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Prohibits States and urban local governments that abolish or sharply cut police budgets (unless the cut is due to a major revenue drop the prior year) from receiving certain federal economic and community development grants. Agencies designated as "defunding" must return funds received for the affected period, and those funds are reallocated to non-defunding jurisdictions in the same State.
The bill ties federal community and economic development funding to local policing decisions—preserving police services and directing funds to jurisdictions that maintain law‑enforcement spending, but reducing local autonomy, creating winners and losers in federal funding, and raising fiscal, legal, and equity risks for stressed or excluded communities.
Residents in jurisdictions that maintain or restore law‑enforcement funding (especially urban communities) are more likely to retain local police services and avoid penalties or loss of certain federal support.
Local governments and taxpayers in jurisdictions that do not 'defund' police may receive redistributed CDBG and EDA funds, increasing resources for local infrastructure and community projects and directing federal dollars to compliant areas.
Low‑income residents, local governments, and communities labeled as 'defunding' risk losing access to EDA/CDBG and other federal grants, which would reduce funding for infrastructure, housing, and community services.
Local governments and communities will face reduced local control over policing decisions because the statute threatens penalties or funding consequences for downsizing or abolishing police departments.
States and localities that become classified as 'defunding' during a funding period may be required to immediately repay federal funds, creating fiscal uncertainty and cash‑flow problems for ongoing local programs.
Introduced May 15, 2025 by Brian K. Fitzpatrick · Last progress May 15, 2025