(1) GOP pushing full-year CR to avoid Friday midnight shutdown; (2) There is a legal and sensible way to root out waste and fraud—rescissions; (3) Trump tariffs are a power play, not an economic strategy; (4) Trump’s Budget: CBO analysis confirms House budget cutting instructions would hit Medicaid; (5) OMB, DOGE Continue Worker Firings, Illegal Impoundment of Funds; (6) Continuing Down the Road to Autocracy and How You Can Fight Back.
Trillions writer Charles S. Konigsberg in the news this week: MarketWatch
1. GOP pushing full-year continuing resolution to avoid Friday midnight shutdown.
When fiscal year 2025 began last October 1, Congress temporarily continued 2024 funding levels through December 20, 2024, and then again through this Friday, March 14, 2025. These temporary funding measures are called continuing resolutions (“CR”) and were necessary because Congress has not completed action on the 12 regular appropriation bills.
Without passage of another temporary continuing resolution this week, the government will shut down at Friday midnight. (Background--The longest government shutdown in U.S. history—35 days—occurred during the first Trump term.)
Congressional Republicans this weekend released a continuing resolution that would last through September 30, and give the President expansive authority on how to spend the funds. Politico reports that the measure “would increase defense spending by about $6 billion over current budgets, while non-defense funding would fall by a total of about $13 billion… (and) fulfills a Trump administration request for additional ICE funding to help carry out deportations. The stopgap also maintains a freeze on more than $20 billion in special IRS funding.”
Democratic leaders on the House and Senate Appropriations Committees strongly oppose a full-year CR and instead want to extend temporary funding for a few more weeks to enable the appropriations committees to complete work on the 12 appropriations bills which incorporate detailed congressional decisions on funding levels and priorities.
Democrats have highlighted numerous concerns about the consequences of the Trump-Johnson full-year CR: Sen Dem Fact Sheet | Hse Dem Fact Sheet.
Both parties want to avoid being blamed for a shutdown, but some Democrats see this as an opportunity to negotiate for guardrails around Musk’s continuing violation of Congress’ constitutional authority over appropriations.
The outcome will depend on whether Speaker Mike Johnson, R-LA, can pass the CR without any Democratic votes. Even then, Senate Majority Leader John Thune, R-SD, will need the support of 8 Democratic Senators to reach the Senate’s 60-vote threshold for ending debate and passing the measure.
The GOP has 53 votes in the Senate but Sen. Rand Paul, R-KY, will oppose the CR, so 8 Democrats would have to join 52 Republicans to pass the measure. Thus far, only Sen. John Fetterman, D-PA, has indicated he will support the CR.
Recommended further reading: 3 groups to watch in the final push to fund the government.
For daily updates on the shutdown situation, visit our website Appropriations.com. Note: The Trump Administration has deleted from the Office of Management and Budget website federal agency contingency plans for operations during a shutdown. That information is archived here: https://bidenwhitehouse.archives.gov/omb/information-for-agencies/agency-contingency-plans/, but it is unclear how the Trump Administration would handle a shutdown.
2. There is a legal, constitutional and sensible way to root out waste—rescissions.
There is a legal and sensible way to root out waste and fraud—rescissions.
Presidents Ford, Carter, Reagan, Bush-41, and Clinton actively used it.
It’s called the rescission process and was established by the Impoundment Control Act (ICA) of 1974.
The ICA was enacted in response to an executive-legislative power struggle that erupted during the Nixon Administration over presidential authority to impound funds appropriated by Congress.
Under the procedures put in place by the ICA, the President may (1) “defer” (delay) using appropriated funds until later in a fiscal year to enable efficient administration of resources, or (2) propose to “rescind” (cancel) an amount of appropriated funds, subject to congressional approval.
A deferral goes into effect immediately, but the President must notify Congress of his actions, and the funds must be released in time to be used before the end of the fiscal year.
A rescission freezes funds for 45 days to allow for congressional consideration of the President’s rationale for proposing the cancellation of funds, but the funds must be released after the 45-day period unless Congress has enacted a rescission bill. Rescission bills can be fast-tracked under special time-limited procedures that prevent a filibuster in the Senate.
In this way, the ICA provides a balance between the President’s responsibility to manage appropriated funds efficiently, and Congress’ constitutional authority over appropriation of public funds—which the Founders considered “the most complete and effectual weapon with which any constitution can arm the immediate representatives of the people.”
From the enactment of the ICA in 1974 until the end of President Clinton’s terms, Presidents proposed rescissions 1,211 times, and Congress enacted the rescissions more than a third of the time.
In 2001, we saw a sea change in the budget process. President Bush-43 and his successors walked away from the “pay-as-you-go” principles of fiscal responsibility and started using the congressional budget process—in particular, the fast-track and filibuster-proof reconciliation process—to enact large tax cuts and spending increases without paying for them. At the same time, they largely stopped using the recission process to root out waste.
