The proposed bill, known as the "Protecting Our Taxes from Unauthorized Sequestration Act" or the "POTUS Act," mandates that the state treasurer withhold payments owed to the federal government if New Hampshire is deprived of federal aid due to a presidential executive order or a violation of a court order. The bill introduces a new section, RSA 6:10-e, which outlines the responsibilities of the state treasurer in determining the amount of federal aid withheld and requires a report to be submitted to the governor and the general court within 60 days of such an event. The treasurer is authorized to withhold payments to the federal government, maintaining these funds in an escrow account until the withheld federal aid is restored.

Additionally, the bill specifies that the state treasurer must authorize the release of withheld funds only after confirming that all previously withheld federal aid has been received. The bill does not provide funding or authorize new positions, but it may lead to indeterminable increases in state expenditures due to potential penalties from the IRS for failing to remit taxes owed. The bill poses risks to the state's cash flow and could jeopardize federal funding, particularly concerning the Medicaid program, which may have further implications at the county level.