Peter Orszag
Ph. D., London School of Economics
Director, White House Office of
Management and Budget

May 24, 2010

Reducing Unnecessary Spending

The President's Reduce Unnecessary Spending Act of 2010 establishes a new, expedited tool to reduce unnecessary or wasteful spending.

Under this new expedited procedure, the President would submit a package of rescissions shortly after a spending bill is passed.

Congress is then required to consider these recommendations as a package, without amendment, and with a guaranteed up-or-down vote within a specified time frame.

This empowers the President
and Congress to eliminate unnecessary spending while discouraging waste in the first place.

We cannot afford to tolerate taxpayer dollars going to programs that are duplicative or ineffective.

State Assistance Grants for Water Infrastructure at the Environmental Protection Agency currently consists of $157 million in non-merit-based, earmarked funding instead of being allocated through the regular formula allocation process.

The Department of Transportation was given $293 million for earmarked surface transportation projects that also circumvent formula grant funding.

The Department of Commerce was allocated $20 million and the USDA was given $5 million to fund public broadcasting even though this activity is ably supported through the Corporation for Public Broadcasting.
 
The Department of Housing and Urban Development was allocated $17 million for the Brownfields Economic Development Initiative, a worthy goal that duplicates the function of the CDBG program.

The Reduce Unnecessary Spending Act of 2010 alone is not enough to cut waste, streamline government operations, and create a government that is more responsive to the American people.

This is part of a larger effort the President has undertaken to rein in wasteful spending.

This effort includes: the $20 billion in terminations, reductions, and savings the President included in both his budgets;

our work with Congress to curb earmarks;

the signing into law of statutory PAYGO;

the Administration-wide effort to curb the $100 billion in improper government payments;

and the three-year freeze on non-security discretionary funding that the President put forward in the FY 2011 Budget.

 

The End