STATES Act

H.R. 4042, the STATES Act (States Taking Accountability for Troops Engaged in Safety Act), would require states to reimburse the Federal Government for the costs of National Guard deployments when those guards are called into Federal service. The bill would amend 10 U.S.C. § 12406 to authorize the President to determine when a state’s actions are deemed negligent and, within 30 days after such federal activation, direct cost recovery by reducing the state’s federal funding by 100% of the costs incurred by the Federal Government. There are waivers for extreme financial hardship or when the deployment is primarily to protect Federal property or enforce Federal law, as determined by the President. The act includes a regulatory framework and takes effect retroactively to June 1, 2025, applying to all deployments after that date. In short, the bill shifts the financial burden of certain National Guard deployments from the federal government to the involved state governments, under a defined set of conditions and with certain exceptions.