Wednesday, March 19, 2025

Rescission

The Department of Government Efficiency (DOGE) has identified outrageous ways the federal government is wasting our tax dollars. Unbelievably Congress just re-authorized spending for these wasteful programs.

If you have been paying attention you just witnessed the Trump administration identify and cancel funding for these wasteful programs on one hand, then the Trump administration lobby Congress to pass a continuing resolution (CR) (spending bill) that funds those wasteful programs again.

 

Representative Thomas Massie and Senator Rand Paul vigorously opposed the CR. They pointed out the absurdity of defunding the wasteful programs under DOGE and then funding the same wasteful programs under the CR.

 

Defunding the wasteful programs can be done by a simple majority in Congress, but the President must initiate this process by submitting a rescission package to Congress. There is only a 45-day window under the Impoundment Control Act for these spending cuts to be made permanent by rescission, so time is of the essence.

 

What exactly is the process for consideration of rescissions?

 

Step 1: The President submits a special message formally asking for a rescission. The special message must specify:

 

  • How much is proposed to be rescinded.
  • The specific accounts where the rescinded budget authority (BA) comes from.
  • Projects and functions affected.
  • Why the BA should be rescinded.
  • The estimated fiscal, economic, and budgetary impacts of a rescission, and the impact on the programs and functions of such a rescission.

The special message starts a 45-day clock. If Congress doesn’t act in 45 days, the President’s proposal expires, and the executive branch must spend the money as prescribed.

 

Step 2: Congress may draft a rescission bill in response to the President's special message, and that bill is referred to the appropriate committee.

 

Step 3: If that committee does not act on the bill after 25 days, a discharge petition for the bill is in order. The motion to discharge is privileged with a limitation on debate and is only subject to a majority vote.

 

Step 4: Once either chamber has a rescission bill (either via the committee process or discharge), they can act on it. In the House of Representatives, debate on the bill is limited to no more than two hours.

 

In the Senate, consideration of the bill is subject to a ten-hour clock for debate, which means it is not subject to the cloture requirement of 60 votes to stop debate (it is not at risk of a Filibuster). Amendments in the Senate must be germane, and no amendment may be debated for longer than two hours.

 

Step 5: If the bill or its conference report passes both chambers, the budget authority is rescinded. If the bill fails, or if the 45-day clock runs out, the President must spend the money and cannot propose its rescission again.