Congresswoman Torres Introduces The Taxpayer Protection Act
Legislation to Ensure Donor States Receive Fair Federal Funding and Ends Politically Motivated Budget Punishment
Washington, D.C. – Today, Congresswoman Norma Torres (CA-35) unveiled The Taxpayer Protection Act, legislation that addresses politically motivated funding cuts, as well as the persistent imbalance between donor states’ federal tax contributions and the federal funding they receive.
For months now, California has been subject to threats of across the board federal funding cuts because of the political whims of the Trump Administration. This is particularly offensive given California’s role as the biggest donor state in the nation- California taxpayers contribute approximately $83 billion more annually to the federal government than the state receives back in federal funding, according to the Rockefeller Institute of Government. The bill establishes a transparent, accountable, and equitable framework ensuring that federal funds are allocated based on fairness — not political retribution.
“California contributes more to our nation than any other state, yet Donald Trump wants to punish us for our values and political decisions. That stops now. This legislation ensures that federal funding decisions are based on need and equity—not political retribution from the Trump Administration. With the Taxpayer Protection Act, we will ensure fairness, transparency, and accountability from the federal government. This bill isn’t about special treatment—it’s about equal treatment. Our tax dollars should work for us, not be used against us,” said Congresswoman Norma Torres.
The Act establishes the Donor State Protection Trust Fund, a special Treasury account designed to balance donor states federal tax contributions against the federal funding it receives. It requires independent verification and protects against politically motivated funding cuts. It also prohibits federal agencies from circumventing the law through reclassification or freezing funds.
The bill would include:
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A formula-based approach linking donor states federal tax contributions to federal funding received.
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Protections against funding reductions motivated by political retaliation.
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Oversight against waste, fraud, and abuse by the Government Accountability Office
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