Earlier this month, President Trump signed a rescissions package into law, which cuts federal funding to programs that were previously approved by Congress. With federal spending cuts being a priority of the White House, it is widely believed that additional cuts are due this year.
Congress Passes Rescissions Package and Readies for a Second: On July 24, President Trump signed the Rescissions Act of 2025 (H.R. 4) into law, rescinding $9.4 billion in unobligated funds that were provided to the United States Department of State, the U.S. Agency for International Development (USAID) and the Corporation for Public Broadcasting, which funds National Public Radio, the Public Broadcasting Service, and their member stations. Following the passage of the rescissions bill, both the White House and Congress have indicated that the White House is planning to send a second rescissions request to Congress to try and cut additional federal funding. While the exact targets of the rescission package are not fully known yet, it is expected that most of the additional cuts will be related to spending within the Department of Education.
White House Considering Pocket Recissions: In addition to a new legislative recissions package, White House Office of Management and Budget (OMB) Director Russell Vought suggested that the administration is eyeing additional methods to cut federal funding, including through a process known as “pocket recissions.” Under the Impoundment Control Act, a presidential administration can withhold funding for 45 days while Congress considers whether they will cut the funds. Through the suggested pocket recissions, the White House would send the requests within 45 days of the conclusion of the fiscal year on September 30, holding up the funds until they expire at the end of the fiscal year. This means that Congress would not be able to vote on the recissions, leading to automatic funding cuts on September 30.
Congress Reacts: Republican reactions to the pocket rescissions proposal have included praise for the administration’s decisive action without congressional approval, along with concerns about the legality of the effort, noting that it weakens Congress’ spending powers. Democrats uniformly opposed the previous recissions package and continue to do so.
AGC will keep you updated on any changes to federal funding levels.
For more information, please contact John Chambers or Deniz Mustafa.