No Bailouts for Reparations Act
The No Bailouts for Reparations Act would bar the U.S. government from providing any loan, grant, or other form of financial assistance to a state or local government (or their agencies/instrumentalities) if that unit enacts a law creating a reparations program based on slavery or on race, ethnicity, national origin, or related historical practices. The prohibition applies to all federal funding channels, including the Federal Reserve System and independent federal agencies, and is limited to the specific unit of government that enacts the reparations program. The Act defines “State” to include U.S. states, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, the Northern Mariana Islands, and other U.S. territories or possessions. In short, if a state or local government adopts a reparations program tied to slavery or race, the federal government (and the Fed and independent agencies) would be prohibited from providing financial assistance to that unit.
Key Points
- 1Prohibition: The federal government may not provide any loan, grant, or other form of financial assistance to a state or local government (or its agencies/instrumentalities) that enacts a reparations program based on slavery or on race, ethnicity, national origin, or related historical practices.
- 2Scope of funding: The prohibition covers all forms of federal financial assistance, and explicitly includes the Federal Reserve System and independent federal agencies.
- 3Targeted effect: The restriction applies only to the specific unit of government that enacts the reparations program, not to other units that did not enact such a program.
- 4Definition of government unit: The term “State” is defined broadly to include U.S. states, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, the Northern Mariana Islands, and any other U.S. territory or possession.
- 5Short title: The measure is titled the “No Bailouts for Reparations Act.”
- 6Status and sponsors: Introduced in the 119th Congress on March 14, 2025 by Representative Babin; referral to the Committee on Oversight and Government Reform.