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S. 2120 116th Congress Senate

Government Bailout Prevention Act

Official title: A bill to prohibit the provision of Federal funds to State and local governments for payment of obligations, to prohibit the Federal Reserve Banks, the Departm… Show full official titleShow less

Official title: A bill to prohibit the provision of Federal funds to State and local governments for payment of obligations, to prohibit the Federal Reserve Banks, the Department of the Treasury, and other Federal agencies from financially assisting State and local governments that have defaulted on their obligations, and for other purposes.

Introduced: July 15, 2019 Introduced by: Todd Young Republican · Indiana See on congress.gov
Economics and Public Finance BankruptcyFederal Reserve SystemGovernment lending and loan guaranteesState and local finance
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This bill died when the 116th Congress ended
It never became law before the 116th Congress (2019–2020) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jul 15, 2019
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Jul 15, 2019
Introduced in Senate
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 Latest action July 15, 2019

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

 Plain-English summary Congressional Research Service

Government Bailout Prevention Act

This bill prohibits the use of federal funds to purchase or guarantee obligations of, issue lines of credit to, or provide grants to any state (defined to include the District of Columbia and any U.S. territory or possession), municipal, local, or county government that, on or after January 1, 2019, has defaulted on its obligations, is at risk of defaulting, or has filed for bankruptcy.

The Department of the Treasury is prohibited from using general fund revenues or borrowed funds to purchase or guarantee any asset or obligation of any such state, municipal, local, or county government.

Federal Reserve banks are prohibited from assisting such a state, municipal, local, or county government or other entity with taxing or bonding authority.

 Related & companion bills 1
  • HR 4572 Identical bill Government Bailout Prevention Act
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Cosponsors 2
All 2 Republican 1
R
Cotton, Tom
Arkansas · Jul 15, 2019
Toomey, Patrick
· Jul 15, 2019
Cite this page click to expand
APA
U.S. Congress. (2026). S. 2120: Government Bailout Prevention Act. 116th Congress. Open America. https://openamerica.io/bill/116-S-2120/
MLA
"S. 2120: Government Bailout Prevention Act." 116th Congress, 2026, Open America, https://openamerica.io/bill/116-S-2120/.
Bluebook (legal)
S. 2120, 116th Cong. (2026), https://openamerica.io/bill/116-S-2120/.
Markdown link
[S. 2120: Government Bailout Prevention Act](https://openamerica.io/bill/116-S-2120/)
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