This bill authorizes the State of New Jersey to withhold payments to the federal government if a court determines that the federal government is not complying with a decision or order requiring it to make payments to the State. It mandates that all State agencies, including those in the legislative and judicial branches, submit monthly reports to the State Treasurer detailing any federal funds owed to the State due to noncompliance, as well as any anticipated payments the State agency expects to owe to the federal government in the following year.

Additionally, the bill requires the State Treasurer to compile these reports and submit them to the Governor and the Legislature within 30 days of the agencies' submissions. Following this, the Governor may instruct the State Treasurer to withhold payments to the federal government, with the total amount withheld not exceeding the federal funds owed to the State. Any withheld funds will be held in reserve and will lapse to the General Fund at the end of the fiscal year, ensuring that the total amount does not exceed what is owed to the State by the federal government.