Unauthorized Spending Accountability Act
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Would impose automatic, escalating spending cuts on any federal program that continues receiving annual appropriations without a current congressional authorization, and would terminate such programs if they remain unauthorized for three consecutive years.
The bill would create a structural incentive for Congress to keep program authorizations current by turning expired authorizations into a direct financial penalty, affecting any of the hundreds of programs the Congressional Budget Office annually flags as operating without valid authorization.
What this bill would do
What it would do
The bill would establish a recurring three-year budgetary level reduction cycle for any federal program that receives annual appropriations funding but lacks a current authorization of appropriations. Programs listed in the Congressional Budget Office's annual report on expired and expiring authorizations would be subject to a 10 percent reduction in their spending allocation in the first fiscal year following the expiration of their authorization. In the second and third consecutive unauthorized years, a further 15 percent reduction each year would apply. After three unauthorized years, the program would be automatically terminated effective October 1 of the following fiscal year, with existing obligations permitted to wind down but no new funds available.
Programs could avoid reductions and termination only if Congress reauthorizes them — but the reauthorization must include a sunset clause limiting the new authorization to no more than three years. Any program already operating without a current authorization as of fiscal year 2026 would be treated as entering the cycle starting that year. The spending allocations involved are the "302(a) allocations" the Budget Committees distribute to Appropriations Committees under the Congressional Budget Act of 1974.
Key provisions
- 1Would establish a recurring three-year budgetary level reduction cycle for any unauthorized federal program, starting in fiscal year 2026.
- 2Would reduce the spending allocation for an unauthorized program by 10 percent of its expiring-year appropriation in the first year after its authorization expires.
- 3Would reduce the spending allocation by an additional 15 percent in each of the second and third consecutive unauthorized fiscal years.
- 4Would automatically terminate any program still unauthorized after three years, effective October 1 of the following fiscal year, prohibiting new obligations without a fresh reauthorization.
- 5Would exempt a program from reductions only if Congress reauthorizes it with a sunset clause of no more than three years, at which point any imposed reductions would be restored.
Who would be affected
Federal agencies running programs that have continued receiving annual appropriations after their authorizations expired — particularly those appearing in the CBO's annual expired/expiring authorizations report. Congressional Budget Committees and Appropriations Committees would be directly involved in calculating and transmitting revised spending allocations under the new mechanism.
Why it matters
Many federal programs continue receiving annual appropriations for years or even decades after their authorizations have lapsed. This bill would impose automatic funding cuts and eventual termination on such programs, creating a hard deadline for Congress to act. Agencies running programs with expired authorizations would face progressive budget reductions and, ultimately, shutdown of those programs absent timely congressional reauthorization.
What would change
Changes to existing law
Creates Congressional Budget Act of 1974 (2 U.S.C. 633(a)) (Sec. 2–4)
Creates a new mandatory reduction schedule and termination mechanism operating on top of existing 302(a) spending allocations for unauthorized programs.
Agencies directed to act
Effective dates
- Three-year budgetary reduction cycle begins; programs unauthorized before FY2026 enter the cycle
- Termination of programs completing three unauthorized years takes effect
Funding and costs
Congressional Budget Office estimate
CBO estimates H.R. 143 would have no significant effect on direct spending, revenues, or the deficit over the 2026–2036 period, with administrative costs of less than $500,000 over 2026–2031.
CBO estimates that H.R. 143, the Unauthorized Spending Accountability Act, would result in zero change to direct (mandatory) spending, revenues, or the deficit in fiscal year 2026, over 2026–2031, or over 2026–2036. The bill would establish a schedule to reduce aggregate spending levels in the Congressional budget resolution when any federal program lacks an authorization of appropriations for three or more years, and would limit how funding could be obligated for programs unauthorized for more than two fiscal years; however, CBO does not expect these provisions to significantly affect federal spending because aggregate spending levels for 2026 are already set, and future changes would depend on future appropriation actions. Administrative costs for CBO and the Budget Committees to implement the bill would be less than $500,000 over 2026–2031, subject to appropriated funds. CBO identified no intergovernmental or private-sector mandates in the bill.
How implementation would work
The mechanism works through the congressional budget process: when a budgetary level (302(a) allocation) is established for a given fiscal year, the chairs of the House and Senate Budget Committees would immediately apply the required percentage reduction and transmit the revised allocation to the Appropriations Committee chairs. No agency rulemaking is required. Termination would be automatic on October 1 following the third unauthorized year. Reauthorization can stop or reverse a reduction only if enacted while the budgetary level for that year is being set, and only if the reauthorization includes a sunset of no more than three years.
Legislative status & sources
Latest action
Ordered to be Reported (Amended) by the Yeas and Nays: 25 - 19.
Official CRS summary
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This bill reduces budgetary levels for certain federal programs that are funded through the annual appropriations process and do not have an authorization of appropriations.
Under the bill, budgetary levels are spending allocations provided to the congressional appropriations committees by a congressional budget resolution or a deeming resolution. The allocations are provided under the Congressional Budget Act of 1974 and are often referred to as 302(a) allocations.
The bill applies to programs included in the Congressional Budget Office's (CBO's) annual report listing programs that are funded through the appropriations process and have an authorization of appropriations that has either expired or will expire during the year.
If a program is listed in the CBO report, the bill requires specified reductions to be implemented over a three-year period and terminates the unauthorized programs at the end of the third unauthorized year.
Legislative subjects
Appropriations; Budget process; Economics and Public Finance; Executive agency funding and structure; Government information and archives; Legislative rules and procedure