This week, Congress passed the Fiscal Responsibility Act, also known as the “Debt-Limit Bill”, which will prevent the United States from defaulting on its bills. With broad bipartisan support, the bill passed by a wide vote margin (314-117) in the House of Representatives on Wednesday. The measure then passed in the Senate by a 63.36 vote on Thursday night. President Biden is expected to sign the bill as early as today, and will deliver remarks Friday evening at 4pm Pacific/7pm Eastern this evening. 

When signed, the bill will suspend the debt limit until January 1, 2025, and impose spending caps for fiscal years 2024 and 2025. It will also enact new requirements on food stamps, Temporary Assistance for Needy Families (TANF), and rescind some unobligated COVID-relief funding. The bill will claw back $27.1 billion in unspent COVID-related funds, namely from the public health emergency fund and highway pots of money the government had not yet obligated for specific projects. The Congressional Budget Office estimates that the agreement to limit government spending in exchange for raising the borrowing limit would reduce the deficit by $1.5 trillion over ten years. 

The largest funds being clawed back include:  

  • Agriculture Department: Over $3 billion, in part aimed at strengthening the food system and funding marketing services; 

  • Corporation for National Community Service: $286 million for operating expenses; 

  • Education Department: $391 million from the Education Stabilization Fund to support states and schools through the pandemic; 

  • Health and Human Services: Over $13 billion across the Centers for Disease Control and Prevention, the Food and Drug Administration and other response agencies for vaccine distribution, research and pharmaceutical supply chain recovery;  

  • Labor Department: $1 billion from state grants aimed at addressing fraud and identity theft; 

  • Small Business Administration: $2 billion in disaster relief and COVID-19 response; 

  • Transportation Department: $3.9 billion from highway infrastructure programs and the Aviation Manufacturing Jobs Protection Program, which provided money to businesses to prevent furloughs and layoffs;  

  • Treasury Department: Over $1 billion across several programs, including air carrier support and grants for small businesses. 

A full breakdown of recissions, including the agency, account, program, and estimated rescission amount is available here.