FR 2021-01328

Overview

Title

Rescission Proposals Pursuant to the Congressional Budget and Impoundment Control Act of 1974

Agencies

ELI5 AI

The President wanted to save some money by stopping or reducing money for certain programs, like helping other countries or arts projects, because he thought they were not really needed or they did the same thing as other programs. Some people were worried about this plan because it didn't say exactly how the saved money would be used instead.

Summary AI

In January 2021, the President sent a special message to Congress, proposing the rescission of $27.4 billion in budget authority from various federal programs. The message highlights efforts to cut unnecessary or wasteful spending, particularly in areas like foreign aid, energy, and educational exchanges. The proposed cuts would impact numerous departments and agencies, including Agriculture, Energy, and State, as well as international aid programs. If enacted, these rescissions would aim to reduce the federal budget deficit and encourage alternative funding sources for affected programs.

Abstract

Pursuant to section 1014(d) of the Congressional Budget and Impoundment Control Act of 1974, enclosed for publication in the Federal Register is a special message from the President reflecting the proposals for rescission under section 1012 of that Act that were transmitted to the Congress for consideration on January 14, 2021.

Type: Notice
Citation: 86 FR 6673
Document #: 2021-01328
Date:
Volume: 86
Pages: 6673-6682

AnalysisAI

The document titled "Rescission Proposals Pursuant to the Congressional Budget and Impoundment Control Act of 1974" is a notice of proposed rescissions from the Executive Office of the President, specifically the Office of Management and Budget. It details a special message sent by the President to Congress suggesting the cancellation of $27.4 billion in budget authority across various federal programs. This represents the largest rescission package of its kind ever proposed.

Summary of the Document

In January 2021, a special message from the President proposed rescinding funds from a variety of programs managed by numerous federal departments, including Agriculture, Energy, and State, alongside international aid initiatives. The primary aim of these rescissions is to address what the administration considers unnecessary or wasteful spending, redirecting funds away from foreign aid, energy programs, and educational exchanges. The administration believes that enacting these rescissions would not only decrease federal spending by an estimated $24.9 billion but also help reduce the federal budget deficit.

Significant Issues and Concerns

There are several recurring issues and concerns within the document. The scale of the rescissions raises questions about their thoroughness and impact on the federal budget. Many programs slated for rescission are described as "duplicative" or "unnecessary," implying inefficiencies existed in prior budget management. The document does not always provide detailed analyses or data to support these claims, leaving room for skepticism about the adequacy of the justification provided.

Additionally, the rescissions appear to exhibit a notable bias against international and arts funding, as well as cultural programs. The language used in justifications often emphasizes ideological positions rather than presenting a detailed fiscal argument. Some proposals even suggest reallocating funds to domestic priorities without concretely describing the benefits these reallocations would produce.

Public Impact

The general public might encounter impacts from such significant changes in federal spending priorities. Should these proposals be enacted, certain services and programs used by the public might experience funding reductions or complete elimination, which could lead to increased reliance on state or local governments or even private sectors to fill the gaps.

Programs earmarked for international aid and cultural exchanges, which have roots in diplomatic and educational advancement, might see their reach limited, potentially affecting international relations and opportunities for cultural enrichment.

Impact on Specific Stakeholders

For stakeholders directly tied to federal funding, particularly in international aid, arts, and education sectors, the proposed rescissions could have substantial negative impacts. These cuts might compel organizations that depend on federal support to seek alternative funding sources, possibly affecting their ability to continue operations at the current level.

On the other hand, for individuals and groups advocating for a more domestic-focused allocation of federal resources, the proposals could be seen positively. The administration’s stance suggests a prioritization of domestic over international concerns, which may resonate with stakeholders concerned about immediate economic implications and budgetary efficiency.

In conclusion, while the proposed rescissions aim to address perceived wasteful spending and intend to reallocate focus onto more domestic priorities, the lack of detailed planning and transparent data use could lead to skepticism about their overall benefit and feasibility. These proposals will likely continue to be a topic of debate concerning their true impact on both domestic and international levels.

