What does Preamble of Taxpayer Protection Act do?

This bill aims to prohibit the political punishment of donor States The bill was introduced to the House of Representatives It was referred to the Committee on Oversight and Government Reform and the Committee on Ways and Means

What does SHORT TITLE. of Taxpayer Protection Act do?

This bill is formally titled Taxpayer Protection Act

What does NO POLITICAL PUNISHMENT OF DONOR STATES. of Taxpayer Protection Act do?

This section prohibits the President or members of the executive branch from targeting 'donor states' by imposing general prohibitions on federal funding. Federal funding to donor states, their political subdivisions, or public/nonprofit entities within them, cannot be revoked or suspended. Revocation or suspension of funding is only permitted if the Comptroller General determines fraud, waste, or abuse occurred. A 'donor state' is defined as a state where taxpayers paid more in federal income taxes over a three-year period than the state received in federal funding over the same period. The term 'public entity' includes public schools and public hospitals.

What does DONOR STATE PROTECTION TRUST FUND. of Taxpayer Protection Act do?

This section establishes the 'Donor State Protection Trust Fund' within the Treasury of the United States. The Trust Fund will consist of amounts appropriated to it and amounts equivalent to taxes received under subtitle A paid by taxpayers of 'donor States'. If the unobligated amounts in the Trust Fund exceed $4,000,000,000 on December 31 of a year, the excess will be transferred to the general fund of the Treasury. Amounts in the Trust Fund are available to a donor State if the President or another member of the executive branch imposes or revokes a grant in violation of the Taxpayer Protection Act. Expenditures from the Trust Fund must be determined necessary or appropriate by the donor State. The amount available to a donor State for revoked or suspended grants is limited to the amount they would have received but for the revocation or suspension. The terms 'donor State' and 'public entity' are defined by reference to section 2(c) of the Taxpayer Protection Act. This section amends the table of sections for subchapter A of chapter 98 of the Internal Revenue Code to include the new section 9512.

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Taxpayer Protection Act

Last updated: 6/26/2025 · Introduced: 6/26/2025

Author: Norma Torres (D-CA)

TL;DR (AI)

The bill prohibits the President or executive branch members from targeting 'donor states' by imposing general prohibitions on federal funding without evidence of fraud, waste, or abuse.
A 'Donor State Protection Trust Fund' is established to provide funds to donor states if the executive branch violates the Taxpayer Protection Act by revoking or suspending grants.
The Trust Fund will consist of appropriated amounts and taxes from 'donor states', with excess funds over $4,000,000,000 being transferred to the general Treasury fund at the end of each year.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

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