What This Bill Does
This bill cuts 5 percent of federal government spending in certain areas for two years. The cuts apply to non-defense (not military), non-homeland security and non-veterans affairs discretionary spending (money Congress can choose how to spend each year) for fiscal years 2024 and 2025. The bill protects military, homeland security and veterans affairs spending from these cuts.
Who It Affects
Federal agencies and departments that receive discretionary funding, except those in the Department of Defense, Department of Homeland Security, Department of Veterans Affairs and Department of Energy defense activities. Congress members who oversee appropriations (spending decisions) committees.
Key Provisions
- A 5 percent rescission (cancellation of previously approved spending) applies to budget authority provided in fiscal years 2024 and 2025 for non-defense, non-homeland security and non-veterans affairs discretionary accounts (Sec. 1(a)(1))
- A 5 percent rescission applies to advance appropriations made in prior fiscal years that are meant for spending in fiscal years 2024 and 2025 for the same eligible accounts (Sec. 1(a)(2))
- A 5 percent rescission applies to contract authority (permission to enter into contracts) for fiscal years 2024 and 2025 for eligible discretionary programs (Sec. 1(a)(3))
- The rescissions must be applied proportionately to each discretionary account and each program, project and activity within those accounts (Sec. 1(c))
- The Director of the Office of Management and Budget must submit a report within 30 days after enactment specifying which accounts and amounts are being rescinded (Sec. 1(e))
What Changes
Federal agencies will lose 5 percent of their spending authority for fiscal years 2024 and 2025, except for defense, homeland security and veterans affairs programs. Any new appropriations laws passed after this bill becomes law will have the same 5 percent cuts applied immediately upon enactment.
Important Definitions
- Rescission: A cancellation of previously authorized spending authority
- Discretionary spending: Money Congress chooses to allocate each year, as opposed to mandatory spending (like Social Security)
- Budget authority: The power to obligate the government to spend money
- Obligation limitation: A cap on how much money can be committed to spend
- Advance appropriation: Money approved in advance for use in future fiscal years
- Contract authority: Permission to enter into binding contracts that create spending obligations
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 327
To make 5 percent across-the-board rescissions in non-defense, non-homeland-
security, and non-veterans-affairs discretionary spending for each of fiscal
years 2024 and 2025.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 9, 2023
Mrs. BLACKBURN introduced the following bill; which was read twice and
referred to the Committee on Appropriations
A BILL
To make 5 percent across-the-board rescissions in non-de-
fense, non-homeland-security, and non-veterans-affairs
discretionary spending for each of fiscal years 2024 and
2025.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
VerDate Sep 11 2014
00:07 Feb 22, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S327.IS
S327
pbinns on DSKJLVW7X2PROD with $$_JOB
2
•S 327 IS
SECTION 1. ACROSS-THE-BOARD RESCISSIONS IN NON-DE-
1
FENSE,
NON-HOMELAND-SECURITY,
AND
2
NON-VETERANS-AFFAIRS
DISCRETIONARY
3
SPENDING FOR EACH OF FISCAL YEARS 2024
4
AND 2025.
5
(a) ACROSS-THE-BOARD
RESCISSIONS.—There is
6
hereby rescinded an amount equal to 5 percent of—
7
(1) the budget authority provided (or obligation
8
limitation imposed) in each of fiscal years 2024 and
9
2025 for any non-defense, non-homeland-security,
10
and non-veterans-affairs discretionary account in
11
any fiscal year 2024 or 2025 appropriation Act;
12
(2) the budget authority provided in any ad-
13
vance appropriation for each of fiscal years 2024
14
and 2025 for any non-defense, non-homeland-secu-
15
rity, and non-veterans-affairs discretionary account
16
in any prior fiscal year appropriation Act; and
17
(3) the contract authority provided in each of
18
fiscal years 2024 and 2025 for any program that is
19
subject to a limitation contained in any fiscal year
20
2024 or 2025 appropriation Act for any non-de-
21
fense, non-homeland-security, and non-veterans-af-
22
fairs discretionary account.
23
(b)
NON-DEFENSE,
NON-HOMELAND-SECURITY,
24
AND
NON-VETERANS-AFFAIRS
DISCRETIONARY
AC-
25
COUNT.—For purposes of subsection (a), the term ‘‘non-
26
VerDate Sep 11 2014
00:07 Feb 22, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S327.IS
S327
pbinns on DSKJLVW7X2PROD with $$_JOB
3
•S 327 IS
defense, non-homeland-security, and non-veterans-affairs
1
discretionary account’’ means any discretionary account,
2
other than—
3
(1) any account included in a Department of
4
Defense Appropriations Act;
5
(2) any account included in a Department of
6
Homeland Security Appropriations Act;
7
(3) any account of the Department of Defense
8
or the Department of Veterans Affairs included in a
9
Military Construction and Veterans Affairs and Re-
10
lated Agencies Appropriations Act; or
11
(4) any account for Department of Energy de-
12
fense activities included in an Energy and Water
13
Development and Related Agencies Appropriations
14
Act.
15
(c) PROPORTIONATE APPLICATION.—Any rescission
16
made by subsection (a) shall be applied proportionately—
17
(1) to each discretionary account and each item
18
of budget authority described in such subsection;
19
and
20
(2) within each such account and item, to each
21
program, project, and activity (with programs,
22
projects, and activities as delineated in the appro-
23
priation Act or accompanying reports for the rel-
24
evant fiscal year covering such account or item, or
25
VerDate Sep 11 2014
00:07 Feb 22, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S327.IS
S327
pbinns on DSKJLVW7X2PROD with $$_JOB
4
•S 327 IS
for accounts and items not included in appropriation
1
Acts, as delineated in the most recently submitted
2
President’s budget).
3
(d) SUBSEQUENT APPROPRIATION LAWS.—In the
4
case of any fiscal year 2024 or 2025 appropriation Act
5
enacted after the date of enactment of this Act, any rescis-
6
sion required by subsection (a) shall take effect imme-
7
diately after the enactment of such appropriation Act.
8
(e) OMB REPORT.—Within 30 days after the date
9
of enactment of this Act (or, in the case of any fiscal year
10
2024 or 2025 appropriation Act enacted after the date
11
of enactment of this Act, 30 days after the date of enact-
12
ment of such appropriation Act), the Director of the Office
13
of Management and Budget shall submit to the Committee
14
on Appropriations of the Senate and the Committee on
15
Appropriations of the House of Representatives a report
16
specifying the account and amount of each rescission made
17
pursuant to subsection (a).
18
Æ
VerDate Sep 11 2014
00:07 Feb 22, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\S327.IS
S327
pbinns on DSKJLVW7X2PROD with $$_JOB