# 119-s-4629: Government Bailout Prevention Act

119-s-4629, Government Bailout Prevention Act, is a 119th Congress bill sponsored by Sen. Young, Todd [R-IN] (R-IN); status introduced; PRIA reads it as touching household money (as of 2026-07-08).

- Canonical: https://policyrisk.com/legislation/119-s-4629
- As of: 2026-07-08
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-4629
- Congress: 119
- Title: Government Bailout Prevention Act
- Status: introduced
- Introduced: 2026-05-21
- Sponsor: Sen. Young, Todd [R-IN] (R-IN)
- Cosponsors: 6
- Policy area: Economics and Public Finance
- Touches household money: yes
- Last recorded action: 2026-07-08

## Summary

**Ban federal bailout support for State and local governments.** This bill would bar federal agencies from buying, guaranteeing, or lending to States, municipalities, counties, and school districts that have defaulted, filed for bankruptcy, or are at risk of default on or after January 1, 2026. - State, municipal, county, and school district finances: These governments could not receive federal purchases, guarantees, lines of credit, or other federal financial support if they have defaulted, filed for bankruptcy, or are likely to default on or after Jan 1, 2026. - U.S. Treasury limits: The Secretary of the Treasury would be prohibited from using general fund revenues or funds borrowed under title 31 to buy or guarantee assets of, or otherwise assist, those governments. - Federal Reserve restrictions: Federal Reserve banks would be barred from lending to, guaranteeing, buying bonds of, or otherwise extending credit or financial instruments to those governments or entities with taxing or bonding authority. - Scope and exceptions: The prohibition covers debt restructuring and related activities. It would not apply to federal assistance for a declared disaster and does not include discretionary appropriations, direct spending, or any grant awarded by the United States.

## Cosponsors (6)

- Sen. Cotton, Tom [R-AR] (R-AR), 2026-05-21T00:00:00.000Z
- Sen. Marshall, Roger [R-KS] (R-KS), 2026-06-09T00:00:00.000Z
- Sen. Crapo, Mike [R-ID] (R-ID), 2026-06-09T00:00:00.000Z
- Sen. Sheehy, Tim [R-MT] (R-MT), 2026-06-09T00:00:00.000Z
- Sen. Cornyn, John [R-TX] (R-TX), 2026-06-18T00:00:00.000Z
- Sen. Graham, Lindsey [R-SC] (R-SC), 2026-06-24T00:00:00.000Z

## Provisions PRIA read

- Limits on federal bailouts for governments: mixed, high. If enacted, this bill would bar many federal backstops for state, local, county, municipal governments, and school districts on or after January 1, 2026. It would stop Treasury use of general fund money or funds borrowed under title 31 to buy or guarantee those governments' assets or obligations. I…

## Related bills

- 119-s-1071: National Defense Authorization Act for Fiscal Year 2026
- 119-s-3752: SAVE America Act
- 119-s-587: Death Tax Repeal Act of 2025
- 119-s-186: No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025
- 119-s-6: Born-Alive Abortion Survivors Protection Act
- 119-s-1715: Protecting Privacy in Purchases Act

## Sources
- [119-s-4629 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/4629)

## Related
- [119-s-1071: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-1071)
- [119-s-3752: SAVE America Act](https://policyrisk.com/legislation/119-s-3752)
- [119-s-587: Death Tax Repeal Act of 2025](https://policyrisk.com/legislation/119-s-587)
- [119-s-186: No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of…](https://policyrisk.com/legislation/119-s-186)
- [119-s-6: Born-Alive Abortion Survivors Protection Act](https://policyrisk.com/legislation/119-s-6)
- [119-s-1715: Protecting Privacy in Purchases Act](https://policyrisk.com/legislation/119-s-1715)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-4629 (as of 2026-07-08).