Unauthorized Spending Accountability Act

Summary

Imposes a recurring process that automatically cuts budget allocations for federal programs whose authorizations of appropriations have expired and—if not reauthorized—terminates them after three fiscal years. Starting in fiscal year 2026, the bill requires a 10% reduction in the first post-expiration year and a 15% reduction in the second and third post-expiration years; programs still unauthorized after the third year are terminated and may only be restarted if Congress reauthorizes them for no more than three years. The measure relies on the Congressional Budget Office’s annual “Expired and Expiring Authorizations” list to identify unauthorized programs, treats programs funded in FY2026 whose authorizations expired earlier as expiring in FY2026, and allows restoration of reductions if Congress reauthorizes a program during the fiscal year with a sunset of no more than three years. Budget and Appropriations committee chairs must update and transmit revised budgetary levels to reflect cuts.

• Starts a recurring three-year reduction and termination cycle for federal programs whose authorizations have expired, beginning FY2026.
• First post-expiration year triggers a 10% reduction in the program’s budgetary level (relative to the prior year).
• Second and third post-expiration years trigger a 15% reduction (relative to the expiring fiscal year’s appropriations) if the program remains unauthorized.
• Programs still unauthorized after the third post-expiration year are automatically terminated effective October 1 of the following fiscal year.
• Unobligated balances after termination may be used only to close out prior obligations; no new obligations may be made absent express reauthorization.
• Reauthorization during the fiscal year of a reduction exempts and restores reductions only if the reauthorization includes a sunset of no more than three years.
• Applies to programs identified in the CBO’s expired/expiring authorizations report and treats pre-FY2026 expirations funded in FY2026 as expiring in FY2026.
• Requires Budget Committee chairs to transmit revised (reduced) budgetary allocations to Appropriations Committee chairs.
• Intended to pressure Congress to reauthorize or allow termination of expired programs and to shorten authorization periods (max three years on reauthorization).