Sponsor
Claudia Tenney
Representative · R-NY
Representative · R-NY
The bill trades stronger, automatic restraint on discretionary spending (which can help slow deficit growth) for the risk of sudden, across-the-board rescissions that can disrupt services, constrain agencies, and strip Congress of targeted budgetary control.
Taxpayers and federal agencies: the bill establishes an automatic fiscal backstop that enforces restraint on discretionary spending growth without requiring new annual legislation.
Taxpayers: by slowing discretionary spending growth when appropriations rise faster than 1%, the bill may reduce future deficit growth and ease pressure on federal finances.
State and local governments and nonprofits: federal programs and services could face immediate, across-the-board cuts the day after funds become available, reducing program capacity.
Beneficiaries of discretionary programs (health, education, infrastructure): short-term service disruptions and reduced access if rescissions bite into program funding.
Federal employees: unexpected agency budget cuts could force hiring freezes, furloughs, or reduced operations.
Based on analysis of 2 sections of legislative text.
Imposes an automatic pro rata rescission of nonsecurity discretionary appropriations when annual appropriations growth exceeds 1%, starting in FY2026.
Official title: To provide for across-the-board rescissions of nonsecurity discretionary spending, and for other purposes.
Introduced January 3, 2025 by Claudia Tenney · Last progress January 3, 2025
Requires an automatic, across-the-board cut to nonsecurity discretionary spending starting in fiscal year 2026 whenever total annual appropriations grow by more than 1% versus the prior year. The cut equals the percentage by which appropriations exceed that 1% growth threshold and is applied pro rata to all nonsecurity discretionary amounts in regular appropriations acts, effective the day after funds become available through September 30 of the fiscal year.