Trump Administration Proposes $15B Rescission Package that Cuts Essential Funding

Almost Half of the Rescission Would be from the Children’s Health Insurance Program

On May 8th, the Trump administration proposed a rescission package of $15.4 billion from 10 federal departments, ranging from children’s health insurance to public housing programs.

According to Politico “Most of the White House requests affect money that’s been authorized to be spent but hasn’t been paid out. The Office of Management and Budget released a “special message” that targets $15.4 billion in budget authority, which is what the government is authorized to spend.

But the cuts would actually decrease federal spending by just $3 billion in outlays, the OMB said.”

Market Watch reported that “Nearly half of the cuts — $7 billion — would come from the Children’s Health Insurance Program, or CHIP, used by low-income families. White House officials said Monday the reductions would not have an impact on the program, which has an enrollment of roughly 9 million.”

While such a package may pass the House, it is less likely to pass in the Senate, where members of both parties have expressed opposition to rescinding funding that policymakers have previously enacted.

However, The Hill quoted Senate Majority Leader Mitch McConnell (R-Ky) “My understanding of the rescission package is that it does not breach the bipartisan agreement we reached in the caps deal. If the House is able to pass the rescissions package, we’ll take a look at it.”

The Hill also reported that a rescission could imperil future spending deals.

Traditionally, lawmakers have turned to the unobligated funds when they need extra cash for legislation, either because they have already hit the maximum amount allowed by budget caps or because they don’t want to add to the deficit.

If Congress passes the rescissions package, which is far from certain, it could make it more difficult to pass other kinds of spending legislation throughout the year.

Included in the White House’s proposed reductions:

AGENCIES

  • $10 million from the Environmental Protection Agency
  • $150 million from the Corporation for National and Community Service
  • $52 million from the Millennium Challenge Corporation

AGRICULTURE

  • $148 million from the Animal and Plant Health Inspection Service
  • $656 million from the Natural Resources Conservation Service
  • $42 million from the Rural Housing Service
  • $50 million from the Rural Business-Cooperative Service
  • $50.2 million from the Rural Utilities Service
  • $16 million from the Forest Service

COMMERCE

  • $30 million from the Economic Development Administration

ENERGY

  • $4.3 billion from the Advanced Technology Vehicles Manufacturing Loan Program
  • $683 million from the Innovative Technology Loan Guarantee Program

HEALTH

  • $6.96 billion from the Children’s Health Insurance Program
  • $800 million from the Center for Medicare and Medicaid Innovation
  • $220 million from “Departmental Management” expense fund

HOUSING

  • $40.8 million from Public and Indian Housing Programs

JUSTICE

  • $106 million from Legal Activities and U.S. Marshals

LABOR

  • $22.9 million from the Employment and Training Administration

STATE

  • $30 million from the Complex Crises Fund
  • $252 million from U.S. AID, for the Ebola outbreak response

TRANSPORTATION

  • $179.1 million from the Federal Highway Administration
    — $53.4 million from the Federal Railroad Administration
    — $46.5 million from the Federal Transit Administration

TREASURY

  • $53 million from the Treasury Forfeiture Fund
  • $22.7 million from the Community Development Financial Institution Fund
  • $151 million from Capital Magnet Fund, Community Development Financial Institutions

OTHER

  • $133 million from the Railroad Unemployment Insurance Extended Benefits program

The Hill On Senate Support

The Hill On Complications on Rescission

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