The proposals would rescind approximately $7 billion. Of this, $5.1 billion would be rescinded from the unobligated balances made available by section 301(b)(3) of Public Law 114-10, and $1.9 billion would be rescinded from amounts made available for fiscal year 2018 under the Child Enrollment Contingency Fund, section 2104(n)(2) of the Social Security Act.
CBO was asked for its assessment of the proposed rescissions’ effect on federal spending and insurance coverage. Authority to distribute the funds to states made available under section 301(b)(3) expired in 2017. In addition, based on information from the Centers for Medicare and Medicaid Services, CBO projects that the rescission from the Child Enrollment Contingency Fund would not affect payments to states over the 2018-2028 period. For these reasons, CBO estimates that rescinding the unobligated balances would reduce budget authority by $7 billion, but would not affect outlays, or the number of individuals with insurance coverage.