New Bill Proposed to Refund Unused COVID-19 Funds

Senator Joni Ernst from Iowa recently introduced a bill that promises to reclaim unused COVID-19 stimulus funds—an estimated $65 billion. This initiative, dubbed the Unspent COVID-19 Funds Refund Act, could save taxpayers significantly more than previous efforts to repeal similar funding under the Trump administration.

On Thursday, Ernst emphasized the financial strain on taxpayers, noting that the current situation is costing them about $4 billion without any visible benefits. She pointed out the burden placed on non-essential federal employees due to the ongoing government shutdown.

A report from the Government Accountability Office revealed that as of March 31, $65.5 billion in pandemic relief funds were still unallocated, comprising $23.6 billion in expired funds and $41.9 billion in those yet to expire. For context, the first package from 2025 aimed to cancel around $9 billion in previously approved federal funds.

Ernst’s proposed legislation seeks to address what she calls reckless spending, targeting what she terms “slush funds” that have persisted since the pandemic’s onset. She criticized the use of taxpayer money on non-essential items, asserting, “With $38 trillion in debt, we should not be wasting funds on trivial pursuits like golf carts or extravagant parties when there’s an opportunity to return $65 billion back to the American people.”

The bill aims to identify outdated accounts and redirect funds to taxpayers instead of funding questionable projects, like a drag show for high school students in New Hampshire. Reports also indicated that some California school districts have used federal funds to buy ice cream trucks as part of a much larger allocation meant for pandemic relief.

Total COVID-19 relief disbursements have exceeded $4.5 trillion across 47 federal agencies as of August 2025. Ernst argues there is an urgent need to curb unnecessary spending and allocate funds more responsibly.