Trump rescissions package awaits action in the Senate

1. What is rescission?

The rescission process is a way for Congress to cancel funds previously appropriated but the federal government has not yet spent. Those funds can then be redirected elsewhere or sent to the Treasury general fund. Congress has the power of the purse under the U.S. Constitution. The president can temporarily defer funds, or withhold them altogether — but only with Congress's approval. The Congressional Budget and Impoundment Control Act of 1974 established this mechanism for clawing back funding and was intended to stop presidents from unilaterally freezing previously appropriated funds. The law requires the president to ask Congress to rescind spending legislation in most cases. Only discretionary funds can be rescinded. Mandatory spending, like Social Security and Medicare, cannot be.

2. How does the process work?

To kickstart the rescission process, the White House's Office of Management and Budget submits a formal rescission request to relevant committees in Congress and the panels have 25 days to act on the package. It would then go to the House and Senate floors for expedited votes. Overall, Congress has 45 days to act on the rescission request, or else the obligated funding in question must be spent as originally directed. And rescission bills are not subject to the 60-vote threshold needed to advance most legislation in the Senate. Instead, they only require a simple majority to pass.

3. Specifics of this rescission bill

The package proposes $9.4 billion in rescissions, primarily targeting foreign aid (through the State Department and USAID) and the Corporation for Public Broadcasting (CPB). The bill would claw back $8.3 billion in foreign aid and $1.1 billion in CPB funding.

4. Justification

The administration characterizes the targeted spending as "wasteful and unnecessary." For example, it aims to eliminate programs deemed "antithetical to American interests," including certain global health initiatives, LGBTQI+ activities, "equity" programs, and those related to "color revolutions in hostile places." It also seeks to end federal funding for CPB, arguing it subsidizes a politically biased public media system.

5. House Approval, Senate Challenge

The House of Representatives passed the rescissions package last week on a 214-212 vote. It looked for a time as if it might not pass, but several Republicans changed their votes from no to yes. The package faces potentially more significant challenges in the Senate, where some Republicans have voiced concerns with cutting funding for PEPFAR (the U.S. President's Emergency Plan for AIDS Relief) and for public broadcasters. An attempt by President Trump during his first term to pass a rescission bill failed in the Senate.

The Senate Parliamentarian has advised that action must be completed by July 18, 2025, or the proposed funds will be required to be obligated.