Provide Full Mandatory Funding for the Payments in Lieu of Taxes (PILT) Program
-
Policy BriefUrge your members of Congress to support mandatory full funding for the Payments in Lieu of Taxes (PILT) program. Because local governments are unable to tax the property values or products derived from federal lands, PILT payments are necessary to support essential local government services. Unless Congress acts, counties will have received their last fully funded PILT disbursement in 2022. Without mandatory full funding, PILT will remain a discretionary program (subject to the annual appropriations process) and could fall back to pre-2008 funding levels, which would devastate local government service delivery in areas with significant federal land ownership.Provide Full Mandatory Funding for the Payments in Lieu of Taxes (PILT) Program
-
Document
Provide Full Mandatory Funding for the Payments in Lieu of Taxes (PILT) Program
ACTION NEEDED:
Urge your members of Congress to support mandatory full funding for the Payments in Lieu of Taxes (PILT) program. Because local governments are unable to tax the property values or products derived from federal lands, PILT payments are necessary to support essential local government services. Unless Congress acts, counties will have received their last fully funded PILT disbursement in 2023.
Without mandatory full funding, PILT will remain a discretionary program (subject to the annual appropriations process) and could fall back to pre-2008 funding levels, which would devastate local government service delivery in areas with significant federal land ownership.
BACKGROUND:
The PILT program was created in 1976 to offset costs incurred by counties for services provided to federal employees and families, the public and to the users of public lands. Services include education, solid waste disposal, law enforcement, search and rescue, health care, environmental compliance, firefighting, parks and recreation and other important community services.
Annual PILT funding levels remained static for many years. For nearly two decades, counties watched the value of their PILT receipts drop due to inflation. In 1995, NACo was successful in securing an amendment to the PILT formula, (P.L. 103-397), which adjusted annual authorization levels for inflation.
The FY 2023 Omnibus appropriations package (P.L. 117-103), enacted in December 2022, ensured full, mandatory funding for PILT to over 1900 counties nationwide. PILT was fully funded in FY 2022 at $549.4 million. In FY 2021, public lands counties received $529.7 million from PILT. The program was funded at $514.7 million in FYs 2019 and FY 2020. The FY 2018 Omnibus appropriations package signed into law on March 23, 2018 funded PILT at $552.8 million. The Consolidated Appropriations Act of 2017 fully funded PILT at $465 million for FY 2017.
In FY 2014, PILT was extended through the farm bill (P.L. 113- 79) as a fully funded, mandatory entitlement program at $425 million. Mandatory funding of $399 million for FY 2013 was achieved through the Moving Ahead for Progress in the 21st Century Act (MAP-21) (P.L. 112-141). Previously, the enactment of the Emergency Economic Stabilization Act (P.L. 110-343) provided full funding for PILT from FY 2008 through FY 2012. From its enactment in 1976 through 2007, PILT was a discretionary program subject to annual appropriations and as a result was underfunded year after year.
KEY TALKING POINTS:
-
The PILT program provides payments to counties and other local governments to offset forgone tax revenues due to the presence of substantial federal land acreage within their jurisdictions.
-
Because local governments are unable to tax the property values or products derived from federal lands, PILT payments are necessary to support essential local government services (mandated by law) such as education, emergency services, transportation infrastructure, law enforcement and health care in over 1,900 counties in 49 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands.
-
Without predictable mandatory funding, PILT will remain a discretionary program subject to the annual appropriations process. Counties urge the administration and members of Congress to support long-term, predictable full funding for PILT.
-
While the Senate and House continue to discuss long-term legislative solutions for funding the PILT program, NACo will continue to urge leadership in both chambers and on both sides of the aisle to work together to fully fund the program.
Urge your members of Congress to support mandatory full funding for the Payments in Lieu of Taxes (PILT) program. Because local governments are unable to tax the property values or products derived from federal lands, PILT payments are necessary to support essential local government services. Unless Congress acts, counties will have received their last fully funded PILT disbursement in 2022. Without mandatory full funding, PILT will remain a discretionary program (subject to the annual appropriations process) and could fall back to pre-2008 funding levels, which would devastate local government service delivery in areas with significant federal land ownership.2023-02-01Policy Brief2023-02-01 -
ACTION NEEDED:
Urge your members of Congress to support mandatory full funding for the Payments in Lieu of Taxes (PILT) program. Because local governments are unable to tax the property values or products derived from federal lands, PILT payments are necessary to support essential local government services. Unless Congress acts, counties will have received their last fully funded PILT disbursement in 2023.
Without mandatory full funding, PILT will remain a discretionary program (subject to the annual appropriations process) and could fall back to pre-2008 funding levels, which would devastate local government service delivery in areas with significant federal land ownership.
BACKGROUND:
The PILT program was created in 1976 to offset costs incurred by counties for services provided to federal employees and families, the public and to the users of public lands. Services include education, solid waste disposal, law enforcement, search and rescue, health care, environmental compliance, firefighting, parks and recreation and other important community services.
Annual PILT funding levels remained static for many years. For nearly two decades, counties watched the value of their PILT receipts drop due to inflation. In 1995, NACo was successful in securing an amendment to the PILT formula, (P.L. 103-397), which adjusted annual authorization levels for inflation.
