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Taxpayer Protection: Prohibiting Punishment of Donor States and Establishing Fund.

This act aims to protect states whose residents pay more in federal taxes than they receive in federal funding. It prohibits the federal government from blocking or revoking funds to these states unless fraud is involved. It also establishes a special fund to compensate for losses if such actions are unlawfully taken, potentially impacting the financial stability of local services.
Key points
Prohibits blocking federal funds to states that contribute more in federal taxes than they receive.
Allows revocation of funds only in cases of proven fraud, waste, or abuse.
Establishes a special trust fund to compensate states if funds are unlawfully withheld.
Defines a "donor state" based on average federal tax contributions versus federal funding received over three years.
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Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_4208
Sponsor: Rep. Torres, Norma J. [D-CA-35]
Process start date: 2025-06-26