The Budget Accountability for States Economic Defense (BASED) Act establishes a framework for Oklahoma to withhold federal income tax payments until the U.S. Congress enacts a balanced federal budget. The Act creates the Taxpayer Protection Escrow Revolving Fund, into which all withheld federal taxes will be deposited. The State Treasurer is responsible for managing this fund, which is intended to protect Oklahoma taxpayers from the economic consequences of federal fiscal mismanagement. Additionally, the Act prohibits the federal government from retaliating against individuals or entities in Oklahoma for complying with this law, deeming any punitive actions as unlawful and unconstitutional.

Furthermore, the Act establishes the Taxpayer Defense Fund, which will be funded by interest earned from the Taxpayer Protection Escrow Revolving Fund. This fund is designated for legal defense and indemnification of citizens and entities facing federal penalties due to compliance with the Act. The Attorney General is tasked with providing legal defense and may request funds from the Taxpayer Defense Fund for this purpose. The Act emphasizes the state's obligation to protect its citizens' economic interests and asserts that withholding federal taxes is a necessary measure to avert economic catastrophe caused by federal fiscal negligence. An emergency clause is included, allowing the Act to take effect immediately upon passage.