Overview
Title
To amend the Congressional Budget and Impoundment Control Act of 1974 to provide for a legislative line-item veto to expedite consideration of rescissions, and cancellations of items of new direct spending and limited tax benefits.
ELI5 AI
H.R. 7235 is a new rule that lets the President suggest taking away some money from things Congress decided to spend on, and Congress has to quickly decide if that's okay or not. This is meant to help save money, but it might also cause some arguments between the President and Congress about who gets to decide what to spend money on.
Summary AI
H.R. 7235 seeks to amend the Congressional Budget and Impoundment Control Act of 1974 by introducing a legislative line-item veto. This would allow the President to propose rescinding, or canceling, specific funding and spending items, which Congress could then approve or reject through an expedited process. The goal is to enhance the ability to reduce deficit spending by eliminating or reducing specific budgetary line items, new direct spending, and limited tax benefits.
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AnalysisAI
General Summary of the Bill
The bill aims to amend the Congressional Budget and Impoundment Control Act of 1974 by introducing a legislative line-item veto procedure. This procedure allows the President to propose the cancellation or reduction of specific spending items or tax benefits within ten days of a bill's enactment. Congress then considers these proposals through an expedited process, which compels swift action on the President’s suggestions. If Congress approves any of these rescissions, any resulting savings are to be used strictly to reduce the federal deficit or increase the budget surplus.
Summary of Significant Issues
One of the primary concerns surrounding the bill is the increased authority it grants the President to propose rescissions after a bill is enacted, potentially upsetting the balance of power between the legislative and executive branches. This increased power might afford the President undue influence over how funds, previously decided upon by Congress, will actually be allocated.
Additionally, the expedited procedures for Congress to review these proposals significantly reduce the time for debate and amendment, which may lead to insufficient scrutiny of the President's proposed changes. The bill also restricts Congress's ability to amend the proposals, limiting its ability to modify or negotiate the finer points of spending cuts.
The definitions within the bill, especially concerning what constitutes a 'limited tax benefit,' are intricate and could lead to confusion or misuse. These technical terms may be challenging for those without expertise to interpret, potentially impacting public understanding and oversight.
Impact on the Public
Broadly, the bill's impact on the public lies in its potential to streamline the process of cancelling or altering government spending. This could lead to more efficient use of taxpayer dollars by allowing for quicker responses to fiscal adjustments and possibly reducing wasteful spending. However, if the process leads to excessive cuts in essential services or programs, the public could experience negative effects, especially vulnerable communities relying on government support.
Impact on Specific Stakeholders
For policymakers and government officials, the bill alters the dynamic between the legislative and executive branches, potentially shifting more budgetary control to the President. This could lead to tensions and debates about executive reach and the integrity of Congressional appropriations.
Stakeholders within affected industries or programs may perceive increased risk due to the prospects of swift spending cuts. For instance, organizations that benefit from federal funding or specific tax benefits might face instability or uncertainty, depending on the frequency and scope of the proposed rescissions.
In summary, while the bill aims to enhance fiscal responsibility and reduce the deficit, its structural changes to how rescissions are considered could lead to both efficiency gains and challenges related to executive overreach, legislative integrity, and public oversight.
Financial Assessment
The proposed bill, H.R. 7235, allows the President to propose rescissions or cancellations of funding, new direct spending, and limited tax benefits after a bill is enacted. This legislative line-item veto aims to address deficit spending by selectively targeting specific budget items for reduction or elimination.
Financial Allocations and Amendments
The bill introduces mechanisms for the President to recommend rescinding any part of the dollar amounts provided in funding measures or to propose the cancellation of new spending and tax benefits. The contents of the President's proposal must include detailed information, such as the specific dollar amount to be rescinded, the agency or program affected, and the remaining funds if the rescission is enacted. This financial dissection intends to offer a more precise approach to managing federal spending.
