Payer State Transparency Act of 2025

This bill, known as the Payer State Transparency Act of 2025 , aims to provide a clear, state-by-state assessment of federal taxation and spending. It directs the Secretary of Commerce, through the Bureau of Economic Analysis, to calculate each state's federal tax burden annually, attributing individual taxes to the state of residence and business taxes proportionally to where economic activity occurs. Concurrently, the Director of the Office of Management and Budget, in coordination with the Council of Economic Advisers and the Secretary of the Treasury, must calculate the total federal outlays received by each state, including the proportional allocation of federal contract awards based on performance location. These detailed calculations will then be compiled into a joint annual report by the Secretary of Commerce and the Director of the Office of Management and Budget. This report must be submitted to Congress and made publicly accessible on the Bureau of Economic Analysis website, enhancing transparency regarding each state's fiscal relationship with the federal government.