Early Friday morning, Congress narrowly passed the $9 billion dollar rescissions package with a vote of 216-213 in the House, and 51-48 in the Senate. The package now heads to the President’s desk for signature.
The package rescinds $9 billion in unobligated funds that were provided to the Department of State, the U.S. Agency for International Development (USAID), various independent and related agencies, and the Corporation for Public Broadcasting. In response to GOP pushback, the White House agreed to an amendment removing $400 million in proposed cuts to the President’s Emergency Plan for AIDS Relief (PEPFAR), the global anti-AIDS initiative.
The Administration has indicated that this is the first in a series of planned cuts. White House Budget Director Russell Vought has announced plans to send additional fast-track proposals to Congress using the rescissions process, which requires only 50 votes to pass the Senate—bypassing the 60-vote threshold typically needed for annual appropriations bills. He did not specify where the cutbacks would fall; however, the Administration has conducted significant layoffs in numerous departments including Housing and Urban Development, Health and Human Services and Education, resulting in unspent funds that Congress could formally claw back.
Additional questions remain about how this rescissions package (and any subsequent packages) might affect the Fiscal Year 2026 appropriations process. Some members of Congress have indicated a concern that the package could threaten the annual bipartisan appropriations process and could increase the likelihood of an October 1st government shutdown.
For more information, contact RCRC Senior Vice President of Government Affairs, Mary-Ann Warmerdam.