Referred to the House Committee on Ways and Means.
This bill amends Internal Revenue Code section 103 to deny tax-exempt status for bonds issued by designated "sanctuary jurisdictions." It defines a sanctuary jurisdiction as a State or political subdivision that restricts exchanging immigration status information or refuses DHS detainer/notification requests. The Secretary of the Treasury, after consulting DHS, must publish an initial list within 180 days and update it annually.
Left emphasizes harm to municipal services and immigrant trust.
Policy is highly partisan and controversial but procedurally simple; success depends on chamber majority cohesiveness.
This bill amends Internal Revenue Code section 103 to deny tax-exempt status for bonds issued by designated "sanctuary jurisdictions." It defines a sanctuary jurisdiction as a State or political subdivision that restricts exchanging immigration status information or refuses DHS detainer/notification requests.
The Secretary of the Treasury, after consulting DHS, must publish an initial list within 180 days and update it annually.
The rule applies to obligations issued after enactment.
Substantive federal pressure on state/local policy and clear partisan profile reduce bipartisan support; Senate hurdles increase failure risk.
How solid the drafting looks.
Left emphasizes harm to municipal services and immigrant trust.
These are examples from the analysis, not a ranked list of the most-affected groups.
Left emphasizes harm to municipal services and immigrant trust.
Likely to oppose the bill as a punitive federal intrusion that raises costs for local governments serving diverse populations.
Concerns focus on harm to municipal finance, public services, and community trust with immigrants.
Also likely to predict legal challenges on federalism and due process grounds.
Will weigh policy goals of immigration enforcement against municipal finance and federalism concerns.
May accept targeted measures to promote cooperation, but worries about broad, blunt fiscal penalties and legal uncertainty.
Likely to seek procedural safeguards, narrow scope, and exemptions for essential projects.
Likely to support the bill as a tool to pressure jurisdictions to comply with federal immigration law.
Views denial of tax-exempt status as an appropriate federal leverage mechanism.
Will welcome the Treasury-DHS consultation to identify noncompliant jurisdictions.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Substantive federal pressure on state/local policy and clear partisan profile reduce bipartisan support; Senate hurdles increase failure risk.
The bill has not accumulated any surfaced votes yet.
Left emphasizes harm to municipal services and immigrant trust.
Substantive federal pressure on state/local policy and clear partisan profile reduce bipartisan support; Senate hurdles increase failure ri…
Pro readers get the full perspective split, passage barriers, legislative design review, stakeholder impact map, and lens-based policy tradeoff analysis for No Tax Breaks for Sanctuary Cities Act.
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