Elon Musk learned something new today. It’s possible to cut spending through Senate legislation that only requires a majority vote, meaning Republicans could get it done without a single Democrat vote if they can get all but two GOP Senators to agree.
The billionaire leader of the Department of Government Efficiency (DOGE) was “elated” by the news, as I discussed on today’s episode of The JD Rucker Show. Here’s the skinny from Axios…
(Axios)—Elon Musk and Republican senators are eyeing a package to claw back tens or hundreds of billions of dollars in federal spending after meeting in a closed-door lunch on Wednesday.
Why it matters: Musk has been leading the charge on spending cuts from the White House. Some lawmakers want to make his actions more permanent by making them law.
- No decisions have been made, but there was some early, general support for the idea being pushed by Sen. Rand Paul (R-Ky.) after the lunch.
An infamous deficit hawk, Paul pitched Elon Musk on a massive rescission package during a lunch on Wednesday, he told reporters. Such a package would undo federal funding already approved by Congress.
- The bill would also only require 51 votes to pass the Senate — no Democrats needed.
- Paul said specific numbers weren’t discussed, but he’d like to see $500 billion.
Zoom in: Musk “was elated” at the idea, Sen. Josh Hawley (R-Mo.) told reporters. “I think he didn’t realize it could be done at 51.”
- “I do think there is a genuine appetite to continue this work within the legislative branch,” Sen. Eric Schmitt (R-Mo.) said after the lunch.
- Sen. Lindsey Graham (R-S.C.) said he backs Paul’s plan.
Between the lines: President Trump has looked at ways to get around the 1974 Impoundment Control Act, which limits the president’s power to withhold funds already appropriated by Congress.
- The U.S. Supreme Court on Wednesday ruled against Trump, requiring roughly $1.9 billion in foreign aid via USAID still be disbursed.
- “This Court does not look like it’s warming towards the impoundment theory,” Hawley said.
- It’s not a good sign for other actions DOGE might want to take to cut spending without Congress.
Flashback: Republicans attempted to roll back $15 billion in government spending with a rescission package during the first Trump administration.
- But it failed due to “no” votes from Sens. Susan Collins (R-Maine) and Richard Burr (R-N.C.).
- Collins is now chair of the Senate appropriations committee, which plays a key role in the rescission process.
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