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B-307122,B-307122.2 1 (2006-03-02)

handle is hein.gao/gaobaczlf0001 and id is 1 raw text is: ~G -A 0Comptroller General Accountability - Integrity - Reliability of the United States United States Government Accountability Office Washington, DC 20548 B-307122 March 2, 2006 The Honorable Joshua B. Bolten Director Office of Management and Budget Subject: Impoundments Resultingfrom the President's Proposed Rescissions of October28, 2005 Dear Mr. Bolten: On October 28, 2005, the President transmitted to Congress a proposal to rescind $2.3 billion of available funding to offset the cost of Hurricane Katrina relief. The proposal called for cancellations from 53 different federal programs. Notwithstanding the President's characterization of his proposals as cancellations, in anticipation of congressional enactment of these cancellations, agencies withheld over $470 million in budget authority from obligation, affecting 12 programs, for approximately 2 months. The agencies' withholding in these 12 instances constituted impoundments under the Impoundment Control Act. Under the Impoundment Control Act, title X of the Congressional Budget and Impoundment Control Act, Public Law 93-344, 88 Stat. 297 (1974) (codified at 2 U.S.C. §§ 682-688), whenever the President proposes budget authority for rescission, he must transmit a special message to Congress, detailing the amounts, reasons for, and effect of the proposed rescission. Agencies may withhold from obligation budget authority proposed for rescission in a special message for up to 45 legislative days following submission of the special message. 2 U.S.C. § 683(b). If Congress does not pass rescission legislation within this 45-day period, the budget authority must be released. Id According to your staff, the October 28 proposal was not a special message under the Impoundment Control Act notwithstanding the fact that by its text it was termed a rescission proposal. Your staff advised us that the proposals were cancellations and that the agencies potentially affected by the October 28 proposal were specifically instructed not to withhold funds in anticipation of an impending rescission. As a result, your staff advised us that none of the proposed cancellations constituted

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