May 2018

Rescission Recommendations for FY18: A Down-Payment for Responsible Spending
Although President Trump signed the 2018 Omnibus Spending bill into law in March, he rightly expressed his dismay at such irresponsible spending. To combat this runaway spending, the administration has announced it will send a rescission package of spending cuts
to Congress shortly.
This is potentially a very positive step – Congress should give any package serious consideration.
The omnibus spending bill followed on the heels of the reckless budget deal earlier this year which increased budget caps by $300 billion
over just 2 years. Congress wasted no time spending all of that in the omnibus. According to CBO, total budget authority between the
omnibus and other supplemental and disaster funding bills will top $1.4 trillion this year – an increase of 20 percent over last year, while
the base budget increased 13 percent. Actual money out the door – called outlays in budget parlance – are projected at $1.3 trillion.
Following the omnibus budget buster, total federal spending this year will reach $4.1 trillion with the largest spending coming from
entitlement programs – Social Security, Medicare, Medicaid and Obamacare. In just ten years, total spending will top $7 trillion and the
deficit will reach $1.5 trillion, and it will continue to grow even higher unless Congress takes immediate action.
Although the biggest and fastest growing parts of the budget are entitlements, it’s time to look at the big picture, including discretionary
spending. Congress must undertake a full assessment of all federal programs and set them on a fiscally responsible path. This will require
setting priorities across the entire budget and working to relieve the burden overspending is placing on all taxpayers. But it is imperative
for Congress to begin this work with consideration of the administration’s rescission package.
Since the fiscal year is more than halfway over, the opportunity for large scale reductions in a rescission package are lower. But new,
additional funding in the March omnibus should not have been entirely spent or obligated yet. So while the opportunities are more
limited because of timing, this should not preclude Congress from approving meaningful reductions.
Cuts this year will be a positive down payment and set the right tone for the FY 2019 budget that the appropriation sub-committees
are working on now. Congress should build on the rescission package with bigger and more comprehensive savings since it will have the
ability to roll back funds for the entire year.
This will set the stage for that fundamental assessment of all federal programs, including reforming our entitlement programs.
The following is a menu of options for the administration to consider for its rescission package. It is not comprehensive, and meant as a
guide to prioritizing spending across the entire discretionary side of the budget while also considering the burden on taxpayers and the
proper role for the government.
One last note of encouragement to the administration: think big – the taxpayers of today and tomorrow rely on it. Our country is on a
path to a fiscal crisis if we don’t act with urgency to get ourselves back on the path to fiscal sanity.
Note on methodology: cuts, unless otherwise identified, are new or additional funding over the baseline, calculated as the difference between 2017 funding and the funding in the March 2018 omnibus bill. Cuts should not reduce initial 2018 budget authority authorized
in continuing resolutions and already spent or obligated. Additional funds added in the omnibus that have been obligated would not be
available for rescission but that information was not available for this analysis.

 Non-Defense Discretionary Spending: Rescission Recommendations
Program

Rescission
Savings From
FY 18 Funding
Increase

Rationale for Elimination or Cut

In millions ($)
Interior Department
Title IV Infrastructure General Provisions
(includes $53 million for WIFIA)

766

New funding for local infrastructure projects not a federal
priority and is not paid for.

Wildland Fire Management

550

Consistent funding increases have not increased wildfire
suppression.

Indian Health Services

498

Rather than continually subsidizing reservations, Congress
should work with tribes to improve economic freedoms and
remove any barriers to opportunity.

Smithsonian Institution

180

These operations should be funded through admission fees
rather than taxpayer dollars.

Bureau of Indian Affairs and Bureau of Indian
Education construction funds

162

Rather than continually subsidizing reservations, Congress
should work with tribes to improve economic freedoms and
remove any barriers to opportunity.

National Park Service general program increase
(construction)

138

The National Park Service should have a fundamental overhaul
examining its stewardship and finances.

Cooperative Fire Assistance

96

This would fund duplicative activities with fire assistance,
which is primarily a state and local function; grants to states
have not been found to improved fire fighting activities.

BLM transportation and facilities maintenance

50

Congress should not add to the ad hoc assortment of programs
and laws at the BLM.

National Endowment for the Arts and Humanities 6

Neither the NEA nor the NEH are proper functions of the
federal government. The federal government should not
compel taxpayers to support cultural organizations and
activities. If private individuals and organizations wish to
donate resources to such causes, they may do so.

Fish and Wildlife Service deferred maintenance

New funding for facilities maintenance should be preceded by a
plan to streamline FWS facilities and management.

50

Energy Department
Renewable Energy Office (Department of Energy) 232

These programs intrude into the private markets distorting
market decisions and subsidize selected industries. They should
not be expanded.

