Forgotten Funds Act

Bill Number

H.R. 3785

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Economics and Public Finance

Status

Introduced

Latest Action

2025-06-05: Referred to the House Committee on Appropriations.

Last Updated

2025-07-22T13:20:16Z

AI-Generated Summary

Purpose of the Legislation

The "Forgotten Funds Act" (H.R. 3785) aims to cancel unused portions of federal budget allocations from previous years and redirect those savings exclusively toward reducing the overall U.S. federal budget deficit. It targets funds that have been approved by Congress but not yet spent or committed.

Key Provisions

• Rescission of Funds: All unobligated balances (funds that remain available but unspent or uncommitted) from discretionary appropriations—non-mandatory spending areas like defense, education, and infrastructure—for fiscal year 2021 and all prior years are permanently canceled.
• Redirection of Savings: Any money recovered from these cancellations must be deposited into the U.S. Treasury's general fund and used solely for lowering the federal budget deficit, with no other uses allowed.

Significant Changes to Existing Law

• This bill introduces a broad, automatic cancellation of long-standing unobligated funds, which under current law can often remain available for years or be reprogrammed for other purposes.
• It eliminates flexibility for federal agencies to carry over or redirect these funds, enforcing a stricter "use it or lose it" approach to past appropriations.
• Previously, rescissions (cancellations) typically required specific legislative action for individual programs; this act applies a blanket rule to all qualifying discretionary funds from 2021 and earlier.

Potential Impacts

• On Government Agencies: Agencies relying on carryover funds (e.g., for ongoing projects in health, transportation, or environmental programs) may face sudden budget shortfalls, potentially delaying or halting initiatives without new appropriations.
• On Citizens: Could indirectly benefit taxpayers by reducing the national debt, lowering future interest payments on government borrowing; however, it might reduce funding for public services if agencies cannot replace the lost money.
• On International Relations: Minimal direct impact, though reduced funding for international aid or diplomacy programs (if affected) could influence U.S. foreign commitments.
• Overall, it promotes fiscal restraint but may constrain government operations in the short term.

Main Stakeholders Affected

• Federal Agencies and Departments: Entities like the Department of Defense, Health and Human Services, and Environmental Protection Agency, which hold unobligated balances and would lose access to them.
• Congress and the Executive Branch: Lawmakers gain a tool for deficit control, while the administration loses budgetary flexibility.
• Taxpayers and the Economy: General public benefits from deficit reduction, potentially stabilizing long-term economic health, but could face service disruptions if programs are cut.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on Congress's constitutional "power of the purse" (Article I, Section 9) to control spending, but could face challenges if seen as retroactively altering binding appropriations without due process for agencies.
• Constitutional: Aligns with federal budgeting authority, though it might raise separation-of-powers questions if executive agencies argue it undermines their implementation of prior laws.
• Political: Positions the bill as a measure of fiscal responsibility, appealing to deficit hawks; however, it could spark partisan debate over cuts to popular programs, potentially affecting future budget negotiations. As an introduced bill referred to the House Appropriations Committee, its passage would require bicameral approval and presidential signature.

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

Sponsor

Rep. Schweikert, David [R-AZ-1]

Recent Actions

• 2025-06-05: Referred to the House Committee on Appropriations.
• 2025-06-05: Introduced in House
• 2025-06-05: Introduced in House

Bill Versions

• Forgotten Funds Act — issued 2025-06-05 — PDF (2 pages)