Pay Down the Debt Act

Pay Down the Debt Act would automatically claw back any federal grant funds that a state or local government does not accept. The amount that would have been awarded to that state or locality is rescinded from the relevant appropriation account and then deposited into the Treasury’s general fund for deficit reduction. In short, unaccepted grant money would not remain in limbo or flow to future programs; it would be taken back and used to reduce the federal deficit.