Nuclear Office (Department of Energy)

188

The private sector should be shouldering commercialization
research activities.

Fossil Fuel Office (Department of Energy)

59

These programs intrude into the private sector which distorts
market decisions and subsidizes selected industries. They
should not abolished or rolled back, not expanded.

486

More than doubles last year’s funding for new government
buildings.

National Oceanic and Atmospheric
Administration

234

NOAA is already engaged in programs that should be left to the
private sector or abolished.

Economic Development Administration

26

Provides taxpayer dollars as grants to economically distressed
areas, including grants to private sector companies. These
projects are often politically motivated with little/narrow
benefit.

Financial Services and General Government
GSA construction and acquisition of facilities
Commerce Department

 NIST Manufacturing extension partnerships

10

Subsidies to businesses and consultants to develop other
businesses is the purview of private investors. This is a form of
corporate welfare.

NIST construction of research facilities

210

This major increase funds construction of new facilities for
scientific research, better suited to industry or universities.

Child Nutrition programs

1,460

These programs are already well-funded at previous levels, place
red tape requirements on schools, and are better suited to state
and local governments.

Broadband Pilot program

600

The private sector is best suited to deliver new technologies
for rural wireless access without government interference.
Congress should reduce regulatory barriers to facilitate private
sector rather than spend taxpayer dollars.

Water and Waste General Provision

490

Rural infrastructure needs are better addressed at the state
and local level. This overlaps with EPA’s State Revolving Fund
program.

Federal Crop Insurance Corporation

246

Farm subsidies, including those to crop insurance providers,
should be rolled back or eliminated.

Food for Peace Title II grants

134

This is a role better suited by charities or other private
organizations.

Agricultural Marketing Service program

89

These programs unfairly intrude with agricultural market forces
- for certain commodities they artificially keep prices high.
These programs should be rolled back, not expanded.

Agricultural Research Service

74

Most industries fund their own research, yet the ARS already
funds research in many locations across the country.

Agriculture Department

Education Department
Student Support and Academic Enrichment grants 700

An effective education system is vital for our country, but not
within the proper role for the federal government and best
suited for state and local decisions.

Special Education grants

299

An effective education system is vital for our country, but not
within the proper role for the federal government and best
suited for state and local decisions.

Federal Work Study program

140

An effective education system is vital for our country, but not
within the proper role for the federal government and best
suited for state and local decisions.

Career, Technical, and Adult Education program

110

An effective education system is vital for our country, but not
within the proper role for the federal government and best
suited for state and local decisions.

Federal Supplemental Educational Opportunity
grants

107

This federal student aid program is duplicative with Pell Grants
and a less targeted way to deliver need-based grant aid.

Student Aid Administration Servicing Activities

100

The FAFSFA application process should be simplified and
streamlined resulting in a net reduction in funding.

Federal TRIO programs

60

Duplicative with other outreach programs and best suited to
state and local policy decisions.

Payments to States for the Child Care and
Development block grant

2,370

This funding would nearly double the program. But it should
not be expanded until HHS can demonstrate how funds are
being spent and that they create positive results.

Children and Families Services Programs

728

These programs, while well intentioned, are better suited to
state and local governments.

Head Start program

610

This is outside the role of the federal government. Just as
important, the program has little to no impact delivering results
for low-income kindergardeners.

Health Department

 National Institute on Aging

525

25% increase over previous year’s funding is excessive.

CDC: Buildings and Facilities

500

CDC funding has already grown significantly over the past 15
years. Before new facilities are funded, overall funding levels
should be reviewed.

CDC: Injury Prevention and Control

363

CDC funding has already grown significantly over the past 15
years. Before new facilities are funded, overall funding levels
should be reviewed.

National Cancer Institute

275

Funds research into cancer treatments currently unavailable in
the US. Could be handled by private organizations.

LIHEAP Formula Grants

250

LIHEAP, while well intentioned, is plagued with fraud and
abuse. These failures should be addressed before expanding the
program.

National Heart, Lung, and Blood Institute

177

Duplicative research funding for diseases.

Public Health and Social Services Emergency
Fund (emergency funding)

162

Duplicative public health services.

NIH Office of the Director

138

Unnecessary funds that should be rerouted to other necessary
programs or the national debt.

CDC: Chronic Disease Prevention and Health
Promotion

138

Duplicative public health services.

Community Health Centers

135

Duplicative services that should be left to states, localities, or
private organizations.

Rural Health programs

135

Services that should be left to states and local governments, or
private organizations.

Aging and Disability Services Grants to States

132

Services that should be left to states and local governments, or
private organizations.

