The CUTS Act (H.R. 1654), introduced by Mr. Bean of Florida, would use rescissions to offset the cost of supplemental foreign assistance in FY 2024. Specifically, it would rescind unobligated balances of COVID-19 relief funds and unobligated funds from certain infrastructure programs, but only up to the total amount appropriated in the Israel Security Supplemental Act (2024), the Ukraine Security Supplemental Act (2024), and the Indo-Pacific Security Supplemental Act (2024). In short, the bill takes money that hasn’t yet been obligated from prior COVID-19 relief and select infrastructure programs and repurposes it to help pay for additional foreign aid in 2024. Key definitions in the bill clarify what counts as COVID-19 relief funds and which infrastructure funds are targeted. The objective is to offset new foreign aid spending with existing, unobligated resources rather than creating new appropriations.
Key Points
- 1The bill would rescind unobligated balances of COVID-19 relief funds, but only up to the total amount appropriated by the 2024 Israel, Ukraine, and Indo-Pacific security supplemental acts.
- 2COVID-19 relief funds are defined to come from major pandemic-era laws and packages, including the CARES Act, the Coronavirus Preparedness and Response Supplemental Appropriations Act (2020), the Paycheck Protection Program and Health Care Enhancement Act, the Coronavirus Response and Relief Supplemental Appropriations Act (2021), portions of the Consolidated Appropriations Act (2021), and the American Rescue Plan Act (2021).
- 3In addition to COVID-19 relief funds, the bill targets unobligated balances in specific infrastructure programs for rescission: the Education Stabilization Fund (DOE), the Congestion Mitigation and Air Quality Improvement Program (CMAQ), the Carbon Reduction Program, and the PROTECT Program.
- 4The primary purpose is to offset the cost of supplemental foreign assistance made available in FY 2024.
- 5The bill has been introduced and referred to multiple committees (Oversight and Government Reform; Appropriations; Transportation and Infrastructure) for consideration.