Oversight Hearing - Office of Management and Budget

Appropriations Bill MarkupsHouse Appropriations Subcommittee on Financial Services and General Government · 2026-06-30 · 119th Congress
The House Appropriations Subcommittee on Financial Services and General Government held this oversight hearing to examine the Office of Management and Budget's fiscal year 2027 budget request and its broader role in implementing the Trump administration's spending priorities. Begins at 0:03:57
Transcript
Highlights

Title

OMB Director Vought testifies on FY27 budget and impoundment powers

Purpose

The House Appropriations Subcommittee on Financial Services and General Government held this oversight hearing to examine the Office of Management and Budget's fiscal year 2027 budget request and its broader role in implementing the Trump administration's spending priorities. Director Russell Vought testified on OMB's own funding request, the administration's recent $87.6 billion supplemental request, cuts to USAID and other foreign aid programs, and a proposed rule overhauling federal grantmaking procedures. Much of the hearing centered on disputes over impoundments, pocket rescissions, and whether OMB is respecting Congress's constitutional power of the purse. Begins at0:03:57

Who spoke

Chairman David Joyce0:03:57: Opened by reviewing OMB's history since the 1921 Budget and Accounting Act0:04:26 and noted OMB's FY27 request of $146.1 million, a 13.3% increase0:05:21; later questioned Vought on the supplemental request's development0:23:06 and OMB's new responsibilities under recent executive orders0:27:19.

Rep. Steny Hoyer (D-MD), Ranking Member0:06:03: Argued OMB has become "the nerve center of presidential power" and accused Vought of illegal impoundments and pocket rescissions0:08:16; pressed on the $108 million reconciliation hiring funds, noting only a few million had been obligated0:28:38, and on the $1.9 trillion projected deficit0:32:21; in a later round pressed on IRS enforcement cuts, citing audit rates on returns over $1 million falling from 9% to 0.6%1:37:40.

Director Russell Vought, OMB0:11:10: Testified the FY27 budget proposes a 10% cut to non-defense spending and a 42% increase in defense spending to $1.5 trillion0:14:21; said OMB's own request maintains staffing at 470 FTEs, drawing on One Big Beautiful Bill funds0:15:46; throughout the hearing defended the proposed grantmaking rule, cuts to USAID, and use of impoundment-related tools, while declining to say whether he believes people died from USAID cuts0:39:21 and declining to extend the grant-rule comment period1:21:25.

Rep. Rosa DeLauro (D-CT), Ranking Member of full committee0:16:34: Accused Vought of asserting "unprecedented control over taxpayer funding" in violation of Article I, Section 90:17:55; said OMB is withholding $19 billion to shutter an agency Congress has not agreed to shutter and unlawfully spent over $9 billion0:19:10; in closing questioning said the proposed grant rule ends binding peer review in favor of political-appointee approval1:23:37 and told Vought "you flout the Constitution every single day"2:00:52.

Rep. Robert Aderholt (Homeland Security Subcommittee chair, referred to as "Mr. Ahmadi" in captions)0:33:42: Asked whether OMB recognizes Congress's oversight authority over reconciliation funds (Vought said yes)0:34:11; requested an accounting of aircraft and detention-facility purchases for ICE, Border Patrol and Coast Guard0:34:25; pressed on CISA staffing after 1,100 cuts and the Secretary's request for 600 positions back0:36:20.

Rep. Mark Pocan (D-WI)0:33:56: Repeatedly asked whether Vought believes people have died because of USAID cuts and read specific names of alleged victims in Kenya and Nigeria0:39:47; asked about Christian nationalism comments from Vought's 2021 Newsweek article0:41:38; in a later round asked how much DOGE cost and how much was spent on the Iran war, with Vought citing $30 billion1:44:50.

Rep. Ashley Hinson (R-IA)0:43:33: Asked Vought to detail wasteful USAID spending examples, including $24.6 million for climate resilience in Honduras and $13.4 million for civic engagement in Zimbabwe0:44:45; questioned him on CDFI fund apportionment and an AI grant-review tool0:59:19.

Rep. Sanford Bishop (D-GA)0:48:24: Asked about USDA/APHIS staffing losses (25% at APHIS, 23% at Agricultural Research Service) and their effect on New World screwworm surveillance0:49:05; argued the administration "took a step backwards" on screwworm response0:52:00.

Rep. Ritchie Torres (D-NY), referred to as "Mr. Loloda" in captions0:53:56: Asked about AFGE union leadership's role in ending the shutdown0:54:26; cited a GAO report showing an 11% federal workforce decline versus the 6% assumed in the budget, and staffing shortfalls at the World Trade Center Health Program0:56:52; raised concerns about relocating the Army Corps of Engineers' New York District office to New Jersey0:58:24.

Rep. Marilyn Strickland (D-WA), referred to as "Susan Camp Perez" in captions0:59:19: Questioned whether OMB directed agencies to follow the not-yet-finalized grants rule before finalization0:59:19 and whether OMB is building an AI tool to flag misaligned grants1:00:12; asked about funding streams paying OMB staff salaries1:03:41.

