Congress·In Committee·H.R. 9324

Government Bailout Prevention Act

Bailouts: Ban on Federal Help for Local Debt

9 days ago·View on Congress.gov·Read full text

This bill is currently in the early stages of the legislative process and is being reviewed by two House committees. It is actively moving through the system, but no future votes or hearings have been scheduled yet.

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.

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.

Votes

No votes have been recorded for this legislation yet.

News

No related news coverage found for this legislation 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.