Aiming to revoke tax-exempt municipal bond rights from places that disobey federal immigration rules, Representative Nancy Mace (R-S.C.) has decisively proposed the “No Tax Breaks for Sanctuary Cities Act.” The South Carolina Republican specifically targeted the mayors of New York, Boston, Chicago, Denver, but the proposal, if passed, will also have serious impact in cities across California, Oregon and other states with similar sanctuary policies.

Rep. Mace wants to cut federal funding for these cities
Announced on Thursday, the plan is aimed at cities renowned for their sanctuary rules, which limit local cooperation with national immigration authorities thereby protecting illegal immigrants from deportation.
Rep. Mace is advocating for this measure to be inserted into the forthcoming reconciliation package, a strategy meant to expedite the Senate filibuster avoidance. This strategy underlines the severity with which she and her allies see the problem and claims that federal financial incentives should not help communities breaking the law.

Several mayors caught in the heat
During a contentious House Oversight Committee hearing, Rep. Mace attacked mayors from sanctuary cities like Boston, Chicago, Denver, and New York. She accused them with avoiding direct questions about their policy and the consequences of harboring illegal immigrants connected to criminal activity.
“These rogue activist sanctuary city politicians refuse to enforce the law, and expect taxpayers to subsidize their chaos,” said Congresswoman Mace. “If they want to turn their cities into safe havens for criminals, they can do it without federal perks.”
Mace especially criticized the mayors—Michelle Wu of Boston, Brandon Johnson of Chicago, Mike Johnston of Denver, and Eric Adams of New York—for what she said to be their reluctance to “defend their violation of federal law.”

“These mayors sat in front of Congress and dodged every question like cowards,” Mace continued. “Not one of them could defend their violation of federal law. Not one of them had the guts to acknowledge the devastation they’ve caused. This bill belongs in the reconciliation package to stop this lawlessness once and for all—no more handouts for sanctuary cities.”
Lack of remorse and accountability
The representative highlighted various serious crimes, including murder and ra*e, allegedly carried out by illegal immigrants in these jurisdictions, thereby criticizing the lack of remorse and accountability among the municipal officials.
Should the “No Tax Breaks for Sanctuary Cities Act” be implemented, the financial situation of the impacted communities will be considerably changed by higher financing prices for public infrastructure and services. Mace sees this as a required cost for what she describes as “lawlessness” in sanctuary towns.
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Echoing past measures like Rep. Chip Roy’s Deportation Compliance Act and legal actions taken by the Department of Justice under President Donald Trump’s administration against sanctuary states, this legislative effort corresponds with more general Republican goals to clamp down on sanctuary jurisdictions.
Opponents of the plan argue that it would further put financial pressures on municipal budgets and raise local taxes, while supporters see it as a necessary step toward maintaining federal law and improving public safety.

Long shot for lawmakers
Rep. Mace’s idea is likely to be a major source of conflict in Congressional budget talks as the topic advances, therefore testing both the resilience of Democratic resistance and the unity among the Republican ranks.
As sanctuary towns find themselves at the crossroads of national attention and controversy, the potential inclusion of this measure in the reconciliation bill would probably spark more political disputes over immigration policy and federal financial allocation. Whether it gets enough support to become legislation remains to be seen, but one thing is clear: the fight over sanctuary city policy is far from done.