Vought defends fiscal 2027 budget request, as Democrats criticize OMB for violating spending law

Updated at 11:20 a.m. ET April 16 

House Budget Committee Democrats on Wednesday accused Donald Trump’s budget chief, in his first appearance before the panel during the president’s second administration, of subverting the will of Congress with respect to agency funding decisions. 

Specifically, the Democrats criticized Office of Management and Budget Director Russell Vought over impoundments, which is when the executive branch delays or withholds congressionally approved spending. 

From the start of Trump’s second term, the Government Accountability Office, which reviews potential impoundments, has determined five instances in which officials have committed violations. (The watchdog also found four cases where no impoundment rules were broken and two instances when there was a mixed outcome.) 

Rep. Scott Peters, D-Calif., argued that impoundments, paired with the administration imposing tariffs and undertaking military actions in Iran without congressional approval, showcased a trend. 

“The administration just does not want to deal with Congress,” he said.  

In response, Vought reiterated his argument that the administration’s reviews of federal funds are in compliance with the impoundment law and that he disagrees with the decisions from GAO, which he characterized as “typically wrong and very partisan.”

The legislative agency objected to that description in a statement to Government Executive. 

"GAO is an independent, nonpartisan agency that Congress has long relied on for fact-based analysis of federal spending and compliance with the law," said Sarah Kaczmarek, the agency's managing director of public affairs. 

Vought further contended that restrictions on impoundments are unconstitutional. 

“Of course I believe in impoundments,” he said. 

“[If Congress gives] us a number, and we can do it for less than you have given us, why on earth wouldn’t we not spend less?” he later added. 

Vought was testifying before the committee about the administration’s fiscal 2027 budget request, which he described as a “historic paradigm shift in the budget process.” 

Trump requested that Congress appropriate 10% less on non-defense agencies while increasing defense funding by 44% to $1.5 trillion.

“I think this budget of yours shows directionally that we're going to continue to…reduce wasteful spending, invest in our defense and continue to promote the growth that we so desperately need,” Chairman Jodey Arrington, R-Texas, said. 

Congress rejected many of the agency funding cuts that the Trump administration proposed in its fiscal 2026 budget request. The president’s latest budget proposal also would freeze federal civilian pay in 2027.

Panel Democrats on Wednesday also criticized Vought for reductions in fiscal 2025 spending on project grants from science agencies.  The OMB director insisted that proposed cuts at the National Science Foundation would not affect artificial intelligence investments, which flummoxed Rep. Lloyd Doggett, D-Texas. 

“You may be the only person, along with President Trump, who believes that,” the congressman said. 

Vought emphasized, however, that slashing grants is central to the administration’s budget strategy. 

“You can't begin to deal with the non-defense side if you're not willing to pull back on these grant programs,” he said. 

The budget director’s opening testimony was interrupted by protestors opposed to the administration’s attempts to cut funding to the U.S. President’s Emergency Plan for AIDS Relief who chanted “PEPFAR saves lives, spend the money.”

This story has been updated with a statement from GAO.