Defund Cities that Defund the Police Act of 2025

The term defunding State means a State that—

(A) abolishes or disbands a State law enforcement agency with no intention of reconstituting the State law enforcement agency; or

(B) significantly reduces a State law enforcement agency’s budget, provided that the State did not face a significant decrease in revenues in the previous fiscal year.

The term defunding locality means a political subdivision of a State (other than a rural police department) that—

(A) is in an urbanized area, as defined by the United States Census Bureau; and

(i) abolishes or disbands the police department with no intention of reconstituting the jurisdiction’s police department; or

(ii) significantly reduces the police department’s budget, provided that the jurisdiction did not face a significant decrease in revenues in the previous fiscal year.

Section 201(b) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3141(b)) is amended—

(A) in paragraph (2), by striking and at the end;

(B) in paragraph (3), by striking the period at the end and inserting; and; and

(C) by adding at the end the following:

(4) the area in which the project is to be carried out is not a defunding State or defunding locality (as defined in section 2 of the Defund Cities that Defund the Police Act of 2025).

Section 203(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3143(a)) is amended by adding at the end the following: A defunding jurisdiction (as defined in section 2 of the Defund Cities that Defund the Police Act of 2025) may not be deemed an eligible recipient under this subsection..

Section 205(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3145(a)) is amended—

(A) in paragraph (2), by striking and at the end;

(B) in paragraph (3), by striking the period at the end and inserting; and; and

(C) by adding at the end the following:

(4) will be carried out in an area that does not contain a defunding State or defunding locality (as defined in section 2 of the Defund Cities that Defund the Police Act of 2025).

Section 207 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3147) is amended by adding at the end the following:

Grant funds under this section may not be used to provide assistance to a defunding State or defunding locality (as defined in section 2 of the Defund Cities that Defund the Police Act of 2025). If a State is a defunding State during the period for which it receives amounts under this section, the Secretary shall direct the State to immediately return to the Secretary any such amounts that the State received for that period, and shall reallocate amounts returned for grants under this section to localities within the same State that are not defunding localities.

Title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) is amended—

(1) in section 102(a) (42 U.S.C. 5302(a)), by adding at the end the following:

(25) The term defunding State or locality has the meaning given such term in section 2 of the Defund Cities that Defund the Police Act of 2025.

(1) ; and

(2) in section 104 (42 U.S.C. 5304)—

(A) subsection (b)—

(i) in paragraph (5), by striking and at the end;

(ii) by redesignating paragraph (6) as paragraph (7); and

(iii) by inserting after paragraph (5) the following:

(6) the grantee is not a defunding State or locality and will not become a defunding State or locality during the period for which the grantee receives a grant under this title; and

(iii) ; and

(B) by adding at the end the following:

No funds made available to carry out this title may be obligated or expended for any State or unit of general local government that is a defunding State or locality.

If a State is a defunding State during the period for which it receives amounts under this title, the Secretary—

(i) shall direct the State to immediately return to the Secretary any such amounts that the State received for that period; and

(ii) shall reallocate amounts returned under clause (i) for grants under this title to localities within the same State that are not defunding localities.

If a unit of general local government is a defunding locality during the period for which it receives amounts under this title, any such amounts that the unit of general local government received for that period—

(i) in the case of a unit of general local government that is not in a nonentitlement area, shall be returned to the Secretary for grants under this title to States and other units of general local government that are not defunding localities; and

(ii) in the case of a unit of general local government that is in a nonentitlement area, shall be returned to the Governor of the State for grants under this title to other units of general local government in the State that are not defunding localities.

In reallocating amounts under subparagraphs (A) and (B), the Secretary shall—

(i) apply the relevant allocation formula under subsection (b) or (d) of section 106, with all defunding States and localities excluded; and

(ii) shall not be subject to the rules for reallocation under section 106(c).