Budget & Appropriations – Rescissions Package Could Advance This Week

Rescissions are a process that the President may use to ask Congress to cut already appropriated spending. When the Administration makes the request Congress has 45 days to act. A simple majority of votes is needed in both the House and Senate to pass a rescissions bill. The House has passed a bill (H.R. 3) and the Senate must act by Friday June 22. H.R. 3 contains $15.3 billion worth of rescissions. The Children’s Health Insurance Program (CHIP) is targeted for nearly half of these rescissions, with nearly $7 billion in reductions. Earlier this year Congress, with strong bipartisan support, had extended the CHIP funding for 10 years. The decision to rescind funding from CHIP could destabilize the program and creates uncertainty if a state must respond to issues such as natural disaster, large layoffs due to plant closures, or an overall economic slowdown.

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