Glossary

Rescission

A proposal, under the Impoundment Control Act, to cancel previously appropriated funds, with a fast-track vote in Congress.

Also called: rescissions package, rescission bill

A rescission is the cancellation of budget authority that Congress previously provided. Under the Impoundment Control Act of 1974, the president can send Congress a special message proposing that certain funds be rescinded; the funds may be withheld for 45 days of continuous session while Congress considers it.

If both chambers pass a rescission bill within that time, the money is canceled. If they do not, the funds must be released. Because the bill gets expedited consideration in the Senate, with limited debate and no filibuster, a simple majority can pass it, though the president's proposal itself has no legal effect until both chambers act. Congress can also rescind funds in regular legislation.

Rescissions were used fairly often in earlier decades. A 2018 package proposed by the Trump administration passed the House but stalled in the Senate. In 2025, Congress passed a rescissions package of foreign aid and public broadcasting funds, the first in years. Fiscal conservatives favor rescissions as a tool to reduce spending and to keep the president's authority within the statute, while opponents argue they let the executive undo bipartisan agreements. A line-item veto is a stronger, but unconstitutional, alternative, and impoundment describes the broader dispute.

Last reviewed November 8, 2026

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Related terms

Impoundment A president's refusal to spend money Congress has appropriated, restricted by the Impoundment Control Act of 1974. Appropriations The laws through which Congress grants federal agencies authority to spend money each year on discretionary programs. Line-item veto A power, held by many governors but not the president, to reject individual items in a spending bill while signing the rest. Budget reconciliation A fast-track budget process that lets the Senate pass certain tax and spending legislation by simple majority, without a filibuster. Filibuster The use of extended debate or the threat of it to delay or block Senate action, effectively requiring 60 votes for most bills.