Bill > HR1879

This bill aims to deny tax-exempt status for municipal bonds issued by "sanctuary jurisdictions" - states or local governments that limit cooperation with federal immigration enforcement. Specifically, the bill defines a sanctuary jurisdiction as any state or local government that prohibits or restricts its officials from sharing immigration status information with other government entities or from complying with Department of Homeland Security (DHS) detainer requests or notifications about the release of individuals. Under the proposed legislation, the Secretary of the Treasury would be required to publish an annual list of sanctuary jurisdictions in consultation with the DHS Secretary. Any bonds issued by these jurisdictions would no longer qualify for tax-exempt status, which means investors would have to pay taxes on the interest earned from such bonds, potentially making these municipal bonds less attractive and more expensive for local governments to issue. The bill would apply to any bond obligations issued after the date of enactment, impacting the financial strategies of local governments that choose to limit their cooperation with federal immigration enforcement efforts.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1879/all-info