§806 Rescission of funds declined by States, territories, or other governmental entities

Summary

If a State, territory, or other government tells Treasury, as required, it will refuse all or part of the money it was to receive, Treasury will take back that unaccepted amount from the money set aside for those payments. The money taken back goes into the federal government's general fund and must be used only to reduce the deficit. It does not apply to funds a State gets under section 803 to pass on to nonentitlement local governments. A sub‑State or local government can tell Treasury it will refuse money a State might give it, and a State cannot stop that. "State, territory, or other governmental entity" means anyone paid directly under this law, except Tribal governments and eligible Tribal governments.