Taxpayer Protection Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4208 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 4208

  To prohibit the political punishment of donor States, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 2025

  Mrs. Torres of California introduced the following bill; which was 
 referred to the Committee on Oversight and Government Reform, and in 
    addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
  To prohibit the political punishment of donor States, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taxpayer Protection Act''.

SEC. 2. NO POLITICAL PUNISHMENT OF DONOR STATES.

    (a) No General Prohibitions on Providing Federal Funding.--
Notwithstanding any other provision of law, the President, or any other 
member of the executive branch, may not target a donor State by 
imposing a general prohibition on awarding a grant to, or entering into 
a contract or other agreement with, the donor State (or a political 
subdivision of such donor State, or a public or nonprofit entity in 
such donor State).
    (b) No Revocations or Suspensions of Federal Funding.--
Notwithstanding any other provision of law, the President, or any other 
member of the executive branch, may not revoke or suspend any grant, 
contract, or other agreement awarded to, or entered into with, a donor 
State (or a political subdivision of such donor State, or a public or 
nonprofit entity in such donor State), unless the Comptroller General 
of the United States determines that the donor State (or such political 
subdivision or entity) has committed fraud, waste, or abuse with 
respect to such grant, contract, or agreement.
    (c) Definitions.--In this section--
            (1) Donor state.--The term ``donor State'' means any State 
        the taxpayers of which have on average, over the 3-year period 
        preceding the date of the enactment of this Act, paid a total 
        amount in Federal income taxes that exceeds the average total 
        amount of Federal funding provided to the State over such 
        period.
            (2) Public entity.--The term ``public entity'' includes 
        public schools and public hospitals.

SEC. 3. DONOR STATE PROTECTION TRUST FUND.

    (a) In General.--Subchapter A of Chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9512. DONOR STATE PROTECTION TRUST FUND.

    ``(a) Creation of Trust Fund.--There is hereby established in the 
Treasury of the United States a trust fund to be known as the `Donor 
State Protection Trust Fund', consisting of such amounts as may be 
appropriated to such Trust Fund as provided in this section.
    ``(b) Transfer to Trust Fund of Amounts Equivalent to Certain 
Taxes.--There are hereby appropriated to the Donor State Protection 
Trust Fund amounts equivalent to the taxes received in the Treasury 
under subtitle A paid by the taxpayers of donor States. For each 
calendar year, if the unobligated amounts in such Trust Fund exceed 
$4,000,000,000,000 on December 31 of such year, such excess amounts 
shall be transferred to the general fund of the Treasury.
    ``(c) Availability of and Expenditures From Trust Fund.--
            ``(1) In general.--Amounts in the Donor State Protection 
        Trust Fund shall be available, without further appropriation, 
        to a donor State--
                    ``(A) if, and only if, the President, or another 
                member of the executive branch--
                            ``(i) imposes, in violation of section 2(a) 
                        of the Taxpayer Protection Act, a general 
                        prohibition on awarding a grant to, or entering 
                        into a contract or other agreement with, the 
                        donor State (or a political subdivision of such 
                        donor State, or a public or nonprofit entity in 
                        such donor State), or
                            ``(ii) revokes or suspends, in violation of 
                        section 2(b) of such Act, a grant, contract, or 
                        other agreement awarded to, or entered into 
                        with, the donor State (or such political 
                        subdivision or entity), and
                    ``(B) for the purpose of making any expenditures 
                determined necessary or appropriate by the donor State.
            ``(2) Limitation.--In the case of any grant, contract, or 
        other agreement that is revoked or suspended, as described in 
        paragraph (1)(A)(ii), with respect to a donor State (or a 
        political subdivision of such donor State, or a public or 
        nonprofit entity in such donor State), the amounts in the Trust 
        Fund available to the donor State shall be limited to the 
        amount equal to the amount the donor State (or such political 
        subdivision or entity) would have received under such grant, 
        contract, or agreement but for such revocation or suspension.
    ``(d) Definitions.--For purposes of this section, the terms `donor 
State' and `public entity' have the meaning given such terms in section 
2(c) of the Taxpayer Protection Act.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of such Code is amended by adding at the end the following 
new item:

``9512. Donor State Protection Trust Fund.''.
    (c) Effective Date.--The amendments made by this Act shall apply to 
taxes received after the date of the enactment of this Act.
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