Financial Assessment

The document outlines 73 rescissions of budget authority totaling $27.4 billion, marking it as the largest ICA rescission package ever proposed. A rescission is a proposal to cancel previously allocated funds, usually because those funds are deemed unnecessary or could be better used elsewhere. This significant sum highlights the administration's intent to make substantial cuts to various federal programs, suggesting a reevaluation of budget priorities.

The rescissions affect a wide range of federal departments and programs, with some of the largest proposed cuts targeting international aid and cultural programs. For instance, the document proposes to rescind $5.1 billion from the Department of State's Global Health Programs. This highlights a shift away from international commitments, especially in areas where the U.S. traditionally plays a significant role, like global health initiatives.

A recurring theme is the critique of programs deemed "duplicative" or "unnecessary." For example, one of the proposed rescissions is $230 million from the McGovern-Dole International Food for Education and Child Nutrition Program, justified by its perceived overlap with U.S. Agency for International Development (USAID) activities. This reflects concerns raised about past inefficiencies in budgeting and program management, where different agencies may be funding similar initiatives without coordination, potentially leading to wasted taxpayer dollars.

The document often justifies rescissions by positioning them as an effort to reduce wasteful spending, especially on international affairs and the arts. For example, $430 million is proposed for rescission from the Educational and Cultural Exchange Programs, criticized for including what the administration views as non-essential exchange programs. This financial re-prioritization may resonate with specific political perspectives that view federal funding for international and cultural programs as outside the core responsibilities of the federal government, highlighting an underlying ideological stance.

Despite these arguments, the document offers little detail on how rescinding these funds would directly benefit domestic financial priorities or the U.S. economy. While there is mention of reallocating resources to address domestic issues, the specifics of these reallocations remain vague, raising questions about the tangible benefits the proposed cuts might produce.

Finally, the language used to discuss these rescissions often includes terms like "duplicative," "wasteful," and "unrequested," with limited accompanying data or analysis to substantiate these descriptions. This lack of concrete evidence to support the claims of inefficiency or redundancy in funding further complicates the evaluation of these proposals. In seeking to understand the implications of such significant rescissions, it is crucial to scrutinize how funds are assessed for their effectiveness and alignment with both domestic and international priorities.

Issues

  • • The document proposes rescissions of budget authority amounting to $27.4 billion, which is stated to be the largest ICA rescission package ever proposed. The scale of the proposal raises questions about its overall impact and thoroughness in addressing federal budgetary concerns.

  • • Several rescission proposals mention that the programs in question are 'duplicative' or 'unnecessary,' implying potential past inefficiencies in budgeting or program management.

  • • There is repeated criticism of programs being funded that are considered to be duplicative of those provided by another agency, such as the McGovern-Dole Program duplicating USAID efforts or the African Development Foundation duplicating USAID efforts.

  • • The justification for rescissions often uses similar arguments, indicating potential bias against international and arts funding, especially programs that support non-domestic initiatives.

  • • The justification for rescissions includes statements about reallocating funds to domestic priorities without specifying what tangible benefits those reallocations will produce, lacking concrete alternative allocation plans.

  • • The justification language often implies, but does not clearly describe, how the rescission could directly benefit the U.S. economy or public, putting emphasis instead on the ideological basis against foreign aid, arts, and cultural programs without a detailed fiscal argument.

  • • There is a potential issue with oversight and accountability in the effectiveness of certain programs where justification cites lack of evidence of achieving outcomes, but no details or evidence of such oversight are provided.

  • • Some programs are described as not meeting 'core federal responsibilities,' which could appeal to a specific political viewpoint rather than an objective analysis of federal roles.

  • • Language around the rescissions frequently describes bureaucracy and administrative expenses as wasteful without detailed analysis or comparison on efficiency gains that grants or investments might otherwise produce.

  • • Terms such as 'duplicative,' 'wasteful,' and 'unrequested' appear often without accompanying data or analysis to substantiate these claims.

Statistics

Size

Pages: 10
Words: 13,158
Sentences: 488
Entities: 1,052

Language

Nouns: 4,639
Verbs: 1,046
Adjectives: 682
Adverbs: 148
Numbers: 812

Complexity

Average Token Length:
5.62
Average Sentence Length:
26.96
Token Entropy:
5.85
Readability (ARI):
22.04

Reading Time

about 51 minutes