Sec. 607. Policy statement on deficit reduction through the cancellation of unobligated balances
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The House finds the following: According to the most recent estimate from the Office of Management and Budget, Federal agencies were expected to hold $739 billion in unobligated balances at the close of fiscal year 2014. These funds represent direct and discretionary spending made available by Congress that remains available for expenditure beyond the fiscal year for which they are provided. In some cases, agencies are granted funding and it remains available for obligation indefinitely.
The Congressional Budget and Impoundment Control Act of 1974 requires the Office of Management and Budget to make funds available to agencies for obligation and prohibits the Administration from withholding or cancelling unobligated funds unless approved by an act of Congress. Greater congressional oversight is required to review and identify potential savings from unneeded balances of funds. Congressional committees shall through their oversight activities identify and achieve savings through the cancellation or rescission of unobligated balances that neither abrogate contractual obligations of the Government nor reduce or disrupt Federal commitments under programs such as Social Security, veterans’ affairs, national security, and Treasury authority to finance the national debt.
Congress, with the assistance of the Government Accountability Office, the Inspectors General, and other appropriate agencies should continue to make it a high priority to review unobligated balances and identify savings for deficit reduction.