Lummis Bill Seeks to Give State, Municipalities a Tool to Help Tackle National Debt

June 26, 2025
Washington, D.C.– Senator Cynthia Lummis (R-WY) and Senator Rick Scott (R-FL) haveintroduced the Pay Down the Debt Act,legislationthat would allow state and municipal governments to return federal grant money they receive directly toward lowering the federal deficit.
“Three years have passed since I first proposed this legislation, during which time our national debt has ballooned from $28 trillion to nearly $37 trillion,”said Lummis.“This explosive growth is unacceptable, fiscally irresponsible, and fundamentally contrary to American values. Our state and local governments currently lack any mechanism to meaningfully address the debt crisis. This bill would empower them to return surplus or unnecessary federal funds they’ve received back to the Treasury, specifically for debt reduction. We must change course immediately to avoid financial catastrophe – every dollar returned makes a difference in this fight.”
Background:
If a state or local government does not accept a grant from the federal government, an equal amount to be awarded to the state or local government is rescinded from the applicable appropriation account. Amounts rescinded are deposited in the general fund of the Treasury for the sole purpose of deficit reduction.
Read the entire billhere.