This legislation, known as the STATES Act , amends federal law to require states to reimburse the Federal Government for the costs associated with National Guard deployments under specific circumstances. It stipulates that if the President calls the National Guard into federal service due to invasion, rebellion, or inability to execute laws, and determines the deployment resulted from a state government's action or negligence, the state must cover the expenses. The process involves the President notifying the Governor of the state and directing the Secretary of Defense to coordinate with the Secretary of the Treasury to determine the incurred costs. Subsequently, funds made available to the state will be reduced by 100 percent of these costs. This mechanism aims to ensure states take financial accountability when their actions necessitate federal military intervention. However, the President retains the authority to waive this reimbursement requirement under certain conditions, such as instances of extreme financial hardship for the state or when the deployment's primary purpose is to protect federal property or enforce federal law. The Act is set to take effect retroactively, applying to all National Guard deployments required on or after June 1, 2025.