Trump Administration Cancels $810 Million in Approved Spending Using Budget Maneuver

<p>The Trump administration announced on September 26, 2026, that it is canceling $810 million in congressionally approved spending for programs aimed at illegal immigrants, diversity initiatives, and other efforts deemed not beneficial to American citizens.</p><p>President Donald Trump utilized a "pocket rescission," a budget maneuver that the executive branch claims is within its authority, but which Congress and the Government Accountability Office (GAO) argue exceeds presidential powers.</p><p>Approximately $567 million of the cuts target Health and Human Services programs that provided funding to non-government organizations supporting refugees, asylees, and other non-citizens.</p><p>The White House also seeks to rescind $25 million for education programs for migrant students, citing support for initiatives such as "an LGBT youth summit" and "Therapy for Latinx workshops."</p><p>Programs labeled as "Woke International Education" are facing $70 million in cuts, with the administration stating that the funding supports bringing foreign students and faculty to the U.S. and has funded doctoral dissertations on "queer and trans community building in foreign countries."</p><p>Additional programs affected include a Justice Department office focused on reducing racial tensions, a business development initiative for minority entrepreneurs, Housing and Urban Development Department counseling services, and various Health and Human Services grants described by the administration as "outright harmful and blatantly ideological."</p><p>The White House's announcement highlighted that several organizations involved are led by former officials from President Barack Obama's administration.</p><p>Senator Susan Collins, R-Maine, criticized Trump's cuts, calling it an attempt by the Office of Management and Budget (OMB) to undermine Congress's constitutional power over budgetary allocations.</p><p>Under the recent pocket rescission, the White House proposed canceling the funding near the end of the federal fiscal year on September 30. Collins argued that this timing was intentional, as unspent funds would expire before Congress's 45-day review period could be completed.</p><p>Additionally, the House of Representatives will be out of session until after the November election, complicating Congress's ability to respond.</p><p>Collins stated, "The independent Government Accountability Office has concluded that pocket rescissions are unlawful and not permitted by the Impoundment Control Act. I will work with my colleagues to address these illegal actions."</p><p>The OMB under Trump contends that the Impoundment Control Act does not explicitly prohibit the president from rescinding funds close to the end of a fiscal year, according to a summary from the Congressional Research Service (CRS). OMB Director Russ Vought has reiterated this position.</p><p>The CRS summary also noted that the GAO has compared pocket rescissions to a line-item veto, which would allow a president to eliminate parts of legislation without congressional approval—a power deemed unconstitutional by the Supreme Court.</p><p>A year prior, Trump executed the first pocket rescission in nearly 50 years, aiming to cancel $4.9 billion in congressionally approved foreign aid. The Supreme Court did not block this action, citing the president's authority over foreign affairs while allowing litigation to proceed.</p><p>The last pocket rescission occurred under former President Jimmy Carter, who proposed it before the 45-day congressional review deadline.</p>