Unauthorized Spending Accountability Act
- Bill Number
- H.R. 143
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Economics and Public Finance
- Status
- Introduced
- Latest Action
- 2025-12-02: Ordered to be Reported (Amended) by the Yeas and Nays: 25 - 19.
- Last Updated
- 2026-03-13T15:50:16Z
AI-Generated Summary
Purpose of the Legislation
The Unauthorized Spending Accountability Act aims to promote fiscal responsibility by automatically reducing and eventually terminating federal funding for programs that lack current congressional authorization of appropriations. It establishes a structured timeline to encourage Congress to regularly review and reauthorize such programs, preventing indefinite funding without oversight.
Key Provisions
- Definitions and Scope:
- An "unauthorized program" is any federal program or activity listed in the Congressional Budget Office's (CBO) annual report on "Expired and Expiring Authorizations of Appropriations" where funding authorization expires in the report year. This includes programs that expired before fiscal year (FY) 2026 but are still funded.
- "Budgetary level" refers to the funding allocations set by Congress in its annual budget resolution for the Appropriations Committees.
- Three-Year Reduction Cycle (Starting FY 2026):
- In the first year after authorization expires, the program's budgetary level is reduced by 10% of the prior year's appropriated funds.
- In the second and third years after expiration (if still unauthorized), the reduction increases to 15% of the prior year's funds.
- Budget Committee chairs must notify Appropriations Committee chairs of these reductions when setting annual budgets.
- Program Termination:
- After the third unauthorized year, the program is fully terminated on October 1 of the following fiscal year.
- Existing unobligated funds (money not yet spent) can only be used to close out prior valid obligations, not for new spending.
- No new obligations (commitments to spend) are allowed without explicit congressional reauthorization limited to a three-year period.
- Exemptions and Restorations:
- If Congress reauthorizes the program during a reduction year with a "sunset provision" (authorization expiring after no more than three years), the reductions are reversed, and the program is exempt from further cuts under this Act.
Significant Changes to Existing Law
- Currently, federal programs can often receive funding through appropriations even after their authorizing statutes expire, leading to "zombie" programs without active congressional review.
- This Act introduces mandatory, automatic percentage-based funding reductions tied to budget resolutions, culminating in termination after three years— a new enforcement mechanism not present in prior law like the Congressional Budget Act of 1974.
- It applies retroactively to pre-2026 expired programs funded in FY 2026, closing a loophole for ongoing unauthorized spending.
Potential Impacts
- On Government Agencies: Agencies administering affected programs (e.g., in defense, health, or education) may face gradual funding cuts, disrupting operations and requiring them to prioritize or seek reauthorization. This could lead to efficiency gains by eliminating outdated programs but also administrative burdens in winding down activities.
- On Citizens: Individuals or groups relying on these programs (e.g., veterans' services, research grants) might experience reduced access to benefits or services if programs are not reauthorized, potentially affecting public welfare programs.
- On International Relations: Minimal direct impact, though it could indirectly affect foreign aid or international programs if they become unauthorized and face cuts.
Main Stakeholders Affected
- Congress: Budget and Appropriations Committees bear responsibility for implementing reductions and reauthorizations, potentially increasing workload and political accountability.
- Executive Branch Agencies: Departments like Defense, Health and Human Services, or Energy that run programs listed in the CBO report will need to adapt to funding constraints or advocate for reauthorization.
- Program Beneficiaries: Citizens, businesses, nonprofits, or state/local governments receiving federal support from these programs could see service disruptions.
- Taxpayers: Broader public interest in reduced unauthorized spending, potentially lowering federal deficits.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces Congress's constitutional power of the purse (Article I, Section 9) by tying spending to active authorizations, but it may face challenges if seen as impinging on appropriations flexibility. The Act integrates with existing budget processes without altering separation of powers.
- Constitutional: No direct conflicts, as it operates within Congress's internal rules for budgeting; however, automatic terminations could be contested if they affect constitutionally mandated functions (e.g., debt payments, which are implicitly exempt via CBO reporting norms).
- Political: Encourages bipartisan oversight of federal spending, potentially reducing waste but risking partisan debates over which programs to save. It signals a push for "sunset" reforms to limit long-term entitlements, influencing future budget negotiations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Schmidt, Derek [R-KS-2], Rep. Barrett, Tom [R-MI-7]
Recent Actions
- 2025-12-02: Ordered to be Reported (Amended) by the Yeas and Nays: 25 - 19.
- 2025-12-02: Committee Consideration and Mark-up Session Held
- 2025-01-03: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on the Budget, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-01-03: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on the Budget, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-01-03: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on the Budget, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-01-03: Introduced in House
- 2025-01-03: Introduced in House
Bill Versions
- Unauthorized Spending Accountability Act — issued 2025-01-03 — PDF (5 pages)