$1 billion in congressionally approved spending was canceled Friday, hitting immigrant services, refugee nonprofits, aid for unaccompanied minors and diversity-focused programs.
The White House said the money funded "harmful" programs and was no longer needed because illegal border crossings have fallen sharply.
Five days before the fiscal year ends, Trump used a "pocket rescission" that leaves Congress little time to review the cuts before they take effect.
Susan Collins, the Senate Appropriations Committee chair, called the move illegal and a usurpation of Congress's spending power; Democrat Patty Murray called it theft from the public.
The action extends Trump's aggressive use of executive power into domestic spending after a $4.9 billion foreign-aid pocket rescission last year survived a Supreme Court challenge.
How will the unresolved legality of this rare budget maneuver reshape the future of federal spending power?
With federal funds vanishing overnight, can local governments prevent a crisis for vulnerable unaccompanied minors?
What happens to a backlogged legal system when crucial administrative support is suddenly withdrawn?
The $5 Billion Pocket Rescission Crisis: How Trump’s 2025 Supreme Court Win Upended Congressional Spending Power
Overview
In 2025, President Trump used a 'pocket rescission' to freeze nearly $5 billion in foreign aid by submitting a last-minute request to Congress, ensuring the funds would expire before lawmakers could act. This triggered a legal battle, with a district court ordering the administration to spend the money, but the Supreme Court issued a stay, letting the funds lapse unspent. The maneuver bypassed Congress’s power of the purse and set off fierce backlash, especially as similar tactics were used again in 2026. Lawmakers responded with calls for reform to close this loophole and protect congressional control over federal spending.