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Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
2026-07-06 10:51:44 -04:00

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LegalText 42 U.S.C. § 806 Rescission of funds declined by States, territories, or other governmental entities us united_states_code code_section 42 THE PUBLIC HEALTH AND WELFARE 7 SOCIAL SECURITY 806 42 U.S.C. § 806 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc42@119-100.zip /us/usc/t42/s806 data/legal/raw/us/code/title-42/usc42.xml ecda51433155c5c09e6099c8209826f6f5cc0fed8f1a4ef89eeedfec1e86973a 644321055a08eb1f260a6a3e31ac157fa024756abf612a9fd6857e7e400cf24e ca2e14c6ab6cbbbd35b22bef0de8e36841d13ff4430e1c4ca3ab4d10cd946fe9 2026-07-04 official
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42 U.S.C. § 806 - Rescission of funds declined by States, territories, or other governmental entities

Text

(a) Rescission (1) In general Subject to paragraphs (2) and (3), if a State, territory, or other governmental entity provides notice to the Secretary of the Treasury in the manner provided by the Secretary of the Treasury that the State, territory, or other governmental entity intends to decline all or a portion of the amounts that are to be awarded to the State, territory, or other governmental entity from funds appropriated under this subchapter, an amount equal to the unaccepted amounts or portion of such amounts allocated by the Secretary of the Treasury as of the date of such notice that would have been awarded to the State, territory, or other governmental entity shall be rescinded from the applicable appropriation account.

(2) Exclusion Paragraph (1) shall not apply with respect to funds that are to be paid to a State under section 803 of this title for distribution to nonentitlement units of local government.

(3) Rules of construction Paragraph (1) shall not be construed as—

(A) preventing a sub-State governmental entity, including a nonentitlement unit of local government, from notifying the Secretary of the Treasury that the sub-State governmental entity intends to decline all or a portion of the amounts that a State may distribute to the entity from funds appropriated under this subchapter; or

(B) allowing a State to prohibit or otherwise prevent a sub-State governmental entity from providing such a notice.

(b) Use for deficit reduction Amounts rescinded under subsection (a) shall be deposited in the general fund of the Treasury for the sole purpose of deficit reduction.

(c) State or other governmental entity defined In this section, the term “State, territory, or other governmental entity” means any entity to which a payment may be made directly to the entity under this subchapter other than a Tribal government, as defined in sections 801(g), 802(g), and 804(d) of this title, and an eligible Tribal government, as defined in section 805(f) of this title.

(Aug. 14, 1935, ch. 531, title VI, § 606, as added Pub. L. 117328, div. LL, § 105, Dec. 29, 2022, 136 Stat. 6105.)