The White House is preparing to send a $9.4 billion federal spending cut proposal, referred to as a ‘rescission package’, to Congress next week. This represents one of the most significant fiscal moves by the administration to reduce wasteful spending in the federal government. The plan, spearheaded by President Donald Trump and Elon Musk’s Department of Government Efficiency (DOGE), aims to block funds already allocated by Congress for annual spending. Lawmakers have 45 days to act on the package before it expires, with the proposal focusing on reducing discretionary funding for NPR, PBS and the U.S. Agency for International Development.
House Republicans have expressed mixed reactions to the plan, with some lawmakers criticizing Elon Musk’s public criticism of the proposal. House Speaker Mike Johnson emphasized the importance of codifying the spending cuts and using the appropriations process to implement Trump’s 2026 budget. However, others, like Rep. Andy Harris, have voiced concerns that the limited spending reductions may negatively impact the federal deficit, citing worries in the debt markets.
As the House moves forward with its FY2026 appropriations process, the timing of the rescission package adds pressure to both chambers to resolve spending disputes. This move marks a key moment in the ongoing efforts to reduce the size and cost of the federal government, with implications for the budgetary priorities of the Trump administration and the Republican Party as a whole.