S. 360: To provide for across-the-board rescissions of nonsecurity discretionary spending.

The bill S. 360 proposes changes to the way nonsecurity discretionary spending is handled in the federal budget. Here is a breakdown of its main components:

Definitions

The bill includes definitions for key terms:

• Budget authority: Refers to the legal authority for government agencies to incur financial obligations that will result in immediate or future outlays of federal funds.
• Discretionary appropriations: These are portions of the federal budget that Congress can allocate each year, excluding mandatory spending like Social Security.
• Nonsecurity discretionary appropriations: This category refers to discretionary spending that does not involve national security or military-related expenses.
• Regular appropriation act: This includes annual acts that provide budget authority for various government programs and activities.

Rescissions of Discretionary Spending

The bill outlines a plan for rescinding certain amounts of nonsecurity discretionary appropriations over several fiscal years:

• Fiscal Year 2026: A 1% rescission of nonsecurity discretionary appropriations effective the day after appropriations are made available for the entire federal government.
• Fiscal Year 2027: A 2% rescission on a similar basis as FY 2026.
• Subsequent Fiscal Years (2028 and beyond): A 5% rescission annually on the same terms.

Reporting Requirements

The bill mandates that the Director of the Office of Management and Budget (OMB) must report to the Senate and House Appropriations Committees within 30 days after appropriations are made available. This report will specify:

• The accounts affected by rescissions.
• The amounts of each rescission carried out.

Impact on Nonsecurity Discretionary Spending

Overall, if enacted, the bill would reduce federal spending on programs that fall outside of national security concerns through systematic, across-the-board reductions in discretionary appropriations. This legislative action aims to decrease the overall size of discretionary spending within the federal budget over a specified period.

Relevant Companies

None found