Tipton Votes to Rescind Unused Funds
WASHINGTON, D.C. – Congressman Scott Tipton (CO-03) voted to pass legislation that would rescind more than $15 billion in previously appropriated, but unobligated, funding that is currently sitting in unused accounts. The Spending Cuts to Expired and Unnecessary Programs Act (H.R. 3) passed the House with a vote of 210-206 and will now head to the Senate.
“For the past decade, the national debt has been increasing at an alarming rate, and billions of dollars sit in unused accounts across the federal government, in many cases no longer legally eligible to be spent,” said Tipton. “It is common sense for Congress to rescind these unused funds and return them to the Treasury.”
“Since this legislation was first proposed, there has been a lot of misinformation over the impact it would have on the Children’s Health Insurance Program (CHIP). I want to be clear that this legislation would in no way impact the delivery of CHIP,” followed Tipton. “All this bill would do is rescind unused funding that can no longer be spent because the authority to do so expired last year or is not needed to operate the program this year. The Congressional Budget Office recently confirmed that there would be no impact on CHIP. I have always recognized the importance of CHIP and have repeatedly supported its funding, even helping to pass the longest and most generous extension in the programs 20 year history. I am proud of my record of unwavering support of this crucial program, and will maintain that support in the years to come.”
On Tuesday, May 8, President Donald Trump exercised his authority under the Congressional Budget and Impoundment Control Act of 1974 (ICA) to request that Congress rescind $15 billion in previously appropriated funding. Since 1974, both Democratic and Republican Presidents have used the ICA to propose nearly $76 billion in reductions to Federal spending.
H.R. 3 mirrors the President’s request. Notably, the bill has two provisions that would rescind a total of $7 billion from the Children’s Health Insurance Program (CHIP), but would not impact the delivery of the program. The Congressional Budget Office recently confirmed that this rescission would have no impact on CHIP.
One provision would rescind $5.1 billion in funds that can’t be spent because the authority to do so expired last year. The other provision would rescind $1.9 billion from the CHIP Contingency Fund, which provides payments to states that that higher than expected CHIP enrollment. Currently, the Centers for Medicare and Medicaid Services do not foresee that any state will require a Contingency Fund payment this year.
Additionally, the rescissions proposal would not rescind all funding for the Contingency Fund, meaning that if a state needed to qualify for a payment in the future, its needs would still be met.
The national debt is more than $21 trillion and the deficit could reach $1 trillion next year.
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