Congress·In Committee·H.R. 9324

Government Bailout Prevention Act

Bailouts: Ban on Federal Help for Local Debt

Jun 15·View on Congress.gov·Read full text

Part of: Government Bailout Prevention Act

This bill is one vehicle in a longer effort. See the full story across every version.View effort →

Next up: A house committee

The Government Bailout Prevention Act was sent to the House Oversight and Government Reform and Financial Services committees on June 15, 2026. It has not moved since that date and remains under committee review. Most bills do not receive a committee vote, so this proposal is currently stalled.

Companion bill: Sen. Young Introduces Government Bailout Prevention Act to Block Federal Aid for Bankrupt States →

Legislative Progress

House

Senate

President

Law

Unlikely to pass

This bill was introduced by a small group of lawmakers and faces a difficult path because it lacks support from the other party and has no matching bill in the Senate.

How we got here

This bill’s path across every version that has carried it.

Companion
Identical companion bill S. 4629 (119th) was introduced in the other chamber.
S. 4629 (119th) →

Key Points

This bill stops the federal government from using taxpayer money to rescue states, cities, or school districts that are going bankrupt or cannot pay their bills. It prevents the Treasury Department and the Federal Reserve from giving out emergency loans or buying local bonds to help these groups stay afloat.
The rule would apply to any local government that has defaulted on its debts or is at risk of doing so. This means if a city runs out of money to pay its workers or lenders, it cannot ask the federal government for a special financial rescue package to cover those specific debts.
There are some important exceptions to this rule. The ban does not stop the government from sending help after a natural disaster like a hurricane or flood. It also does not affect regular federal grants that schools and cities already receive for their normal daily operations.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

2 milestones2 actions

Jun 15, 2026House

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.

Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.

Jun 15, 2026

Introduced in House

The bill was officially filed and given a number. It now enters the legislative queue.

No votes or news coverage recorded for this bill yet.

Source Information

Document Type

Congressional Bill

Official Title

Government Bailout Prevention Act

Bill NumberHR 9324

Congress119th Congress

ChamberHouse of Representatives

Latest ActionReferred 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.