Donald Trump asks Congress to rescind over USD 15 billion in budget authority

Washington, May 8: US President Donald Trump has requested Congress to rescind more than USD 15 billion in budget authority, the White House said today. Such a request the White House said is in line with his commitment to use every tool at his disposal to rein in out-of-control Federal spending.

According to the White House, Trump’s request is the first of several upcoming rescissions packages aimed at cutting federal spending. As such, the president is also proposing the largest single rescissions request in history pursuant to the Congressional Budget and Impoundment Control Act of 1974 (ICA).

Under the ICA, the president has the authority to request rescissions and his proposals are eligible for expedited consideration by Congress. Democratic and Republican presidents have used the ICA to propose nearly USD 76 billion in spending cuts since the law was enacted, the White House said. Upon the passage of the ICA in 1974, each president from Gerald Ford to Bill Clinton successfully used the ICA to rescind federal funds, it added.

Noting that the president’s rescissions request puts American taxpayers first by addressing irresponsible federal spending, the White House said Trump’s first rescissions package targets spending that is unnecessary, unused, or cannot be used for its original purpose. Some of the funds included in the president’s request were appropriated many years ago, but have never been used.

At Trump’s direction, the Office of Management and Budget (OMB) worked to identify wasteful spending that should be rescinded. Funds in Trump’s first proposed rescissions package include: USD 4.3 billion from the Advanced Technology Vehicles Manufacturing Loan Program, which has not made a loan since 2011, USD 523 million from the Title 17 Innovative Technology Loan Guarantee Program, which had its authority to make new loan guarantees lapse in 2011.

It also includes USD 800 million from the Center for Medicare and Medicaid Innovation, which is in excess of the funds needed in fiscal years 2018 or 2019 and will receive a new appropriation of USD 10 billion in 2020.

PTI