If Congress fails to act on a rescission proposal, what is the outcome?

• A. Approved
• B. Denied
• C. Deferred
• D. Vetoed

Answer: (B)

Under the Impoundment Control Act, when the President proposes to rescind budget authority, Congress has a set window to act and either approve or disapprove the rescission. If Congress does not act within that window, the rescission proposal does not take effect. In this case, the lack of action is treated as denial, so the funds remain available for obligation as originally enacted.

So the correct outcome is that the proposed rescission is denied, and the status quo is preserved.