No Bailouts for Reparations Act

This proposal would block the federal government—including the Federal Reserve and independent agencies—from giving loans, grants, or any other financial help to a state or local government if that government passes a law to provide reparations based on slavery, race, ethnicity, national origin, or related historical practices, according to the text of the bill. The restriction would only apply to the specific government that enacts such a reparations program, not to other parts of the state or other governments. The bill’s definition of “State” includes the 50 states, D.C., Puerto Rico, and U.S. territories.

Key points:

• Who is affected: Any state, city, county, or similar local government that passes a reparations law.
• What changes: Those governments would be ineligible for federal financial assistance, such as loans or grants, while they have such a law in place.
• Scope: Applies only to the government that enacted the reparations program; it does not automatically affect other governments in the same state.
• Where this applies: All U.S. states, D.C., Puerto Rico, and U.S. territories.