[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3002 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 3002

     To prohibit the provision of Federal funds to State and local 
   governments for payment of obligations, to prohibit the Board of 
  Governors of the Federal Reserve System from financially assisting 
          State and local governments, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 2013

Mr. Barr (for himself, Mr. Scalise, Mr. Fleming, Mr. Roe of Tennessee, 
Mr. Brooks of Alabama, Mr. Labrador, Mr. Stutzman, Mrs. Blackburn, Mr. 
  Salmon, Mr. Weber of Texas, Mr. Ribble, Mr. Posey, and Mr. Conaway) 
 introduced the following bill; which was referred to the Committee on 
 Oversight and Government Reform, and in addition to the Committee on 
 Financial Services, 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 provision of Federal funds to State and local 
   governments for payment of obligations, to prohibit the Board of 
  Governors of the Federal Reserve System from financially assisting 
          State and local governments, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Bailouts for State and local 
Governments Act''.

SEC. 2. PROHIBITION ON THE USE OF FEDERAL FUNDS TO PAY STATE AND LOCAL 
              OBLIGATIONS.

    (a) In General.--Notwithstanding any other provision of law, no 
Federal funds may be used to purchase or guarantee obligations of, 
issue lines of credit to, or provide direct or indirect grants-in-aid 
to any State government, municipal government, local government, or 
county government which, on or after January 1, 2013, has filed for 
bankruptcy, has defaulted on its obligations, is at risk of defaulting, 
or is likely to default, absent such assistance from the United States 
Government, if such purchase, guarantee, extension of credit, or grant 
is made for the purpose of assisting the government in--
            (1) avoiding defaulting on the payment of principal or 
        interest due on an obligation of the government; or
            (2) curing such a default.
    (b) Limit on Use of Borrowed Funds.--The Secretary of the Treasury 
shall not, directly or indirectly, use general fund revenues or funds 
borrowed pursuant to title 31, United States Code, to purchase or 
guarantee any asset or obligation of any State government, municipal 
government, local government, or county government, or otherwise to 
assist such government entity, if, on or after January 1, 2013, that 
State government, municipal government, or county government has filed 
for bankruptcy, defaulted on its obligations, is at risk of defaulting, 
or is likely to default, absent such assistance from the United States 
Government, if such purchase, guarantee, extension of credit, or grant 
is made for the purpose of assisting the government in--
            (1) avoiding defaulting on the payment of principal or 
        interest due on an obligation of the government; or
            (2) curing such a default.
    (c) Prohibition on Federal Reserve Assistance.--Notwithstanding any 
other provision of law, the Board of Governors of the Federal Reserve 
System shall not provide or extend to, or authorize with respect to, 
any State government, municipal government, local government, county 
government, or other entity that has taxing authority or bonding 
authority, any funds, loan guarantees, credits, or any other financial 
instrument or other authority, including the purchasing of the bonds of 
such State, municipality, locality, county, or other bonding authority, 
or to otherwise assist such government entity under any authority of 
the Board of Governors, if such purchase, guarantee, extension of 
credit, or grant is made for the purpose of assisting the government 
in--
            (1) avoiding defaulting on the payment of principal or 
        interest due on an obligation of the government; or
            (2) curing such a default.
    (d) Limitation.--Subsections (a) through (c) shall not apply to 
Federal assistance provided in response to a natural disaster.
                                 <all>