OMB director defends rescissions and apportionment practices as members accuse agency of impoundment

WASHINGTON — Office of Management and Budget Director Russ Vogt told the House Appropriations Subcommittee on Financial Services and General Government that OMB is exercising statutory tools such as rescissions and deferrals to review federal spending, while members of the committee said those actions amount to unlawful impoundment.

"We are under programmatic review of federal dollars across the state," Vogt said when pressed about agency decisions to hold or reclaim funds. He told the panel that OMB uses tools under what he called the ICA — citing rescissions, deferrals and pocket rescissions — as part of managing appropriated funds and executive-branch priorities.

Ranking Member Rosa DeLauro sharply disputed that account. "You are unlawfully impounding or stealing congressionally appropriated funds," she told Vogt, citing court rulings and the Constitutional provision that places the power of the purse with Congress. DeLauro referenced judicial decisions — including the Supreme Court's Train v. City of New York — and said courts have rebuked executive impoundment in recent litigation.

The exchange came as Vogt described a rescission package the administration transmitted to Capitol Hill: a $9.4 billion package of proposed rescissions that the White House said targets programs the administration considers wasteful or not aligned with its priorities. Vogt told members the package was drafted with committee staff and that the administration will submit additional packages if the first is well received in Congress.

Several members pressed Vogt about apportionment transparency. Representative DeLauro reminded the director that Congress enacted apportionment-visibility reforms after long debate and questioned why the public apportionment website had been taken down. Vogt replied that the administration had "constitutional concerns" about the statutory requirement and characterized apportionments as "predecisional" and part of executive branch management.

Committee members on both sides warned of consequences. Democrats said that blocking or delaying apportionments and other post-appropriation controls deprives Congress and watchdogs of information; Republicans emphasized the need to restrain spending and recover funds they view as misallocated.

The subcommittee did not hold a vote; the hearing was for oversight and questioning. Vogt said OMB would continue to work with appropriation committees and that any rescissions would be considered by Congress.

What happens next: the House and Senate will consider the administration's rescission package; members also signaled they may seek additional documents and depositions in follow-up oversight. The legal argument over the executive branch's latitude to withhold or rescind spending is likely to remain active in court and on the Hill.