STATES Act

This bill says that when the National Guard is sent into federal service—such as to repel an invasion, stop a rebellion, or help enforce federal laws—the state may have to pay the federal government back for the costs in some cases. It aims to make states cover federal costs when a Guard call-up was caused by the state’s own actions or negligence.

If the President decides, within 30 days after the mission ends, that the deployment was the result of the state government’s action or negligence, the federal government will take back 100% of its costs by reducing federal funds sent to that state. The President can waive payback if the state faces extreme financial hardship or if the mission was mainly to protect federal property or enforce federal law. These rules apply retroactively starting June 1, 2025.

• Who is affected: State governments, National Guard deployments under federal control, and federal agencies handling funds.
• What changes: States must repay federal costs for certain Guard call-ups linked to the state’s actions or negligence; repayment is done by cutting federal funds to the state by the same amount; possible waiver in hardship or federal-focused missions.
• When: Applies retroactively to deployments on or after June 1, 2025.