HB 4143A authorizes agencies to withhold federal funds

02/20/2026

ACTION ALERT – CONTACT SENATORS

HB 4143 – Authorizes the Governor to direct state agencies to withhold moneys owed to the federal government if federal funds are being withheld from the state in contravention of a valid court order.

House Bill 4143, allows the Governor to direct state agencies to withhold qualified payments to the federal government if the U.S. is unlawfully withholding funds from the state in violation of a valid court order. The bill establishes a Federal Moneys Holding Account to manage these withheld payments and requires the state to indemnify officials who comply with the law. It takes effect 91 days after the end of the 2026 legislative session.

EFFECT OF AMENDMENT -1 The amendment repeals the measure’s provisions on January 2, 2037, and moves any remaining funds to the General Fund. It also adds two exclusions related to unemployment insurance and paid family and medical leave insurance to the definition of qualified payment.

A vindictive policy against the federal government could have consequences affecting all Oregonians. It will only make the state worse off.

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Comments

  1. I hope they are not shooting themselves in the foot with this foolishness. This must stop. Perhaps the voters here will wake up one of these years and elect someone who truly cares about our state.

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