This bill reduces EPA obligations and returns unobligated Section 138 funds to the Treasury—providing states and the federal budget more flexibility in the near term but weakening federal tools and funding for air quality protections, which may harm public health and local programs.
State and local governments and private entities will face fewer federal requirements tied to CAA Section 138 because the EPA would no longer be required to administer those programs, giving them more regulatory flexibility.
Taxpayers and the federal budget will see unobligated Section 138 balances returned to the Treasury, reducing near-term federal outlays.
The general public, especially residents of rural communities, could experience weaker air quality protections because the EPA would have fewer statutory tools to address certain pollution issues.
State and local governments and affected communities may lose federal funding or program support formerly provided under Section 138, reducing resources available for air quality actions.
Utility and energy companies that anticipated Section 138 funds could face sudden budget shortfalls if unobligated balances are rescinded.
Based on analysis of 2 sections of legislative text.
Repeals a Clean Air Act provision and rescinds any unspent funds that had been made available under that provision.
Repeals Section 138 of the Clean Air Act (42 U.S.C. 7438) and rescinds any unobligated (unspent) balances that were previously made available under that now-repealed provision. The change removes the statutory authority for those prior disbursements and takes back remaining unspent funds as they existed the day before this law takes effect.
Introduced February 6, 2025 by Mike Flood · Last progress February 6, 2025