The FY 2023 Omnibus appropriations package (P.L. 117-103), enacted in December 2022, ensured full, mandatory funding for PILT to over 1900 counties nationwide. PILT was fully funded in FY 2022 at $549.4 million. In FY 2021, public lands counties received $529.7 million from PILT. The program was funded at $514.7 million in FYs 2019 and FY 2020. The FY 2018 Omnibus appropriations package signed into law on March 23, 2018 funded PILT at $552.8 million. The Consolidated Appropriations Act of 2017 fully funded PILT at $465 million for FY 2017.
In FY 2014, PILT was extended through the farm bill (P.L. 113- 79) as a fully funded, mandatory entitlement program at $425 million. Mandatory funding of $399 million for FY 2013 was achieved through the Moving Ahead for Progress in the 21st Century Act (MAP-21) (P.L. 112-141). Previously, the enactment of the Emergency Economic Stabilization Act (P.L. 110-343) provided full funding for PILT from FY 2008 through FY 2012. From its enactment in 1976 through 2007, PILT was a discretionary program subject to annual appropriations and as a result was underfunded year after year.
KEY TALKING POINTS:
-
The PILT program provides payments to counties and other local governments to offset forgone tax revenues due to the presence of substantial federal land acreage within their jurisdictions.
-
Because local governments are unable to tax the property values or products derived from federal lands, PILT payments are necessary to support essential local government services (mandated by law) such as education, emergency services, transportation infrastructure, law enforcement and health care in over 1,900 counties in 49 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands.
-
Without predictable mandatory funding, PILT will remain a discretionary program subject to the annual appropriations process. Counties urge the administration and members of Congress to support long-term, predictable full funding for PILT.
-
While the Senate and House continue to discuss long-term legislative solutions for funding the PILT program, NACo will continue to urge leadership in both chambers and on both sides of the aisle to work together to fully fund the program.

About Jonathan Shuffield (Full Bio)
Legislative Director – Public Lands | Western Interstate Region
Jonathan serves as NACo’s legislative director for public lands and liaison to the Western Interstate Region, lobbying Congress on public lands issues including Payments In Lieu of Taxes, Secure Rural Schools, land management and endangered species.More from Jonathan Shuffield
-
Policy Brief
Support Continued Revenue Sharing Payments to National Forest Counties
Urge your members of Congress to enact a long-term legislative solution for continued revenue sharing payments to forest counties through the U.S. Forest Service’s Secure Rural Schools (SRS) program. Congress reauthorized SRS and removed the annual 5 percent funding reduction through FY 2023 in the Infrastructure Investment and Jobs Act (IIJA) (P.L. 117-58) enacted on November 15, 2021. Counties rely on SRS payments to provide numerous critical services including infrastructure, conservation projects, search and rescue missions and fire prevention programs. -
Blog
U.S. Fish and Wildlife Service lists the lesser prairie-chicken under the Endangered Species Act
On November 25, the U.S. Fish and Wildlife Service issued two final rules listing two Distinct Population Segments of the lesser prairie-chicken under the Endangered Species Act. -
Blog
President Biden declares Camp Hale-Continental Divide a National Monument
On October 12, President Biden traveled to Red Cliff, Colo. to sign the declaration designating Camp Hale and Tenmile Range as a national monument. The monument designation includes not only Camp Hale and the Tenmile Range, but ten mountain peaks over 13,000 feet in elevation. -
Blog
Treasury releases Local Assistance and Tribal Consistency Fund payments to eligible counties
The U.S. Department of the Treasury announced the release of Local Assistance and Tribal Consistency Fund (LATCF) payments to counties. -
County News
County officials hear from Forest Service, Interior representatives
Intergovernmental partnerships are crucial in public lands management. -
County News
County officials stress importance of funding PILT, SRS
County officials advocated to Congress for mandatory funding for the Payments in Lieu of Taxes program.
-
Basic page
Public Lands Steering Committee
All matters relating to federally-owned public lands including federal land management programs, natural resource revenue sharing payments, payments in lieu of taxes, and property tax immunity concerns.pagepagepage<p>All matters relating to federally-owned public lands including federal land management programs, natural resource revenue sharing payments, payments in lieu of taxes, and property tax immunity concerns.
Contact
-
Legislative Director – Public Lands | Western Interstate Region(512) 965-7268
Related News
-
BlogU.S. Fish and Wildlife Service lists the lesser prairie-chicken under the Endangered Species ActDec. 8, 2022
-
BlogPresident Biden declares Camp Hale-Continental Divide a National MonumentOct. 27, 2022
-
BlogTreasury releases Local Assistance and Tribal Consistency Fund payments to eligible countiesSep. 29, 2022
Related Resources
-
Policy BriefSupport Continued Revenue Sharing Payments to National Forest CountiesFeb. 1, 2023
-
VideoImplementing the Bipartisan Infrastructure Law: Restoring Healthy EcosystemsSep. 16, 2022
-
Video2022 Capitol Hill Briefing on PILTSep. 15, 2022
Upcoming Events
-
2Feb2023Webinar
Reducing Jail Populations: Revisiting Technical Violations of Community Supervision to Decrease Jail Admissions and Length of Stay
Feb. 2, 2023 , 2:00 pm – 3:00 pm -
8Feb2023Webinar
Local Strategies for Reaching Families and Young Children Experiencing Homelessness
Feb. 8, 2023 , 2:00 pm – 3:00 pm -
11Feb2023
More From
-
ARPA Impact Report: An Analysis of How Counties are Addressing National Issues With Local Investments
With American Rescue Plan funds, counties are strengthening America’s workforce, addressing the nation’s behavioral health crisis, expanding broadband access, improving housing affordability and building prosperous communities for the next generation.
Learn More