Relation to Identified Issues
One issue highlighted involves the potential for executive overreach, as the President gains the ability to propose rescissions of funding for budget items already approved by Congress. This power might disturb the intended balance of approvals, raising concerns about bypassing traditional legislative scrutiny. The bill includes expedited consideration procedures intended to accelerate congressional action on the President's proposals. While efficient, these procedures could sidestep thorough debate and weaken checks on executive power, as noted in the identified issues.
Another contentious point is the President's authority to temporarily withhold funding while Congress deliberates on the rescission proposals. This action could lead to substantial interruptions in government services if significant funding amounts are withheld. The potential for excessive cuts, due to ambiguous limitations on rescissions, also poses a risk to crucial government operations and financial stability, possibly resulting in inadvertent or disproportionate impacts on essential services.
Complexity and Transparency
Financial definitions within the bill, such as "limited tax benefits" and "cancellation," are intricate, causing concerns about accessibility to non-experts and potential exploitation. This complexity demands clarity to prevent misunderstandings that might obscure the bill's true financial impact and scope.
Additionally, the bill's procedures for transmitting the President's special messages to Congress lack detailed timelines, which may reduce public transparency and delay awareness. Without clear public disclosure requirements, the public and other stakeholders may find it difficult to adequately review and respond to proposed financial changes.
Conclusion
In summary, H.R. 7235 introduces significant institutional changes, particularly concerning congressional and executive handling of federal spending. The bill's financial references offer a precise framework for reducing deficits but also raise several concerns related to executive power and legislative oversight. To ensure responsible and transparent financial governance, further clarity and balance may be needed in areas such as the limits on rescissions and the public availability of proposal details.
Issues
The authority granted to the President to propose rescissions of funding after a bill is enacted (Sections 1011 and 1012) could potentially undermine the original intent of legislation, raising concerns about executive overreach and disrupting the balance of power between the legislative and executive branches.
The provisions for expedited consideration (Section 1013) could bypass thorough legislative scrutiny, limiting legislative debate and amendments, and potentially leading to the passing of rescissions or cancellations without adequate oversight.
The President's authority to withhold funding temporarily while Congress considers rescission proposals (Section 1012(a)) might provoke tension between the executive and legislative branches, as it grants the President significant discretion in handling funds appropriated by Congress.
The complex and dense language surrounding definitions and processes, such as the definitions of 'limited tax benefit' and 'approval bill' (Sections 1015 and 1014), might lead to misunderstandings, loopholes, and potential misuse of the bill's provisions.
The bill's definition of 'limited tax benefit' (Section 1015) could be difficult for non-experts to understand due to its intricate conditions and exceptions, potentially obscuring applicability and leading to perceived favoritism.
The absence of a clear definition of the term 'rescind' (Section 1011) could lead to ambiguity about whether it refers only to reductions or also includes cancellations, causing confusion and controversy regarding executive actions.
The procedures for making special messages from the President publicly available and the lack of detailed requirements on timelines (Section 1011(b)(2)) might reduce public transparency and hinder timely public awareness and feedback.
The possibility of excessive cuts to budgets due to a lack of clear limitations on the number or amount of rescissions (Section 1011) might pose risks to essential government services and financial stability.
The restriction on amendments or motions to strike parts of approval bills (Section 1013) may limit necessary discussions and modifications, potentially leading to the passing of legislation that doesn't comprehensively address all concerns.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section provides the short title of the Act, which is called the "A Fast-Tracked Executive Rescission Review (AFTER) of Appropriations Act of 2024."
2. Congressional consideration of proposed rescissions and deferrals of budget authority and obligation limitations Read Opens in new tab
Summary AI
The bill outlines a process for Congress to review and approve presidential requests to rescind or defer budget authority, essentially delaying or canceling specific spending items. It establishes procedures for the President to suggest these changes, the role of Congress in considering and approving them, and ensures that any savings from rescissions are used to reduce the federal deficit or increase the surplus.
