Expedited Rescission Bills in the 111th Congress: Comparisons and Issues

Virginia A. McMurtry
Specialist in American National Government

Under the framework established by the Impoundment Control Act (ICA) of 1974 (P.L. 93-344, 88 Stat. 297), the President may propose to rescind funding provided in an appropriations act by transmitting a special message to Congress and obtaining the support of both houses within 45 days of continuous session. If denied congressional approval during this time period, either by Congress ignoring the presidential rescission request or because one or both houses rejected the proposed rescission, the President must make the funding available to executive agencies for obligation and expenditure. 

Instead of allowing Congress to ignore presidential recommendations for rescissions, "expedited rescission" attempts to require congressional consideration of the rescission and a vote by at least one house on the proposals. If either house disapproves the request, the other house need take no action because approval by both houses is necessary to make the rescission permanent. This approach has attracted support over the years, including several bills introduced in the 111th Congress: S. 524/H.R. 1294, S. 640, S. 907/H.R. 4921, S. 3474/H.R. 5454, S. 3423, and H.R. 1390. Omnibus budget reform bills which contain expedited rescission provisions include H.R. 3268, H.R. 3964, S. 1808, and S. 3026. 

The Senate Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security, on December 16, 2009, held a hearing on "Tools to Combat Deficits and Waste: Expedited Rescission Authority," and considered S. 524, S. 640, and S. 907. The Senate Judiciary Subcommittee on the Constitution held a hearing on May 25, 2010, focusing on "The Legality and Efficacy of Line-Item Veto Proposals." 

On May 24, 2010, President Obama sent to Congress the Reduce Unnecessary Spending Act of 2010, a draft bill providing for expedited rescission procedures. On June 17, 2010, the House Budget Committee held a hearing focused explicitly on the "Administration's Expedited Rescission Proposal [H.R. 5454]." The sole witness was the Acting Deputy Director of the Office of Management and Budget (OMB), Dr. Jeffrey Liebman. 

A variety of issues related to expedited rescission measures that may prove of possible interest to Congress are noted in the report. Under the rubric of budgetary savings, some existing data suggest that enactment of expedited rescission authority for the President would have a relatively small impact on federal spending. Supporters acknowledge that expedited rescission would not be a panacea for deficit reduction, but that it would provide another useful tool for promoting fiscal discipline. The potential deterrent effect of the instrument has also been noted. The possible savings to be realized from expedited rescission depends on the breadth of coverage. In a rescission package subject to expedited congressional consideration, would the President be able to include any item of discretionary spending, and what about new items of direct (mandatory) spending? Would limited tax benefits be subject to cancellation under expedited rescission procedures? Other issues come under the subject of prerogatives of the legislative and the executive branches. Would the expedited procedures result in a President's spending priorities getting preference over those enacted by Congress? What about implications for relations between the President and Congress, with particular concern about the power of the purse? 

This report will be updated as events warrant.


Date of Report: August 19, 2010
Number of Pages: 28
Order Number: R41373
Price: $29.95

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