Rubio's bill would allow states to return unwanted federal money to the federal Treasury to pay down the national debt -- rather than have the money spent elsewhere.
"The REFUND Act ends the 'use-it-or-lose-it' mentality that encourages states to take debt-financed cash from Washington that will be a crushing burden on our children and grandchildren," Rubio said. "Fiscally responsible state officials should be allowed to divert Washington's spending spree towards debt reduction and do their part to end the practice of spending money we don't have."
The bill would allow states to designate federal funds as "unwanted" and would allocate them to debt reduction. An annual report would be submitted to submitted to Congress, detailing each state's contribution.
The Journal says the legislation "would give states greater incentive to return dollars to Washington, assuring state taxpayers that returned funds wouldn't merely be shipped to less frugal states."