Trump Rescinds Nearly $1B in Congressional Funds Using Rare 'Pocket Rescission' Power

President Donald Trump announced Friday that he is canceling nearly $810 million in congressionally appropriated funds using a controversial procedural tool known as a 'pocket rescission,' which takes effect automatically when announced within five days of the fiscal year's end. The move targets programs across seven federal agencies, with the largest cuts affecting Health and Human Services programs serving refugees, unaccompanied minors, and other non-citizens — totaling $567 million. The administration justified the rescissions by citing reduced illegal border crossings and describing the targeted programs as harmful or ideologically driven.

Additional cuts include $70 million for international fellowships and grants, $56 million from Housing and Urban Development housing counseling services, $28 million from HHS grants, $25 million from a Department of Education migrant students program, $15 million each from the Justice Department's Community Relations Services and a Department of Homeland Security cultural orientation program, and smaller amounts from minority business development, legal services for immigrants, and climate-related conservation efforts. The White House stated the rescissions were focused on eliminating "the most harmful government spending," while noting that some recipient organizations were led by former Obama administration officials.

The legal status of the maneuver remains contested. The Government Accountability Office has concluded that pocket rescissions violate the Impoundment Control Act, which normally gives Congress 45 days to review proposed spending cuts. However, the Supreme Court declined to block Trump's previous $4.9 billion pocket rescission for foreign aid in 2025, though it noted this decision should not be read as a final determination on the merits. By announcing the cuts with only five days remaining in the fiscal year and Congress out of session, the administration made it procedurally impossible for lawmakers to exercise their statutory 45-day review period.

Senator Susan Collins of Maine, a Republican and chair of the Senate Appropriations Committee, condemned the action as unlawful. She stated that the rescission represents an attempt to "undermine Congress's Constitutional power of the purse" and alleged that the White House's Office of Management and Budget intentionally withheld the funds for months to execute the cancellation. Collins said she would work with colleagues to address what she called "illegal actions." Senate Democrat Patty Murray of Washington characterized the move as "theft from the American people," criticizing the president for prioritizing other expenditures over congressionally approved programs.

The rescission reflects a broader pattern by the Trump administration to expand executive authority over federal spending and policy, following previous actions including federal worker firings, historic tariff increases, and military action without congressional authorization. The administration has framed these actions as lawful exercises of presidential power, while critics and some Republican lawmakers argue they circumvent constitutional checks and balances. Legal challenges to the rescissions are expected, placing the burden on the judicial branch to clarify the limits of presidential rescission authority under existing law.