This legislation, titled the "Local Taxpayer Protection Act of 2026," establishes a grant program to be administered by the Secretary of Homeland Security. Its primary purpose is to provide financial assistance to municipalities that host U.S. Immigration and Customs Enforcement (ICE) processing or detention facilities, whether these facilities are currently operational or under development. The grants are specifically designed to mitigate the financial impact on local communities by covering certain costs. Funds can be used to defray unrealized property tax revenue and the expenses associated with operating public utilities systems , which include water, gas, electricity, internet, garbage collection, recycling, and sewer systems, used by the municipality for the preceding fiscal year. The grant amount is capped at these combined costs, ensuring direct compensation for the identified burdens. Eligible municipalities can receive these grants for a term of five years, with the possibility of renewal for the entire duration of the facility's operation within their jurisdiction. Applications require a description of financial need, a cost-benefit analysis, and disclosure of other funding sources, with joint or regional applications encouraged for greater cost-effectiveness and regional efficiency. Grantees are also encouraged to make the federal facilities self-sufficient regarding utility use or to expand utility capacity to accommodate them.