# 119-hr-9324: Government Bailout Prevention Act

119-hr-9324, Government Bailout Prevention Act, is a 119th Congress bill sponsored by Rep. Steube, W. Gregory [R-FL-17] (R-FL); status introduced; PRIA reads it as touching household money (as of 2026-07-08).

- Canonical: https://policyrisk.com/legislation/119-hr-9324
- As of: 2026-07-08
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-9324
- Congress: 119
- Title: Government Bailout Prevention Act
- Status: introduced
- Introduced: 2026-06-15
- Sponsor: Rep. Steube, W. Gregory [R-FL-17] (R-FL)
- Cosponsors: 3
- Policy area: Economics and Public Finance
- Touches household money: yes
- Last recorded action: 2026-07-08

## Summary

**Would ban federal bailouts for states, localities, and school districts facing bankruptcy or likely default.** The bill would block Treasury funds, borrowed money, purchases or guarantees, and Federal Reserve interventions to rescue these governments except for declared disaster aid. - State and local governments and school districts would be barred from receiving federal payments, guarantees, bond purchases, or lines of credit if they have filed for bankruptcy, defaulted, are at risk of default, or are likely to default on or after January 1, 2026. The prohibition would cover direct and indirect grants-and-aid, purchases or guarantees of obligations, and issuance of lines of credit. - Federal Reserve banks would be prohibited from providing funds, loan guarantees, credits, buying state or local bonds, or using any other financial instrument to assist those governments under any Fed authority. That includes purchases of bonds issued by state, municipal, local, or school-district bonding authorities. - The ban would include debt restructuring and related activities but would not apply to federal assistance provided in response to a declared disaster. The measure also would not apply to discretionary appropriations, direct spending as defined in law, or any federal grant awarded to a State, municipal, local, county government, or school district.

## Cosponsors (3)

- Rep. Perry, Scott [R-PA-10] (R-PA), 2026-06-15T00:00:00.000Z
- Rep. Self, Keith [R-TX-3] (R-TX), 2026-06-15T00:00:00.000Z
- Rep. Harrigan, Pat [R-NC-10] (R-NC), 2026-06-24T00:00:00.000Z

## Provisions PRIA read

- Ban most federal bailouts for governments: mixed, high. If enacted, this bill would ban most Federal help to state, local, and school governments that, on or after January 1, 2026, file for bankruptcy, default, are at risk of default, or are likely to default. It would bar Federal funds from buying or guaranteeing their debt, issuing lines of credit, or…

## Related bills

- 119-hr-4669: FEMA Act of 2025
- 119-hr-2395: SHORT Act
- 119-hr-987: Fair Access to Banking Act
- 119-hr-8374: Equal Treatment for Farmers Act
- 119-hr-925: Dismantle DEI Act of 2025
- 119-hr-9131: Protecting Kids from Creeps Act

## Sources
- [119-hr-9324 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/9324)

## Related
- [119-hr-4669: FEMA Act of 2025](https://policyrisk.com/legislation/119-hr-4669)
- [119-hr-2395: SHORT Act](https://policyrisk.com/legislation/119-hr-2395)
- [119-hr-987: Fair Access to Banking Act](https://policyrisk.com/legislation/119-hr-987)
- [119-hr-8374: Equal Treatment for Farmers Act](https://policyrisk.com/legislation/119-hr-8374)
- [119-hr-925: Dismantle DEI Act of 2025](https://policyrisk.com/legislation/119-hr-925)
- [119-hr-9131: Protecting Kids from Creeps Act](https://policyrisk.com/legislation/119-hr-9131)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-9324 (as of 2026-07-08).