This Act rescinds billions of dollars in previously appropriated budget authority from various State Department, foreign aid, and international programs, as well as future funding for the Corporation for Public Broadcasting.
Eric Schmitt
Senator
MO
The Rescissions Act of 2025 immediately cancels previously allocated budget authority across various government accounts, primarily targeting State Department and foreign aid programs. This legislation rescinds billions of dollars designated for international organizations, global health initiatives, development assistance, and peacekeeping operations. Additionally, it cancels future funding set aside for the Corporation for Public Broadcasting in fiscal years 2026 and 2027.
The aptly named Rescissions Act of 2025 is essentially a massive budget clawback, immediately pulling back over $7.3 billion in previously allocated, but unused, funds (known as unobligated balances). This money was supposed to go toward various State Department and foreign aid programs established under the 2024 and 2025 appropriations acts. Beyond the immediate cuts, the bill also permanently axes funding for the Corporation for Public Broadcasting (CPB) for fiscal years 2026 and 2027.
The bulk of these cuts—billions of dollars—are coming straight out of America’s international commitments. This isn't just bureaucratic accounting; these are funds that pay for tangible projects. For example, the bill rescinds a huge $2.5 billion from Development Assistance and $1.65 billion from the Economic Support Fund. Think of these funds as the money that builds infrastructure, supports education programs, and helps small businesses in developing nations. When an $800 million chunk is taken from Migration and Refugee Assistance, it directly impacts the ability of aid organizations to respond to global displacement crises, affecting everything from food security to temporary shelter.
These cuts also hit specific initiatives. The bill takes $900 million out of Global Health Programs, which often funds things like AIDS prevention and vaccine distribution overseas. For people working in international development, this means projects are suddenly stalled, contracts are canceled, and the U.S. presence in global health and diplomacy shrinks dramatically. The U.S. contribution to peacekeeping operations also takes a significant $361 million hit, which could force other nations to pick up the slack or lead to a reduction in critical international security efforts.
While most of the money involves foreign affairs, there’s a notable domestic cut tucked into the bill: the permanent rescission of funds allocated to the Corporation for Public Broadcasting (CPB) for fiscal years 2026 and 2027. CPB funds are the backbone for public television and radio stations across the country, providing essential support for educational programming, local news coverage, and cultural content.
This isn't an immediate cut to your local NPR station or PBS channel, but it’s a clear signal that their future federal funding stream is being eliminated. For parents who rely on public television for educational content or for folks in rural areas where public radio is a primary news source, this provision removes a crucial, established funding guarantee, leaving these services reliant on future, less certain appropriations or increased private donations.
When a bill like this passes, the immediate benefit is straightforward: the federal government spends less money, which can reduce the deficit. However, the cost is paid in reduced capacity and increased global instability. Agencies like the State Department and USAID lose $125 million in operating expenses, meaning fewer staff to manage the remaining programs and less ability to conduct diplomacy.
Consider the practical effect: if you were a contractor in the Midwest supplying medical equipment for a USAID global health program, your contract might suddenly be terminated because $900 million in funding vaporized. If you’re a policy analyst, this bill tells you that the U.S. is pulling back from its role as a major funder of international development and stability efforts, potentially creating vacuums that other global actors might fill. The bill is a clear, definitive statement that these programs—both foreign aid and future public broadcasting—are no longer a federal spending priority.