National Institute of Mental Health

110

Duplicative programs for mental health

National Institute of Diabetes and Digestive and
Kidney Diseases

100

Duplicative public health programs.

SAMHSA: Certified Community Behavioral
Health Clinics

100

New funding for services better left to the states or localities.

Interdisciplinary Community Linkages

62

Expands duplicative health services.

CDC: Global Health program

54

Expands duplicative public health services.

State and local law enforcement assistance

419

Combating ordinary crimes is not federal responsibility, this
rests with state and local governments - subsidizing local police
departments wrests policy decisions from them.

FBI salaries and expenses

263

FBI funding has seen huge spending increases over the last 25
years.

DEA salaries and expenses

124

The DEA should reprioritize existing funds to meet their
budget needs.

Salaries and expenses, US Attorneys

102

The US Attorneys’ Office should reprioritize existing funds to
meet their budget needs.

US Marshals salaries and expenses

62

The US Marshal’s Office should reprioritize existing funds to
meet their budget needs.

Community Oriented Policing Services

54

The COPS program has a poor performance record in addition
to funding state and local government functions.

148

Job training programs are not a core function of the federal
government. Additionally, these programs have a poor track
record delivering results to would-be workers and employers
alike.

Justice Department

Labor Department
Training and Employment Services Grants to
States

 Training and Employment Services (emergency
funding)

100

Job training programs are not a core function of the federal
government. Additionally, these programs have a poor track
record delivering results to would-be workers and employers
alike. Adding yet another job training program is unnecessary.

NASA: Exploration

466

Greater use of private sector capabilities is preferable to
increased taxpayer funding

NASA: Science

457

NASA Science already has significant funding.

National Science Foundation

295

NSF should prioritize existing funding to meet its needs.

NASA: Construction and Environmental
Compliance and Restoration

202

NASA should prioritize existing funding to meet its needs.

NASA: Space Technology

74

Projects better funded by private sector.

International disaster assistance

2,198

Disasters at home should receive priority, this request is five
times larger than last year.

Foreign Military Financing Program

886

U.S. taxpayers should not be forced to fund the purchases of
weapons by foreign governments.

Economic Support Fund

802

While well-meaning, these programs don’t deliver results and
have been cut in past budget deals.

Assistance for Europe, Eurasia and Central Asia

459

There is little evidence these kinds of aid programs are helpful.

Contributions to international organizations,
current year assessment

108

These commitments should be rolled back, rather than
expanded.

Federal-Aid Highways, grants to states (General
Fund)

2,525

This new spending for roads and bridges is not paid for, and
since the Interstate Highway System is complete, is not for
projects of true national priority.

Tenant-Based Rental Assistance Renewals

1,723

These programs, while well-intentioned, are better suited to
state and local governments. Rental assistance programs could
benefit from reforms to tenant rent, work, and eligibility.

National Infrastructure Investments

1,000

These programs, including wasteful TIGER grants and
programs, do not improve mobility, safety, or congestion on
national roads and bridges. New infrastructure spending is not
paid for.

Science-Related Agencies and Programs

State Department

Transportation / HUD Departments

FAA Airport Discretionary Grants (General Fund) 1,000

The federal government should not provide new discretionary
spending for airports.

FTA Transit Infrastructure Grants

834

Subsidizing transit for local governments is not a role for the
federal government. These programs should be abolished and
savings redirected to the maintaining the National Highway
System.

Public Housing Capital Fund

809

Public housing, not a role for the federal government, is
damaging to the social fabric of residents and the communities
that surround them.

Project-Based Rental Assistance

699

These programs, while well-intentioned, are better suited to
state and local governments. Rental assistance programs could
benefit from reforms to tenant rent, work, and eligibility.

HOME Investment Partnerships Program

412

This program is not a key responsibility for the federal
government.

FAA Facilities and Equipment (Airport & Airway
Trust Fund)

395

This perpetuates the systemic problems with the FAA.

Sec. 811 vouchers, incremental and renewals

385

These programs, while well-intentioned, are not a core function
of the federal government and better suited to state and local
governments.

 Northeast Corridor Grants - Amtrak

322

Amtrak subsidies should be ended and/or Amtrak should be
privatized.

Federal Railroad Administration: National
Network grants to the National Railroad
Passenger Corporation (Amtrak)

50

Amtrak subsidies should be ended and/or Amtrak should
be privatized. Recommendation excludes funding for safety
improvements of $75m

Community Development Block Grant

305

CDBG is not a core function of the federal government, it has
not demonstrated a positive impact on communities, and is not
well targeted to the neediest communities.

