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White House and House GOP Consider Plan to Rescind Funding from FY18 Omnibus

President Trump and members of the House GOP are considering a budget maneuver to rescind spending for non-defense discretionary spending from the $1.3 trillion FY18 omnibus package that Congress passed last month with bipartisan support (see Memo, 3/26). The omnibus spending package included a 10% increase for HUD programs. The move to claw back funds comes after the president and House Republicans expressed their opposition to the size of the package. The White House would need to draft a plan indicating the funds to be rescinded and send it to Congress for approval by a simple majority in both the House and Senate.

Senate Republicans have expressed skepticism about the plan.  When considering the bill, Senate Democrats could force Republicans to take tough votes on popular federal programs in an election year. Lawmakers are also worried that rescinding funding from the omnibus, which took months to negotiate, would undermine the ability of the parties to reach future bipartisan spending deals.