Returning Unspent COVID Funds Act
Click any stage to learn more about the legislative process.
Would rescind all unspent, unobligated balances remaining from six major COVID-19 relief laws — including the American Rescue Plan and the CARES Act — and direct those funds to deficit reduction instead.
The bill gives the President a 60-day window after enactment to waive specific rescissions, providing limited flexibility for accounts tied to ongoing national security needs.
What this bill would do
What it would do
The bill would rescind, effective on the date of enactment, all unobligated (unspent and uncommitted) balances remaining from six COVID-19 relief statutes enacted between 2020 and 2021: the American Rescue Plan Act of 2021, Divisions M and N of the Consolidated Appropriations Act of 2021, the Paycheck Protection Program and Health Care Enhancement Act, the CARES Act, the Families First Coronavirus Response Act, and the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020. All rescinded funds would remain in the general fund of the Treasury and could be used only for deficit reduction.
The bill would not permanently eliminate the President's flexibility. Within 60 days of enactment, the President could submit a waiver notice to the House Budget Committee and the Senate Finance Committee to exempt specific accounts or programs from the rescission. Any account covered by a timely waiver notice would keep its unobligated balance.
Key provisions
- 1Would rescind, effective on enactment, all unobligated balances remaining from six named COVID-19 relief laws
- 2Would allow the President to waive specific rescissions by notifying the House Budget Committee and Senate Finance Committee within 60 days of enactment
- 3Would require all rescinded funds to remain in the general Treasury fund and be used solely for deficit reduction
Who would be affected
Federal agencies and programs that still hold unobligated balances from any of the six named COVID-19 relief laws, and any state, local, or tribal grantees whose awards have been authorized but not yet obligated under those statutes. The general public would be indirectly affected through the reduction in federal deficit if large balances are rescinded.
Why it matters
Any program or grant still drawing on unobligated COVID relief funds would lose access to that money on the day the bill is enacted, unless the President files a waiver within 60 days. Agencies mid-cycle on multi-year COVID-funded initiatives could face abrupt funding gaps, while the rescission would reduce the federal deficit by whatever balances remain across the six large relief laws.
What would change
Changes to existing law
Amends American Rescue Plan Act of 2021 (Sec. 2(a))
Rescinds all unobligated balances remaining from the Act, subject to presidential waiver
Amends Consolidated Appropriations Act, 2021 (Divisions M and N) (Sec. 2(a))
Rescinds all unobligated balances remaining under Divisions M and N, subject to presidential waiver
Amends Paycheck Protection Program and Health Care Enhancement Act (Sec. 2(a))
Rescinds all unobligated balances remaining from the Act, subject to presidential waiver
Amends CARES Act (Sec. 2(a))
Rescinds all unobligated balances remaining from the Act, subject to presidential waiver
Amends Families First Coronavirus Response Act (Sec. 2(a))
Rescinds all unobligated balances remaining from the Act, subject to presidential waiver
Amends Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (Sec. 2(a))
Rescinds all unobligated balances remaining from the Act, subject to presidential waiver
Agencies directed to act
Effective dates
- Rescission of unobligated COVID-19 relief fund balances takes effect
- Deadline for the President to submit waiver notices for specific accounts or programs
How implementation would work
The rescission takes effect automatically on enactment — no rulemaking is required. Within 60 days, the President may carve out specific accounts or programs by submitting written waiver notices to the House Budget Committee and Senate Finance Committee; accounts not covered by a timely notice lose their unobligated balances immediately. Rescinded funds flow to the general fund of the Treasury and are restricted to deficit reduction. The bill establishes no ongoing reporting requirement and no phased implementation beyond the 60-day waiver window.
Legislative status & sources
Latest action
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 266.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill rescinds certain unobligated funds that were provided to address COVID-19 and requires the funds to be used for deficit reduction.
Specifically, the bill rescinds unobligated funds that were provided by
- the American Rescue Plan Act of 2021;
- Divisions M and N of the Consolidated Appropriations Act, 2021;
- the Paycheck Protection Program and Health Care Enhancement Act;
- the Coronavirus Aid, Relief, and Economic Security Act (CARES Act);
- the Families First Coronavirus Response Act; and
- the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020.
Funds rescinded by this bill must remain in the Treasury to be used for the sole purpose of deficit reduction.
The bill allows the President to waive the required rescission for an account or program if a notice waiving the rescission for the account or program is submitted to the House Budget Committee and the Senate Finance Committee no later than 60 days after the enactment of this bill.
Legislative subjects
Economics and Public Finance