This Act may be cited as the Pay Down the Debt Act.

(a) In general If a State or local government does not accept amounts that are to be awarded to the State or local government under a grant from the Federal Government, an amount equal to the amount to be awarded to the State or local government shall be rescinded from the applicable appropriation account. (b) Use for deficit reduction Amounts rescinded under subsection (a) shall be deposited in the general fund of the Treasury for the sole purpose of deficit reduction.