Government Bailout Prevention Act

This bill would bar federal funds from being used to buy or guarantee the debts of, give credit lines to, or provide grants-and-aid to any state, city, county, local government, or school district that, on or after January 1, 2026, has filed for bankruptcy, defaulted, or is at risk of or likely to default without federal help. It would bar the Treasury Secretary from using general fund revenues or borrowed money to buy or guarantee assets or debts of such governments. It would also bar Federal Reserve banks from providing funds, loan guarantees, credit, or bond purchases to any state, local government, school district, or other entity with taxing or bonding authority. These limits would not apply to aid for declared disasters, discretionary appropriations, direct spending, or grants awarded by the United States, and they would cover debt restructuring.

Full text and official record on Congress.gov

Sponsors

• Todd Young Republican sponsor
• 5 cosponsors