A 8097: Establishes the "reciprocal enforcement of claims on unpaid or reduced state entitlements act" which requires a report on delinquent funds owed to the state by the federal government as a result of the federal government's nonpayment in contravention of a court decision and the withholding and appropriation of federal funds in an amount equal to.

  
  STATE OF NEW YORK ________________________________________________________________________ 8097 2025-2026 Regular Sessions  IN ASSEMBLY April 30, 2025 ___________ Introduced by M. of A. LASHER, ZINERMAN, MAGNARELLI, LEE, TAPIA, SEAWRIGHT -- read once and referred to the Committee on Ways and Means AN ACT to amend the state finance law, in relation to establishing the "reciprocal enforcement of claims on unpaid or reduced state entitle- ments act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "reciprocal enforcement of claims on unpaid or reduced state enti- 3 tlements act" or the "RECOURSE act". 4 § 2. The state finance law is amended by adding a new section 6 to 5 read as follows: 6 § 6. Federal funds; withholding and appropriation thereof. 1. The 7 state comptroller shall issue a report not more than sixty days after 8 the effective date of this section including (a) any federal funds owed 9 to the state, where the federal government's nonpayment is in contraven- 10 tion of a court decision; and (b) any funds the comptroller projects 11 will be due to be paid by the state to the federal government during the 12 succeeding twelve months, including, but not limited to, federal taxes 13 owed by the state as an employer, federal employment taxes withheld by 14 the state on behalf of the federal government, offsets for federal 15 debts, backup withholding of federal taxes, and federal grant repay- 16 ments. The comptroller shall update this report monthly. 17 2. Following issuance of such report, if it is indicated there are 18 federal funds owed to the state in contravention of a court decision, 19 the governor, the comptroller, and the director of the division of the 20 budget, acting jointly and unanimously, may direct the commissioner of 21 taxation and finance to withhold payments to the federal government; 22 provided, however, the total amount withheld shall not exceed the amount 23 of federal funds owed to the state in contravention of a court decision 24 as described in the comptroller's report. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10808-02-5 
 A. 8097 2 1 3. Such funds held pursuant to subdivision two of this section shall 2 be made available for appropriation as state funds; provided, however, 3 such appropriations shall not exceed the amount of federal funds owed to 4 the state in contravention of a court decision as described in the comp- 5 troller's report. 6 § 3. This act shall take effect immediately.