Trump Uses Rare Power to Cancel Nearly $1 Billion in Congress-Approved Funds
President Donald Trump moved Friday, Sept. 25, to cancel $810 million in federal funding already approved by Congress, using a rarely deployed budget maneuver that has immediately triggered a dispute over presidential spending authority.
The White House announced the rescissions just five days before the federal fiscal year ends on September 30, giving lawmakers little practical time to review the proposal before the affected funds would otherwise expire. The cuts affect programs covering immigrant and refugee services, education, housing, health research and minority-business development.
What Trump Is Cutting
The largest portion is $567 million from the Department of Health and Human Services, covering programs that provide services to refugees, asylees and other noncitizens. The administration said the money is no longer necessary because of reduced illegal border crossings.
Other cuts include $70 million in Education Department international education grants and fellowships, $56 million in HUD housing counseling programs, $28 million in HHS research grants, and $25 million for education programs serving migrant students.
The package also includes funding from the Justice Department’s Community Relations Service, Homeland Security programs providing services to immigrants and other accounts, according to the White House.
The administration has characterized the targeted spending as wasteful, duplicative or inconsistent with Trump’s policy priorities.
Why the “Pocket Rescission” Matters
The administration is using an unusual mechanism to cancel the funds.
Under the Impoundment Control Act, a president can propose rescinding appropriated funds and Congress generally has 45 days of continuous session to approve the cancellation. If Congress does not approve the rescission, the money generally must be made available for obligation.
A “pocket rescission” seeks to take advantage of the end-of-fiscal-year deadline by proposing so late that Congress has little opportunity to act before the money expires.
The Government Accountability Office has previously concluded that the Impoundment Control Act does not permit a president to withhold funds through their expiration date without congressional approval.
Lawmakers Challenge Trump’s Move
Sen. Susan Collins, R-Maine, who chairs the Senate Appropriations Committee, said lawmakers received the $810 million rescission package without warning or consultation.
“Any effort to rescind appropriated funds without congressional approval is a clear violation of the law,” Collins said, citing the GAO’s position on pocket rescissions.
Rep. Rosa DeLauro, the top Democrat on the House Appropriations Committee, also criticized the action, while Sen. Patty Murray, D-Wash., called it “theft from the American people.”
The White House argues that Trump is using authority under the Impoundment Control Act to eliminate spending the administration considers unnecessary or harmful.
Trump Used the Tactic Before
In 2025, Trump used the tactic to block $4.9 billion in congressionally approved foreign aid, marking the first such rescission in decades. The Supreme Court allowed that earlier cancellation to proceed while litigation continued, but explicitly said its action was not a final determination on the merits of the rescission dispute.
This year’s package is focused largely on domestic programs, making the latest fight particularly significant for the administration’s relationship with Congress over federal spending.
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