WASHINGTON — President Trump on Friday ordered the cancellation of $810 million in congressionally appropriated funding, including significant amounts intended for illegal immigrants and race-focused programs, marking the second "pocket" rescission in 49 years, according to reports. The action eliminates 11 pools of unspent money across seven federal departments and agencies as part of an effort by fiscal conservatives to reduce executive-branch expenses.
"In accordance with… the Congressional Budget and Impoundment Control Act of 1974, I herewith report 11 rescissions of budget authority, totaling $810 million," Trump stated in a notice to House Speaker Mike Johnson (R-La.).
The proposed rescissions impact programs from the Departments of Commerce, Education, Health and Human Services, Homeland Security, Housing and Urban Development, and Justice, as well as International Assistance Programs.
A pocket rescission refers to a proposed cancellation of congressionally mandated spending that occurs so late in the federal fiscal year that it takes effect regardless of legislative opposition. This method is legally contentious because Congress typically has 45 days to review such actions.
With only five days remaining before the fiscal year concludes on September 30, the White House Office of Management and Budget identified areas where funds were deemed unnecessary or contrary to Trump's policies.
The largest amount, $567 million appropriated for HHS to provide social services to illegal immigrants, was considered no longer necessary due to a significant decrease in illegal border crossings over the past year. Some organizations that had received funds through this program faced scrutiny over their political ties and allegations of child abuse tolerance.
The second-largest cut of $70 million was designated for fellowships and grants for foreign academics and students in the U.S., which faced conservative criticism for funding transgender-focused projects.
An additional $56 million is being withdrawn from a HUD program for organizations providing housing counseling, which allegedly supported "DEI-centric" agendas of Democrat-affiliated racial advocacy groups like UnidosUS and the National Urban League.
Moreover, $28 million is being rescinded from HHS grants labeled as "wasteful, duplicative, and sometimes outright harmful and blatantly ideological," although the specific grants affected remain unclear.
A further $25 million is being cut from a Department of Education initiative for migrant students, which funded organizations that allegedly encouraged participants to avoid law enforcement.
The rescissions also include $15 million each from the Justice Department’s Community Relations Services and a DHS program that provided cultural orientation, healthcare, and legal advice for illegal immigrants and asylum seekers.
Smaller amounts being eliminated include $10 million for the Minority Business Development Agency, which grants funds based on race, $10 million from another DHS program for legal services for illegal immigrants, and $5 million from the HHS Office of Minority Health.
Trump also rescinded $9 million from the Department of Treasury’s Tropical Forest and Coral Reef Conservation Act Program, which offered debt forgiveness to countries for climate change mitigation efforts.
This marks the second time Trump has utilized rescission powers, having previously requested congressional Republicans to end federal funding for NPR and PBS and reduce USAID programs, which Congress approved. However, the use of pocket rescissions is controversial and may lead to legal challenges. The Government Accountability Office has deemed the practice illegal, a view not shared by the administration.
Last year, Trump rescinded nearly $5 billion in foreign aid in the first pocket rescission since 1977, which provoked outrage among congressional Democrats and initiated a court battle. The Supreme Court ruled 6-3 in favor of Trump last September, allowing him to proceed based on the argument that his authority in foreign affairs outweighed the procedural concerns.
OMB Director Russ Vought and General Counsel Mark Paoletta have cited instances where Presidents Gerald Ford and Jimmy Carter may have enacted pocket rescissions in the 1970s, suggesting that this latest action could test and potentially expand the use of the practice.