# Senator Moreno Proposes Data Center Subsidy Ban

On October 15, 2026, Senator Bernie Moreno announced the RECLAIM Act, a proposal that would prohibit federal subsidies for data centers and impose a 100% federal excise tax on state or local grants and tax exemptions used by certain data-center operators. The bill has not been enacted and does not create a current procurement opportunity, but it could affect project economics and financing if approved.

- Contractors, developers, and investors with data-center projects should assess their reliance on federal subsidies and state or local grants and tax exemptions.
- Procurement and business planning teams can account for the proposal’s potential effects on project incentives and financing, while recognizing that its provisions are not currently in force.
- The bill’s legislative progress is relevant to organizations planning or bidding on data-center work that depends on these incentives.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Policy, Grants & Funding
**Published:** October 19, 2026

### Government Entities
- U.S. Senate

### Key Quotes
> Taxpayers will not subsidize data centers, period.
> — Bernie Moreno, U.S. Senator

### Sources
- [New Moreno Bill Targets Incentives For Data Centers With One-Hundred Percent Federal Tax - Senator Moreno](https://www.moreno.senate.gov/newsroom/press-releases/new-moreno-bill-targets-incentives-for-data-centers-with-one-hundred-percent-federal-tax/) - Moreno Senate