The ability of the Obama administration to provide unlimited funds to states to establish health exchanges would end under legislation reported out by a House committee late Tuesday.
The House Energy & Commerce Committee legislation, H.R. 1213, would strike the unlimited direct appropriation of funds provided under the healthcare reform law for creation of state-based exchanges.
The bill would also order that unspent money in the hands of the Department of Health and Human Services to provide funds to the states be returned to the Treasury.
The bill is among five bills that would rescind authority to fund the law, the Patient Protection and Affordable Care Act.
Rep. Fred Upton, R-Mich., chairman of the panel, says the committee passed the bills to "limit the Department of Health and Human Services' unprecedented power, and restore Congress' fiduciary duty as representatives of the people."
Other bills passed by the E&C panel dealing with healthcare reform appropriations would rescind a provision of the law that gives HHS $17.5 billion over 10 years to prevention and public health programs beyond existing programs already funded by Congress.
Another would rescind a similar program that authorizes HHS to award grants to support the construction of school-based health centers.