President Donald Trump’s administration is considering a move, called a “pocket rescission,” that would effectively rescind federal funding and potentially bypass congressional approval, Office of Management and Budget Director Russ Vought said on July 27.
The strategy occurs when a president submits a rescission proposal under the Impoundment Control Act—requesting Congress to cancel previously appropriated funds—within 45 days of the end of the fiscal year, Sept. 30. The funds are withheld during the 45-day congressional review period, and if Congress doesn’t act before the fiscal year ends, the funds expire.