The Rescissions Act of 2025, officially known as H.R. 4, is a new law that cancels $9.4 billion in unspent government funds originally set aside for foreign aid and related programs. By cutting these funds, the government aims to redirect resources toward domestic priorities and reduce unnecessary spending.
What This Bill Does
The Rescissions Act of 2025 takes back $9.4 billion in funds that were previously set aside but not yet spent on various international programs. This includes money for foreign aid, global health initiatives, and contributions to international organizations. Some of the biggest cuts are $800 million from Migration and Refugee Assistance and $1.65 billion from the Economic Support Fund, although aid to Jordan is protected.
The bill also reduces funding for several U.S. agencies and independent organizations. For example, $125 million is cut from USAID's operating expenses, and the Corporation for Public Broadcasting loses some of its funding for the fiscal year 2026. Other affected areas include peacekeeping efforts, disaster assistance, and development aid programs.
These changes mean that the government is canceling funds that were allocated but not yet used. The goal is to save money and focus on domestic issues by reducing the amount of money spent on international programs.
Why It Matters
This bill has significant implications for both the U.S. and the global community. By cutting funds for foreign aid and international programs, the U.S. government aims to prioritize domestic needs and reduce the national deficit. This could mean more resources for infrastructure projects or tax relief for Americans.
However, the cuts could also have negative effects. For example, reducing aid for refugees and migrants might worsen humanitarian crises in regions like the Middle East or Africa. Additionally, cuts to global health programs could impact efforts to fight diseases, potentially affecting global health security.
Key Facts
- Cost/Budget Impact: Saves $9.4 billion by canceling unspent funds.
- Timeline for Implementation: The bill was signed into law on July 24, 2025, and the rescissions take effect immediately.
- Number of People Affected: Impacts foreign aid recipients, U.S. agencies, and independent entities.
- Key Dates: Introduced in early 2025, passed the House on June 12, 2025, and enacted as Public Law 119-28 on July 24, 2025.
- Other Important Details: Passed the House by a narrow 214-212 vote and survived a 51-50 tiebreaker in the Senate.
- Exemptions: Protects funding for certain health programs like HIV/AIDS, while cutting others like family planning.
- Historical Context: Builds on past efforts to reduce foreign aid amid debates on prioritizing domestic needs.
Arguments in Support
- Reduces Wasteful Spending: Supporters argue that canceling unspent funds eliminates waste and allows the government to redirect resources to more pressing domestic needs.
- Promotes Fiscal Responsibility: The bill is seen as a step toward reducing the national deficit by cutting unnecessary spending.
- Focuses on U.S. Priorities: By reducing foreign aid, the bill prioritizes American taxpayers and domestic issues over international programs.
- Targets Low-Priority Areas: The bill exempts key health programs while cutting funding for areas considered less critical, such as family planning and public broadcasting.
- Demonstrates Oversight: The bill reflects congressional oversight and the executive branch's commitment to fiscal restraint.
Arguments in Opposition
- Harms Global Health Programs: Critics argue that cuts to global health funding could worsen disease outbreaks and impact international health efforts.
- Risks to Refugee Assistance: Reducing funds for refugee and migration assistance could hinder support for displaced persons and exacerbate humanitarian crises.
- Undermines Economic Stability: Cuts to economic support and development aid could destabilize allies and increase long-term security costs for the U.S.
- Impacts on Peacekeeping and Crisis Response: Eliminating funds for peacekeeping and disaster assistance could limit the U.S.'s ability to respond to international crises.
- Weakens Public and Independent Institutions: Rescissions from public broadcasting and peacebuilding organizations could affect media access and conflict prevention efforts.