Fast forward to today. Rather than using the statutory rescission process to propose cancellations of appropriation items he considers to be wasteful, President Trump is illegally and unconstitutionally freezing congressionally enacted appropriations throughout the federal government with no notice to Congress, no statements of explanation and justification, and no votes on rescission legislation—all of which are clearly required by the ICA.
The result has been utter chaos at agency after agency because the freezing of funds has been done in secret and without any oversight by the committees of Congress with oversight responsibility, and without consulting agency Inspectors General (IGs) and Government Accountability Office (GAO) auditors with deep expertise in identifying waste and fraud. (In fact, one of the Administration’s first actions was to fire IGs at multiple agencies—eliminating the best sources of information about waste and fraud.)
Because of this utter lack of transparency and disregard for the legal requirements of the rescission process, the human impacts of these illegal funding freezes are just beginning to become apparent.
This stunning and unprecedented violation of law, disregard for Congress’ constitutional authority over appropriations, and nihilistic disregard for human consequences have gone unchallenged by many appropriators in both chambers who—in decades past—used to jealously protect their constitutional authority over appropriations.
In the coming days, as negotiations take place on funding the government for the remainder of 2025, we shall see which Representatives and Senators are willing stand up for the Constitution and the rule of law by insisting on adherence to the Impoundment Control Act—or permit enactment of a blank check for the Trump Administration for the remainder of 2025 and a green light for continued chaos.
The author served as counsel at the Senate Budget Committee which oversees the Impoundment Control Act.
3. Trump tariffs are a Power Play, not an economic strategy
We’ll have more on tariffs next week. For now, consider two points:
· Why tariffs are bad policy: from JPMorgan’s Chief Global Strategist David Kelley: “The trouble with tariffs, to be succinct, is that they raise prices, slow economic growth, cut profits, increase unemployment, worsen inequality, diminish productivity and increase global tensions.”
· If tariffs are widely recognized in the business community as bad economics, why is Trump pursuing them? The answer is simple; Trump’s tariffs are not about economic fairness, or immigration, or blocking the supply of fentanyl. They are a power play. With tariffs in place, nations and large corporations have to come to Donald Trump, hat in hand, and plead for relief—which feeds his ego. Moreover, the exemptions he provides are always short in duration, so they have to repeatedly plead for exemptions and relief. We will never know what bargains are being struck and what deals are being made during these pleas for tariff relief.
For daily updates on tariff news, see GovBudget.com/tariffs.
4. Trump’s Budget: CBO analysis confirms House budget cutting instructions would hit Medicaid
While lawmakers are grappling with the impending government shutdown, House and Senate Republican leaders have temporarily side-lined negotiations to iron out differences between the House-passed (H.Con.Res. 14) and Senate-passed (S.Con.Res. 7) budget resolutions. Senate GOP leaders have said a vote on a compromise version will not occur until late March at the earliest.
Background.--The congressional budget resolution is key to the GOP strategy to advance the Trump Administration’s agenda for large tax cuts, Medicaid and other major spending cuts, and immediate spending increases for missile defense, mass deportation funding, and border security. The budget resolution is key to the GOP strategy because it unlocks the “budget reconciliation process” – a fast-track, filibuster-proof legislative vehicle that can pass the Senate with only 50 votes, rather than the 60 votes typically needed to bring debate to an end on controversial measures. (The GOP holds only 53 seats in the Senate.)
Medicaid cuts.--The House-passed budget resolution has received a great deal of attention because, if passed, it would compel the Energy & Commerce Committee—which has jurisdiction over Medicaid, Children’s Health Insurance, and parts of Medicare—to cut $880 billion over 10 years. President Trump has claimed that Medicare and Medicaid will not be touched. However, according to a Congressional Budget Office analysis, requested by Committee Democrats and released last week, if Medicare, Medicaid, and Children’s Health Insurance are protected from the budget axe, the Committee’s remaining spending programs amount to only $135 billion over 10 years—not remotely close to the $880 billion in cuts assigned to the Committee. Consequently, the required budget cuts assigned to the Energy and Commerce Committee by the House Budget Resolution cannot be achieved without cutting Medicaid, or some combination of Medicaid, Medicare, and Children’s Health Insurance. Further recommended reading: Republican Medicaid cuts could shutter rural hospitals, maternity care.
Other key differences between the House and Senate resolutions are whether the tax cuts should be temporary or permanent; whether to use a budget scoring gimmick to hide the $4.5 trillion cost of extending the expiring 2017 tax cuts (as some in the Senate are advocating in order to make room for even more deficit-busting tax cuts); and whether to raise the debt limit in the reconciliation bill to avoid debate on the U.S. debt.
5. OMB, DOGE Continue Worker Firings, Illegal Impoundment of Funds, As Litigation Continues
Russell Vought, White House Budget (OMB) Director, and Elon Musk, de facto director of the White House government efficiency or “DOGE” office, are continuing to advance federal firings, cancellation of grants, contracts, and entire programs, and shutter entire agencies, in violation of the Impoundment Control Act (“Act”) which requires passage of a rescission law before any congressionally appropriated funds may be withheld.
