Davis Statement on Rescissions Bill
U.S. Rep. Rodney Davis (R-Ill.) today released this statement after the introduction of H.R. 3, Spending Cuts to Expired and Unnecessary Programs Act. Davis is a cosponsor of H.R. 3.
“It’s just common sense that we rescind billions of taxpayer dollars that have gone years without being spent and in many cases can no longer be used because the authorizing authority has expired,” said Davis. “An example of this is $523 million in energy loan guarantees program authorized as part of President Obama’s 800-billion-dollar stimulus bill that were not used and lapsed seven years ago. Most taxpayers wouldn’t let their money waste away in a checking account for seven years, they would transfer it to savings or use it to pay down debt. A federal government that is $21 trillion in debt should be no different. We have to continue to curb wasteful spending and make adjustments to programs that receive mandatory spending which continues to drive our debt.”
What H.R. 3 DOES do
H.R. 3 includes 38 rescissions totaling $15.4 billion in funds that have gone unused for years, and, in many cases, expired. The following are just a few examples of wasted taxpayer dollars that are rescinded in H.R. 3:
Advanced Technology Vehicles Manufacturing Loan Program (Energy): A $4.3 billion rescission of funds that have been untouched since 2011. Since ATVM’s inception in 2007, only five loans have been closed under this authority.
Title 17 Innovative Technology Loan Guarantee Program (Energy): A rescission of $523 million in unobligated balances dating back to the stimulus that were provided for energy loan guarantees. The authority to make new guarantees lapsed in 2011.
Center for Medicare and Medicaid Innovation (HHS): A rescission of $800 million that is in excess of the funds needed by the Innovation Center in FYs 2018 and 2019. In 2020, CMMI will receive a new mandatory appropriation of $10 billion.
Railroad Unemployment Insurance Extended Benefits (RRB): A rescission of $133 million in unobligated balances for a program that expired in 2012.
Animal and Plant Health Inspection Service (Department of Agriculture): A rescission of $148 million, including funds for responding to disease outbreaks that are now resolved (e.g., the highly pathogenic avian influenza outbreak in 2015).
More information about H.R. 3 can be found here.
What H.R. 3 does NOT do
Rescind any funds obligated provided in the omnibus bill for FY 2018 appropriations.
Children’s Health Insurance Program (CHIP)
Impact any funds currently going to states for the Children’s Health Insurance Program (CHIP). The Congressional Budget Office (CBO) has confirmed that this rescissions bill will not impact individuals receiving CHIP. This is why it will not impact these children:
H.R. 3 only rescinds CHIP funding that expired in 2017 and part of the contingency fund that the Centers for Medicare and Medicaid Services (CMS) has stated is not needed by any state.
$500 million in emergency funding still exists if a state were to require it. Only $300 million in contingency funds have been used in the 20 years that the program has existed.
This year, Congress passed a six-year extension of CHIP, which was the longest, most generous extension in history.
More information on CHIP can be found here.
Ebola Outbreak in 2015
After the Ebola epidemic, the United States has been investing $1 billion over five years to combat this epidemic. These efforts helped the World Health Organization (WHO) to declare the end of the Ebola epidemic in 2016. With the funds in the omnibus bill to help prevent and respond to disease outbreaks and the USAID’s Emergency Reserve Fund, we will continue to fight and contain any future Ebola or infectious disease outbreak.