HR4208-119

1. Short title This Act may be cited as the Taxpayer Protection Act.

2. No political punishment of donor States 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). 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 entity) has committed fraud, waste, or abuse with respect to such grant, contract, or agreement. In this section— The term donor State means any State the taxpayers of which have on average, 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. The term public entity includes public schools and public hospitals.

3. Donor State Protection Trust Fund Subchapter A of Chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 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. There are hereby appropriated 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 December 31 of such year, such excess amounts shall be transferred to the general fund of the Treasury. Amounts in the Donor State Protection Trust Fund shall be available, without further appropriation, to a donor State— if, and only if, the President, or another member of the executive branch— 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 agreement with, the donor State (or a political subdivision of such donor State, or a public or nonprofit entity in such donor State), or revokes or suspends, in violation of section 2(b) of such Act, a grant, contract, or other agreement awarded to, or entered into with, the donor State (or such political subdivision or entity), and for the purpose of making any expenditures determined necessary or appropriate by the donor State. In the case of any grant, contract, or other agreement that is revoked or suspended, 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 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 received under such grant, contract, or agreement but for such revocation or suspension. 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 Protection Act. The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item: The amendments made by this Act shall apply to taxes received after the date of the enactment of this Act. 9512.Donor State Protection Trust Fund(a)Creation of Trust FundThere 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 taxesThere are hereby appropriated 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 December 31 of such year, such excess amounts shall be transferred to the general fund of the Treasury.(c)Availability of and expenditures from Trust Fund(1)In generalAmounts in the Donor State Protection Trust Fund shall be available, without further appropriation, to a donor State—(A)if, and only if, the President, or another 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 agreement 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, contract, 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 expenditures determined necessary or appropriate by the donor State.(2)LimitationIn the case of any grant, contract, or other agreement that is revoked or suspended, 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 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 received under such grant, contract, or agreement but for such revocation or suspension.(d)DefinitionsFor purposes of this section, the terms donor State and public entity have the meaning given such terms in section 2(c) of the Taxpayer Protection Act.. 9512. Donor State Protection Trust Fund..