REPAYMENT OF UNOBLIGATED ARRA FUNDS.

SEC. 1306. REPAYMENT OF UNOBLIGATED ARRA FUNDS.(a) Rejection of ARRA Funds by State.—Section 1607 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 305) is amended by adding at the end the following:“(d) Statewide Rejection of Funds.—If funds provided to any State in any division of this Act are not accepted for use by the Governor of the State pursuant to subsection (a) or by the State legislature pursuant to subsection (b), then all such funds shall be—“(1) rescinded; and“(2) deposited in the General Fund of the Treasury where such amounts shall be—“(A) dedicated for the sole purpose of deficit reduction; and“(B) prohibited from use as an offset for other spending increases or revenue reductions.”.(b) Withdrawal or Recapture of Unobligated Funds.—Title XVI of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 302) is amended by adding at the end the following:“SEC. 1613. WITHDRAWAL OR RECAPTURE OF UNOBLIGATED FUNDS. “Notwithstanding any other provision of this Act, if the head of any executive agency withdraws or recaptures for any reason funds appropriated or otherwise made available under this division, and such funds have not been obligated by a State to a local government or for a specific project, such recaptured funds shall be—“(1) rescinded; and“(2) deposited in the General Fund of the Treasury where such amounts shall be—“(A) dedicated for the sole purpose of deficit reduction; and“(B) prohibited from use as an offset for other spending increases or revenue reductions.” .(c) Return of Unobligated Funds by End of 2012.—Section 1603 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 302) is amended by—(1) striking “All funds” and inserting “(a) In General.—All funds”; and(2) adding at the end the following:“(b) Repayment of Unobligated Funds.—Any discretionary appropriations made available in this division that have not been 124 STAT. 2136 obligated as of December 31, 2012, are hereby rescinded, and such amounts shall be deposited in the General Fund of the Treasury where such amounts shall be—“(1) dedicated for the sole purpose of deficit reduction; and“(2) prohibited from use as an offset for other spending increases or revenue reductions.“(c) Presidential Waiver Authority.—“(1) In general.—The President may waive the requirements under subsection (b), if the President determines that it is not in the best interest of the Nation to rescind a specific unobligated amount after December 31, 2012.“(2) Requests.—The head of an executive agency may also apply to the President for a waiver from the requirements under subsection (b).”.