# The Forgotten Funds Act Explained

The federal government often appropriates money for specific programs and projects, but not all of that money gets spent right away. Sometimes agencies don't use funds within a certain timeframe, leaving money sitting unused in government accounts. The Forgotten Funds Act targets these leftover, unspent dollars and takes them back. Specifically, it permanently cancels any discretionary money that was budgeted for 2021 or earlier years and hasn't been obligated (committed to a specific use) yet. This is essentially the government reclaiming money that's been sitting around unused for years.

Once the government takes back these forgotten funds, it can't use them for anything else—the bill requires that every dollar must go directly toward reducing the federal budget deficit. The deficit is the gap between what the government spends and what it brings in through taxes and other revenue. By funneling these reclaimed dollars toward deficit reduction, the bill aims to chip away at the national debt without cutting existing programs or raising taxes.

The practical impact depends on which agencies have unspent money sitting around. Some government programs might lose access to funds they were counting on, though since this money hasn't been used in years, the immediate disruption to current operations should be minimal. However, any agency planning to eventually use older appropriations for future projects would lose that option. For taxpayers, this is essentially a way to reduce government borrowing by redirecting money that was already allocated but never spent, rather than by making new cuts or raising revenue.

Forgotten Funds Act

Schweikert, David

Forgotten Funds ActThis bill rescinds the&nbsp;unobligated balances of discretionary appropriations that were provided for FY2021 or any previous fiscal year. It also requires the rescinded funds to be deposited into the Treasury for the sole purpose of deficit reduction.&nbsp;