Capital Investment Grants (New Starts)

232

This program diverts gas tax dollars from the National Highway
System. It should be abolished and gas tax dollars redirected to
the highway trust fund. Funding local transit programs is not a
core function of the federal government.

FRA Federal State Partnership for State of Good
Repair

225

Grants funds that include Amtrak’s Northeast Corridor, and
not a priority of the federal government.

Public Housing Operating Fund

150

These programs, while well-intentioned, are better suited to
state and local governments. Rental assistance programs could
benefit from reforms to tenant rent, work, and eligibility.

Homeless Assistance Grants

130

These programs, while well-intentioned, are not a core function
of the federal government and better suited to state and local
governments.

Native American Housing block grants

101

Rather than continually subsidizing reservations, Congress
should work with tribes to improve economic freedoms and
remove any barriers to opportunity.

State Homeland Security Grant Program

40

This should be a state and local level issue. The OIG has
identified concerns with insufficient oversight of funds spent on
grants and lack of data on effectiveness.

Urban Area Security Initiative

25

This should be a state and local level issue. Additionally, while
the stated purpose of these grants is terrorism prevention, only
25 percent of the grant money is required to be used for law
enforcement terrorism prevention activities.

Assistance to Firefighter Grants

5

Unnecessary spending, should be a state and local issue. The
DHS OIG found widespread lack of compliance with the grant
guidance and concluded that FEMA lacked a commitment to
detect and prevent fraud, waste and abuse.

Flood Hazard Mapping and Risk Analysis
Program

85

The national flood insurance program has been consistently
identified as needing major reforms and GAO identified it as a
“high risk” program. Instead of encouraging fewer individuals
to live in hazardous areas, FEMA has dramatically increased
areas designated as flood hazard areas and by providing
subsidized flood insurance, incentivized the number of
Americans willing to live in these areas.

Floodplain Management and Mapping

22

Not requested in the President’s budget, dramatically above
FY17 levels. The flood mapping program has been identified
by the OIG as being poorly managed by FEMA, lacking in
oversight and having poor financial management.

Coast Guard - National Security Cutter

986

Not requested in the President’s budget and above FY17 levels.

Total (Non Defense Discretionary)

35,239

Department of Homeland Security

Defense Spending: Rescission Recommendations
Overseas Contingency Operations (OCO)

 OCO: Ukraine Security Assistance Initiative
(GWOT) (Sec.9013)

50

No clear justification for increase in spending towards building
capabilities that Ukrainians already possess, such as building
and repairing weapons since they remain an arms exporter.

MQ-1 Grey Eagle UAV

107

Not requested by the President’s Budget. 9 additional aircraft
on top of the eleven originally requested by the Army.

AH-64 APACHE BLOCK 1118 NEW BUILD

577

Not requested by the President’s Budget. 17 new aircraft on top
of the 63 originally requested. Even the Army only asked for 9
additional aircraft on their unfunded wishlist.

CH-47 HELICOPTER

240

8 additional aircraft, above the 6 aircraft in the President’s
Budget request.

RQ-7 UAV MODS

110

Additional unmanned aerial systems above the President’s
request.

Title III: Procurement
Aircraft Procurement, Army

Procurement of Weapons and Tracked Combat Vehicles, Army
BRADLEY PROGRAM

283

Not requested in President’s budget.

STRYKER UPGRADE

348

Not requested in President’s budget.

ABRAMS UPGRADE PROGRAM

375

Not requested in President’s budget. 29 additional tanks on top
of 56 originally requested.

INDUSTRIAL PREPAREDNESS

4

Not requested in President’s budget.

154

More than double of what was requested in the President’s
Budget

F/A-18E/F (FIGHTER) HORNET (MVP)

626

Significantly increase above the President’s budget request. Adds
10 aircraft on top of the 14 originally requested.

F-35C JOINT STRIKE FIGHTER CV

772

More than double of what was requested in the President’s
Budget, adds 4 aircraft for the Navy, 2 for the Marines.

F-35B JSF STOVL (Marines)

617

Above the President’s request, adds 4 aircraft

CH-53K (HEAVY LIFT)

25

Above the President’s request, adds 2 aircraft

V-22 (MEDIUM LIFT)

676

Above the President’s request. Only six originally requested.
Adds 4 aircraft for the Navy, 4 aircraft for the Marine Corps

UH-1Y/AH-1Z

221

Above the President’s request. Adds 7 aircraft.

P-8A POSEIDON

501

Above the President’s request. Adds 3 aircraft on top of the 7
originally requested.

C-40

207

Not requested in President’s budget. 2 aircraft for the Marine
Corps.

