The Taxpayer Protection Act: A Bill to Prevent Political Punishment
HR 4208 IH – To prohibit the political punishment of donor States, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
J UNE 26, 2025
Mrs. T
ORRES 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 provisions 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-1
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Taxpayer Protection4
Act’’.
SEC. 2. NO POLITICAL PUNISHMENT OF DONOR STATES
(a) N
O GENERAL PROHIBITIONS ON PROVIDING FEDERAL FUNDING .—Notwithstanding any other provision of law, the President, or any other member of the executive branch, may not target a donor State by imposing a general prohibition on awarding a grant to, or entering 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) N
O REVOCATIONS OR SUSPENSIONS OF FEDERAL6
FUNDING .—Notwithstanding any other provision of law, the President, or any other member of the executive8
branch, may not revoke or suspend any grant, contract, or other agreement awarded to, or entered into with, a10
donor State (or a political subdivision of such donor State,11
or a public or nonprofit entity in such donor State), unless12
the Comptroller General of the United States determines13
that the donor State (or such political subdivision or enti-14
ty) has committed fraud, waste, or abuse with respect to15
such grant, contract, or agreement.
SEC. 3. DONOR STATE PROTECTION TRUST FUND
(a) I
N GENERAL .—Subchapter A of Chapter 98 of4
the Internal Revenue Code of 1986 is amended by adding5
at the end the following new section:
‘‘SEC. 9512. DONOR STATE PROTECTION TRUST FUND.’’.
‘‘(a) C
REATION OF TRUST FUND .—There is hereby8
established in the Treasury of the United States a trust9
fund to be known as the ‘Donor State Protection Trust10
Fund’, consisting of such amounts as may be appropriated11
to such Trust Fund as provided in this section.‘‘(b) T
RANSFER TO TRUST FUND OF AMOUNTS13
EQUIVALENT TO CERTAIN TAXES .—There are hereby ap-14
propriated to the Donor State Protection Trust Fund15
amounts equivalent to the taxes received in the Treasury16
under subtitle A paid by the taxpayers of donor States.17For each calendar year, if the unobligated amounts in18
such Trust Fund exceed $4,000,000,000,000 on Decem-19
ber 31 of such year, such excess amounts shall be trans-20
ferred to the general fund of the Treasury.21‘‘(c) A
VAILABILITY OF AND EXPENDITURES FROM22
T
RUST FUND .—23SEC. 3(d)
(d) D
EFINITIONS .—For purposes of this section, the7
terms ‘donor State’ and ‘public entity’ have the meaning8
given such terms in section 2(c) of the Taxpayer Protec-9
tion Act.’’.C Lerical Amendment
The table of sections11
for subchapter A of chapter 98 of such Code is amended12
by adding at the end the following new item:‘‘9512. Donor State Protection Trust Fund.’’.
EFFECTIVE DATE
The amendments made by14
this Act shall apply to taxes received after the date of the15
enactment of this Act.Direct Link: https://www.govinfo.gov/app/details/BILLS-119hr4208ih
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