CUTS Act

Bill Number

H.R. 1654

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Economics and Public Finance

Status

Introduced

Latest Action

2025-02-27: Referred to the Subcommittee on Highways and Transit.

Last Updated

2025-09-02T17:43:46Z

AI-Generated Summary

Purpose

This bill, H.R. 1654 (also known as the "Cutting Unobligated Tumultuous Spending Act," "CUTS Act," or "De-Supplemental Act"), aims to cancel (rescind) unused portions of previously allocated federal funds for COVID-19 relief and certain infrastructure programs. The goal is to redirect those savings to cover the costs of emergency foreign aid packages approved for fiscal year 2024, focusing on security assistance to Israel, Ukraine, and the Indo-Pacific region.

Key Provisions

• COVID-19 Fund Rescissions: Cancels unobligated (unused) balances from COVID-19 relief funding provided under six major laws passed between 2020 and 2021, including the CARES Act and the American Rescue Plan Act. The total amount rescinded is capped at the level needed to offset the foreign aid appropriations in the following 2024 supplemental acts:
• Israel Security Supplemental Appropriations Act (Division A of Public Law 118-50).
• Ukraine Security Supplemental Appropriations Act (Division B of Public Law 118-50).
• Indo-Pacific Security Supplemental Appropriations Act (Division C of Public Law 118-50).
• Infrastructure Fund Rescissions: Fully cancels all unobligated funds from four specific programs:
• Education Stabilization Fund (under the Department of Education in the CARES Act, aimed at supporting schools during the pandemic).
• Congestion Mitigation and Air Quality Improvement Program (a highway funding program to reduce traffic congestion and improve air quality, per U.S. Code Title 23, Section 149).
• Carbon Reduction Program (a transportation initiative to lower greenhouse gas emissions from vehicles, per U.S. Code Title 23, Section 175).
• PROTECT Program (a grant program for protecting highway infrastructure from natural disasters and other risks, per U.S. Code Title 23, Section 176).

Significant Changes to Existing Law

• Introduces direct rescissions of unobligated funds from pandemic-era relief and infrastructure laws, which were originally designed as one-time or multi-year allocations without built-in expiration or clawback mechanisms for unused amounts.
• Ties domestic spending cuts explicitly to funding foreign security aid, creating a new budgetary offset mechanism not present in the original appropriations. This does not amend the underlying laws but overrides their funding availability by canceling balances through congressional action.

Potential Impacts

• Government Agencies: Federal departments like Education, Transportation, and Health and Human Services may lose access to funds for ongoing programs, potentially delaying or halting projects related to education recovery, highway improvements, air quality efforts, and disaster-resilient infrastructure.
• Citizens: Could affect communities relying on these funds, such as schools in low-income areas, urban traffic reduction initiatives, or regions vulnerable to climate-related disasters, leading to reduced federal support for recovery and environmental goals.
• International Relations: Bolsters U.S. commitments to allies by ensuring funding for 2024 foreign aid without increasing the federal deficit, potentially strengthening diplomatic ties with Israel, Ukraine, and Indo-Pacific partners amid global conflicts.

Main Stakeholders Affected

• Federal Agencies and Programs: U.S. Departments of Education and Transportation, including state and local governments administering infrastructure grants.
• Domestic Beneficiaries: Schools, educators, students, environmental groups, transportation authorities, and communities focused on air quality, carbon reduction, and disaster protection.
• International Recipients: Governments and security forces in Israel, Ukraine, and Indo-Pacific nations receiving the offset foreign aid.
• Taxpayers and Budget Watchers: General public and fiscal conservatives who may support deficit reduction through rescissions.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on Congress's constitutional power of the purse (Article I, Section 9) to control appropriations, allowing rescission of prior funds without needing executive branch consent beyond signature or veto. However, it could face challenges if affected programs argue the rescissions violate specific statutory protections for obligated funds (though the bill targets only unobligated balances).
• Constitutional: Reinforces congressional authority over spending but highlights tensions between domestic priorities and foreign policy, potentially testing separation of powers if the executive opposes the cuts.
• Political: Represents a partisan push to reprioritize funds from pandemic and green infrastructure initiatives toward military aid, which may fuel debates on fiscal responsibility, foreign intervention, and equity in federal spending during an election cycle. Referred to committees on Oversight, Appropriations, and Transportation for review, indicating potential for amendments or gridlock.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Bean, Aaron [R-FL-4]

Recent Actions

• 2025-02-27: Referred to the Subcommittee on Highways and Transit.
• 2025-02-27: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Appropriations, and Transportation and Infrastructure, 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.
• 2025-02-27: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Appropriations, and Transportation and Infrastructure, 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.
• 2025-02-27: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Appropriations, and Transportation and Infrastructure, 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.
• 2025-02-27: Introduced in House
• 2025-02-27: Introduced in House

Bill Versions

• Cutting Unobligated Tumultuous Spending Act — issued 2025-02-27 — PDF (4 pages)