During his visit to Capitol Hill on Tuesday, billionaire Elon Musk heard about a new legislative tool—budget rescissions—that might give his drive to cut the federal budget more legal weight and make the cutbacks permanent.
Hours before the Supreme Court’s decision to halt the Trump administration’s efforts to freeze around $2 billion in international assistance funding as part of its sweeping closure of the U.S. Agency for International Development, Musk attended a lunch meeting with Republican senators. Musk began the closed session by addressing Congress and requesting that they take action.
As senators ate fried catfish, they discussed ways the president might present a budget rescissions package to Congress for a vote to cut spending, using the savings he has accumulated totaling billions of dollars. According to them, Musk appeared ecstatic.
Republican senator from South Carolina and leader of the Senate Budget Committee Lindsey Graham said, “He was so happy.” Graham is one of several people spearheading the initiative. And he had no idea.
Afterwards, in the Capitol basement, Musk met with Republicans in the House at dinnertime.
Following the private meeting, Musk stated, “You know, there’s a lot of room — a lot of opportunity — to improve expenditures in the government.” “And then we’re moving forward quite well.”
At a crucial juncture, senators have proposed considering the budget rescission option, which might mark the next step in Musk’s Department of Government Efficiency initiatives. There are budget cutbacks ripping through the federal government, and the Trump administration is battling them in court and in public opinion.
Republicans in Congress and the Trump administration are keen to demonstrate the American people that the efforts of DOGE are leading to actual savings rather than just negative news about job losses and disruptions. This is because Musk’s team is actively working to lower the nation’s enormous yearly deficit, which stands at an astounding $2 trillion, by rooting out waste, fraud, and abuse.
This comes at a time when the courts are viewing the Trump administration’s activities with skepticism and when demonstrators are flooding politicians’ town halls demanding answers in the wake of the firing of tens of thousands of government employees.
John Thune, the majority leader of the Senate, half-jokedly said that he was concerned when Musk made his personal telephone number available for senators to contact with any issues.
After Thune’s phone started acting up, he expressed his concern on Fox News. “He should probably switch up his phone number.”
If senators have any concerns or queries regarding the budget cutbacks, they may contact Musk assistant Katie Miller through a direct line that she is reportedly setting up.
The senators appeared to be requesting “just better communication, wanting to know what’s going to happen next,” according to Missouri Republican Josh Hawley.
While Hawley did not know who at the White House knew what was ahead, he did say this: In his words, Musk’s crew “just kind of goes from one thing to the next.”
The concept of employing budget rescissions was first proposed during the lunch discussion by Senator Rand Paul (R-Ky.).
I think Elon is doing fantastic. The reduction of trash is beautiful. “I love finding all the crazy crap that we’re spending overseas,” Paul commented afterwards.
He emphasized that for something to be considered “real” and “enduring,” it must return as a whole package.
For a long time, the libertarian-leaning senator has been one of the most vocal opponents of government spending measures in the Senate, consistently voting against them. In order to avoid a government shutdown when the current budget runs out on March 14, he has stated his intention to reject the federal financing agreement that is coming next week.
According to Paul, he told Musk that the government should abandon its intentions to seize federal monies through impoundments following the morning Supreme Court decision. Legal challenges against the Impoundment Control Act, which was passed during Nixon’s administration, have not been accepted by the courts.
He instead stated, “My message to Elon was, let’s get over the impoundment idea and let’s send it back as a rescission.”
Paul proposed multiple packages of government cutbacks totaling at least $100 billion, but senators expressed uncertainty about the size of the rescission packages and the timing of any potential votes once sent to Capitol Hill by the White House.
In the past, Musk has informed Congress that he believes DOGE can save the federal government over $1 trillion this year.
Republican leaders, including Thune, were silent about the rescission plans at first.
At the conference with House Republicans, the topic was barely touched upon; according to them, Musk mostly only listed particular issues he was encountering.
In an interview with House Republicans, Musk maintained that the individual departments are making the hiring and firing choices, and that he was not involved in the dismissals of VA employees or anybody else.
“Elon doesn’t fire people,” Rep. Richard Hudson (R-N.C.) stated afterwards. “It’s the law enforcement.”
It may be easier said than done, but the Senate may pass a rescission package with a simple majority vote and an accelerated procedure, allowing the Republican majority to avoid a possible filibuster by Democrats.
Senators who serve on the Appropriations Committee are inclined to support spending cuts, even though doing so would run counter to the legislation they have previously approved in order to fund the government. This is because some senators may wish to protect federal funding for specific industries or programs that are important to their home states.
Keeping all Republicans united on a vote might be challenging even with a GOP majority, particularly if all Democrats are against.
This procedure, according to Graham, chairman of the budget committee, is a chance “for the White House to go on offense.”
“We seem to be losing height,” he said. “We need to get back on track offensively, and the best way to do that is to focus on the final product rather than the personalities involved and cast your vote on it.”
Much of the conversation on the government employees laid off due to DOGE cuts was missing from Musk’s lunch meeting.
“Whenever there’s a change, it’s never easy,” Paul remarked.
The senator asserted that several individuals raised concerns to ensure that “we’re not just getting rid of people that we actually need, and that we are not overdoing it.”
Paul maintained, nonetheless, that a smaller government is necessary. We really should have less federal employees.