Sponsors
The bill enforces modest, automatic cuts to nonsecurity discretionary spending to reduce near-term outlays and increase budget predictability, but does so via uniform rescissions that will shrink services and grants, limit congressional targeting, and create extra administrative work.
All taxpayers: Federal discretionary outlays will be modestly reduced beginning in FY2026, lowering near-term federal spending.
Federal budget managers and agencies: The bill creates predictable, automatic spending reductions which simplify planning and provide a mechanical tool for deficit control.
Recipients of nonsecurity discretionary funds (state governments, grant programs, agencies, service providers): Will face across-the-board rescissions—up to about 5% from FY2028 onward—reducing program capacity, services, and grant funding.
Students, researchers, and institutions dependent on federal education and research funding: May see reduced capacity, delayed projects, or smaller grants due to uniform cuts to nonsecurity discretionary programs.
Congress and voters: Lawmakers lose flexibility to target spending reductions, because the bill forces uniform, across-the-board rescissions rather than program-specific choices.
Based on analysis of 2 sections of legislative text.
Imposes automatic pro rata rescissions of nonsecurity discretionary appropriations: 1% in FY2026, 2% in FY2027, and 5% in FY2028 and each year after.
Introduced February 3, 2025 by Marsha Blackburn · Last progress February 3, 2025
Imposes automatic, across-the-board cuts to nonsecurity discretionary spending beginning in FY2026: 1% in FY2026, 2% in FY2027, and 5% in FY2028 and every fiscal year after. The cuts take effect the day after appropriations are made available and last through the end of that fiscal year for the entire Federal Government. The Director of OMB must report to the House and Senate Appropriations Committees within 30 days after funds are made available, listing each account and the dollar amount rescinded. The measure defines key budget terms and excludes security-category discretionary appropriations from the rescissions.