H.R. 7648: Local Taxpayer Protection Act of 2026

This bill, titled the Local Taxpayer Protection Act of 2026, aims to create a grant program administered by the Secretary of Homeland Security to assist municipalities that host or are planning to develop facilities for the processing or detention of individuals arrested or detained by U.S. Immigration and Customs Enforcement (ICE).

Key Provisions

Grant Program Establishment

The Secretary of Homeland Security is tasked with establishing a program that provides grants to municipalities where ICE processing or detention facilities are located or being developed. This aims to support local governments experiencing financial impacts due to these facilities.

Grant Amount

The maximum grant amount that a municipality can receive will be determined by calculating its unrealized property tax revenue combined with expenses from public utilities used by that municipality in the previous fiscal year.

Grant Term

Grants will be awarded for a term of five years. Municipalities can apply for a renewal of the grant for the duration that the facility operates within their jurisdiction.

Eligibility for Grants

Only municipalities where ICE facilities are maintained or under development can apply for these grants. This specificity ensures that the funding goes directly to areas impacted by these federal facilities.

Application Process

To apply for a grant, municipalities must submit applications to the Secretary of Homeland Security. The applications must include:

• A description of the financial needs of the municipality.
• An analysis of the costs and benefits associated with the facility.
• A list of any other funding sources previously received for similar purposes.
• Any other information deemed necessary by the Secretary of Homeland Security.

Joint Applications

Two or more municipalities can collaborate to submit a joint application. This option encourages regional partnerships and can enhance cost-effectiveness. The Secretary is also instructed to provide guidance on how to apply for and manage such joint grants.

Use of Funds

Funds obtained through these grants are to be used for:

• Covering unrealized property tax revenue.
• Defraying expenses related to public utilities within the municipality.

Moreover, municipalities are encouraged to establish self-sufficiency for the facilities concerning their use of public utilities or to enhance the capacity of public utilities to support these facilities.

Definition of Public Utilities

For the purposes of the bill, public utilities systems encompass a range of services including:

• Water
• Gas and natural gas
• Electricity
• Internet connectivity
• Garbage collection
• Recycling
• Sewer systems

Relevant Companies

None found