,,ii  #aacth ,,congress  #ast ,session  
,s4 #aja  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,january #bc        
7legislative day1 ,january #c71 #bjac   
,mr4 ,vitter introduced the following   
bill2 which was read twice and referred 
to the ,committee on ,banking1 ,housing1
 and ,urban ,affairs  ,a ,,bill  ,to    
prohibit the provision of ,federal funds
 to ,state and local governments for    
payment of obligations1 to prohibit the 
,board of ,governors of the ,federal    
,reserve ,system from financially       
assisting ,state and local governments1 
and for other purposes4  #a4            
,prohibition on the use of ,federal     
funds to pay ,state and local           
obligations  7a7 ,in general            
,notwithstanding any other provision of 
law1 no ,federal funds may be used to   
purchase or guarantee obligations of1   
issue lines of credit to1 or provide    
direct or indirect grants-and-aid to1   
any ,state government1 municipal        
government1 local government1 or county 

government which1 on or after ,january  
#bf1 #bjaa1 has defaulted on its        
obligations1 is at risk of defaulting1  
or is likely to default1 absent such    
assistance from the ,united ,states     
,government4  7b7 ,limit on ,use of     
,borrowed ,funds ,the ,secretary of the 
,treasury shall not1 directly or        
indirectly1 use general fund revenues or
 funds borrowed pursuant to title #ca1  
,united ,states ,code1 to purchase or   
guarantee any asset or obligation of any
 ,state government1 municipal           
government1 local government1 or county 
government1 or otherwise to assist such 
government entity1 if1 on or after      
,january #bf1 #bjaa1 that ,state        
government1 municipal government1 or    
county government has defaulted on its  
obligations1 is at risk of defaulting1  
or is likely to default1 absent such    
assistance from the ,united ,states     
,government4  7c7 ,prohibition on       
,federal ,reserve assistance            
,notwithstanding any other provision of 

law1 the ,board of ,governors of the    
,federal ,reserve ,system shall not     
provide or extend to1 or authorize with 
respect to1 any ,state government1      
municipal government1 local government1 
county government1 or other entity that 
has taxing authority or bonding         
authority1 any funds1 loan guarantees1  
credits1 or any other financial         
instrument or other authority1 including
 the purchasing of the bonds of such    
,state1 municipality1 locality1 county1 
or other bonding authority1 or to       
otherwise assist such government entity 
under any authority of the ,board of    
,governors4  7d7 ,limitation            
,subsections 7a7 through 7c7 shall not  
apply to ,federal assistance provided in
 response to a natural disaster4