Speaker Mike Johnson (R-LA) announced Friday that the House plans to pursue additional rescissions—the clawing back of congressionally approved but unspent funds—”in the days ahead.”
The announcement coincides with the start of layoffs for federal workers as the partial government shutdown continues.
The renewed focus on spending cuts comes as lawmakers struggle to find a path toward reopening the government. Previous negotiations have stalled over Democratic demands for specific funding levels and assurances that the White House will spend the money authorized by Congress.
The Rescissions Conflict
Speaking on a joint press call with the House Freedom Caucus, Speaker Johnson stated, “We worked on rescissions, and there’ll be more of that, we expect, in the days ahead.” He positioned the effort as a necessary measure for fiscal responsibility, noting, “A rescissions package is part of our process.”
Democrats view the use of rescissions as a non-starter. Sen. Chris Coons (D-DE) articulated this concern, stating that any final resolution to reopen the government “has to include some protection and some understanding that the funds that we will appropriate will not then be taken back through rescissions.”
The current standoff follows a $9 billion rescissions package passed in July that revoked funding for the Public Broadcasting Service, National Public Radio, and foreign aid programs. At the time, Senate Minority Leader Chuck Schumer (D-NY) warned that more rescissions could jeopardize Democratic support for future government funding bills. RELATED: “Every Day Gets Better For Us”: Chuck Schumer Confident In His Shutdown Strategy
Looking Ahead to Reconciliation
Speaker Johnson also outlined an ambitious plan to utilize the reconciliation process—a legislative tool that allows certain budget bills to pass the Senate with a simple majority. He projected the possibility of two more such packages: “another reconciliation bill this fall, before the end of the calendar year, and potentially a third one in spring.”
The speaker has assured members of the conservative Freedom Caucus that these bills would address priorities such as deficit reduction, deeper cuts to certain energy tax credits, and measures to combat fraud in Medicaid.
However, the timeline is challenging. The previous major reconciliation bill took Congress seven months to pass. Additionally, the funding dispute is complicated by the fact that undoing cuts to Medicaid, which were included in the first reconciliation bill, remains a key element of the current shutdown fight.
Impact of Federal Layoffs
The administration’s decision to begin the anticipated layoffs of federal workers marks a significant escalation of the shutdown’s real-world consequences.
Senate Majority Leader John Thune (R-SD) noted the changing dynamic, stating, “Now that we’re getting where people are going to start missing paychecks, this gets real.”
The combination of the initial layoffs, the promise of new spending rescissions, and the Republican leadership’s aggressive pursuit of additional reconciliation bills signals a firming of positions on both sides as negotiations continue.
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