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OGC-86-2 1 (1985-12-16)

handle is hein.gao/gaobabnuz0001 and id is 1 raw text is: 

     isCOMPTROLLER C ENERA -OF THE UNITED STATES       IzC'
                              WASHINGTON O.C. 204


                                             December 16, 1985

B- 216664                                             11111111  1


                                                         128655
To the President of the Senate and the
Speaker of the House of Representatives

     This letter reports the status of budget authority
proposed for rescission under the Impoundment Control Act, for
which the Congress failed to pass a rescission bill before the
45-day statutory withholding period expired on November 10,
1985. Despite the expiration of their fiscal year availa-
bility, the funds at issue, $11.526 million appropriated to
the Office of Refugee Resettlement, Department of Health and
Human Services, have remained available by order of the court
in a lawsuit brought by members of Congress and others to
compel obligation of the funds. As a result of a permanent
injunction in that suit, the funds have been released as of
November 25, and grants are now being made. However, as dis-
cussed below, the suit is still pending over the underlying
issue of availability of these funds.

     Pursuant to section 1015(a) of the Impoundment Control
Act, 2 U.S.C. S 686(a), we reported to the Congress on Septem-
ber 26, 1985, the withholding of $11.526 million that should
have been, but was not, reported to the Congress by the
President. These funds were appropriated to the Office of
Refugee Resettlement for refugee and entrant assistance
activities. Because it appeared that there were no plans to
make the funds available before they were to expire at the end
of fiscal year 1985, we reported the withholding as a rescis-
sion proposal under section 1012 of the Impoundment Control
Act, 2 U.S.C. S 683. Under section 1015(a), our report had
the same legal effect as a rescission proposal transmitted by
the President under section 1012.  (A detailed discussion of
the circumstances surrounding the withholding and an analysis
of the legal issue involved are contained in our September 26
report to the Congress, a copy of which is enclosed.)

     Under section 1012(b) of the Impoundment Control Act,
2 U.S.C. S 683(b), funds proposed for rescission must be made
available for obligation unless the Congress completes action
on a rescission bill before the expiration of the 45-day
period of continuous session of the Congress following the day
such proposal is received by the Congress. For the $11.526
million which was the subject of our September 26 report, this
45-day period expired on November 10, 1985, without the

                                             GAO/OGC-86-2


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