Osama bin Laden famously had a $25m bounty for action or information leading to his killing or capture. Was this ever paid out following his killing in May 2011? If not, how was the money budgeted for the bounty used?
"No one will receive the $25 million reward for the capture of Osama bin Laden, say U.S. officials, because the raid that killed the al Qaeda leader in Pakistan on May 2 was the result of electronic intelligence, not human informants."
I suppose the US considers it's electronic surveillance and an operational mistake by Al-Qaeda to be key. Apparently no human intelligence was enough like "there he is, where's my money" (there may be a technical term for that) to warrant payment.
As to what they will use it for. Either it's more money for the State Department, or (and I think this is more likely) less federal spending.