The bill establishes a prohibition on the acceptance and expenditure of federal funds by state entities in Wyoming, defined to include the state itself, its agencies, community colleges, and the University of Wyoming. Specifically, it states that no state entity shall accept, appropriate, disburse, or expend federal funds, and any entity that violates this prohibition must remit an equivalent amount of general funds to the state treasurer. Additionally, by July 1, 2026, all state entities must transfer any unexpended federal funds to the state auditor, who will then return these funds to the federal government. The bill also includes provisions for reporting and accountability regarding federal funds received prior to the effective date of the act.

Several amendments to existing laws are made to align with this new prohibition, including the removal of references to federal aid in various sections. For instance, the requirement for prior approval from the governor for applying for federal funds is deleted, and the role of the coordinator of state-federal relations is adjusted to exclude federal aid programs. The bill also repeals certain provisions related to federal funds and clarifies that it does not apply to federal funds previously appropriated before July 1, 2026. The act is set to take effect on July 1, 2026, with certain sections becoming effective immediately upon the bill's passage.

Statutes affected:
Introduced: 9-1-208, 9-1-209, 9-1-210, 9-2-1005, 9-4-206, 9-4-207