Returning Unspent COVID Funds Act
Summary
The "Returning Unspent COVID Funds Act" aims to rescind any unobligated balances from several COVID-19 relief acts, including the American Rescue Plan Act, the Consolidated Appropriations Act of 2021, the Paycheck Protection Program and Health Care Enhancement Act, the CARES Act, the Families First Coronavirus Response Act, and the Coronavirus Preparedness and Response Supplemental Appropriations Act. A national security waiver allows the President to prevent rescission for specific accounts or programs by notifying the relevant committees within 60 days of the Act's enactment. Amounts rescinded would be used solely for deficit reduction.
Expected Effects
If enacted, this bill would reduce the federal deficit by reclaiming unused COVID-19 relief funds. The President could waive the rescission for programs deemed vital for national security. This would decrease the amount of funding available for programs originally intended to address the COVID-19 pandemic.
Potential Benefits
- Reduces the federal budget deficit.
- Potentially improves the nation's long-term fiscal health.
- May free up resources for other government priorities in the future.
- Could signal fiscal responsibility to financial markets.
- May decrease inflationary pressures.
Most Benefited Areas:
Potential Disadvantages
- Reduces funding for programs that may still be needed to address the ongoing effects of the pandemic.
- Could negatively impact states and local communities that rely on these funds.
- May hinder economic recovery in certain sectors.
- Potential for political disputes over the allocation of rescinded funds.
- The waiver process could be subject to abuse or political influence.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with Congress's power to control federal spending, as outlined in Article I, Section 8 of the Constitution, which grants Congress the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. The bill's focus on deficit reduction also aligns with the general welfare clause. The national security waiver provision respects the President's role in national security, potentially implicating Article II.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).