The Taxpayer Protection Act bars the President and any executive branch official from imposing blanket funding freezes or revoking grants and contracts targeting states whose taxpayers send more to the federal government than they receive back (called "donor states"). If a donor state's funding is illegally withheld anyway, the bill establishes a trust fund — fed by federal income taxes collected from that state's residents — that the state can draw from to replace the withheld money. The bill defines a donor state as one that, over the prior three years, paid more in federal income taxes than it received in federal funding. No similar protection is extended to non-donor states.
Transparency & Accountability
- Executive funding-freeze prohibition — bars the President from targeting donor states with blanket grant or contract prohibitions
- Revocation standard for donor states — requires Comptroller General fraud/waste/abuse finding before executive can revoke or suspend funding
Congressional Summary
Taxpayer Protection ActThis bill limits the authority of the President (or any other member of the executive branch) to withhold federal funding to certain states. The bill also establishes a fund to provide funding to such states if funding is withheld. Specifically, the bill prohibits the President (or any other member of the executive branch) from (1) imposing a general prohibition on awarding federal funding to a donor state (or any political subdivision, hospital, school, or nonprofit entity in such state); or (2) revoking or suspending such federal funding unless the Government Accountability Office determines the donor state (or any political subdivision, hospital, school, or nonprofit entity in such state) committed fraud, waste, or abuse related to such funding.A donor state is any state in which the state’s taxpayers paid more federal income taxes than the state received in federal funding on average over the three-year period preceding the bill's enactment date.Finally, the bill establishes and provides specified funds to the Donor State Protection Trust Fund to provide funding to donor states in certain circumstances where federal funds are withheld in violation of this bill. (Conditions and limitations apply.)
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-06-26
- Date Added
- 2026-06-04
- Source
- Congress.gov →
Like reading a bill in plain English?
We're building an app that does this for every bill in Congress and lets you tell your reps how you want them to vote. We're a small team getting ready to launch, and we're trying to show investors that real people want this. Be one of them. Help us get it built. Leave your email and we'll tell you the moment the app is ready.