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25LSO-0766
2025
STATE OF WYOMING
25LSO-0766
Numbered
2.0
HOUSE BILL NO. HB0340
State government-prohibition on federal funds.
Sponsored by: Representative(s) Wharff
A BILL
for
AN ACT relating to the administration of the government; prohibiting the state from accepting and expending federal funds as specified; authorizing the recapture and return of federal funds already appropriated as specified; making conforming amendments; repealing conflicting provisions; requiring reports; specifying applicability; and providing for effective dates.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
W.S. 9
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2
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1038 is created to read:
9
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2
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1038.
Acceptance and expenditure of federal funds prohibited.
(a)
As used in this section, "state entity" means the state of Wyoming, an agency, department, instrumentality or other entity of the state of Wyoming, community colleges and the University of Wyoming.
(b)
Notwithstanding any other provision of law, no state entity shall accept, appropriate, disburse or expend money or other funds from the government of the United States or any department or agency of the government of the United States.
(c)
Any state entity that violates subsection (b) of this section shall, not later than June 30 of the applicable year, remit to the state treasurer an amount of general funds equal to the federal funds that the state entity accepted, disbursed or expended. The state treasurer shall deposit any funds received under this subsection to the general fund.
(d)
On July 1, 2026, each state entity that is in possession of federal funds shall transfer any unexpended, unobligated federal funds that were accepted by, appropriated or disbursed to or otherwise held by the state entity to the state auditor. Upon receipt of federal funds under this subsection and not later than September 1, 2026, the state auditor shall return, revert or transfer funds, as applicable, to the United States in accordance with the laws and rules of the United States.
(e)
To the extent that the prohibition in subsection (b) of this section conflicts with any other provision of law, this section shall control and supersede those other provisions.
Section 2.
W.S. 9
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1
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208(a)(i), 9
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1
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209(b)(ii), (iv) and (c), 9
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1
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210 and 9
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2
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1005(b)(intro), (ii)(intro) and (p) are amended to read:
9
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1
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208.
Prior approval of governor required.
(a)
No state department, board, commission or agency whose director, board or commission members are appointed by the governor shall, without prior approval of the governor:
(i)
Apply for
federal funds or
private endowment funds;
9
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1
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209.
Coordinator of state
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federal relations; appointment; removal; employment of personnel; duties; information to be supplied by agencies.
(b)
The coordinator shall:
(ii)
Aid, assist and advise the governor on all
federal aid and
private endowment programs;
(iv)
Collect data and information on
federal aid and
private endowment programs and maintain a central depository for the data and information relating to all programs, including the cost of the state or local participation. This information shall be available to all state agencies and units of local government;
(c)
All state departments, boards and commissions shall provide to the coordinator information and data requested by the coordinator, including cost of programs, of all
federal aid or
private endowment programs in which they participate. This information and data shall be supplied the coordinator within forty
‑
five (45) days from the date of request unless more time is granted by the coordinator.
9
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1
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210.
State authorized to accept gifts.
The state, through the governor may accept gifts, grants, funds or assistance from any
federal,
state or local governmental agencies or from any private source.
9
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2
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1005.
Payment of warrants; budget powers of governor; agency budgets; federal funds; new employees.
(b)
Subject to subsections (c)
, (g)
and (q) of this section, the governor may:
(ii)
Authorize revisions, changes, redistributions or increases to amounts authorized for expenditure by legislative appropriation acts from fund sources identified in W.S. 9
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4
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204(t) as special revenue funds, capital project funds, debt service funds or proprietary fund types,
and from federal funds as provided under paragraph (iii) of this subsection, subsections (g) and (q) of this section and W.S. 9
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4
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206,
if in his opinion a public welfare emergency exists, general fund appropriations can be conserved, agency program requirements have significantly changed or unanticipated revenues from fund sources specified in this paragraph become available and qualify pursuant to W.S. 9
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2
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1006(a). For any revision, change, redistribution or increase in amounts authorized for expenditure under this paragraph in excess of one hundred thousand dollars ($100,000.00), the governor's office shall:
(p)
The governor shall make available monthly for public inspection information on the exercise of his authority under paragraphs (b)(i), (ii),
(iii),
(v) and (vi)
and subsection (g)
of this section and under W.S. 9
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2
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1014.2 and 9
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2
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1014.3 for the immediately preceding month.
The information shall be made available on the Wyoming public finance and expenditure of funds website created by W.S. 9
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2
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3220(a).
Section 3.
W.S. 9
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1
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209(b)(v), 9
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2
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1005(a)(xi), (b)(iii), (c)(i)(C), (g), (q) and (r), 9
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4
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206(b) and 9
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4
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207(b) are repealed.
Section 4.
(a)
This act shall not apply to any federal funds that have been previously appropriated, disbursed or expended by the state of Wyoming before July 1, 2026. As of the effective date of this section, no state entity shall accept, appropriate, disburse or expend any federal funds.
(b)
This act shall not be construed to alter, amend or impair any contract or agreement entered into before July 1, 2026.
(c)
To the extent that any legislation enacted in the 2026 Budget Session appropriates federal funds in violation of this act, the provisions of this act shall control and supersede that conflicting legislation.
Section 5.
(a)
Not later than October 1, 2025, each state entity, as defined by W.S. 9
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2
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1038(a), as created by section 1 of this act, shall:
(i)
Account for any federal funds that have been received by or disbursed to the state entity on or before July 1, 2025;
(ii)
Attempt to reclaim or recapture any federal funds that have already been obligated to the greatest extent possible;
(iii)
Report to management council and the joint appropriations committee on the amount of federal funds that the state entity will forgo, return or otherwise lose as a result of this act and on any additional changes to current law necessary to account for this act.
Section 6
.
(a)
Except as provided in subsection (b) of this section, this act is effective July 1, 2026
.
(b)
Sections 5 and 6 of this act are effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.
(END)
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HB0340