Trump Administration’s Historic Rescission Package Includes Rep. Russell’s Legislation
Washington, DC – On May 8, President Trump exercised his authority under the Congressional Budget and Impoundment Control Act of 1974 (ICA) and sent a special message to Congress requesting a rescission of more than $15 billion in previously appropriated funding. Of the more than $15 billion in proposed rescissions, $4.3 billion would be rescinded from the Advanced Technology Vehicles Manufacturing Loan Program (ATVM). This is the same program that Rep. Steve Russell (OK-5) has been working to eliminate.
Rep. Russell introduced H.R. 1623, a bill to repeal the ATVM, in March 2017. The ATVM is a loan program created by the Energy Independence and Security Act of 2007 to assist car manufacturers in producing more fuel-efficient passenger vehicles. The last loan the program issued was in 2011, and only five loans have been issued since the program’s inception in 2007. In a 2013 Government Accountability Office (GAO) report, it was noted that participation in the ATVM program projects higher costs than benefits for participating car manufacturers. Rep. Russell also introduced H.R. 1623 in the 114th Congress, and President Trump’s proposed budget for 2017 suggested eliminating the program.
Rep. Russell commented on the President’s historic rescissions package, stating “Given that our nation is more than $21 trillion in debt, I welcome President Trump’s proposed $15 billion rescissions package and will support its passage in Congress. I’m particularly glad that the ATVM is included in this package. I’ve been fighting to cut this wasteful program since 2016, when I first introduced legislation that would repeal the ATVM. Here we have funds that haven’t been touched for years, yet billions remain tied up for this program, which GAO reports isn’t even helpful for the few participants that have used it. We must end the ATVM and return its idle funding to the Treasury.”
Since the ICA became law in 1974, both Republican and Democratic Presidents have proposed nearly $76 billion in rescissions. President Trump’s package is the largest in history, and targets funding that in some cases has been sitting unused in agency coffers for years.