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The Federal Budget: Spending, Taxes, and Debt

EPIC EXPLAINER: What is the Rescissions Process?

Enabling Congress to Eliminate Waste, Fraud, and Abuse

The Federal Budget: Spending, Taxes, and Debt EPIC Explainers Publication ResourceJuly 9, 2025 By Matthew Dickerson

Expedited Rescissions Process Allows Congress to Eliminate Waste

One important opportunity to reduce wasteful government spending is through the rescissions process. Budget authority that has not yet been obligated by an agency can be canceled via new laws passed by Congress to prevent the funds from being obligated and spent. This cancelation of budget authority is called a rescission. The Impoundment Control Act created an expedited rescission process that allows Congress to cut wasteful spending on a fast-track process that bypasses the Senate filibuster. Presidents have historically proposed and submitted unneeded funds to be rescinded. Congress can and should use the expedited rescissions process to pass rescissions bills eliminating waste, fraud, and abuse.

The Expedited Rescissions Process

1. The President proposes rescissions in a special message to Congress. 2. Any member may introduce legislation to implement proposed rescissions. 3. If a rescission bill has not been reported by committee within 25 days of continuous session, any member may move to discharge to the floor. 4. The rescission bill is privileged in the House and Senate. 5. Senate debate is limited to 10 hours. 6. Passage is by a simple majority and cannot be filibustered. 7. The expedited process is available for 45 days of continuous Congressional session after Congress receives the special message.

Rescissions are Powerful Tool to Secure Savings

The President has the authority to identify unspent funds, which Congress can then rescind in legislation. The President can direct the Office of Management and Budget and federal agencies to conduct a review of all unobligated budget authority. Any funds that are determined to be wasteful, harmful, or not needed can and should be officially proposed for rescission. Once Congress receives the special message proposing rescissions, the House and Senate can introduce and approve the rescission legislation. Because rescission bills considered under this expedited process cannot be filibustered and can be passed by a simple majority in the House and Senate, Congress can secure savings for the American people.

Author

Matthew D. Dickerson

Matthew D. Dickerson

Director of Budget Policy

Matthew D. Dickerson is Director of Budget Policy at the Economic Policy Innovation Center (EPIC). Dickerson is recognized as an expert on fiscal policy issues, including the budget, appropriations, and entitlement reform. His articles have been featured in the Wall Street Journal , the Miami Herald , National Review , the Sacramento Bee , the Washington Times , the Baltimore Sun , The Hill , the Washington Examiner , and other outlets. Prior to joining EPIC, Dickerson served as Senior Policy Advisor on the staff of the House Budget Committee, where he helped lead development of the fiscal year 2024 budget resolution. He has a dozen years of experience on Capitol Hill, including as a senior staffer with the Republican Study Committee (RSC), the caucus of conservatives in the House of Representatives. Under four different RSC chairmen, Dickerson held senior level roles including Policy Director and Senior Policy Staff. Additionally, he served as Legislative Director and other policy positions for the late Congressman C.W. Bill Young (R-FL), a former Chairman of the powerful House Appropriations Committee. During his tenure at The Heritage Foundation, Dickerson was Director of the Grover M. Hermann Center for the Federal Budget. In this capacity, he oversaw a team of budget analysts and economists researching diverse subjects including spending, entitlements, budget process, tax, labor, pensions, and infrastructure issues. He has also been a Policy Manager at Americans for Prosperity, where he supervised a team of fellows and analysts covering a variety of federal and state policy issues. Dickerson is a graduate of the College of William and Mary in Virginia and holds a Bachelor of Arts in Government and History.

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