Trump Cancels Nearly $1 Billion in Funding for Immigrant and Race-Focused Programs

President Trump has ordered the cancellation of $810 million in congressionally appropriated funding, marking the second "pocket" rescission in 49 years. The action eliminates unspent money at seven federal departments and agencies as part of an effort to reduce executive-branch expenses.

In a notice to House Speaker Mike Johnson, Trump stated, "In accordance with… the Congressional Budget and Impoundment Control Act of 1974, I herewith report 11 rescissions of budget authority, totaling $810 million." The rescissions affect programs within the Departments of Commerce, Education, Health and Human Services, Homeland Security, Housing and Urban Development, Justice, and International Assistance Programs.

A pocket rescission is a proposed cancellation of congressionally mandated spending that takes effect late in the federal fiscal year, limiting Congress's ability to push back. With the fiscal year ending September 30, the White House Office of Management and Budget identified funds deemed unnecessary or contrary to Trump's policies.

The largest portion of the rescinded funds, $567 million from HHS, was allocated for social services to illegal immigrants, including grants to non-government organizations. The administration deemed these funds unnecessary due to a reported decrease in illegal border crossings.

Another significant rescission, $70 million, targets fellowships and grants for foreign academics and students, some of which had been directed toward transgender-focused projects. Additionally, $56 million is being withdrawn from a Department of Housing and Urban Development program that provided housing counseling, with the administration alleging the funds supported "DEI-centric" agendas of Democrat-linked groups.

The rescinded funds also include $28 million from HHS grants described as "wasteful, duplicative, and sometimes outright harmful and blatantly ideological," although the specific grants were not detailed. The Department of Education's subsidies for migrant students, funding organizations that allegedly encouraged participants to avoid law enforcement, will lose $25 million.

Smaller rescissions include $15 million each from the Justice Department's Community Relations Services and a DHS program providing support for illegal immigrants and asylum seekers. Funding cuts also affect the Minority Business Development Agency ($10 million), another DHS program for legal services for illegal immigrants ($10 million), and the HHS Office of Minority Health ($5 million).

Furthermore, $9 million is being cut from the Treasury Department's Tropical Forest and Coral Reef Conservation Act Program, which provided debt forgiveness for climate change initiatives.

Trump has previously utilized rescission powers, including requests to end federal funding for NPR and PBS and to cut USAID programs, which Congress approved. However, the practice of pocket rescissions remains controversial and has faced legal challenges. The Government Accountability Office has previously deemed the practice illegal, a stance disputed by the administration. In a previous instance, Trump rescinded nearly $5 billion in foreign aid, which led to a Supreme Court ruling in his favor. OMB Director Russ Vought and General Counsel Mark Paoletta have pointed to historical precedents, suggesting that previous administrations may have utilized similar actions in the 1970s.