Local Taxpayer Protection Act of 2026

This Act may be cited as the Local Taxpayer Protection Act of 2026.

The Secretary of Homeland Security shall establish a program to provide a grant to a municipality wherein a facility for processing or detention of individuals arrested or detained by U.S. Immigration and Customs Enforcement is maintained or under development.

The amount of a grant to a municipality may not exceed the combined cost of unrealized property tax revenue and such public utilities in use by that municipality for the preceding fiscal year.

The grant term shall be 5 years, but a grantee may apply for renewal for the duration of a facility operation in the municipality.

A municipality is eligible for a grant under this section if it is a municipality wherein a facility is maintained or under development for the processing or detention of individuals arrested or detained by U.S. Immigration and Customs Enforcement.

A municipality seeking a grant under this section shall submit to the Secretary of Homeland Security an application therefor in such form and in such manner as the Secretary of Homeland Security determines appropriate.

Each application submitted under paragraph (1) shall include the following:

(A) A description of the financial need of the applicant for the grant.

(B) An analysis of the costs and benefits of the use for which a grant is requested.

(C) A list of other sources of funding received by the applicant—

(i) for the same purpose for which the application for a grant under this section was submitted; or

(ii) from the Federal Government for similar purposes.

(D) Such other information as the Secretary of Homeland Security determines appropriate.

Two or more entities may submit an application under paragraph (1) for a joint grant under this section.

Applications under this paragraph may be submitted instead of or in addition to any other application submitted under paragraph (1).

The Secretary of Homeland Security shall—

(i) publish guidance on applying for and administering joint grants; and

(ii) encourage applicants to apply for joint grants as the Secretary of Homeland Security determines appropriate to achieve greater cost effectiveness and regional efficiency.

A grant under this Act shall be used to defray unrealized property tax revenue, to defray the expense of operating public utilities systems within the municipality, or for both purposes. The grantee shall, to the extent practicable, make a facility described in subsection (a) in the municipality self-sufficient with regard to use of public utilities, or extend the capacity of the public utilities systems to accommodate the use of such systems by such facility.

For purposes of this section, the term public utilities systems includes water, gas, natural gas, electricity, internet connectivity, garbage collection, recycling, and sewer systems.