Money References
- Title X of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 621 et seq.) is amended by striking all of part B (except for sections 1015, 1016, and 1013, which are transferred and redesignated as sections 1017, 1018, and 1019, respectively) and part C and by inserting after part A the following: “Part B—Congressional consideration of proposed rescissions and deferrals of budget authority and obligation limitations “Sec. 1011. (a) Proposed rescissions.—Within 10 days after the enactment of any bill or joint resolution providing any funding, the President may propose, in the manner provided in subsection (b), the rescission of all or part of any dollar amount of such funding or the cancellation of any item of new direct spending or any limited tax benefit.
- “(3) CONTENTS OF SPECIAL MESSAGE.—For each request to rescind funding or cancel any item of new direct spending or any limited tax benefit under this part, the transmittal message shall— “(A) specify— “(i) the dollar amount to be rescinded, item of new direct spending, or limited tax benefit to be canceled; “(ii) the agency, bureau, and account from which the rescission shall occur; “(iii) the program, project, or activity within the account (if applicable) from which the rescission shall occur; “(iv) the amount of funding, if any, that would remain for the account, program, project, or activity if the rescission request is enacted; and “(v) the reasons the President requests the rescission or the cancellation; and “(B) designate each separate rescission request by number; and include proposed legislative text of an approval bill to accomplish the requested rescissions which may not include— “(i) any changes in existing law, other than the rescission of funding; or “(ii) any supplemental appropriations, transfers, or reprogrammings. “Sec. 1012. (a) Presidential authority To withhold funding.—Notwithstanding any other provision of law and if the President proposes a rescission of funding under this part, the President may, subject to the time limits provided in subsection (c), temporarily withhold that funding from obligation.
- “(2) CANCEL.—The term ‘cancel’ or ‘cancellation’ means— “(A) with respect to any dollar amount of discretionary budget authority, to rescind; “(B) with respect to any item of new direct spending— “(i) that is budget authority provided by law (other than an appropriation law), to prevent such budget authority from having legal force or effect; “(ii) that is entitlement authority, to prevent the specific legal obligation of the United States from having legal force or effect; or “(iii) through the food stamp program, to prevent the specific provision of law that results in an increase in budget authority or outlays for that program from having legal force or effect; and “(C) with respect to a limited tax benefit, to prevent the specific provision of law that provides such benefit from having legal force or effect.
- “(9) FUNDING.—(A) Except as provided in subparagraph (B), the term ‘funding’ means all or part of the dollar amount of budget authority or obligation limit— “(i) specified in an appropriation measure, or the dollar amount of budget authority or obligation limit required to be allocated by a specific proviso in an appropriation measure for which a specific dollar figure was not included; “(ii) represented separately in any table, chart, or explanatory text included in the statement of managers or the governing committee report accompanying such law; or “(iii) represented by the product of the estimated procurement cost and the total quantity of items specified in an appropriation measure or included in the statement of managers or the governing committee report accompanying such law. “
1011. Congressional consideration of proposed rescissions and deferrals of budget authority and obligation limitations Read Opens in new tab
Summary AI
The section outlines how the President can propose cancelling or reducing specific amounts of funding within 10 days of a bill being enacted. The President must send a special message to Congress detailing the requested changes, which includes the amounts, the related agencies, what parts of programs will be affected, and the reasons for these changes. This message should also be made available to the public and published in the Federal Register.
Money References
- (a) Proposed rescissions.—Within 10 days after the enactment of any bill or joint resolution providing any funding, the President may propose, in the manner provided in subsection (b), the rescission of all or part of any dollar amount of such funding or the cancellation of any item of new direct spending or any limited tax benefit. (b) Special message.—If the President proposes that Congress rescind funding, the President shall transmit a special message to Congress containing the information specified in this subsection.