MQ-8 UAV

84

Doubles President’s request. Adds 6 aircraft.

450

Increase in 1 ship not requested in the President’s Budget.

F-35A

1,258

Includes 10 additional aircraft not requested by the President’s
Budget. This is generally seen as wasteful spending.

KC-46

510

3 additional aircraft not requested by the President’s Budget on
top of the 15 originally requested.

600

Generally identified as wasteful and outdated. Gives full
funding for WGS 11 and 12.

Other Procurement, Army
FAMILY OF MEDIUM TACTICAL VEH
(FMTV)
Aircraft Procurement, Navy

Shipbuilding and Conversion, Navy
LITTORAL COMBAT SHIP
Aircraft Procurement, Air Force

Space Procurement, Air Force
WIDEBAND GAPFILLER SATELLITES

Title IV: Research, Development, Test and Evaluation
Research, Development, Test and Evaluation, Army

 DEFENSE RESEARCH SCIENCES

10

Above the President’s budget request, unclear how it
contributes to readiness

UNIVERSITY RESEARCH INITIATIVES

10

Above the President’s budget request, unclear how it
contributes to readiness.

UNIVERSITY AND INDUSTRY RESEARCH
CENTERS

20

Above the President’s budget request, unclear how it
contributes to readiness.

MATERIALS TECHNOLOGY

52

Above the President’s budget request. Goes towards pilot
program, programmatic increase, and other research unrelated
to readiness.

ADVANCED WEAPONS TECHNOLOGY

20

Above the President’s budget request, unclear how it
contributes to readiness.

WEAPONS AND MUNITIONS
TECHNOLOGY

204

Above the President’s budget request, unclear how it
contributes to readiness.

MEDICAL ADVANCED TECHNOLOGY

39

Above the President’s budget request, unclear how it
contributes to readiness.

WEAPONS AND MUNITIONS ADVANCED
TECHNOLOGY

68

Significantly above the President’s budget request.

HIGH PERFORMANCE COMPUTING
MODERNIZATION PROGRAM

39

Significantly above the President’s budget request.

ENVIRONMENTAL QUALITY
TECHNOLOGY DEMONSTRATIONS

19

Significantly above the President’s budget request.

Research, Development, Test and Evaluation, Navy
UNIVERSITY RESEARCH INITIATIVES

26

Programmatic increases for research above President’s budget
request

FORCE PROTECTION APPLIED RESEARCH

62

Above the President’s budget request. Questionable connection
to readiness.

WARFIGHTER PROTECTION ADVANCED
TECHNOLOGY

40

Above the President’s budget request. For research with no
connection to readiness.

NAVY ENERGY PROGRAM

14

Above the President’s budget request. For renewable energy
research and questionable connection to readiness.

MANAGEMENT, TECHNICAL &
INTERNATIONAL SUPPORT

45

Above the President’s budget request with questionable
connection to readiness.

Research, Development, Test and Evaluation, Air Force
UNIVERSITY RESEARCH INITIATIVES

15

Above the President’s budget request, questionable connection
to readiness.

HUMAN EFFECTIVENESS APPLIED
RESEARCH

25

Above the President’s budget request, questionable connection
to readiness.

TECH TRANSITION PROGRAM

6

Above the President’s budget request, research for alternative
energy has questionable connection to readiness.

EELV (SPACE)

100

Above President’s Budget request. No connection to readiness.

EUAV

40

Not in President’s Budget request. No connection to readiness.

Research, Development, Test and Evaluation, Defense-Wide
NATIONAL DEFENSE EDUCATION
PROGRAM

29

Above the President’s request. No connection to readiness.

HISTORICALLY BLACK COLLEGES &
UNIVERSITIES (HBCU)

14

Above the President’s request. No connection to readiness.

GENERAL SUPPORT TO USD
(INTELLIGENCE)

100

Significantly above the President’s request.

INFORMATION SYSTEMS SECURITY
PROGRAM

10

Double the President’s request.

Title II: Operation and Maintenance

 Overseas Humanitarian, Disaster, and Civic Aid

7

Total (Defense)

9,807

Grand Total (Defense and Non-Defense)

$45,046

Specifically, $10 million is provided as a program increase for
the Humanitarian Mine Action Program, of which $7 million
is for activities in Southeast Asia, and $15 million is provided as
a program increase for Humanitarian Assistance, South China
Sea regional engagement. These commitments need to be rolled
back, rather than expanded. No connection to readiness.

Alison Winters

Mary Kate Hopkins

Michael Lambert

Juliana Heerschap

Senior Policy Fellow, AFP
Policy Analyst, AFP

Policy Manager, AFP
Policy Fellow, AFP