Foster Introduces Payer State Transparency Act

Washington, DC — Today, Congressman Bill Foster (D-IL) reintroduced the Payer State Transparency Act to help shed light on the “Payer State” problem, wherein certain states, including Illinois, pay more in federal taxes than they get back in federal spending. According to data from the Internal Revenue Service and USASpending.gov, Illinois sent $63 billion more in taxes in FY 2024 to the federal government than we received back.

The Payer State Transparency Act would require the Office of Management and Budget, in conjunction with the Council of Economic Advisors and the Treasury Department, to produce annual assessments of the net economic effect of all federal spending programs on each state and compare these figures against the state’s tax burden.

“As a businessman who co-founded a manufacturing company, I understand the financial burden that federal Payer State policies put on companies that are committed to keeping good jobs in Illinois,” said Foster. “I also recognize the burden the Payer State problem places on middle-class families here in Illinois, taking our hard-earned tax dollars without giving us the same level of federal support in return. That’s why I’ve introduced legislation to help us gain a better understanding of the problem and find ways to make sure Illinois taxpayers are getting their fair share of federal resources.”

This legislation is cosponsored by Reps. Jan Schakowsky (D-IL), Josh Gottheimer (D-NJ), and Jesús ‘Chuy’ García (D-IL). 

A copy of the bill can be found here.

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