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Congress·In Committee·S. 3951

Sen. Scott Introduces Bill Giving Trump Power to Cut Federal Spending to Balance the Budget

Balanced Budget Responsibility Act of 2026

Legislative Progress

Senate
House
President
Law

Key Points

  • This bill would let the president refuse to spend money Congress has already approved whenever the government is running a deficit. It overrides current law that requires the president to spend funds Congress appropriates.

    From policy text

    if the President determines, in consultation with the Secretary of the Treasury and the Office of Management and Budget, that there will be a deficit for a fiscal year, the President may exercise budgetary discretion and decline to obligate covered budgetary resources available for that fiscal year
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  • Social Security and Medicare are specifically protected from these presidential spending cuts. Every other federal program—including Medicaid, military spending, food assistance, education funding, and more—could be reduced or frozen at the president's discretion.

    From policy text

    the term ``covered budgetary resources'' means any budgetary resources, except for budgetary resources to carry out-- (A) the Medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.); or (B) the old-age, survivors, and disability insurance program established under title II of the Social Security Act (42 U.S.C. 401 et seq.)
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  • The bill directly overrides the Impoundment Control Act of 1974, a post-Watergate law that prevents presidents from refusing to spend money Congress has approved. This would represent a major shift of budgetary power from Congress to the White House.

    From policy text

    Notwithstanding the Impoundment Control Act of 1974 (2 U.S.C. 681 et seq.)
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  • The president's cuts could not exceed the amount needed to eliminate the deficit. With the current annual deficit exceeding $1.8 trillion, this could mean sweeping reductions across virtually all non-exempt federal programs.

    From policy text

    in an amount that is not more than the amount required to eliminate the deficit
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Economy Finance

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Feb 26, 2026Senate

Read twice and referred to the Committee on the Budget.

Feb 26, 2026

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

Upon enactment

If enacted, the president could immediately begin withholding funds from any non-exempt federal program to eliminate the deficit

Virtually every federal program except Social Security and Medicare could see sudden funding reductions, potentially disrupting services millions of Americans depend on

Source Information

Document Type

Congressional Bill

Official Title

Balanced Budget Responsibility Act of 2026

Bill NumberS 3951
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on the Budget.

Sponsor

Analysis generated by AI. Always verify with official sources.