How raising the nation’s debt limit could reduce spending of some coronavirus relief funds

Proposals to raise the nation’s debt limit include spending cuts to coronavirus relief funds that haven’t been used. The Congressional Budget Office estimates that $30 billion of “unobligated” pandemic funds could be canceled as part of a debt-limit deal. That could include leftover funds for vaccines, public health initiatives and a program that provides wireless internet access for students. But the Treasury Department says the cuts would have little effect on $350 billion of aid for state and local governments. That’s because the money already has been distributed, even though local officials are still deciding how to spend it.