Trump’s ‘Rescission Strategy’ and What the DOGE Cuts Could Mean For You

Elon Musk may be “out” of the White House, but his DOGE cuts are “in” and are on the cusp of being adopted.

The White House is expected to announce a $9.4 billion rescissions package on Tuesday that would roll back money approved by Congress that the Trump Administration no longer wants to spend.

This package goes hand-in-hand with Trump’s “One Big Beautiful Bill,” as Speaker of the House Mike Johnson (R-La.) has said it builds on the success of DOGE in securing $1.6 trillion in savings in mandatory spending like Medicaid. Rescission allows the President to cancel funds previously allocated by Congress but not yet spent.

The proposed cuts target foreign aid ($8.3B), education and transportation programs, reproductive health, funds for the World Health Organization (WHO), about $142 million in cuts for the United Nations Children’s Fund (UNICEF) and nearly $9 million in cuts to the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR). And the package includes $1.1 billion in cuts to funding for the Corporation for Public Broadcasting.

The key is identifying the spending as discretionary versus mandatory, as discretionary funding can be affected by the rescission process.

Once the White House’s Office of Management and Budget formally sends the rescission request to Congress, lawmakers have 45 days to act before it expires. Committees have 25 days to act, followed by expedited votes. A procedural advantage of rescission bills is that they only require a simple majority to pass in the Senate, unlike the typical 60-vote threshold for most legislation.

“These packages will be a key step toward codifying President Trump’s agenda and delivering lasting spending reductions in government,” tweeted Rep. Dan Meuser (R-09) after an appearance on Fox Business News on Tuesday. “With nearly $7 trillion in annual federal spending, we need to prioritize the “must-haves” over the “nice-to-haves,” to address our enormous national debt. President Trump’s plan will reduce spending, grow the economy, and increase revenues—lowering deficits and improving our credit rating. It’s the fiscally responsible path forward – and it will benefit all Americans.”

Last Tuesday, NPR and three Colorado public radio stations filed suit in federal court against Trump and several members of his administration over an executive order to cut federal funding to NPR and PBS.

The lawsuit calls Trump’s early May executive order directing the Corporation for Public Broadcasting to freeze all funding to NPR and PBS “textbook retaliation” and an existential threat to the public radio system “that millions of Americans across the country rely on for vital news and information.”

“It is evident from the president’s executive order, as well as statements released by the White House and prior statements by the president that we are being punished for our editorial choices,” NPR CEO Katherine Maher told All Things Considered host Mary Louise Kelly.

The House Freedom Caucus is calling for an immediate vote on the package, as Rep. Brandon Gill (R-Texas) tweeted “There’s zero excuse for delaying the rescissions package. The second we receive it, it should hit the floor. It’s time to cut the waste and get it done.”

Rep. Scott Perry (R-10) tweeted that “The upcoming recissions package is a litmus test for your elected officials to deliver on all those America First promises they made on the campaign trail.”

But Democrats claim that the domestic spending bill would add more than $2 trillion to the national debt and the $9.4 billion represents just 1.38 percent of the $6.8 trillion that the U.S. government spends annually.

Rep. Brendan Boyle (D-02), the ranking member of the House Budget Committee, told PoliticsPA on Monday that the Big Beautiful Bill’s cuts to Medicaid, SNAP and the Affordable Care Act total approximately $1.5 trillion, while the size of the proposed tax cuts are over $5 trillion.

“How do they propose to pay for that 3 1/2 or so trillion dollar deficit,” questioned Boyle. “They don’t. It would be more money added to our nation’s deficit and more money put on our national credit card, the the national debt, so there are a number of us, including a few Senate Republicans who have said this should be a legitimate bipartisan concern.

“There is a real fear that at some point if we keep going on the path we are going on now we will reach a debt crisis. Right now, the 10-year Treasury bond is about 4.5%. If suddenly we start seeing that going north of five or reaching six, that would be a sign that the international markets the investors internationally who are buying our debt reached the point they say “Hey wait a minute you’re now over debt being over a 100% of your GDP with no apparent plan to pay that down.”

And in fact the projections show into the next decade it would get significantly worse. I’ve been talking to a number of analysts, including some ordinarily conservative leaning folks on Wall Street, who are both publicly and privately saying we actually cannot issue this amount of new debt because there is pretty soft demand.”

Musk, speaking out after his 130-day SGE, or Special Government Employee, contract with the federal government expired, used his “X” platform to regale against the Big Beautiful Bill.

The Congressional Budget Office and independent analysts have projected that Trump’s bill — which extends his 2017 tax cuts — would add between $2.3 trillion and $5 trillion to the deficit over the next 10 years.

The bill also contains new spending for border security and the military, which Republicans have sought to offset with cuts to Medicaid, food stamps and green-energy tax credits.

“For him to come out and pan the whole bill is, to me, just very disappointing, very surprising,” Johnson said in response to Musk trashing House GOP’s tax, immigration, and energy bill. “It’s a very important first start. Elon is missing it, okay, and it’s not personal.”

White House officials have vigorously disputed claims that the bill would add to the deficit, arguing that the projections do not account for the high levels of economic growth that tax cuts could unleash.

“Look, the president already knows where Elon Musk stood on this bill,” White House press secretary Karoline Leavitt said during a briefing Tuesday. “It doesn’t change the president’s opinion — this is one, big beautiful bill, and he is sticking to it.”

Steve Ulrich

Ulrich has worked as managing editor of PoliticsPA since January 2022 after spending two years as the Director of Elections in York (Pa.) County. Prior to that, he spent 35 years as a college athletics administrator. Send email to [email protected]