H.R. 199: Implementing Decreases in Overall Government Expenditures Act

This bill, known as the Implementing Decreases in Overall Government Expenditures Act, aims to reduce government spending on certain programs. It specifically targets what is termed nonsecurity discretionary appropriations, which refers to funding that is not for mandatory spending (like Social Security or Medicare) or for defense and security purposes.

Key Provisions

• Definition and Scope: The bill defines key terms related to budget authority and discretionary appropriations. It specifies that nonsecurity discretionary appropriations are those appropriations made in regular appropriation acts that do not fall under defense or security funding.
• Across-the-board Rescission: Starting from fiscal year 2026, the bill mandates a reduction of nonsecurity discretionary spending by an amount that corresponds to the excess growth percent. This percent is defined as any increase in total annual appropriations that exceeds one percent over the previous fiscal year's appropriations.
• Implementation Timing: The rescission will take effect the day after appropriations are made available and will be calculated on a pro rata basis across the applicable discretionary appropriations for that fiscal year.

Impact on Budget

The intended effect of the bill is to control the growth of government spending by implementing automatic cuts to nonsecurity discretionary programs. This means that if the government's spending in these areas increases beyond a specified threshold (one percent over the previous year), a portion of that growth will be cut. This approach aims to enforce fiscal discipline and could influence various funding allocations for programs not related to national security.

Financial Context

The bill is introduced with the goal of maintaining fiscal responsibility in the federal budget, especially as it relates to discretionary spending. This could potentially lead to changes in funding levels for various federal programs that do not fall under mandatory or security spending categories.

Relevant Companies

• None found