President Donald Trump has announced the cancellation of nearly US$1 billion in federal spending authorized by Congress, employing a seldom-used power known as a “pocket rescission” to eliminate funds allocated for immigrant services and diversity-related initiatives. The move was disclosed by the White House on Friday through the Office of Management and Budget (OMB), which characterized the cuts as targeting “the most harmful government spending.”
The majority of the reductions affect programs within the Department of Health and Human Services (HHS) that support refugees and unaccompanied minors deemed to be in the country illegally. The administration justified the cuts by citing a significant decline in illegal border crossings, asserting that the funds are no longer necessary. The White House also pointed out that some of the affected organizations are led by individuals previously employed during Barack Obama’s administration.
Among the cuts, the White House plans to rescind US$70 million designated for certain international education programs it described as “woke,” US$28 million in HHS grant funding dedicated to research, US$9 million in debt relief for foreign countries supporting climate change initiatives, and US$10 million withheld from a minority business development program.
The announcement prompted criticism from lawmakers across the political spectrum. Senator Susan Collins, a Republican and chair of the Senate Appropriations Committee, condemned the decision as an unauthorized usurpation of Congress’s constitutional appropriation authority. Collins described the action as an unreported impoundment that circumvented the legislative branch’s review, pointing out that OMB lacks the authority to unilaterally decide which government programs receive funding. She pledged to work with colleagues to counteract what she termed “illegal actions” by the administration.
Typically, Congress has the opportunity to review proposed spending adjustments before they take effect. However, by enacting the rescission just five days before the end of the fiscal year, the administration effectively limited legislative oversight. The Government Accountability Office (GAO) has previously deemed this type of pocket rescission illegal.
Democratic Senator Patty Murray, ranking member of the Senate Appropriations Committee, described the White House’s move as “theft from the American people,” criticizing the president for cutting bipartisan-approved funds intended to assist families rather than focusing on what she referred to as political distractions.
Last year, Trump employed a similar tactic to block US$4.9 billion in foreign aid approved by Congress, marking the first pocket rescission in five decades. The Supreme Court declined to halt that action, citing the president’s broad authority in foreign affairs. This year’s rescission marks the first time this tool has been used to target domestic spending.
The use of pocket rescissions is part of a broader pattern under the Trump administration to expand executive authority, raising ongoing debates about the constitutional balance between the presidency and Congress. Other controversial actions include the dismissal of federal employees, the implementation of significant tariff increases, and military engagements initiated without explicit congressional approval, placing challenges over the separation of powers before the judiciary.