Prevents federal funds from being used to pay or guarantee obligations of state and local governments and school districts that have defaulted on.

The Government Bailout Prevention Act prohibits the use of federal funds to pay or guarantee obligations of state and local governments and school districts that have defaulted on their obligations, filed for bankruptcy, or are at risk of defaulting. It also prohibits the Federal Reserve banks, the Department of the Treasury, and other federal agencies from financially assisting such entities. The prohibition does not apply to federal assistance provided in response to a declared disaster.

Prevents federal funds from being used to pay or guarantee obligations of state and local governments and school districts that have defaulted on.

The Government Bailout Prevention Act prohibits the use of federal funds to pay or guarantee obligations of state and local governments and school districts that have defaulted on their obligations, filed for bankruptcy, or are at risk of defaulting. It also prohibits the Federal Reserve banks, the Department of the Treasury, and other federal agencies from financially assisting such entities. The prohibition does not apply to federal assistance provided in response to a declared disaster.