Pocket Rescission Strategy and the Fight for Local Control Over AI Data Centers

On Wednesday, June 11, 2025, Kim Monson explored federal spending reform strategies and mounting concerns over AI data center expansion with policy advisor Wade Miller of the Center for Renewing America, Colorado taxpayer advocate Wendy Warner, mortgage specialist Lorne Levy, and agricultural commentator Trent Loos.

Cutting Federal Spending Through Strategic Budget Maneuvers

Start listening at 31:28 – Hour 1

Wade Miller breaks down the mechanics of the reconciliation bill and reveals a little-known budget strategy called pocket rescission. The Center for Renewing America senior advisor explains that after August 18th, President Trump can submit spending cut proposals that automatically take effect regardless of Congressional action, because the 45-day withholding period extends past the September 30th fiscal year deadline.

Miller argues the current reconciliation bill contains $1.6 trillion in mandatory spending cuts, nearly double the inflation-adjusted Gingrich welfare reforms. He pushes back against Congressional Budget Office scoring that shows deficit increases, noting the CBO uses static rather than dynamic scoring and fails to account for reduced costs from border enforcement.

“If Congress dilly-dallies on this and fails to get the $9 billion in cuts that are in this rescissions package, then my guess is that the White House is going to wait, wait until after August 18th, and then put forward more rescissions packages as pocket rescissions.”

Wade Miller, Senior Advisor, Center for Renewing America

Colorado Taxpayers Track Legislative Overreach

Start listening at 17:25 – Hour 1

Wendy Warner reports on the Colorado Union of Taxpayers’ work monitoring state legislation. The volunteer organization tracked 261 of the 733 bills introduced during the last session and will soon release ratings showing how legislators voted compared to taxpayer-friendly positions.

Warner warns that government continues expanding through annual incremental regulation, licensing requirements, and attempts to circumvent TABOR constraints. She highlights Denver Mayor Mike Johnston’s push for $800 million in new bonds simply to prevent property tax decreases when existing debt expires.

“A lot of times when you’re looking at only one year, you see you know a few definitely bad bills, but then when you look at it over time and see: okay, this year the legislature did this to try to get out from the taber constraints, and the next year it’s something else and the next year it’s something else.”

Wendy Warner, Secretary, Colorado Union of Taxpayers

Interest Rates and Market Signals

Start listening at 64:20 – Hour 2

Lorne Levy analyzes the morning’s economic news showing consumer price index inflation came in at 0.1% instead of the expected 0.2%. The mortgage specialist explains that while Federal Reserve rate cuts affect short-term lending, mortgage rates follow the 10-year Treasury yield, which responds to long-term factors like inflation expectations and trade deals.

Levy notes that mortgage rates were artificially low during COVID because the Federal Reserve acted as “buyer of last resort” for mortgage-backed securities, a practice they have since discontinued. He emphasizes that the current market more accurately reflects free-market pricing tied to Treasury yields.

“You know, anything we can do to get the 10 year Treasury yield down is going to be great for mortgage rates, which is going to help the housing market and help people refinance and all good stuff, you know.”

Lorne Levy, Mortgage Specialist

Biofuel Subsidies and AI Resource Depletion

Start listening at 74:36 – Hour 2

Trent Loos reports from the International Fuel Expo in Omaha where over 95% of presenters advocate for continued tax credits and subsidies. The sixth-generation farmer notes that industry representatives acknowledge biofuels cannot match fossil fuel energy efficiency yet continue demanding government support. He points to Netherlands green methanol production costing $1,200 per ton to make a product worth only $300 per ton.

Loos raises urgent concerns about AI data center resource consumption, citing that a single facility in Ellendale, North Dakota would use seven times Denver’s daily electricity consumption. Every AI training discipline requires 185,000 gallons of water for cooling, and artificial intelligence currently consumes 5% of the nation’s electric supply, projected to triple by 2028.

“A tax credit is something that a billionaire like Warren Buffett, and obviously I could talk about Warren Buffett because I’m in the town he lives in, bragged about getting $37 million in tax credits just from wind in 2024 alone.”

Trent Loos, Sixth-Generation Farmer and Rancher