Sponsors
The bill achieves near-term federal spending reductions and greater transparency via automatic, percentage-based rescissions and reporting, at the cost of broad, non-targeted cuts that can disrupt state/local services, education, research, public health, and federal workforce operations while limiting Congress's ability to set priorities.
All taxpayers and the federal budget: automatic, across-the-board rescissions reduce nonsecurity discretionary spending (1% FY2026, 2% FY2027, 5% FY2028+), lowering near-term federal outlays.
Congress, committees, and the public: OMB must report within 30 days listing each affected account and rescission amount, improving transparency about where cuts fall.
State and local governments, nonprofits, and program beneficiaries (e.g., communities receiving federal grants): Pro rata cuts to nonsecurity discretionary accounts will reduce grants, services, and operations across many agencies, potentially disrupting service delivery.
Schools, universities, researchers, and patients: Smaller discretionary appropriations will likely reduce education and research funding and public health programs, slowing rollouts and limiting support for vulnerable populations.
Federal employees and government contractors: Agency budget shortfalls could produce hiring freezes, reduced workforce capacity, delayed projects, or curtailed contractor work.
Based on analysis of 2 sections of legislative text.
Automatically rescinds a pro rata percentage of nonsecurity discretionary appropriations after full-year appropriations: 1% (FY2026), 2% (FY2027), 5% (FY2028+).
Introduced February 3, 2025 by Marsha Blackburn · Last progress February 3, 2025
Automatically reduces (rescinds) a share of nonsecurity discretionary funding in regular appropriations after full-year appropriations are made available: 1% for FY2026, 2% for FY2027, and 5% for FY2028 and later years. The cuts are applied pro rata across affected accounts and OMB must report to the House and Senate Appropriations Committees within 30 days listing each affected account and the rescission amount. The measure defines which funds are covered by referencing existing budget law categories (budget authority and discretionary/security classifications). Each annual rescission takes effect the day after full-year appropriations are made available for the entire federal government, and the percentages are fixed unless later changed by law.