Sponsors
This bill reduces nonsecurity discretionary spending and increases reporting transparency to lower deficits, but does so via automatic across-the-board rescissions that force broad funding cuts, disrupt planning, and risk disproportionate harm to schools, hospitals, nonprofits, and smaller programs.
Federal taxpayers will see lower nonsecurity discretionary spending (1% FY2026, 2% FY2027, 5% FY2028+) which may reduce federal deficits or borrowing needs.
Congress, taxpayers, and state/local governments will get faster transparency because OMB must report the specific accounts and amounts rescinded within 30 days.
State and local governments, schools, hospitals, and nonprofits will face immediate across-the-board cuts to nonsecurity discretionary grants/contracts (1% in FY2026, 2% in FY2027, 5% thereafter), reducing available funding for public services.
Schools, hospitals, and nonprofit service providers are likely to reduce staff or cut services because of lower federal funding, harming service delivery and access for communities.
State/local governments and program recipients will lose program-level congressional discretion because automatic rescissions apply across the board, making planning harder and risking disruptive mid-year or near-availability-time cuts.
Based on analysis of 2 sections of legislative text.
Automatically rescinds a pro rata share of nonsecurity discretionary funding in regular appropriations: 1% for fiscal year 2026, 2% for FY2027, and 5% for FY2028 and each fiscal year thereafter. The cuts take effect the day after appropriations are made available and apply across the entire Federal Government to nonsecurity discretionary accounts. The Director of OMB must report to the House and Senate Appropriations Committees within 30 days after funds are made available for each fiscal year, listing each account and the amount rescinded. The measure defines key terms and treats continuing resolutions and titles/divisions that would otherwise be separate acts as regular appropriation Acts for purposes of these rescissions.
Introduced February 3, 2025 by Marsha Blackburn · Last progress February 3, 2025