CONGRESS’ DEBT LIMIT BILL TO RESCIND UNUSED COVID-19 RELATED FUNDING FOR AIRPORTS
July 22, 2023
The U.S. debt limit bill known as the “Fiscal Responsibility Act of 2023” was recently passed to suspend the U.S. debt limit and allow the U.S. to continue to borrow funds to pay for debts and impose new spending caps through January 2025. The bill includes a number funding cuts, including rescissions to “unobligated balances of amounts available” to DOT and the FAA for funding for grants for U.S. airports. This means the rescissions will allow the U.S. government to take back approximately $200 million in unused funds that were previously allocated under the U.S. COVID-19 relief legislation known as the “CARES Act” and the “American Rescue Plan Act of 2021”, to assist U.S. airports. Notably, however, the bill exempts the U.S. infrastructure law passed in 2021 that included funding for transportation programs, meaning funds allocated through that law have not been rescinded.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com 202-659-6622) or Drew Derco (dderco@eckertseamans.com 202-659-6665).
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