Republican Control in 2025 Will Prioritize Large Cuts in Federal Spending
Budget cuts will be a top item on the Republican agenda in Congress and the Executive Branch. Notably, there are many approaches to cutting federal spending and it is clear the new Congress and President-elect Trump plan to use a number of them.
Here is an initial (and not comprehensive) list:
Continuing Resolutions Slow the Growth of Spending. Typically, CR’s are set at the spending level in the prior fiscal year. The potential that the final appropriated amount might be less than the prior year forces agencies to hold back spending so that any shortfall doesn’t all have to come out of fourth-quarter spending.
Budget Reconciliation can Force Budget Savings through Program Reductions. Every fiscal year in which the Budget Committees puts forth “a budget plan with spending totals below the prior year,” there is an opportunity to direct authorizing committees to adopt program changes that will reduce spending and generate changes in policy. As a practical matter, this typically occurs when the same party has control of both Houses of Congress and the Presidency. While there are limitations on what can be included in reconciliation bills, a notable feature is that such bills cannot be filibustered and therefore can pass the Senate with less than 60 votes.
The next Trump budget could propose the rescission of currently available funds. There is a mechanism for the President to ask Congress to pass legislation rescinding programs and spending previously authorized and appropriated. Congress must still approve the withdrawal of funds, but the process starts with a Congressional Request made by the President. Proposed rescission requests can be free-standing or might be part of the FY 26 President’s Budget Request.
President May Assert the Right to Not Spend Appropriated Funds. This is controversial and previously found unconstitutional, but President Trump would not be the first to assert the right to impound funds Congress has authorized and appropriated to be spent. FAQs on Impoundment: Presidential Actions Are Constrained by Long-Standing Constitutional Restrictions (CBPP)
A common element of these approaches is that funds have to be reserved by agencies while they await final directions. At a minimum, delayed spending is likely to achieve at least some of the targeted reductions.
The Alliance's position is that any cuts should be applied agency by agency based on the essential and urgent nature of each agency’s mission. Across-the-board cuts deny FDA and its stakeholders the opportunity to discuss the importance of resources for FDA’s ability to fulfill its mission.
Editorial Note:
The Analysis and Commentary section is written by Steven Grossman, Executive Director of the Alliance for a Stronger FDA.