PolicyBrief
H.R. 1654
119th CongressFeb 27th 2025
CUTS Act
IN COMMITTEE

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
R

Aaron Bean

Representative

FL-4

LEGISLATION

CUTS Act Reclaims Unspent COVID Funds for Security, Axes Education and Green Programs

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.

Refocusing Funds: COVID Relief to National Security

The core idea is to take those leftover COVID dollars and use them to offset the costs of three 2024 Security Supplemental Appropriations Acts:

  • Israel Security: Providing aid and support.
  • Ukraine Security: More aid and support in their ongoing conflict.
  • Indo-Pacific Security: Boosting security measures in that region.

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 The total amount rescinded will match the total allocated in 2024 for those three security acts.

Beyond COVID: Cuts to Education, Transportation, and Environment

It's not just COVID funds on the chopping block. The CUTS Act also targets:

  • Education Stabilization Fund: Money set aside in the CARES Act to help schools. (Section 2)
  • Congestion Mitigation and Air Quality Improvement Program: Aimed at reducing traffic and improving air quality.
  • Carbon Reduction Program: Focused on lowering carbon emissions.
  • PROTECT Program: A program related to transportation infrastructure resilience.

Real-World Ripple Effects

Let's break down what this could actually mean for everyday folks:

  • Education: If your local school district was counting on some of that Education Stabilization Fund money for, say, hiring more teachers or upgrading technology, those plans could be delayed or scrapped. The impact depends on how much unobligated money is still available.
  • Commuting and Travel: If you live in a city with bad traffic, projects funded by the Congestion Mitigation and Air Quality Improvement Program might be put on hold. Think fewer new bike lanes, less efficient public transit upgrades, or stalled initiatives to reduce idling. For someone who commutes an hour each way, that's real time and frustration.
  • Climate and Environment: With cuts to the Carbon Reduction Program, efforts to transition to cleaner energy sources and reduce emissions may be delayed. This could impact everything from the availability of electric vehicle charging stations to long-term air quality. A construction worker involved in green infrastructure projects might see fewer job opportunities.

The Big Question: "Unobligated"?

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.