Upholding the Power of the Purse Act

HR 5544, the "Upholding the Power of the Purse Act," modifies federal spending rules to clarify that certain funds held or distributed by the government for state and local governments are not subject to standard deposit requirements. Specifically, it amends Section 3302 of Title 31, U.S. Code, to exempt federal programs where the government acts as a custodian for state/local funds or disperses money to them from the "Miscellaneous Receipts Act" rules. This change directly affects federal grant programs and assistance initiatives that manage funds on behalf of states or local communities. The key provision creates a clear exemption, ensuring these funds are not treated as general government receipts requiring deposit into the U.S. Treasury. The amendment takes effect for fiscal year 2024.