Oregon Representative Proposes Recourse Act Amid Federal Funding Threats

Representative Willy Chotzen introduced the Recourse Act in response to threats from President Donald Trump to cut federal funding to sanctuary jurisdictions, including Portland and the state of Oregon, beginning February 1. The president claimed these jurisdictions serve as a sanctuary for criminals by limiting cooperation with immigration authorities.

The proposed legislation would allow the state of Oregon to withhold qualified payments, such as contractual payments or Medicaid-related transfers, if federal officials unlawfully withhold funds from the state. To prevent misuse, the governor could only trigger this mechanism after a federal court orders the release of funds and the president refuses to comply. All withheld money would be placed in a dedicated Federal Moneys Holding Account, and the action would require approval from the State Treasurer and the Attorney General.

Payroll taxes are excluded from the bill's scope. Chotzen intends to introduce the act at the start of the legislative session on February 2, framing the legislation as a tool to ensure the state is prepared for federal non-compliance without intentionally escalating tensions.