Trump moves to claw back $810M in funding Congress had already approved

The White House is targeting refugee aid and other programs days before the fiscal year ends, triggering a new fight over presidential spending power
President Donald Trump's administration is seeking to pull back funding across multiple federal agencies through an unusual budget mechanism (AP Photo/Mark Schiefelbein)
President Donald Trump's administration is seeking to pull back funding across multiple federal agencies through an unusual budget mechanism (AP Photo/Mark Schiefelbein)

WASHINGTON, DC: President Donald Trump is moving to rescind $810 million in federal funding that Congress had already approved, using a rarely deployed “pocket rescission” just days before the fiscal year ends.

The package targets 11 accounts across several agencies, with the largest reduction involving $567 million for refugee and entrant assistance.

WASHINGTON, DC - SEPTEMBER 25: U.S. President Donald Trump holds signs an executive order in the Oval Office of the White House on September 25, 2025 in Washington, DC. Trump signed proclamations and an executive order, including approving a partial sale of TikTok’s U.S. operations, following a 2024 law requiring parent company ByteDance to divest or face a ban. (Photo by Andrew Harnik/Getty Images)
President Donald Trump’s administration has invoked a rarely used budget mechanism to seek the withdrawal of previously approved federal funds (Andrew Harnik/Getty Images)

The move immediately opened another fight over the limits of presidential control over federal spending.

Trump targets 11 federal accounts

The notification sent to House Speaker Mike Johnson includes proposed reductions at the Departments of Health and Human Services, Homeland Security, Commerce, Education, Housing and Urban Development and Justice, along with international assistance programs.

The White House said Trump was using authority under the Congressional Budget and Impoundment Control Act of 1974 to eliminate spending it considers wasteful or harmful.

The biggest item is $567 million from HHS funding for refugee, asylee and other entrant assistance. 

DULLES, VIRGINIA - AUGUST 31: Refugees walk through the departure terminal to a bus at Dulles Intern
The proposed package covers multiple federal programs, with refugee and entrant assistance accounting for the largest share of the requested reductions (Getty Images)

The administration argued the account is overfunded because Trump’s border policies have sharply reduced illegal border crossings.

The package also seeks $15 million from an Immigration and Customs Enforcement alternatives-to-detention case-management pilot program.

Another $10 million would come from Citizenship and Integration grants administered by US Citizenship and Immigration Services.

Those grants support lawful permanent residents with English-language instruction and knowledge of US history and government as they prepare for naturalization.

Immigrants prepare to become American citizens at a naturalization service on January 22, 2018 in Newark, New Jersey. Although much of the federal government was shut down Monday morning, the U.S. Citizenship and Immigration Services (USCIS), offices remained open nationwide. (Photo by John Moore/Getty Images)
Immigrants prepare to become American citizens at a naturalization service on January 22, 2018, in Newark, New Jersey (John Moore/Getty Images)

The proposal also targets $10 million from Minority Business Development Agency programs.

The administration said those grants direct funding based on race and described them as unconstitutional.

Rare maneuver triggers congressional clash

A pocket rescission is a presidential request to Congress to cancel previously appropriated money close enough to the end of the fiscal year that the funds may expire before lawmakers can complete the statutory review period.

Congress normally has 45 days to act on such a request.

The latest package arrived with only five days remaining before September 30.

WASHINGTON, DC - JUNE 10:  U.S. Sen. Susan Collins (R-ME) attends a Senate Small Business and Entrep
Sen Susan Collins has questioned the administration’s authority to withdraw appropriated funds without additional congressional approval (Getty Images)

That timing has drawn particular attention from lawmakers.

Republican Sen Susan Collins, chair of the Senate Appropriations Committee, accused the administration of withholding the money for months and then submitting the rescissions without warning or consultation.

“Any effort to rescind appropriated funds without congressional approval is a clear violation of the law,” Collins said.

She also cited the Government Accountability Office's position that pocket rescissions are unlawful under the Impoundment Control Act.

MINNEAPOLIS, MINNESOTA - JANUARY 30: Police confront demonstrators participating in a protest at the Whipple federal building organized by religious leaders calling for an end to ICE operations in Minnesota on January 30, 2026 in Minneapolis, Minnesota. Protests have sparked up around the Twin Cities area following the deaths of Renee Good on January 7, and Alex Pretti on January 24 by federal immigration agents.  (Photo by Scott Olson/Getty Images)
Police confront demonstrators participating in a protest at the Whipple federal building in Minnesota on January 30, 2026, in Minneapolis, Minnesota (Scott Olson/Getty Images)

The White House maintains that Trump is exercising presidential authority under the law to eliminate spending that does not benefit Americans.

Funding fight could affect services

The latest action is the second pocket rescission used by Trump during his second term. 

In 2025, his administration sought to cancel $4.9 billion in foreign aid through the same mechanism.

The Supreme Court allowed that action to proceed while litigation continued but did not issue a final ruling on the underlying merits.

For Americans, the immediate effects depend on whether the targeted funds ultimately disappear and whether Congress takes action during the review period.

ATLANTA, GEORGIA - MARCH 23: Ice agents walk through a long line of travelers at Atlanta Hartsfield-Jackson International Airport on March 23, 2026 in Atlanta, Georgia. The travel disruptions continue as hundreds of TSA agents quit or work without pay during a partial government shutdown. U.S. President Donald Trump said ICE agents will be deployed to U.S. airports on Monday, with border czar Tom Homan in charge of the effort.(Photo by Megan Varner/Getty Images)
The proposed reductions could affect federally supported services ranging from refugee assistance and immigration case management to citizenship programs (Megan Varner/Getty Images)

Refugee assistance, immigration case management, citizenship programs, minority-business support and other services could face reduced federal funding if the rescissions take effect.

The dispute also raises an important practical question for taxpayers - whether future presidents can use the same end-of-fiscal-year strategy to pull back spending after Congress has approved it. 

The administration and congressional critics are now set for another legal and constitutional fight over who controls federal spending.

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