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 will be disbursed to the U.S. Treasury only if a balanced budget is certified at least 30 days before the federal fiscal year begins. If no balanced budget is certified, the State Treasurer must return the withheld payments to taxpayers and employers within 90 days. Additionally, the Act prohibits the federal government from retaliating against Oklahoma citizens or entities for compliance with this law, deeming any punitive actions as unlawful.

Furthermore, the Act establishes the Taxpayer Defense Fund, which will be funded by interest earned from the Taxpayer Protection Escrow Fund. This fund is intended to provide legal defense for individuals or entities facing federal penalties due to compliance with the Act. The Attorney General is tasked with indemnifying those affected and may request funds from the Taxpayer Defense Fund for legal costs. The Act emphasizes the state's constitutional duty to protect its citizens from federal fiscal mismanagement and declares an emergency for its immediate implementation.