Taxpayer Protection Act

House Votes

This bill would create a Donor State Protection Trust Fund in the U.S. Treasury. The fund would receive money equal to certain federal taxes paid by people in “donor States.” If, at the end of any year, more than $4 trillion is left unused in the fund, the extra would go back to the general Treasury.

Money from the fund could only go to a donor State if the President or another executive branch official blocks new federal grants or contracts to that state, or pulls existing ones, in a way the Taxpayer Protection Act forbids. If that happens, the state could use the money for whatever it decides is needed. If a specific grant or contract was pulled, the payout could not be more than what the state (or its local government or a public or nonprofit group in that state) would have received. The terms “donor State” and “public entity” use the meanings from the Taxpayer Protection Act.

• Who is affected: Donor States, their local governments, and public or nonprofit groups in those states.
• What changes: Creates a trust fund; makes money available to states after forbidden federal actions; caps year-end excess over $4 trillion.
• When it applies: When a forbidden block, revocation, or suspension of a grant or contract occurs; the year-end cap is measured on December 31.