OMB violated Congressional Budget and Impoundment Control Act with $1 billion rescission

The Government Accountability Office found OMB’s rescission of nearly $1 billion of approved spending on September 26, violated the Congressional Budget and Impoundment Control Act of 1974. The decision not only was the Trump administration’s 12th violation of the ICA since taking office in January 2025, but it also was the first ICA decision in a year from GAO. The latest ruling relies on previous conclusions that the OMB can’t use the Impoundment Control Act process to withhold funds past their date of expiration, in this case September 30. GAO says ICA provides that amounts proposed for rescission must be made available for obligation unless Congress completes action on a bill rescinding them. GAO says OMB’s actions subvert both the constitutional process and Congress’s power of the purse.

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