1. Short title
This Act may be cited as the “Returned Exclusively For Unpaid National Debt Act” or the “REFUND Act”.
Returned Exclusively For Unpaid National Debt Act
A BILL
To rescind certain Federal funds identified by States as unwanted and use the funds to reduce the Federal debt.
2. Use of unwanted Federal funds to reduce Federal debt
Rescission of unwanted Federal funds— There is rescinded, from any Federal funds required to be allocated by formula among all States that agree to use such funds for a specified purpose, an amount equal to the amount of such funds that would have otherwise been allocated to a State that identifies such funds under subsection (b) as unwanted.
Identification of funds— Subsection (a) shall only apply if, not later than the last date on which an application or State plan must be submitted in order for a State to be allocated, in an annual or biennial budget cycle, funds described in such subsection—
the State legislature with jurisdiction over such budget cycle adopts a concurrent resolution identifying the funds as unwanted; and
the State submits notice of the resolution described in paragraph (1) to the agency head responsible for allocation of the funds, in such form and manner and containing such information as the agency head determines appropriate to make the determination in subsection (c).
Determination of amount To be rescinded— An agency head that receives notice described in subsection (b)(2) shall determine and report to the Office of Management and Budget the amount to be rescinded under subsection (a).
Use for reduction of Federal debt— Amounts rescinded under subsection (a) shall be deposited by the Secretary of the Treasury in the special fund account “Gifts to Reduce Debt Held by the Public, Bureau of the Public Debt, Treasury” and used to reduce the Federal debt as provided in section 3113(d) of title 31, United States Code.
Annual report— The Secretary of the Treasury shall submit to the Congress each year a report identifying the amount deposited in the Treasury under subsection (d) with respect to each State in such year.
Definitions— In this section:
The term agency head means the head of a department or agency of the Federal Government.
The term State means—
each of the several States;
the District of Columbia; or
any commonwealth, territory, or possession of the United States.