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Appropriators Push Back on Pocket Rescission

Late Friday, the Trump administration announced plans to cancel $810 million in funds for health and education programs, only days before the new fiscal year begins on Thursday. This “pocket rescission” is a maneuver used shortly before the end of the fiscal year, which attempts to take back money that has already been appropriated by Congress. The same tactic was used last year by the administration to cancel $4.9 billion in foreign aid funds. The Government Accountability Office has called pocket rescissions illegal.

Top appropriators from both parties have accused OMB of acting illegally by intentionally withholding funds for months. In a statement, Chair of Senate Appropriations Committee Susan Collins said “any effort to rescind appropriated funds without congressional approval is a clear violation of the law. I will work with my colleagues to address these illegal actions.”

 

On the Hill this week:

  • The Senate is scheduled to vote on the Protect College Sports Act (S. 4668) at 5:30pm today, which will set new rules for name, image, and likeness issues. It is expected to pass with wide bipartisan support.
  • Senate Health, Education, Labor and Pensions pending nominations on September 30, including Nicole Saphier to be surgeon general, Timothy Westlake to be assistant HHS secretary for mental health and substance use, and Mary Lazare to be assistant HHS secretary for aging

Updates from the Hill

House Members have returned to their districts for a full six weeks of campaigning ahead of the midterm elections, but plenty of activity continues in the Senate and executive branch.

  • President Trump banned CNN, Politico, and MS NOW reporters from the White House over the weekend. All three news outlets have announced they plan to file a lawsuit today.
  • Judge Postpones Effective Date of Rule Limiting International Student Visas: Last week, Judge F. Dennis Saylor of the United States District Court for the District of Massachusetts issued a nationwide preliminary injunction postponing DHS from implementing their final rule ending the “duration of status” framework for F, J, and I visa holders.
  • White House Moves to Take Control of NIH Grants: In a White House meeting Friday, an executive order was discussed with plans to create a new external committee with the power to veto NIH awards. It’s the latest in reported clashes between OMB Director Russell Vought and NIH Director Dr. Jay Bhattacharya over funding projects that conflict with administration priorities.
    • In a statement, Sen. Susan Collins (R-ME), Chair of the Appropriations Committee said: “The Office of Management and Budget (OMB) should not be involved in agency decisions on the awards of grants. As I stated in my July 6 letter, a proposed OMB rule would politicize grantmaking. The Continuing Resolution — which passed the Senate, House, and was signed into law on September 2 – blocks OMB’s proposed rule or any substantially similar one. Any attempt to politicize grantmaking at the National Institutes of Health (NIH), or any other agency, by another means—whether an Executive Order or guidance—is contrary to congressional intent. Imposing a political review on awards that have already been selected through a rigorous scientific and merit-based process undermines the long-standing principle that the government funds awards based on scientific need and merit, rather than political ideology.”

In the Senate this week:

  • A final vote for the Protect College Sports Act could come as soon as this week. On September 17, the Senate voted 77-22 to move the bill forward to debate and final vote. It could be the last item Congress votes on before midterms, raising concerns for some Republicans who say they should be focusing on issues of affordability, the war in Iran, and other issues which are top of mind for voters.
  • Nomination Hearing (Thurs. Sept. 24): Senate Health, Education, Labor and Pensions for Dr. Heidi Overton to be FDA Commissioner

 

House and Senate Return, Briefly

The House and Senate both return for a jam-packed week, but with a Trump-signed continuing resolution (PL 119-103) funding the government through December 11, Congress doesn’t have any pressing bills that are essential to pass before the November midterms. The House is expected to only be in session this week, before their members return to the districts to campaign for reelection.

On the Hill this week:

  • Senate Republican leadership hopes to line up a vote on the Protect College Sports Act. Commerce Chairman Ted Cruz and Ranking Member Maria Cantwell had been pushing for a vote before August recess.
  • FBI Director Kash Patel testifies in front of the Senate Judiciary Committee today.
  • Senator Mitch McConnell returned to the Senate on Monday, the first time he had been seen since his last vote in June. He continues to hold a seat on the influential Appropriations Committee, which has just a one-vote Republican majority. His lengthy absence meant Senate Appropriations Chair Susan Collins postponed scheduling any mark-ups of the 12 regular spending bills.
  • A procedural vote is expected on the cryptocurrency regulations CLARITY Act (HR 3633), which has been intensely debated for months, particularly over ethics provisions preventing elected officials profiting from crypto.

House Passes Stopgap Funding Bill

This afternoon, the House passed a stopgap funding bill in a 370-48 vote, averting a government shutdown looming at the end of the month, and instead setting up a funding fight for after the midterm elections. The Senate already passed the bill before they left for recess, and it now heads to President Trump’s desk to be signed.

The continuing resolution will keep federal funding at its current levels through December 11. Both Democrats and Republicans were eager to avoid a repeat of extended government shutdowns which have shadowed over the past two years.

The bill continues to temporarily block OMB from implementing the uniform guidance changes, a key issue for many Democrats supporting the bill.

August Recess Updates

August recess has officially begun! The Senate left town on Saturday and will return September 14. The House returns August 31.

Short-term funding bill passed:

Early on Saturday, the Senate passed HR 6500, in a 90-6 vote. The continuing resolution (CR) extends current funding levels through December 11, averting a government shutdown in September before the midterm elections. The Senate version is an expanded version of the recent House CR, meaning House members will need to vote again on the final measure once they return. President Trump has already indicated he would sign the CR in its current form.

UG revisions temporarily blocked: 

On a positive note, the Senate bill blocks OMB from implementing its proposed changes to Uniform Guidance through December 11. The House version did not include blocking language on uniform guidance.

NIL bill punted to September:

Senators Maria Cantwell (D-WA) and Ted Cruz (R-TX) were hopeful that their co-sponsored bill, The Protect College Sports Act (S. 4668), would receive a vote before recess, but last-minute debate bumped it until September. The bill would establish rules for athlete name, image, and likeness (NIL), and address revenue sharing, athlete eligibility, and transfers, among other details. It has sparked extensive debate among lawmakers, universities, and athletic conferences.

Cantwell suggested that Sen. Majority Leader John Thune (R-SD) had “set a date certain in September to bring it up.”

New attorney general:

Todd Blanche was narrowly confirmed by the Senate early Saturday morning as the new U.S. Attorney General. All Democrats, as well as Republican Sens. Susan Collins and Lisa Murkowski, voted against him, for a final 50-49 vote.

Farewell pennies? 

And finally, it may officially be the end of the road for the one cent coin. On Friday, the Senate passed by unanimous consent S. 1525, which would direct the Treasury secretary to end production of pennies. The Senate bill is similar to HR 3074, which the House passed on July 14. Both bills would codify President Trump’s February 2025 directive to the Treasury department to end penny manufacturing.