples.
For example, S. 2480 in the 116th Congress would have required mandatory PILT funding through FY2029.
For example, H.R. 5929 in the 118th Congress would have required mandatory PILT funding indefinitely.
For example, H.R. 7251 in the 110th Congress. Other legislation sought to require that if specified lands were taken into trust by the Secretary of the Interior, the lands would be eligible for PILT payments. See, for instance, S. 1890 in the 118th Congress, as introduced.
For example, H.R. 4710 in the 113th Congress.
For example, S. 2626 in the 113th Congress.
For example, H.R. 543 in the 112th Congress.
then, §6903 has been amended once. Specifically, P.L. 106-393 amended the definition of payment law at 31 U.S.C. then, §6903 has been amended once. Specifically, P.L. 106-393 amended the definition of payment law at 31 U.S.C.
§6903(a)(1)(C) to add the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. §§7101 et §6903(a)(1)(C) to add the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. §§7101 et
seq.) to the list of payment lawsseq.) to the list of payment laws