Under the Impoundment Control Act (ICA) of 1974, the president has the authority to permanently cancel federal funding once it has been enacted by Congress, referred to as a rescission. Under the ICA, the president must transmit a special message to Congress detailing the amounts, reasons for and effect of the proposed rescission.
What Agencies Are Affected?
On Tuesday, June 3, President Trump transmitted a rescissions package to Congress through the Office of Management and Budget totaling $9.4 billion for 22 rescissions of budget authority. The package proposes to rescind funds from the U.S. Agency for International Development under the Department of State, the Corporation for Public Broadcasting, the United States Institute of Peace and other international assistance programs. The discretionary funds for these agencies were provided in the Full-Year 2025 Continuing Resolution.
What Happens Next?
Any member may introduce legislation incorporating the rescissions, which is then referred to the House and Senate Appropriations committees and the Senate Budget Committee. The formal transmission of the rescissions package triggers a 45-day clock, defined as 45 consecutive days of session excluding days Congress adjourns sine die or both chambers are out of session for more than three days to act on the rescissions package. This means legislation must be approved before the August recess. If Congress does not pass legislation within this 45-day period, the funds must be released. The ICA established legislative procedures that the House and Senate can choose to use to facilitate their consideration of legislation to enact rescissions proposed by the president.[1] Congress can bypass almost all the procedural hurdles that increase the time it takes for legislative business to complete. For example, in the Senate a simple majority is required for passage rather than the usual 60 votes required for most bills.
The administration has indicated they may transmit additional rescissions to Congress including through pocket rescissions. Pocket rescissions are submitted less than 45 days before the end of the fiscal year, allowing the funding to lapse without congressional action.
Where Do the Funds Go?
Once the rescissions are enacted, agencies are legally required to execute them in full and the canceled budget authority reverts to the Treasury Department general fund, thus resulting in a savings to the federal government.
Is There Precedent for a Rescissions Package?
In May 2018, President Trump sent Congress a rescissions package of 38 rescissions totaling $15.4 billion. H.R. 3 (S. 2979) was introduced and later passed the House but the measure failed in the Senate. Prior to 2018, the last president to propose a rescissions package was President Clinton in 2000 and Congress declined the request.
Brownstein will continue to monitor the advancement of President Trump’s rescissions package and any future rescissions proposals.
[1]https://www.congress.gov/crs_external_products/R/PDF/R48432/R48432.2.pdf
