Automatic federal spending cuts trigger whenever Congress spends more than 1% growth

What it does

This bill automatically cuts nonsecurity discretionary federal spending by a percentage equal to how much that year's total appropriations exceeded the prior year by more than 1%. The cut applies across all non-defense programs starting in fiscal 2026, triggering whenever Congress appropriates more than 1% growth year-over-year. It is a mechanical, across-the-board rescission with no exemptions or targeting.

Why we flagged it

The bill establishes a formulaic, self-executing budget cut tied to year-over-year spending growth thresholds. It is not a one-time appropriation or targeted reform; it is a permanent structural constraint on federal discretionary spending outside defense.

What the text implies

• The 1% growth threshold is extremely restrictive: it will trigger rescissions in most years, since federal spending typically grows faster than 1% due to inflation, population growth, and wage increases. This makes the bill a de facto spending cap, not a one-time correction.
• The pro rata rescission applies uniformly across all nonsecurity programs, meaning high-priority and low-priority spending are cut equally. A program serving vulnerable populations faces the same percentage cut as administrative overhead.
• The bill contains no appropriations process safeguard: rescissions take effect automatically 'the day after' appropriations are made available, bypassing normal congressional review or amendment.
• Agencies cannot prioritize which programs to cut; the rescission is mechanical and proportional. This may force cuts to legally mandated programs (e.g., Medicare, Medicaid, Social Security if classified as discretionary) or create operational chaos.
• The bill does not define 'excess growth percent' with reference to inflation or economic conditions, so a 2% nominal spending increase in a high-inflation year triggers the same cut as a 2% increase in a low-inflation year.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary citizens face automatic, indiscriminate cuts to federal services and programs they depend on—education, healthcare, environmental protection, infrastructure, research—whenever Congress appropriates more than 1% growth. The mechanism is blind to program value or public need; it cuts everything proportionally, harming vulnerable populations and reducing public goods.

Named in the bill

House Committee on Appropriations, Congressional Budget and Impoundment Control Act of 1974, Balanced Budget and Emergency Deficit Control Act of 1985, Federal Government (all nonsecurity discretionary agencies)

Where it stands

• Jan 3, 2025 — Introduced · Congress.gov: “Introduced in House”
• Jan 3, 2025 — Referred to House Committee on Appropriations · Congress.gov: “Referred to the House Committee on Appropriations”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 2 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $690,000 in lobbying spend. A filing names 69 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Claudia Tenney, the sponsor, reported $1,227,908 in PAC receipts in the 2026 cycle.

• National Treasury Employees Union — $690,000 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.