A claw back of federal stimulus funds inched closer to reality Tuesday when President Joe Biden signaled he is open to the proposal.
"We don't need it all," Biden told reporters Tuesday after a closely watched meeting with Congressional leaders to try to reach a deal to lift the nation's debt limit.
"But the question is, what obligations were there made, commitments made, money not disbursed, etc.? I have to look, take a hard look at it. It's on the table."
The president's comments come as Congressional leaders try to break a partisan impasse that puts the country on the path toward its first default.
Treasury has said the U.S. will run out of money as soon as June 1.
House Republicans on April 26
The Congressional Budget Office
The National League of Cities said the U.S. Department of Transportation would see $6 billion rescinded, "with cuts to stabilization programs used by local governments and states to keep airports open, buses operating, and trains running."
Tuesday's hour-long meeting among top leaders seemed to yield little, with House Speaker Kevin McCarthy, R-Calif., saying afterward that he saw "no new movement."
"I would hope that [Biden] would be willing to negotiate for the next two weeks so we can actually solve this problem and not take America to the brink," McCarthy told reporters.
The leaders agreed to meet again Friday and aides will meet daily to try to advance negotiations.
In March 2022, a move to rescind $8 billion in unspent COVID funds from the states
Congress passed six pandemic relief bills in 2020 and 2021 that provided $4.6 trillion in relief and recovery funding.
As of Jan. 31, 2023, the federal government had obligated a total of $4.5 trillion and spent $4.2 trillion,