This bill limits the authority of the President (or any other member of the executive branch) to withhold federal funding to certain states. The bill also establishes a fund to provide funding to such states if funding is withheld.
Specifically, the bill prohibits the President (or any other member of the executive branch) from (1) imposing a general prohibition on awarding federal funding to a donor state (or any political subdivision, hospital, school, or nonprofit entity in such state); or (2) revoking or suspending such federal funding unless the Government Accountability Office determines the donor state (or any political subdivision, hospital, school, or nonprofit entity in such state) committed fraud, waste, or abuse related to such funding.
A donor state is any state in which the state’s taxpayers paid more federal income taxes than the state received in federal funding on average over the three-year period preceding the bill's enactment date.
Finally, the bill establishes and provides specified funds to the Donor State Protection Trust Fund to provide funding to donor states in certain circumstances where federal funds are withheld in violation of this bill. (Conditions and limitations apply.)
