President Donald Trump on Friday moved to rescind nearly $1 billion in spending authorized by Congress, invoking a rarely used and legally disputed presidential power to cancel funds allocated for immigrant services and diversity-related programs. The White House described the step as targeting “the most harmful government spending,” primarily within the Department of Health and Human Services (HHS).
According to the Office of Management and Budget (OMB), most of the cuts are directed at programs serving refugees and unaccompanied minors believed to be in the country illegally. The administration justified the reductions by citing a significant decline in illegal border crossings. Additional funding rescissions include a Department of Education initiative for migrant students, a Department of Justice office dedicated to reducing racial tensions, a business development program for minority entrepreneurs, housing counseling services from the Department of Housing and Urban Development, and various grants from HHS characterized by the administration as “outright harmful and blatantly ideological.”
The White House release also highlighted that some of the affected organizations are led by individuals who had roles in the administration of former Democratic President Barack Obama.
The move drew immediate criticism from both Republicans and Democrats. Senator Susan Collins of Maine, a Republican chairing the Senate Appropriations Committee and facing a competitive reelection campaign, condemned the action for being taken without prior notice or consultation. Collins called the rescission an “impoundment” that bypassed required reporting to Congress and challenged it as a usurpation of legislative appropriations authority.
Under federal law, the president must notify Congress of any proposed spending cancellations and allow a 45-day review period before they take effect. Trump announced the rescissions with only five days remaining in the federal fiscal year and while the House of Representatives was out of session ahead of the November elections, effectively undermining Congress’s ability to respond. The Government Accountability Office (GAO), a congressional watchdog, has declared such a maneuver—known as a “pocket rescission”—illegal.
Collins described the action as part of a continued effort by the OMB to erode Congress’s constitutional “power of the purse.” Last year, Trump used the same authority to block $4.9 billion in foreign aid approved by Congress, a move the Supreme Court declined to block, citing the president’s broad power over foreign affairs. This most recent attempt, however, targets domestic spending programs.
The pocket rescission tool had not been used since 1977, when President Jimmy Carter rescinded funding after complying with the 45-day notification requirement. The current administration maintains that its latest use of this power is legally permissible despite the ambiguity surrounding the precedent.
Critics argue that this action reflects a broader pattern of the Trump administration expanding executive authority, including firing federal employees, imposing unprecedented tariffs, and engaging in military action without congressional approval, thereby shifting the balance of power toward the executive branch.
Senator Patty Murray of Washington, the top Democrat on the Senate Appropriations Committee, denounced the rescissions as “theft from the American people.” She emphasized that the funds were approved through bipartisan congressional support and accused the president of prioritizing personal projects over investments in families and social services.