The bill bars federal support for race- or slavery-based reparations programs — limiting federal spending on race-differentiated benefits and protecting taxpayers, but withholding federal funds from jurisdictions that pursue reparations and creating funding disparities while blocking federally supported remedies for affected communities.
State and local governments that do not enact race- or slavery-based reparations retain eligibility for federal grants and loans.
Taxpayers are protected from federal funds being used to support programs that explicitly differentiate benefits by race or slavery status.
States and localities that enact reparations would lose access to federal grants and loans, reducing funding for public services and projects in those jurisdictions.
Communities seeking reparations — primarily racial and ethnic minority communities — would be blocked from receiving federally supported financial relief tied to local reparations programs.
The threat of losing federal funding could pressure states, territories (including D.C. and Puerto Rico), and localities to abandon legislatively created remedies for historical injustices.
Based on analysis of 2 sections of legislative text.
Bars federal loans, grants, and other financial assistance to state or local governments that enact reparations programs based on slavery, race, ethnicity, national origin, or related historical practices.
Introduced March 14, 2025 by Brian Babin · Last progress March 14, 2025
Prohibits the federal government, including the Federal Reserve and independent agencies, from providing loans, grants, or other financial assistance to any state, territory, or local government that enacts a reparations program based on slavery, race, ethnicity, national origin, or related historical practices. The restriction applies only to the specific government unit that adopts such a program and the law does not create new federal spending or programs.