This bill prohibits cities and states that reduce or eliminate police funding from receiving federal economic development and community development grants. Specifically, it targets "defunding jurisdictions"—states that abolish state law enforcement agencies or significantly cut their budgets, and cities in urbanized areas that do the same—making them ineligible for grants under the Economic Development Administration and Community Development Block Grant Program. The bill affects grants for public works projects, economic development, planning expenses, training, and research. If a jurisdiction becomes ineligible while receiving funds, it must immediately return any grants received during that period, and the money gets reallocated to non-defunding areas within the same state or nationally. The legislation includes an exception for jurisdictions that experienced significant revenue declines in the prior year, recognizing that budget cuts driven by fiscal hardship rather than policy choice would not trigger the restriction.
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