Committee hears bill to allow Oregon to withhold state transfers if federal payments are unlawfully withheld
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Summary
The Recourse Act (HB 4143) would let the governor, with AG and treasurer consent, direct agencies to withhold state transfers to the federal government when federal funds owed to Oregon are not paid despite a court order; sponsors framed it as a defensive tool, while members asked technical questions about jurisdiction and court-order conflict resolution.
Senators heard testimony on House Bill 4143, the Recourse Act, which would authorize the governor, with the attorney general and state treasurer, to direct state executive agencies to withhold funds otherwise due to the federal government when federal funds lawfully owed to Oregon are not delivered despite a court order.
Representative Willie Choetzen described the measure as a tool of last resort after litigation demonstrates the federal government owes funds but fails to comply with the court’s order. He framed the bill as defending Oregon’s ability to recoup tax dollars that support schools, Medicaid, SNAP, and other programs.
Proponents including several senators argued the bill is a measured response that provides non-escalatory, judicially rooted recourse to protect services in the event of unlawful withheld federal funds. Committee members raised technical questions about how the bill handles conflicting federal district court orders and what qualifies as a "court of competent jurisdiction." Sponsors agreed to follow-up with counsel and the bill’s author to clarify language before the work session.
No committee vote occurred; the public hearing was closed and the measure carried to work session for further review.
