May 08, 2018

Recommendations for ‘Rescission’ Budget Savings

Post by Freedom Partners

This morning, the Trump administration announced its proposal for spending cuts through a rescission package which, according to The Wall Street Journal, will include $15 billion with a focus on “money that was authorized by Congress but not spent.” The announcement follows a $1.3 trillion omnibus spending bill passed by Congress in March.

Prior to the White House announcement, Americans for Prosperity released a set of recommendations for a rescission package, including $45 billion in spending cut proposals. Alison Acosta Winters, senior policy fellow at Americans for Prosperity, said, “This is an encouraging step. Rescissions are an important tool for reining in budget excesses. We are hopeful that the White House and Congress will quickly work together for even broader cuts from the omnibus across the discretionary budget. This would set a good precedent for FY2019 appropriations bills, the next budget deadline.”

Reuters reported:

“…Americans for Prosperity…floated spending cut proposals on Monday totaling about $45 billion…including nearly $1.5 billion in child nutrition programs, $700 million in student grants and $2.2 billion in international disaster aid.”

Rescission bills aren’t new. In fact, presidents have proposed 1,178 rescissions since 1974, according to American Action Forum, and Congress has approved 461 of these proposals, saving $25 billion. In 1981, 101 rescissions were agreed to under President Ronald Reagan, and also in 2000, President Bill Clinton proposed a rescissions package.

Congress should consider these recommendations from the White House to reduce runaway spending and then build on them with broader cuts across the budget. Doing so would be an important step towards putting the country on a fiscally sustainable path and help to ensure that taxpayers will not be further burdened by exorbitant Washington spending.

Freedom Partners has outlined other proposals to cut wasteful government spending, including opposition to the $1.3 trillion omnibus bill, and has reminded lawmakers how reckless government spending has led to a dangerously increasing federal budget deficit.