TX-RAMP vs StateRAMP: Which Has the Best ROI in 2025?

What is StateRAMP?

StateRAMPis a standardized cybersecurity framework used by state and local governments across the United States. It’s modeled after FedRAMP and uses NIST 800-53 controls.

→ Learn more about the FedRAMP process and its timelines.

StateRAMP Baseline Controls

SateRAMP requires fewer controls than FedRAMP, and has 2 levels:

Low Impact for systems with public or non-confidential data where a breach has a limited effect: 153 controls
Moderate Impact for systems with confidential data like PII or financial info, where a breach could cause significant harm: 319 controls

StateRAMP 3PAO Assessment Requirement

StateRAMP requires an assessment from an approved Third-Party Assessment Organization (3PAO).

For StateRAMP Ready status, your CSP will need a 3PAO Readiness Assessment Report (RAR). This assessment confirms that the provider meets the minimum mandatory requirements set by StateRAMP for this status.

Full StateRAMP authorized status requires a more comprehensive 3PAO assessment – resulting in a Security Assessment Report (SAR).

This report evaluates compliance with the NIST 800-53 controls for your security level (Low or Moderate), includes penetration testing, and other security reviews. The 3PAO's findings are part of the security package submitted for approval by either the StateRAMP Approvals Committee or a Government Sponsor.

StateRAMP 3PAO Assessment Costs

According to 3PAO Schellman, you can expect to spend

$230k-$260k for an initial 3PAO assessment
$160k-$200k for annual assessments.

You’ll also need to pay for the StateRAMP’s Program Management Office (PMO) review:

Initial and authorization review combined total: Estimated $7,500
Continuous Monitoring assessment reviews: Approximately $5,000

What is TX-RAMP?

TX-RAMP (Texas Risk and Authorization Management Program) certification is required for cloud service providers to sell services to Texas state agencies and public higher education institutions.

It’s mandated by Texas Senate Bill 475 and administered by the Texas Department of Information Resources (DIR).

→ Learn how to get TX-RAMP

TX-RAMP Baseline Controls

TX-RAMP has 2 levels with controls similar to StateRAMP and also bases requirements on the NIST 8001-53 baselines.

TX-RAMP Level 1 for cloud services dealing with public or non-confidential information or low-impact systems: 117 controls
TX-RAMP Level 2 for confidential or regulated data in moderate or high-impact systems: 223 controls

No TX-RAMP 3PAO Assessment Requirement

TX-RAMP certification does not require a 3PAO assessment. The DIR conducts their own assessments of your documentation.

TX-RAMP Provisional Certification

If you have already undergone an industry-standard assessment or audit (like SOC 2 Type 2, PCI DSS, or HITRUST) you can submit your results for TX-RAMP's provisional status.

This is still reviewed by the DIR and allows you 18 months to obtain full certification.

TX-RAMP and StateRAMP Reciprocity

TX-RAMP recognizes StateRAMP and FedRAMP. If you’ve achieved one of these authorizations you automatically qualify for TX-RAMP certification.

Pros & Cons of TX-RAMP vs StateRAMP

The pros and cons of tx-ramp and stateramp. Including, tx-ramp is less expensive and easier to achieve but stateramp has higher ROI potential

Why Choose StateRAMP

StateRAMP Provides More Revenue Opportunities

Many organizations choose StateRAMP over TX-RAMP because the ROI is potentially much higher. Once you’re StateRAMP authorized you can sell to most state government entities, including those requiring TX-RAMP.

No agencies outside of Texas accept TX-RAMP, so potential revenue is limited.

Downsides of StateRAMP

Expect more cost and effort to achieve StateRAMP.

StateRAMP has more controls and requires a 3PAO assessment.

While your organization will benefit from improved security posture, it will cost you more up front to get there.

Assessments are pricey and StateRAMP requires fees that TX-RAMP does not. The process is also likely to take longer, so you won’t realize your ROI as soon as you might with TX-RAMP.

StateRAMP fees:

$500 for providers with less than $1 million annual revenue.
$2,500 for providers with annual revenue between $1-5 million.
$3,750 for providers with annual revenue greater than $5 million.

Why Choose TX-RAMP

Benefits of TX-RAMP

TX-RAMP may be the best option for your business if your scope is limited to Texas.

It requires fewer controls, doesn’t require a 3PAO assessment or charge fees.

This makes TX-RAMP less expensive and a shorter process. There is also the option to fast-track your product to market with provisional status.

Learn how to get TX-RAMP certification.

Downsides of TX-RAMP

Your ROI is significantly limited with TX-RAMP. You won’t be able to expand outside of the state and TX-RAMP is not accepted anywhere but Texas.

Find out your TX-RAMP or StateRAMP gaps in 30-60 minutes to get started.

paramify gap assessment dashboard — Stay on track with a living gap assessment from Paramify

The Fastest Path to StateRAMP or TX-RAMP

You’ll waste a lot of time and money doing TX-RAMP or StateRAMP compliance the old fashioned way. Move faster, save time, hassle, money and your sanity with Paramify.

You’ll get:

Living Gap Assessment: See your real-time standing across multiple frameworks (including FedRAMP, StateRAMP, and TX-RAMP) and a detailed estimate of the time and cost to bridge each gap.
Automated Documentation: Generate an accurate SSP and ATO documents in 1-7 days rather than months.
Automated ConMon: Massively reduce RAMP maintenance costs with simplified, automated POA&Ms.

How much Paramify costs will depend on your organization's needs.

StateRAMP: $16k - $20k
TX-RAMP: $8k - $10k per year for 3 years

→ See our pricing or request a demo to learn more.

Next Steps to StateRAMP or TX-RAMP

With a better understanding of StateRAMP and TX-RAMP and the potential ROI differences of both, you can decide which is right for your CSP.

Get started with an inexpensive gap assessment to see what each would cost you or feel free to reach out with any questions.

Want to see Paramify in action? Request a personalized demo or sign up for a video demo below:

Learn More:

→ FedRAMP vs TX-RAMP: What’s the difference?

→ Why Manual Compliance Documentation is Outdated

→ What are Risk Solutions and How Do They Work?

Becki Johnson

Jan 2025