Trump Administration Rescinds Nearly $1 Billion in Congressional Spending

The Trump administration announced Friday it is canceling nearly $1 billion in spending previously approved by Congress, using a rare executive authority to eliminate funding for immigrant services and diversity-focused initiatives.

The Office of Management and Budget described the cuts as targeting “the most harmful government spending.” Most of the rescinded funds were allocated to nonprofits serving refugees and unaccompanied minors, with the administration asserting that these services are no longer necessary due to a significant decrease in illegal border crossings.

A White House press release noted that some of the organizations receiving less funding are led by individuals who served in the Obama administration.

Senator Susan Collins, chair of the Senate Appropriations Committee, condemned the action, stating it occurred without warning or consultation. Collins characterized the move as an illegal impoundment and a usurpation of Congress’s constitutional power of the purse, asserting that the Office of Management and Budget, an executive branch agency, does not have the authority to determine which programs receive funding.

Normally, Congress can review proposed spending cuts. However, the administration announced the rescissions just five days before the end of the federal fiscal year, significantly limiting Congress’s ability to respond. The Government Accountability Office has previously stated that this maneuver, known as a “pocket rescission,” is illegal.

Collins described the action as the latest attempt by the OMB to undermine congressional authority over appropriations.

This is not the first time the Trump administration has employed a pocket rescission. A year prior, the administration blocked $4.9 billion in congressionally approved foreign aid, marking the first use of such a measure in 50 years. While the Supreme Court declined to block those rescissions, citing the president’s foreign affairs authority, the current cuts target domestic spending.

The use of pocket rescissions aligns with a broader pattern by the Trump administration to assert greater control over government operations and diminish the power of Congress. This approach has also included the dismissal of federal workers, the imposition of increased tariffs, and initiating military action without congressional approval, leading to judicial review of presidential powers.