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Committee hears bill to allow Oregon to withhold state transfers if federal payments are unlawfully withheld

Senate Committee on Judiciary · February 23, 2026

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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…

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