Sponsor
Marsha Blackburn
Senator · R-TN
Senator · R-TN
The bill forces escalating, automatic cuts to nonsecurity discretionary spending that reduce federal outlays and increase transparency but broadly shrink funding for state/local programs, education, and agency operations while limiting Congress's ability to prioritize specific budget choices.
All taxpayers: Federal nonsecurity discretionary spending will be reduced automatically (1% FY2026, 2% FY2027, 5% FY2028+), lowering near-term federal outlays.
State and local governments and the public: OMB must report within 30 days listing each affected account and rescission amount, increasing transparency about the across-the-board cuts.
State and local governments, nonprofits, and program beneficiaries: Nonsecurity discretionary grants and services will be cut pro rata, likely reducing funding for programs and operations as soon as funds are available.
Schools, universities, researchers, and patients relying on public-health programs: Smaller discretionary appropriations may reduce grants, slow program rollouts, and curtail education, research, and health services.
Federal employees and government contractors: Agency budget shortfalls may lead to hiring freezes, reduced services, or delayed projects.
Based on analysis of 2 sections of legislative text.
Imposes automatic pro rata rescissions of nonsecurity discretionary appropriations: 1% (FY2026), 2% (FY2027), and 5% (FY2028+), with OMB reporting to Appropriations Committees.
Official title: Provide for across-the-board rescissions of nonsecurity discretionary spending.
Introduced February 3, 2025 by Marsha Blackburn · Last progress February 3, 2025
Automatically rescinds a fixed percentage of nonsecurity discretionary appropriations each fiscal year: 1% for FY2026, 2% for FY2027, and 5% for FY2028 and thereafter. Rescissions apply pro rata across affected accounts and take effect the day after full-year appropriations for the Federal Government become available, with OMB required to report affected accounts and amounts to the Appropriations Committees within 30 days.