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Wednesday, April 4, 2018

Washington Insider: White House Considering Obscure Approach to Spending Cuts


The Washington Post is reporting this week that the White House is eyeing what it calls a “long-shot plan” to slash spending from the $1.3 trillion budget bill signed by President Trump late last month.
The Post said that the office of House Majority Leader Kevin McCarthy R, Calif., confirmed Monday that it is working with the administration on the approach, which would evidently rely on an obscure 1974 law that allows presidents to try to cancel spending authority already approved by Congress.
The spokesman, Matt Sparks, said planning was in the early stages and there were no details.
White House legislative director Marc Short said Monday, “The administration is certainly looking at a rescission package, and the president takes seriously his promise to be fiscally responsible.”
The Post said that it expected that any such process would involve a White House request for the “rescission” to Capitol Hill after Congress returns from its spring recess next week. However, Congress would need to approve the request, making it a long shot given all-but-certain Democratic opposition.
The White House plan would follow widespread conservative criticism of the omnibus budget bill, which increased spending by tens of billions of dollars for the military and domestic agencies while not including much money for Trump’s border wall, the Post said.
House Freedom Caucus Chairman Mark Meadows (R-N.C.), an outspoken critic of the ballooning domestic spending in the omnibus, praised McCarthy for his cooperation with the White House on efforts to pare spending. Meadows said he was “very supportive and extremely pleased with the leadership’s willingness to engage on the issue. Leader McCarthy heard from constituents and worked quickly to address the issue in a meaningful way.”
Trump threatened earlier to veto the $1.3 trillion spending bill before he signed it. He eventually signed the bill, apparently over concerns about shutting down the government. He also demanded a line-item veto, which, critics were eager to remind him, has been ruled unconstitutional by the Supreme Court.
“Rescission authority” is a related mechanism to the “line item veto.” It allows presidents to submit to Congress requests to cancel spending already approved. Under the Impoundment Control Act of 1974, Congress has 45 workdays to approve the rescission request, according to the Congressional Research Service. If Congress does not act, the money is made available.
Despite support from conservatives for a White House attempt to reduce domestic spending it deems unnecessary, the Post thinks any such plan would have great difficulty getting through the Senate, where the GOP holds a slim 51-to-49 majority--and even some Republicans might be reluctant to go along.
In fact, many observers heaved a big sigh of relief earlier when the President decided to sign the spending bill. They believed he had avoided another bitter, and potentially long, fight over how to keep the government open and which budget priorities were most important.
To pick up that fight once again the administration would renew budget hostilities at a time when it faces growing trade and economic uncertainties. It is, as the Post says, a “long shot” prospect now—but one producers should watch closely as the debate continues, Washington Insider believes.