The STATES Act would require states to reimburse the federal government for costs incurred when the National Guard is deployed to that state, but only under specific conditions. If the President determines within 30 days of a deployment's conclusion that a state government's negligence or wrongful action caused the need for federal Guard deployment, the President can direct the Department of Defense to calculate the total costs and reduce federal funding to that state by 100 percent of those costs. The bill does include a presidential waiver allowing the President to forgive reimbursement in cases of extreme state financial hardship or when deployments primarily protect federal property or enforce federal law. The legislation takes effect retroactively from June 1, 2025, and applies to all future National Guard deployments, making states potentially liable for federal expenses related to emergency responses deemed to result from state negligence.
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