New 'DOGE Act' Triggers Spending Cuts if Budget Grows Over 1%: Non-Security Programs Face Automatic Rescissions Starting 2026

The "Implementing Decreases in Overall Government Expenditures Act," or "Implementing DOGE Act," sets up automatic cuts to certain government spending if the total federal budget increases by more than 1% year-over-year. It kicks in starting fiscal year 2026, and here's the core idea: If Congress spends more than 1% above the previous year's total, a slice of non-security discretionary funding gets automatically rescinded (meaning canceled).

Budget Growth Limits

The bill's main goal is to keep a tight leash on government spending. It does this by targeting "non-security discretionary appropriations." That's basically the money Congress decides on each year for things other than defense and essential programs like Social Security and Medicare. Think: funding for national parks, scientific research, housing assistance, or job training programs. If the total amount appropriated for all areas (including security) grows by more than 1% compared to the prior year, the excess growth percentage triggers an equal cut specifically to this non-security discretionary pot.

For example, if total appropriations rise by 2.5% in fiscal year 2026, the "excess growth percent" is 1.5% (the amount over the 1% limit). This would trigger a 1.5% rescission (cut) applied to the non-security discretionary funds, effective the day after all regular appropriation acts are available through September 30 of that fiscal year (Section 2). The law defines "budget authority" and "discretionary appropriations" to make it clear exactly what money is subject to these potential cuts.

Real-World Impacts and Challenges

How would this play out? Let's say a small business owner relies on a training program funded through these discretionary funds. If overall government spending triggers the cut, that program's budget could shrink, potentially reducing the number of people it can serve or the resources it offers. Or consider a scientist seeking a research grant: a smaller pot of non-security discretionary funds means more competition and potentially fewer grants awarded.

One key challenge is the definition of "security category." The bill defines this, but there's always room for interpretation. Agencies might try to classify more spending as "security-related" to shield it from cuts. Another wrinkle is the potential for a "ratchet effect." Agencies could push for higher budgets in one year, knowing it sets a higher baseline for the next, making future cuts less likely.

The Big Picture

The DOGE Act aims for fiscal discipline, but the automatic cuts could have real-world consequences for programs and services many people rely on. While it incentivizes Congress to be mindful of overall spending, the lack of flexibility in responding to unexpected needs (like a natural disaster or economic downturn) could create challenges. It also puts a spotlight on how "security" is defined, and whether that definition could be stretched to protect certain areas from budget cuts.