President George W. Bush sent no formal ICA rescission requests to Congress, but some controversy developed over his use of "cancellation statements" proposing spending reductions. Impoundment Control Act of 1974

The Impoundment Control Act (ICA) was included as Title X of the Congressional Budget and Impoundment Control Act of 1974, signed into law on June 12, 1974 (88 Stat. 332). Section 1017 of the ICA establishes expedited procedures for congressional action on "any rescission bill introduced with respect to a special message" submitted by the President. Section 207 involved the use of rescission authority. Under the ICA, unless Congress takes action to approve of a rescission request from the President within the 45-day period, the funds must be released. As noted previously, Congress may approve more or less than the amount requested by the President. In addition, absent a specific request from the President, Congress of its own accord may initiate rescission actions, by cancelling previously appropriated funds in a subsequent law. In the early months under the new framework, the number of presidentially proposed rescissions increased. During his first year in office President Reagan submitted more rescission proposals (133) than had President Carter during his entire administration. President Bush, while evidently reluctant to use existing rescission authority provided in the ICA, repeatedly called for enactment of a measure that would give the President greater authority to reject items of spending and that also would pass constitutional muster. Some Concluding Observations

According to GAO data, from FY1974 to FY2009, Presidents requested 1,178 rescissions under the ICA, totaling somewhat over $76 billion. Close to a third of the proposals were approved by Congress, with approximately 40% of the total dollar amount of presidential rescission requests ($25 billion) enacted by Congress. The sum of rescissions requested by the President and subsequently enacted exceeded $1 billion in only four of the 30-plus years since the ICA was enacted (FY1981, FY1982, FY1992 and FY1994). During the same period Congress initiated 1,880 rescission actions amounting to nearly $197.1 billion, over eight times the total dollar amount of presidentially requested rescissions enacted. The trend toward an increasing number of rescissions being initiated by Congress has already been noted. As discussed above, the LIVA reversed the burden of action regarding rescission proposals; cancellations of the President became permanent unless disapproved by Congress (ultimately requiring rejection by a 2/3 majority in both chambers to override a presidential veto of a disapproval bill). During this period the President also had authority to cancel new items of direct (mandatory) spending and certain targeted tax benefits as well as items of discretionary spending. CBO figures indicate that all the cancellations made by President Clinton in FY1998 (including those overturned) totaled some $355 million, with a projected five-year savings just under $1 billion. In 2006 the Legislative Line Item Veto Act ( H.R. 93-344 , until such time as the President transmits a special message on Congress on subsequent rescission proposals or deferrals no cumulative reports are required to be transmitted to the Congress."
The Impoundment Control Act (ICA) was included as Title X of the Congressional Budget and Impoundment Control Act of 1974, signed into law on June 12, 1974 (88 Stat. 332). Under the ICA, unless Congress takes action to approve a rescission request from the President within the 45-day review period prescribed by the law, the funds must be released. With respect to a presidential rescission message, Congress may approve more or less than the amount requested by the President. In addition, absent a specific request from the President, Congress on its own accord may initiate rescission actions, by cancelling previously appropriated funds in a subsequent law.
According to data compiled by the Government Accountability Office (GAO), from FY1974 through FY2008, Presidents requested 1,178 rescissions under the ICA, totaling somewhat over $76 billion. Close to a third of the proposals were approved by Congress, with approximately 40% of the total dollar amount of presidential rescission requests ($25 billion) enacted by Congress. The sum of rescissions requested by the President and subsequently enacted exceeded $1 billion in only four of the 35-plus years (FY1981, FY1982, FY1992 and FY1994). During this period Congress initiated 1,880 rescission actions amounting to $197.1 billion, nearly eight times the total of presidentially requested rescission subsequently enacted, reflecting a trend toward an increasing number of rescissions being initiated by Congress.
The Line Item Veto Act of 1996 (P.L. 93-344), in effect for less than eighteen months before being overturned by the Supreme Court in 1998, gave the President enhanced rescission authority by reversing the burden of action regarding rescission proposals; cancellations of the President became permanent unless disapproved by Congress (ultimately requiring rejection by a 2/3 majority in both chambers). During this time, the President also had authority to cancel new items of direct spending and certain targeted tax benefits as well as items of discretionary spending. Figures from the Congressional Budget Office indicate that the 82 cancellations made by President Clinton in FY1998 (including those overturned) totaled some $355 million, with a projected five-year savings just under $1 billion. President Clinton's use of the short-lived enhanced rescission authority thus was not notably different from the prior annual record of presidential rescissions under the ICA framework.
During his two terms in office, President George W. Bush sent no formal ICA rescission requests to Congress, but some controversy developed over his use of alternative means to propose spending reductions. President Bush, while evidently reluctant to use existing rescission authority contained in the ICA, called repeatedly for enactment of a measure that would give the President greater authority to reject items of spending. Such a bill passed the House in the 109th Congress and was reported in the Senate. A contentious issue is whether such a measure might give preference to presidential spending priorities over congressional spending priorities, arguably affecting the legislative power of the purse.
During his first year in office, President Barack Obama sent no formal ICA rescission requests to Congress. On May 24, 2010, however, the President transmitted to Congress a draft proposal, the "Reducing Unnecessary Spending Act," which would establish expedited procedures for congressional consideration of certain rescission messages.
This report will be updated as events warrant.