From the U.S. Global Leadership Coalition (http://www.usglc.org/):
August 22, 2018
RISKY RESCISSIONS. According to the Washington Post, OMB is planning to push out a “rescissions package” next week to freeze and ultimately expire several billion dollars of foreign assistance funding for critical overseas programs. Within the entire federal government, the State Department and USAID will be the cornerstone of the cuts – making this package the most pointed to date directed at America’s international programs compared to past actions from OMB Director Mick Mulvaney.
ESSENTIAL PROGRAMS. The exact details of which programs OMB is targeting have not been released yet, but rescissions are expected to programs that directly advance America’s security and economic interests – and are likely to include:
- Development assistance programs supporting children like those operated by UNICEF
- Security programs, potentially including military assistance to partners and programs helping fight the opioid crisis
- Peacekeeping and other UN programs, which could directly impact America’s reform agenda at the UN
SENATORS SPEAK OUT. Foreign Relations Committee Chairman Bob Corker has called OMB’s rescissions plan a “breach of trust” with Congress and said “we certainly look forward to seeing how to counter that.” Ranking Member Bob Menendez has questioned the legality of OMB’s actions, saying “that will have consequences.”
VEEP LUNCH. At a closed-door lunch between Vice President Mike Pence and Republican senators yesterday, POLITICO reported that multiple lawmakers voiced opposition directly to the VP on the rescission plan. And we know that Senator Lindsey Graham and Majority Leader Mitch McConnell are involved in the discussions with the Administration.
BICAMERAL CHORUS. Joining the growing number of legislators who are tackling this rescissions package before it’s even released was Senate Appropriations Chairman Richard Shelby who added “This is probably not, in my judgment, a good time to deal with it, because we’re trying, in a bipartisan way, to do something that hasn’t been done in 25 years – to make the Senate work, not to divide it.” In the other Chamber, House Foreign Affairs Chairman Ed Royce has been leading the charge.
PURE POLITICS. While being branded as a plan to help balance the budget, the yet-to-be announced cuts will amount to no more than 0.07% of the federal budget – and are seen widely on Capitol Hill as a purely political move to draw down resources for overseas programs in the days leading up to the mid-term election.
SECRETARY SWAGGER. During the confirmation hearing earlier this year for Secretary Mike Pompeo, he told senators he would fight for resources when he believes they are needed – just as he did at the CIA – and he is reportedly working behind the scenes to protect his Department’s budget, along with fellow cabinet member USUN Ambassador Nikki Haley.
45 DAYS. OMB’s move to push rescissions this late in the year would send Washington into unprecedented and uncharted territory by freezing unobligated resources just before the end of the fiscal year on September 30th.
Why it matters: Normally, Congress would have 45 days to consider a rescission package from the Office of Management and Budget – but since the package could get released in this narrow window ahead of the end of the fiscal year, it would mean the funds would simply expire – without Congress having actually approved or rejected the proposed cuts.
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