Budget & Taxes (Revenue · Economic Development)

HR 3439, the "Defund Cities that Defund the Police Act of 2025," blocks certain federal grants from going to states or cities that significantly reduce police funding without a revenue shortfall. It defines a "defunding locality" as an urban city that disbands its police department or cuts its budget substantially (without prior revenue loss), and a "defunding state" similarly for state law enforcement agencies. The bill specifically denies eligibility for Economic Development Administration grants (like public works and planning funds) and Community Development Block Grants to these jurisdictions. If a recipient becomes a "defunding jurisdiction" during a grant period, it must return all funds received for that period.