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  • What is a rescission?

    July 14, 2025

    We’ve officially entered rescissions week in the U.S. Senate.

    But what does that mean for the Senate, the Budget, and the DOGE Cuts?

    What is a rescission?

    A rescission is a way for Congress to cancel previously approved but unspent money. Presidents Reagan and Clinton used them regularly, but we haven’t seen one for a while.

    Imagine that Congress approved $10 million for a State Department program, but they’ve only spent $3 million to date.

    Under the Impoundment Control Act of 1974, the President can request a rescission of the remaining $7 million appropriated for that program. Congress then needs to approve the request within 45 days.

    Why does it matter?

    When President Trump entered office, he undertook one of the biggest government reform efforts in recent memory. The Department of Government Efficiency found billions of dollars of waste in the federal budget.

    You probably remember some of the crazy stories from USAID:

    • $2 million for sex changes and “LGBT activism” in Guatemala
    • $1.5 million to “advance diversity equity and inclusion in Serbia’s workplaces and business communities”
    • Hundreds of millions of dollars to fund “irrigation canals, farming equipment, and even fertilizer used to support the unprecedented poppy cultivation and heroin production in Afghanistan,” benefiting the Taliban

    The money for programs like these was already appropriated by Congress.

    That means if the President wants to get our money back, he has to use the rescissions process.

    Where do we stand?

    The House of Representatives passed the President’s rescissions package a month ago, and the clock is ticking.

    The bill cuts $8.3 billion in wasteful foreign aid through the State Department and USAID and defunds NPR and PBS.

    The clock is ticking, though.

    The US Senate must pass the rescissions by this Friday, July 18th.

    Washington has a spending problem.

    It’s been a long time since they’ve cut spending.

    The US Senate has an opportunity to do just that.

    Tell your US Senator that you support the President’s rescissions package.

    Andy Bakker

    Executive Director
    Liberty Alliance USA

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