Trump Administration Uses Pocket Rescissions to Cut Spending

The Trump administration is employing a legally disputed budget tactic known as pocket rescissions to curtail government spending before the fiscal year ends on September 30. This strategy involves proposing spending cancellations late in the year; if Congress does not act before the funds expire, the executive branch allows the money to lapse without explicit congressional approval.

This approach mimics a pocket veto and potentially prevents billions of dollars in legally mandated policy priorities from being funded. The United States Office of Management and Budget has resisted findings from the United States Government Accountability Office, which is currently investigating instances of unallocated appropriated funds.

Russell T Vought, Director of the Office of Management and Budget, argues that the Impoundment Control Act implicitly allows for this practice. However, the Government Accountability Office has ruled that failing to release funds for prudent obligation before expiration constitutes a violation of the law. Gene Dodaro, the Comptroller General and head of the oversight agency, will see his term conclude later this year.