Section 1 Short title
This Act may be cited as the “Grant Return for Deficit Reduction Act”.
Grant Return for Deficit Reduction Act
A BILL
To give States and localities the option to return unused Federal grant funds to the general fund of the Treasury for the purpose of deficit reduction.
Sec. 2 Option to return Federal grant funds for purpose of deficit reduction
Return of funds— If a grant is awarded by an executive agency of the Federal Government to a State or locality and the State or locality subsequently submits written notice as provided in subsection (b) that it will not use any remaining funds under the grant, any such remaining funds shall be deobligated and rescinded and returned to the general fund of the Treasury for the purpose of deficit reduction.
Notice— Notice under subsection (a) shall include a statement of intent to return the remaining funds described in such subsection and the amount of such funds, and shall be submitted to—
the head of the executive agency described in such subsection;
the Director of the Office of Management and Budget; and
the Secretary of the Treasury.
Application— Subsection (a) shall apply to remaining funds described in such subsection notwithstanding any provision of law that would otherwise provide for redistribution of such funds.
Reporting— Not later than the first February 15 after the end of each fiscal year, the Director of the Office of Management and Budget shall compile and submit to the Congress a report including a description and the amount of all funds returned under subsection (a) in such fiscal year.
State defined— For purposes of this section, the term “State” means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian tribe.