Local Taxpayer Protection Act of 2026

#7648 | HR Congress #119

Policy Area: Immigration
Subjects:

Last Action: Referred to the Committee on the Judiciary, and in addition to the Committees on Energy and Commerce, and Transportation and Infrastructure, 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. (2/23/2026)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Local Taxpayer Protection Act of 2026" is a proposed piece of legislation aimed at providing financial support to municipalities that host or are developing U.S. Immigration and Customs Enforcement (ICE) processing or detention facilities.

Key components of the bill include:

1. **Grant Program**: The Secretary of Homeland Security is required to establish a grant program to aid municipalities facing financial burdens due to the presence of ICE facilities.

2. **Grant Amount**: Municipalities can receive grants that cover the loss of property tax revenue and costs for public utilities used in the previous fiscal year, with a maximum duration of five years, and possible renewals as long as the facility operates.

3. **Eligibility and Application**: Municipalities with ICE facilities can apply for these grants, providing details on their financial needs, costs, benefits, and other funding sources. Joint applications from multiple municipalities are also encouraged to enhance efficiency.

4. **Use of Funds**: The grants must be used to offset lost property tax revenue and utility costs. Recipients are encouraged to make ICE facilities self-sufficient concerning public utilities.

5. **Definition of Public Utilities**: This includes essential services such as water, electricity, internet, and waste management, ensuring that the municipalities can maintain adequate services.

Overall, the act aims to alleviate financial pressure on local governments impacted by ICE facilities and promote better resource management in these communities.

Possible Impacts

Here are three examples of how the "Local Taxpayer Protection Act of 2026" could affect people:

1. **Financial Relief for Municipalities**: The grant program established by this legislation would provide financial support to municipalities hosting ICE processing or detention facilities. This could significantly ease the financial burden on local governments, allowing them to allocate funds to other essential services such as education, public safety, and infrastructure. Residents may benefit from improved local services as municipalities redirect saved costs towards community needs.

2. **Impact on Local Utility Services**: The grants can be used to enhance public utility systems, which include essential services like water, electricity, and waste management. If municipalities improve or expand these services to accommodate the facilities, local residents may experience better utility services. However, if the funds are not managed properly, there could also be concerns about the potential strain on resources, leading to disruptions or increased costs for residents.

3. **Community Relations and Perceptions**: The presence of ICE facilities and the related grants could influence community dynamics. For some residents, the financial assistance may foster a sense of support and investment in local infrastructure. Conversely, the existence of ICE facilities can lead to tension within communities, particularly among immigrant populations. This legislation could amplify discussions about immigration policies and their local impacts, potentially affecting community cohesion and relationships among diverse groups.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7648 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7648

 To establish a grant program to mitigate expenses for municipalities 
 where ICE processing or detention facilities are maintained or under 
                              development.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 23, 2026

   Mr. Kean introduced the following bill; which was referred to the 
Committee on the Judiciary, and in addition to the Committees on Energy 
and Commerce, and Transportation and Infrastructure, 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

_______________________________________________________________________

                                 A BILL


 
 To establish a grant program to mitigate expenses for municipalities 
 where ICE processing or detention facilities are maintained or under 
                              development.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Local Taxpayer Protection Act of 
2026''.

SEC. 2. IN GENERAL.

    (a) In General.--The Secretary of Homeland Security shall establish 
a program to provide a grant to a municipality wherein a facility for 
processing or detention of individuals arrested or detained by U.S. 
Immigration and Customs Enforcement is maintained or under development.
    (b) Amount.--The amount of a grant to a municipality may not exceed 
the combined cost of unrealized property tax revenue and such public 
utilities in use by that municipality for the preceding fiscal year.
    (c) Term.--The grant term shall be 5 years, but a grantee may apply 
for renewal for the duration of a facility operation in the 
municipality.
    (d) Eligible Grantee.--A municipality is eligible for a grant under 
this section if it is a municipality wherein a facility is maintained 
or under development for the processing or detention of individuals 
arrested or detained by U.S. Immigration and Customs Enforcement.
    (e) Applications.--
            (1) In general.--A municipality seeking a grant under this 
        section shall submit to the Secretary of Homeland Security an 
        application therefor in such form and in such manner as the 
        Secretary of Homeland Security determines appropriate.
            (2) Elements.--Each application submitted under paragraph 
        (1) shall include the following:
                    (A) A description of the financial need of the 
                applicant for the grant.
                    (B) An analysis of the costs and benefits of the 
                use for which a grant is requested.
                    (C) A list of other sources of funding received by 
                the applicant--
                            (i) for the same purpose for which the 
                        application for a grant under this section was 
                        submitted; or
                            (ii) from the Federal Government for 
                        similar purposes.
                    (D) Such other information as the Secretary of 
                Homeland Security determines appropriate.
            (3) Joint or regional applications.--
                    (A) In general.--Two or more entities may submit an 
                application under paragraph (1) for a joint grant under 
                this section.
                    (B) Nonexclusivity.--Applications under this 
                paragraph may be submitted instead of or in addition to 
                any other application submitted under paragraph (1).
                    (C) Guidance.--The Secretary of Homeland Security 
                shall--
                            (i) publish guidance on applying for and 
                        administering joint grants; and
                            (ii) encourage applicants to apply for 
                        joint grants as the Secretary of Homeland 
                        Security determines appropriate to achieve 
                        greater cost effectiveness and regional 
                        efficiency.
    (f) Use of Funds.--A grant under this Act shall be used to defray 
unrealized property tax revenue, to defray the expense of operating 
public utilities systems within the municipality, or for both purposes. 
The grantee shall, to the extent practicable, make a facility described 
in subsection (a) in the municipality self-sufficient with regard to 
use of public utilities, or extend the capacity of the public utilities 
systems to accommodate the use of such systems by such facility.
    (g) Public Utilities Systems.--For purposes of this section, the 
term ``public utilities systems'' includes water, gas, natural gas, 
electricity, internet connectivity, garbage collection, recycling, and 
sewer systems.
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