- (3) CONTENTS OF SPECIAL MESSAGE.—For each request to rescind funding or cancel any item of new direct spending or any limited tax benefit under this part, the transmittal message shall— (A) specify— (i) the dollar amount to be rescinded, item of new direct spending, or limited tax benefit to be canceled; (ii) the agency, bureau, and account from which the rescission shall occur; (iii) the program, project, or activity within the account (if applicable) from which the rescission shall occur; (iv) the amount of funding, if any, that would remain for the account, program, project, or activity if the rescission request is enacted; and (v) the reasons the President requests the rescission or the cancellation; and (B) designate each separate rescission request by number; and include proposed legislative text of an approval bill to accomplish the requested rescissions which may not include— (i) any changes in existing law, other than the rescission of funding; or (ii) any supplemental appropriations, transfers, or reprogrammings. ---
1012. Grants of and limitations on Presidential authority Read Opens in new tab
Summary AI
The section describes the President's authority to temporarily withhold funding if they propose cutting it, but this can only be done once for each proposal and must follow specific timelines. It also states that any funds saved by such cuts should be used to reduce the national deficit or increase the surplus, with adjustments made to budgetary allocations and limits to reflect these changes.
1013. Procedures for Expedited Consideration Read Opens in new tab
Summary AI
The section outlines the expedited procedures for considering an "approval bill" in Congress. It explains how the bill can be introduced, reported, and considered in both the House of Representatives and the Senate, emphasizing that amendments are not allowed and that certain time limits and steps must be followed when processing these bills.
1014. Treatment of rescissions and cancellations Read Opens in new tab
Summary AI
The section outlines that rescissions and cancellations proposed by the President will only be effective if Congress approves them through an "approval bill." If this bill isn't passed into law within 30 days of the related appropriation or tax measure, it won't qualify for fast-tracked consideration.
1015. Definitions Read Opens in new tab
Summary AI
The text defines various terms related to budgeting in the U.S., such as "appropriation measure," which refers to laws for government spending, "cancel," which means to stop certain budgetary actions, "direct spending" for mandatory funding, and "rescind," which means to permanently cancel funds. It also explains what constitutes a "limited tax benefit," detailing tax breaks for specific groups. These definitions clarify the legal and procedural terms used in the context of government budgeting and taxation.
Money References
- (2) CANCEL.—The term “cancel” or “cancellation” means— (A) with respect to any dollar amount of discretionary budget authority, to rescind; (B) with respect to any item of new direct spending— (i) that is budget authority provided by law (other than an appropriation law), to prevent such budget authority from having legal force or effect; (ii) that is entitlement authority, to prevent the specific legal obligation of the United States from having legal force or effect; or (iii) through the food stamp program, to prevent the specific provision of law that results in an increase in budget authority or outlays for that program from having legal force or effect; and (C) with respect to a limited tax benefit, to prevent the specific provision of law that provides such benefit from having legal force or effect.
- (8) DEFERRAL OF BUDGET AUTHORITY.—The term “deferral of budget authority” includes— (A) withholding or delaying the obligations or expenditure of budget authority (whether by establishing reserves or otherwise) provided for projects or activities; or (B) any other type of executive action or inaction which effectively precludes the obligation or expenditure of budget authority, including authority to obligate by contract in advance of appropriations as specifically authorized by law. (9) FUNDING.—(A) Except as provided in subparagraph (B), the term “funding” means all or part of the dollar amount of budget authority or obligation limit— (i) specified in an appropriation measure, or the dollar amount of budget authority or obligation limit required to be allocated by a specific proviso in an appropriation measure for which a specific dollar figure was not included; (ii) represented separately in any table, chart, or explanatory text included in the statement of managers or the governing committee report accompanying such law; or (iii) represented by the product of the estimated procurement cost and the total quantity of items specified in an appropriation measure or included in the statement of managers or the governing committee report accompanying such law.
3. Technical and conforming amendments Read Opens in new tab
Summary AI
The section describes amendments to the Congressional Budget Act of 1974, updating section references for rulemaking powers, renaming certain sections under a new act title, and revising the table of contents to reflect these changes. It also states that these amendments will affect future funding and spending measures enacted after this law.
4. Approval measures considered Read Opens in new tab
Summary AI
In this section of the bill, adjustments are made to the Congressional Budget Act of 1974. It adds a new rule requiring the Budget Committee to reduce budget allocations whenever an "approval bill" is passed, and clarifies that the term “approval bill” is defined in another section of the law.