Trump Administration to Propose Rescissions Package

President Trump is looking to cut $15.4 billion out of the $1.3 trillion federal spending bill approved in March, using a process called rescission. This rescission request is expected to include funding from old accounts that was approved but hasn’t been obligated or spent, including HUD funding. This package is likely to be the first round of rescissions, with more to come later this year.

Nearly half of the cuts would come from the Children’s Health Insurance Program, or CHIP, used by low-income families. For many federal programs, including HUD’s, Congress gives the agency multiple years to spend its funds since some projects and activities are long term in nature. Taking away money from prior-year funding would force agencies to cut back on previously planned activities just as much as taking away money from current-year funding.

Once the rescission request has been made, Congress will have 45 days to address the proposed cuts. It’s first addressed by the House and Senate appropriations committees and then brought up for a vote. It requires only a simple majority to pass. If Congress fails to act on the request within the 45 days, or votes down the proposal, then the executive branch is required to spend the funds as allocated—and the president isn’t allowed to propose the rescission again.