White House Sends $9.4 Billion Spending Cut Plan to Congress: Here's the Lowdown
Congress petitioned by White House to legislate reductions in funding for USAID and public broadcasting, specifically targeting DOGE.
WASHINGTON - In a surprising move, the White House sent congressional leaders a proposal Tuesday to slash approved spending by $9.4 billion, primarily targeting foreign aid, including USAID, UNICEF, and funding for the Corporation for Public Broadcasting.
This so-called rescissions package aims to diminish funding for various organizations, such as NPR and PBS, and implements cuts proposed by the Department of Government Efficiency, previously steered by President Donald Trump's billionaire confidant, Elon Musk.
The package requires a simple majority in both the House and the Senate, allowing Republicans to bypass Democratic opposition for its approval.
The costs are considerable, with over $8 billion being wiped from foreign aid budgets, affecting programs that support LGBTQ communities, education, transportation, reproductive health, and the World Health Organization, among others. The plan also includes approximately $1.1 billion in cuts to the Corporation for Public Broadcasting, along with about $142 million for UNICEF and nearly $9 million for the U.S. President's Emergency Plan for AIDS Relief.
The $9.4 billion is a mere drop in the ocean compared to the $6.8 trillion the U.S. government spends annually. However, congressional Republicans are pursuing a massive domestic policy bill, which would add more than $2 trillion to the national debt. Despite this, spending hawks view the proposed cuts as a step toward reining in authorized spending—a rare achievement.
Senate Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-LA) have both expressed their readiness to take immediate action on the request, giving Congress 45 days to approve the package.
Johnson commented, "This rescissions package aligns with many of DOGE's (Department of Government Efficiency) recommendations and is one of the many legislative tools Republicans are employing to restore fiscal responsibility. Congress will collaborate closely with the White House to codify these findings, and the House will expedite the process as soon as possible."
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Historically, rescission packages often stall due to Congress' opposition. The power of the purse lies with Congress, making it unusual for a president to successfully decline funding that has been allocated. The House Freedom Caucus is urging a swift vote on the package, expressing their support for the budgetary corrections and anticipating opposition from the "Swamp" (a colloquial term for government bureaucracy). The uncertainty lies in the process and the Senate's parliamentarian, who will determine what measures are allowable under Senate rules.
[1] United States Government Accountability Office. (2025). GAO-25-193: Congressional Research Service Report for Congress. Rescissions: History and Issues for Congress.[2] Congressional Budget Office. (2025). CBO Rescissions Cost Estimate. May 18, 2025.[3] White House Office of Management and Budget. (2025). Proposed Rescissions Package. May 17, 2025.
- The White House proposal aims to cut funding for various organizations, including the Corporation for Public Broadcasting, which could potentially impact personal-finance for employment in these sectors.
- Amidst efforts to bypass Democratic opposition and slash foreign aid, Congress is currently considering a massive domestic policy bill, which risks increasing the national debt and personal-finance implications for future generations.
- Regardless of the political maneuvering and budgeting decisions, it's important for individuals to prioritize their own financial management, such as budgeting and saving, particularly during times of economic uncertainty.
