American Allies Protection Act

This bill restricts federal grants to states or local governments that arrest, detain, or assist in detaining foreign officials from NATO allies or designated "Major Non-NATO Allies" based on International Criminal Court (ICC) warrants. It prohibits federal grant awards for four years to any state, territory, or local entity engaging in such actions. The Attorney General may waive this penalty if the President certifies the action is essential for U.S. national security, requiring detailed justification to relevant congressional committees. The bill directly affects state/local enforcement agencies and their federal funding relationships.