President Donald Trump has cancelled nearly $1 billion in spending approved by the US Congress, using a controversial power known as a ‘pocket rescission’. The White House announced the move on Friday, with the majority of the funding cuts targeting immigrant services and diversity-focused initiatives.
The Office of Management and Budget (OMB) described the action as focusing on “the most harmful government spending.” The administration stated that funds for immigrant services, including non-profits assisting refugees and unaccompanied minors, were “no longer necessary because illegal border crossings have diminished considerably.” A White House press release also noted that some affected organisations are led by individuals who served in the administration of former Democratic president Barack Obama.
Controversial Use of ‘Pocket Rescission’
The White House announced it was rescinding over $800 million in congressionally appropriated funds, with NBC News specifically reporting a figure of $810 million. This method, a ‘pocket rescission’, allows the president to request Congress cancel funds as the federal fiscal year draws to a close. Congress typically has 45 days to review such requests. However, by announcing these cuts with just five days remaining until the fiscal year ends on 30 September, the administration has made it virtually impossible for Congress to respond within the required timeframe.
The Government Accountability Office (GAO), a non-partisan federal agency, has previously deemed this manoeuvre illegal, stating it could allow a president to bypass congressional authority over government funding. The Trump administration, however, cites the 1974 Impoundment Control Act as authority for these actions, an act originally designed to regulate presidential control over the budget after former President Richard Nixon sought to withhold spending on programmes he opposed.
This is not the first time President Trump has employed this tactic. A year ago, he issued a pocket rescission blocking $4.9 billion in congressionally approved foreign aid, including substantial cuts to USAID. Although challenged in court, the US Supreme Court declined to block those rescissions, noting Trump’s authority over foreign affairs weighed heavily in its decision at the time.
Funding Targets and Administration’s Rationale
The latest rescissions target programs across various federal agencies, including the Department of Health and Human Services (HHS), the Department of Education, the Department of Housing and Urban Development, and the Department of Justice. Notably, $567 million was designated for HHS, which the administration claims went to “pro-illegal immigration programs and Non-Governmental Organizations that provided services to refugees, asylees, and other non-citizens.” Other affected areas include NGOs providing housing counselling, funding for foreign students and faculty, debt relief for countries implementing climate change policies, and assistance for minority business owners.
The White House stated that President Trump is “committed to utilizing all possible tools to cut wasteful and harmful government spending that does not benefit American citizens.”
Bipartisan Condemnation from Lawmakers
The move has drawn strong bipartisan criticism from Capitol Hill. Senator Susan Collins, a Republican from Maine and chair of the Senate Appropriations Committee, condemned the action, calling it a “clear violation of the law” and an attempt to “undermine Congress’s constitutional power of the purse.” She stated that the OMB, an executive branch agency, “does not get to decide which programs are worth funding” and alleged that the OMB “intentionally withheld these funds for months” to execute the cancellation without warning or consultation.
Democrat Senator Patty Murray of Washington, vice-chair of the Appropriations Committee, labelled the action “theft from the American people, plain and simple.” Murray stated, “These are funds Congress has delivered on a bipartisan basis and should be helping people – not cut off by a president more focused on building a ballroom than investing in families.” She urged Republican colleagues who voted for the original bills to challenge the administration, asserting that OMB Director Russell Vought was implying their votes “don’t count.”
Senate Minority Leader Chuck Schumer, a Democrat from New York, also criticised the tactic, stating that the administration is “illegally stripping nearly $1 billion in critical funding that supports kids, K-12 students, small businesses, and health and clean air research.” Schumer confirmed that Senate Democrats would “challenge Trump’s illegal cuts.”
Frequently Asked Questions
How much funding has the Trump administration rescinded?
The Trump administration has cancelled approximately $810 million in congressionally approved spending, which is nearly $1 billion. This includes $567 million from the Department of Health and Human Services.
What types of programmes are affected by these cuts?
The cuts primarily target services for immigrants, including non-profits serving refugees and unaccompanied minors, as well as diversity-focused initiatives. Other affected areas include HHS research programs, housing counselling NGOs, and funding for minority business owners.
Why is the ‘pocket rescission’ tactic controversial?
The tactic is controversial because it is considered illegal by the Government Accountability Office (GAO). By announcing the cuts with only days left in the fiscal year, the administration bypasses the 45-day window Congress typically has to review and approve such rescissions, effectively circumventing congressional authority over spending.
Has President Trump used this method before?
Yes, President Trump previously used a pocket rescission a year ago to block $4.9 billion in congressionally approved foreign aid. This was the first use of the tactic in 50 years.