The following are key developments including key court actions:
· Deep personnel cuts at Health and Human Services: Most of the 80,000 federal workers responsible for administering Medicare and Medicaid, researching diseases, responding to pandemics, and inspecting food and drugs were emailed an offer over the weekend to leave their job for a $25,000 payment. Read more.
· Last week’s developments on mass firings of federal employees: Centers for Disease Control; Medicare & Medicaid; Food and Drug Administration; National Institutes of Health; NOAA/National Weather Service; Social Security Administration; and Veterans Affairs. More on the thousands of veterans being fired across government. For daily updates, see govbudget.com/federal-workers/.
· A DOGE attempt to use U.S. marshals to shut down an agency, was blocked by a federal judge last week.
· Trump isn’t really interested in eliminating waste and fraud. Read about the firing of the Inspectors General.
· Key court actions last week impacting federal spending, workers and programs, and DOGE access to private data (for full details on all litigation, link to the Just Security website; for a good summary see Reuters): Federal Judge, RI, temporarily barred OMB’s freezing of federal funds and disbursement of funds to 22 states; Catholic Charities filed suit seeking to bar the freezing of funds for refugee resettlement; Federal Judge, MA, issued a preliminary injunction barring administration’s cap on National Institutes of Health research funding; Federal Judge, DC, ruled the administration must make USAID money available to plaintiffs; and Suit was filed in Federal Court by 20 states seeking to bar large scale firings as violations of the Administrative Procedure Act.
6. The Road to Autocracy—What Has Happened So Far, and How You Can Respond
President Trump and his congressional enablers continue down the dangerous road to dictatorship:
· Launching an all-out assault on freedom of the press (read this important article);
· Opponents of Trump are going silent, fearing retribution;
· OMB and DOGE continue to hold back appropriated funds in violation of the Impoundment Control Act and Congress’ constitutional authority over appropriations;
· Backing away from NATO treaty obligations established by a Senate-ratified Treaty;
· Shutting down entire agencies—USAID and CFPB—established in law by Act of Congress;
· The Vice President suggesting court orders can be ignored; and
· Trump repeatedly signaling an intention to run for a third term in violation of the plain and clear language of the 22d amendment.
Here are a few concrete ways for you to respond:
· Support the Associated Press and Reuters in their fight to preserve press freedom. Thomas Jefferson wrote in 1786 that “Our liberty depends on the freedom of the press, and that cannot be limited without being lost.”
· Gift subscriptions to friends and family: The NYTimes and the Washington Post provide invaluable day-to-day, in-depth reporting on Administration moves to expand presidential power. The Wall Street Journal is providing critical reporting on the enormous risks of Trump’s tariff policies to all Americans. Politico.com and Bloomberg.com provide in-depth coverage of the White House and Congress. Your support of these publications is an essential check on the 24/7 barrage of misleading social media pushed out from the WH communications office.
· Contribute to the Just Security litigation tracker, an invaluable nonprofit project at NYU Law School.
· If you have a disabled family member and are concerned about Medicaid cuts, join with other families at DisabilityVoicesUnited.org. Your author, Charles Konigsberg, will be speaking to a DVU online event Wednesday, March 13, 3pm EDT at: https://us02web.zoom.us/meeting/register/xU4DES7uQMS857N7FjZCCQ.
· Support a challenger to your current Member of Congress or Senator, if they have failed to speak out against Donald Trump’s blatantly illegal cancellation of appropriated funds and dismantling of agencies; or consider running yourself.
· Each week, this column endeavors to provide you with an efficient way to stay on top of key developments. Please support the continuation of this effort by switching to a paid subscription if you are able.
· If you are a member of a group or trade association looking for a speaker on current developments, contact us.
About the author: Charles S. Konigsberg, J.D., served as Assistant Director at the White House Office of Management and Budget for three successive Budget Directors; General Counsel at the U.S. Senate Finance Committee; Minority Chief Counsel at the U.S. Senate Rules Committee; Staff Attorney at the U.S. Senate Budget Committee; Director of Congressional Affairs at CFPB and CNCS; and Staff Director of a national bipartisan budget task force. He is an Independent, having served Democratic and Republican Administrations and Senators.
He is author of the book, Trillions: A Primer on Federal Spending, Taxes, the U.S. Debt Ceiling, and Fiscal Law. (Contact the author for the 2024-25 edition. The 2025-26 edition will be published by Amazon.com after release of the Trump FY 2026 budget this spring.)
He is also Publisher of Appropriations.com which tracks appropriation bills; and GovBudget.com which tracks major federal developments, by subject area, each day.
Speaking engagements and press interviews can be scheduled by calling: (202) 818-8578. Email comments, suggestions, and questions to: ckonigsberg@capitolpublicpolicy.com.