The CUTS Act rescinds unobligated COVID-19 relief funds to offset 2024 security appropriations for Israel, Ukraine, and the Indo-Pacific, while also rescinding unobligated funds from education, transportation, and carbon reduction programs.
Aaron Bean
Representative
FL-4
The CUTS Act, also known as the De-Supplemental Act, aims to rescind unobligated COVID-19 relief funds to offset the amount allocated in 2024 for security supplemental appropriations acts for Israel, Ukraine, and the Indo-Pacific region. It also rescinds any unobligated funds for the Education Stabilization Fund, the Congestion Mitigation and Air Quality Improvement Program, the Carbon Reduction Program, and the PROTECT Program.
The Cutting Unobligated Tumultuous Spending Act, or "CUTS Act," aims to redirect unspent COVID-19 relief funds towards security spending, while also pulling back money from some education, transportation, and environmental programs. Specifically, this bill claws back unobligated funds – money that hasn't been officially earmarked for specific projects yet.
The core idea is to take those leftover COVID dollars and use them to offset the costs of three 2024 Security Supplemental Appropriations Acts:
The bill pulls from a wide range of COVID-19 relief legislation, including the big ones like the CARES Act and the American Rescue Plan Act of 2021 (Section 2). The total amount rescinded will match the total allocated in 2024 for those three security acts.
It's not just COVID funds on the chopping block. The CUTS Act also targets:
Let's break down what this could actually mean for everyday folks:
The key word throughout this bill is "unobligated." This is where things could get tricky. What counts as "unobligated" can be open to interpretation. It's the difference between having money in your bank account versus having already written a check that hasn't cleared yet. Different agencies might have different definitions, leading to potential disputes over which funds are truly available for rescission. For a small business owner who was expecting a grant, this uncertainty could be a major headache.