Bills of Congress June 5, 2025 by U.S. Congress

H.R.3785 - Forgotten Funds Act (119th Congress)

Summary

H.R. 3785, the Forgotten Funds Act, proposes to rescind unobligated discretionary appropriations from fiscal year 2021 and prior. The bill mandates that these rescinded funds be deposited into the Treasury's general fund. The sole purpose of this deposit is for federal budget deficit reduction.

Introduced in the House of Representatives by Mr. Schweikert, the bill was referred to the Committee on Appropriations. The Act aims to address fiscal responsibility by reclaiming unused funds and applying them to reduce the national debt.

This action reflects a congressional effort to manage government spending and prioritize deficit reduction.

Expected Effects

The immediate effect of H.R. 3785 would be a reduction in the amount of funds available for discretionary spending that were previously appropriated but not yet obligated. These funds would no longer be available for their originally intended purposes.

Instead, the rescinded funds would be directed towards reducing the federal budget deficit. This could potentially lead to a decrease in the national debt over time, depending on other fiscal policies and economic conditions.

Agencies that had planned to use these unobligated funds would need to adjust their budgets and priorities accordingly.

Potential Benefits 4/5

Deficit Reduction: The primary benefit is a direct reduction of the federal budget deficit, contributing to long-term fiscal stability.
Efficient Use of Taxpayer Money: By rescinding unobligated funds, the bill prevents wasteful spending and ensures that taxpayer money is used more efficiently.
Increased Fiscal Discipline: The Act promotes fiscal discipline within government agencies by incentivizing them to use allocated funds promptly and effectively.
Potential for Lower Interest Rates: Reducing the deficit can lead to lower interest rates, benefiting consumers and businesses.
Improved Government Credibility: Demonstrating a commitment to fiscal responsibility can enhance the government's credibility with investors and the public.

Most Benefited Areas:

Fiscal Responsibility & Fair Taxation ★ ★ ★ ★ ★

Potential Disadvantages

Program Impacts: Rescinding unobligated funds could negatively impact programs that were relying on those funds, potentially leading to service cuts or delays.
Reduced Flexibility: Agencies may have less flexibility to respond to unforeseen needs or emergencies if their allocated funds are reduced.
Economic Slowdown: In some cases, reducing government spending could lead to a temporary economic slowdown, especially if the rescinded funds were intended for infrastructure projects or other investments.
Unintended Consequences: The Act could have unintended consequences if the rescinded funds were earmarked for specific projects or initiatives that are deemed essential.
Political Opposition: The bill may face political opposition from groups or individuals who benefit from the programs affected by the rescission.

Constitutional Alignment 4/5

The Forgotten Funds Act appears to align with the US Constitution, particularly Article I, Section 8, 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 falls under Congress's authority to manage the nation's finances.

Furthermore, Article I, Section 9, specifies that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law." This implies that Congress has the power to control how appropriated funds are used and can rescind them if they are not obligated.

However, the Act must adhere to the principles of due process and equal protection under the law, as guaranteed by the Fifth and Fourteenth Amendments, to ensure that the rescission of funds does not disproportionately harm any particular group or infringe upon their rights.