Rep. Steve Womack (R-AR)1:04:14: Questioned the FAA administrator's proposed discretion over $12.5 billion in air traffic control funds1:05:56 and the $1 billion Penn Station request1:08:01; raised concerns about project labor agreements diminishing competition1:08:29.

Rep. Glenn Ivey (D-MD)1:09:57: Pressed on the $150 billion in mandatory defense spending from H.R. 1, noting roughly $100 billion remained unspent1:09:57; questioned the $67.1 billion supplemental's lack of detail, including a $1.2 billion "administration priorities" line item1:11:19; later cited a Senate subcommittee report finding $21.7 billion in waste from DOGE actions, including agencies laying off and rehiring staff1:53:20.

Rep. Michael Cloud (R-TX)1:15:04: Defended cuts to USAID, calling prior border-related human trafficking concerns "rich" criticism from Democrats1:15:28; asked about safeguards in the proposed grant rule, including cancellation of grants such as NIH gain-of-function funding to the Wuhan Institute1:18:24.

Rep. Chuck Edwards (R-NC)1:20:57: Thanked Vought for responsiveness on Hurricane Helene recovery funding for western North Carolina1:28:31 and asked about the roughly 292,000 reduction in federal employees under the administration1:30:41.

Rep. (unidentified, asked about improper payments and Executive Order 14249)1:41:01: Discussed H.R. 2597, the Protecting American Taxpayers from Wasteful Spending Act, and pressed Vought on implementation of the "protect America's bank account" executive order1:41:01.

Rep. Marie Gluesenkamp Perez (D-WA)1:50:17: Asked how the proposed grant rule's conference-funding prohibition would affect skilled-trades competitions1:50:46 and raised concerns about eliminating fixed-amount subawards increasing administrative burden on small, rural organizations1:51:57.

Key moments

Vought said OMB's FY27 request of $154.1 million is flat versus last year despite needing more staff, comparing OMB's ~500 FTEs and $150 million budget to GAO's roughly 3,000 staff and $900 million budget0:25:49.

Sharp exchange between Pocan and Vought: Pocan cited named children in Kenya and Nigeria allegedly dead from USAID cuts and asked repeatedly whether Vought believes people died from the cuts; Vought would not answer yes or no, saying he does not concur with the validity of the studies cited0:38:500:39:470:40:42.

Vought testified the U.S. has spent about $30 billion on the Iran conflict ("Operation Epic Fury") as of June 30, 20261:44:50.

DeLauro said OMB's proposed grants rule (412 pages) would require political appointees to conduct "pre-issuance review" of every discretionary grant and forbids deferring to peer reviewers, reversing a post-WWII scientific review process; Vought disputed her characterization, saying agency policy officials, not OMB, make the determinations1:23:371:23:14.

Hoyer noted the reconciliation bill's ten-year cost is estimated at $4.1–4.7 trillion depending on scoring method; Vought said using a "current policy" baseline the bill would have saved $1.5 trillion0:30:070:31:02.

Vought confirmed OMB is withholding $19 billion tied to shuttering an agency Congress has not agreed to close, per DeLauro's opening statement0:19:10.

Torres cited GAO data showing an 11% staffing decline at 22 major agencies between December 2024 and January 2026, versus a 6% reduction assumed in the budget, and cited World Trade Center Health Program staffing falling from 93 to 84 employees despite a 120-employee authorization0:55:520:57:04.

Hoyer said IRS audit rates on returns over $1 million fell from 9% to 0.6%, and estimated $700 billion in owed-but-uncollected taxes; Vought said the administration objected to the Biden-era IRS scaling approach1:37:111:38:03.

Ivey cited a Senate Permanent Subcommittee on Investigations report estimating $21.7 billion in waste from DOGE actions, including agencies laying off large numbers of staff and quickly rehiring them (e.g., the Nuclear Regulatory Commission reversing layoffs within days); Vought said he had not read the report1:53:201:55:24.

Bishop said the administration "took a step backwards" on New World screwworm response after ARS staff cuts preceded a surge of the pest into the U.S.; Vought disputed that characterization, saying USDA is adequately resourced under Secretary Rollins0:52:290:53:00.

DeLauro and Vought clashed over whether OMB will spend money "as Congress intended"; Vought said OMB will spend where directed "at the same time" as reviewing whether funds are well spent, which DeLauro characterized as effectively "no"1:25:431:26:12.

Metadata

CommitteeHouse Appropriations Subcommittee on Financial Services and General Government
Chamber / CongressHouse · 119th Congress
Date2026-06-30
TypeHearing
Witnesses
The Honorable Russell Vought — Director, Office of Management and Budget
Videoyoutube
Transcript275 caption blocks · 20,370 words · 2:01:36 runtime
EventCongress.gov 119415