CBO Scores Bill on Reclaiming Unused Broadband Stimulus Funds

H.R. 1343 would require the National Telecommunications Information Administration (NTIA) and the Rural Utilities Service (RUS) to promptly terminate certain grant awards if the agency determines that award recipients are engaged in wasteful or fraudulent activities or have not met performance expectations. The bill also would require each agency, upon receiving notification of material noncompliance with award terms or improper usage of award funds, to determine whether the award should be terminated and to notify the Congress of any terminated awards. Both agencies are required under current law to promptly terminate grants for wasteful or fraudulent spending or for failure to meet specific performance milestones. In addition, the Pay-It-Back-Act (Public Law 111-203) requires agencies to promptly return to the Treasury any funds awarded under ARRA that are terminated. Thus, restating those requirements, as provided in H.R. 1343, would not affect federal spending or revenues.

Based on information from the agencies, CBO estimates that implementing the new reporting requirements in H.R. 1343 would have no significant effect on spending subject to appropriation. Enacting H.R. 1343 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.