Capitol Corner June 2023
The Fiscal Responsibility Act (FRA) of 2023 was signed into law on Saturday, June 3rd. It suspends the debt ceiling allowing the federal government to continue borrowing to fund federal programs through January 1, 2025. The FRA also caps discretionary spending (the money Congress appropriates each year to fund federal agencies and programs, exempting mandatory programs like Medicare and Social Security) for two years. In addition, the FRA rescinds approximately $28 billion in unobligated COVID-19 funding, including funds provided through the American Rescue Plan Act (ARPA), Coronavirus Aid, Relief and Economic Security (CARES) Act, and other pandemic-related spending bills. However, ARPA’s State and Local Fiscal Recovery Fund (SLFRF) and Local Assistance and Tribal Consistency Fund (LATCF), are not affected by this legislation.