HR4208119th CongressWALLET

Taxpayer Protection Act

Sponsored By: Representative Torres, Norma J. [D-CA-35]

Introduced

Summary

Protects "donor States" from federal funding bans and creates a Treasury backup fund. This bill would stop the President and other executive officials from imposing broad bans on awarding grants or contracts to a donor State and would let affected donor States access a new Donor State Protection Trust Fund in limited cases.

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  • Donor States and their public entities, including public schools and public hospitals, could draw from the Trust Fund if the federal government imposes a general prohibition or unlawfully suspends or revokes a grant or contract. A "donor State" is one whose residents paid more in federal income taxes than the average federal funding they received over the prior 3 years.
  • Federal officials would be barred from revoking or suspending grants, contracts, or agreements with donor States except when the Comptroller General finds fraud, waste, or abuse. If a revocation or suspension violates that rule the Trust Fund can pay only the amount the state would have received under the original award.
  • The bill would create the Donor State Protection Trust Fund in the Treasury and designate amounts equivalent to income taxes paid by taxpayers of donor States as appropriated to the Fund. If unobligated balances exceed $4.0 trillion on December 31 of a year the excess would transfer to the general fund of the Treasury.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Trust fund backstop for donor states

If enacted, the bill would create a Donor State Protection Trust Fund in the Treasury. It would receive amounts equal to federal income taxes paid by taxpayers in donor States, for taxes received after enactment. Money would be available without a new appropriation only if the President or another executive official, in violation of this Act, broadly bans awards to a donor State or revokes or suspends an award. For a revoked or suspended award, payments would be capped at what the State or affected entity would have received. If unused money in the Fund is over $4 trillion on December 31, the excess would move to the Treasury’s general fund. States could use released funds for any purpose they deem necessary or appropriate.

Protections for donor states against funding bans

If enacted, the bill would bar the President and executive agencies from broadly blocking grants or contracts to a donor State. They could revoke or suspend an award only if the Comptroller General finds fraud, waste, or abuse. A donor State would mean a State whose taxpayers paid more in federal income tax than it received in federal funding, on average over the three years before enactment. Public schools and public hospitals would count as public entities covered by these protections. These limits would apply to donor States, their political subdivisions, and public or nonprofit entities in those States.

Sponsors & CoSponsors

Sponsor

Torres, Norma J. [D-CA-35]

CA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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