DOGE, Rescissions, and Executive Impoundment

Part 3 of the Annual Recap

This is part 3 of 5 in our Annual Recap series. See here for parts one and two.

DOGE was a hot topic early in the year, drawing attention to some silly and wasteful spending while also sparking controversy due to its haphazard, sometimes error-prone spending freezes and workforce reductions. Despite overpromising and underdelivering on verifiable spending cuts, the program did elevate the conversation over wasteful spending to a national level.

Deficit hawks seized on this momentum following the passage of the OBBBA, passing a $9 billion recession package, which included cuts to public broadcasting and foreign aid. These represent real and significant wins, with Congress signing off and cementing a small portion of the DOGE initiative. However, this $9 billion cut is a drop in the bucket compared to the deficit additions of the OBBBA. More and larger cuts will be necessary in the future if Congress is to reduce discretionary spending meaningfully.

As September approaches, Congress will yet again face the possibility of a government shutdown. Both the House and Senate have failed to pass their 12 annual appropriations bills—a distinct process from the reconciliation package seen earlier this year. If Congress were to receive a scorecard for this performance, it would be a big fat F for failing to get its budgeting done on time—a typical, but still disappointing result.

Ideally, fiscally responsible legislators would take inspiration from the president’s “skinny” budget, embracing cuts to wasteful and low-priority federal spending. While the President’s budget does have its limitations (notably a disappointing topline and high spending on defense and immigration), the budget contains a variety of promising cuts, including slashing cultural subsidies, reducing education and health spending, and eliminating unneeded agencies. Perhaps the most frustrating feature of the Trump budget (or lack thereof) was the failure to address the mandatory spending side of the ledger and the root of the US fiscal crisis: Medicare and Social Security unsustainable spending growth.

Likely, the administration and Congress will continue business as usual, approving Biden-era pandemic spending levels plus the usual costly riders and political giveaways. That would be a resounding abdication of fiscal responsibility, particularly as deficits approach $2 trillion.

Faced with a spending-prone Congress, the President and his Office of Management and Budget may resort to impoundment, canceling spending unilaterally without congressional approval. Legislators should reassert their constitutional responsibilities to control the federal purse strings and proactively shape America’s fiscal future, instead of allowing the executive to expand its power unchecked.

The author thanks Ritvik Thakur for his contributions.