[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4208 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4208
To prohibit the political punishment of donor States, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 26, 2025
Mrs. Torres of California introduced the following bill; which was
referred to the Committee on Oversight and Government Reform, and in
addition to the Committee on Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To prohibit the political punishment of donor States, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Taxpayer Protection Act''.
SEC. 2. NO POLITICAL PUNISHMENT OF DONOR STATES.
(a) No General Prohibitions on Providing Federal Funding.--
Notwithstanding any other provision of law, the President, or any other
member of the executive branch, may not target a donor State by
imposing a general prohibition on awarding a grant to, or entering into
a contract or other agreement with, the donor State (or a political
subdivision of such donor State, or a public or nonprofit entity in
such donor State).
(b) No Revocations or Suspensions of Federal Funding.--
Notwithstanding any other provision of law, the President, or any other
member of the executive branch, may not revoke or suspend any grant,
contract, or other agreement awarded to, or entered into with, a donor
State (or a political subdivision of such donor State, or a public or
nonprofit entity in such donor State), unless the Comptroller General
of the United States determines that the donor State (or such political
subdivision or entity) has committed fraud, waste, or abuse with
respect to such grant, contract, or agreement.
(c) Definitions.--In this section--
(1) Donor state.--The term ``donor State'' means any State
the taxpayers of which have on average, over the 3-year period
preceding the date of the enactment of this Act, paid a total
amount in Federal income taxes that exceeds the average total
amount of Federal funding provided to the State over such
period.
(2) Public entity.--The term ``public entity'' includes
public schools and public hospitals.
SEC. 3. DONOR STATE PROTECTION TRUST FUND.
(a) In General.--Subchapter A of Chapter 98 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 9512. DONOR STATE PROTECTION TRUST FUND.
``(a) Creation of Trust Fund.--There is hereby established in the
Treasury of the United States a trust fund to be known as the `Donor
State Protection Trust Fund', consisting of such amounts as may be
appropriated to such Trust Fund as provided in this section.
``(b) Transfer to Trust Fund of Amounts Equivalent to Certain
Taxes.--There are hereby appropriated to the Donor State Protection
Trust Fund amounts equivalent to the taxes received in the Treasury
under subtitle A paid by the taxpayers of donor States. For each
calendar year, if the unobligated amounts in such Trust Fund exceed
$4,000,000,000,000 on December 31 of such year, such excess amounts
shall be transferred to the general fund of the Treasury.
``(c) Availability of and Expenditures From Trust Fund.--
``(1) In general.--Amounts in the Donor State Protection
Trust Fund shall be available, without further appropriation,
to a donor State--
``(A) if, and only if, the President, or another
member of the executive branch--
``(i) imposes, in violation of section 2(a)
of the Taxpayer Protection Act, a general
prohibition on awarding a grant to, or entering
into a contract or other agreement with, the
donor State (or a political subdivision of such
donor State, or a public or nonprofit entity in
such donor State), or
``(ii) revokes or suspends, in violation of
section 2(b) of such Act, a grant, contract, or
other agreement awarded to, or entered into
with, the donor State (or such political
subdivision or entity), and
``(B) for the purpose of making any expenditures
determined necessary or appropriate by the donor State.
``(2) Limitation.--In the case of any grant, contract, or
other agreement that is revoked or suspended, as described in
paragraph (1)(A)(ii), with respect to a donor State (or a
political subdivision of such donor State, or a public or
nonprofit entity in such donor State), the amounts in the Trust
Fund available to the donor State shall be limited to the
amount equal to the amount the donor State (or such political
subdivision or entity) would have received under such grant,
contract, or agreement but for such revocation or suspension.
``(d) Definitions.--For purposes of this section, the terms `donor
State' and `public entity' have the meaning given such terms in section
2(c) of the Taxpayer Protection Act.''.
(b) Clerical Amendment.--The table of sections for subchapter A of
chapter 98 of such Code is amended by adding at the end the following
new item:
``9512. Donor State Protection Trust Fund.''.
(c) Effective Date.--The amendments made by this Act shall apply to
taxes received after the date of the enactment of this Act.
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