I 
119TH CONGRESS 
1ST SESSION H. R. 4208 
To prohibit the political punishment of donor States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2025 
Mrs. TORRES of California introduced the following bill; which was referred 
to the Committee on Oversight and Government Reform, and in addition 
to the Committee on Ways and Means, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To prohibit the political punishment of donor States, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Taxpayer Protection 
Act’’. 
SEC. 2. NO POLITICAL PUNISHMENT OF DONOR STATES. 
(a) NO GENERAL PROHIBITIONS
ON PROVIDING 
FEDERAL FUNDING.—Notwithstanding any other provi-
sion of law, the President, or any other member of the 
VerDate Sep 11 2014 
03:42 Jul 11, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4208.IH
H4208
kjohnson on DSK7ZCZBW3PROD with $$_JOB
executive branch, may not target a donor State by impos-
ing a general prohibition on awarding a grant to, or enter-
ing into a contract or other agreement with, the donor 
State (or a political subdivision of such donor State, or 
a public or nonprofit entity in such donor State). 
(b) NO REVOCATIONS OR SUSPENSIONS OF FEDERAL 
FUNDING.—Notwithstanding any other provision of law, 
the President, or any other member of the executive 
branch, may not revoke or suspend any grant, contract, 
or other agreement awarded to, or entered into with, a 
donor State (or a political subdivision of such donor State, 
or a public or nonprofit entity in such donor State), unless 
the Comptroller General of the United States determines 
that the donor State (or such political subdivision or enti-
ty) has committed fraud, waste, or abuse with respect to 
such grant, contract, or agreement. 
(c) DEFINITIONS.—In this section— 
(1) DONOR STATE.—The term ‘‘donor State’’ 
means any State the taxpayers of which have on av-
erage, over the 3-year period preceding the date of 
the enactment of this Act, paid a total amount in 
Federal income taxes that exceeds the average total 
amount of Federal funding provided to the State 
over such period. 
VerDate Sep 11 2014 
03:42 Jul 11, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4208.IH
H4208
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(2) PUBLIC ENTITY.—The term ‘‘public entity’’ 
includes public schools and public hospitals. 
SEC. 3. DONOR STATE PROTECTION TRUST FUND. 
(a) IN GENERAL.—Subchapter A of Chapter 98 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new section: 
‘‘SEC. 9512. DONOR STATE PROTECTION TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is hereby 
established in the Treasury of the United States a trust 
fund to be known as the ‘Donor State Protection Trust 
Fund’, consisting of such amounts as may be appropriated 
to such Trust Fund as provided in this section. 
‘‘(b) TRANSFER
TO TRUST FUND
OF AMOUNTS 
EQUIVALENT TO CERTAIN TAXES.—There are hereby ap-
propriated to the Donor State Protection Trust Fund 
amounts equivalent to the taxes received in the Treasury 
under subtitle A paid by the taxpayers of donor States. 
For each calendar year, if the unobligated amounts in 
such Trust Fund exceed $4,000,000,000,000 on Decem-
ber 31 of such year, such excess amounts shall be trans-
ferred to the general fund of the Treasury. 
‘‘(c) AVAILABILITY OF AND EXPENDITURES FROM 
TRUST FUND.— 
VerDate Sep 11 2014 
03:42 Jul 11, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4208.IH
H4208
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(1) IN
GENERAL.—Amounts in the Donor 
State Protection Trust Fund shall be available, with-
out further appropriation, to a donor State— 
‘‘(A) if, and only if, the President, or an-
other member of the executive branch— 
‘‘(i) imposes, in violation of section 
2(a) of the Taxpayer Protection Act, a 
general prohibition on awarding a grant to, 
or entering into a contract or other agree-
ment with, the donor State (or a political 
subdivision of such donor State, or a public 
or nonprofit entity in such donor State), or 
‘‘(ii) revokes or suspends, in violation 
of section 2(b) of such Act, a grant, con-
tract, or other agreement awarded to, or 
entered into with, the donor State (or such 
political subdivision or entity), and 
‘‘(B) for the purpose of making any ex-
penditures determined necessary or appropriate 
by the donor State. 
‘‘(2) LIMITATION.—In the case of any grant, 
contract, or other agreement that is revoked or sus-
pended, as described in paragraph (1)(A)(ii), with 
respect to a donor State (or a political subdivision 
of such donor State, or a public or nonprofit entity 
VerDate Sep 11 2014 
03:42 Jul 11, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4208.IH
H4208
kjohnson on DSK7ZCZBW3PROD with $$_JOB
in such donor State), the amounts in the Trust 
Fund available to the donor State shall be limited to 
the amount equal to the amount the donor State (or 
such political subdivision or entity) would have re-
ceived under such grant, contract, or agreement but 
for such revocation or suspension. 
‘‘(d) DEFINITIONS.—For purposes of this section, the 
terms ‘donor State’ and ‘public entity’ have the meaning 
given such terms in section 2(c) of the Taxpayer Protec-
tion Act.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of such Code is amended 
by adding at the end the following new item: 
‘‘9512. Donor State Protection Trust Fund.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this Act shall apply to taxes received after the date of the 
enactment of this Act. 
Æ 
VerDate Sep 11 2014 
03:42 Jul 11, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H4208.IH
H4208
kjohnson on DSK7ZCZBW3PROD with $$_JOB