Trump revives rare budget maneuver to rescind $810M in congressionally approved funds

September 26, 2026 8:27am EDT / Fox News

Admin says programs for illegal immigrants, diversity initiatives don’t benefit Americans

By James Cirrone Fox News

The Trump administration announced Friday that it was canceling $810 million in congressionally approved spending for programs serving illegal immigrants, diversity initiatives and other efforts the administration argued do not benefit American citizens.

To claw back the funds, President Donald Trump used a “pocket rescission,” a budget maneuver the executive branch contends is within its authority but that Congress and the Government Accountability Office (GAO) say exceeds the president’s authority.

The vast majority of the cuts, some $567 million, were aimed at Health and Human Services programs that provided funding to non-government organizations supporting refugees, asylees and other non-citizens.

The White House is also seeking to rescind $25 million for education programs for migrant students, claiming they supported things such as “an LGBT youth summit” and “Therapy for Latinx workshops.”

FILE – The majority of the cuts were aimed at Health and Human Services programs.(Chip Somodevilla/Getty Images)

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Programs the administration labeled “Woke International Education” were also selected for $70 million in cuts. The White House said the funding supports bringing foreign students and faculty to the United States and, in some cases, has funded doctoral dissertations on “queer and trans community building in foreign countries.”

Other programs receiving the axe included a Justice Department office focused on reducing racial tensions, a business development initiative for minority entrepreneurs, Housing and Urban Development Department counseling services, and a series of Health and Human Services grants the administration described as “outright harmful and blatantly ideological.”

The White House’s announcement about the rescissions noted that several of the organizations are led by former officials in President Barack Obama’s administration.

Sen. Susan Collins, R-Maine, who faces a tough re-election campaign, condemned Trump’s cuts and called it “the most recent attempt by this Office of Management and Budget (OMB) to undermine Congress’s Constitutional power of the purse.”

FILE – Sen. Susan Collins, R-Maine, accused the Trump administration of undermining Congress’s Constitutional power of the purse.(CJ Gunther/Getty Images)

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Under the most recent pocket rescission, the White House proposed canceling the funding near the end of the federal fiscal year on Sept. 30.

Collins argued that this was intentional on the part of the Trump administration, because if the money remains unspent until Sept. 30, it expires before Congress’ 45-day review period can be completed.

On top of that, the House of Representatives will be out of session through the November election, making it essentially impossible for Congress to respond.

“The independent Government Accountability Office has concluded that pocket rescissions are unlawful and not permitted by the Impoundment Control Act,” Collins said in a statement. “I will work with my colleagues to address these illegal actions.”

FILE – Russell Vought, director of the Office of Management and Budget (OMB), said the Impoundment Control Act does not forbid the president from rescinding funds near the end of a fiscal year.(Jason Andrew/Bloomberg via Getty Images)

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The OMB under Trump has argued that the Impoundment Control Act does not explicitly forbid the president from rescinding funds near the end of a fiscal year, according to a summary from the Congressional Research Service (CRS). OMB Director Russ Vought has repeatedly said the same.

That same CRS summary said the GAO has likened pocket rescissions to a line-item veto, which would allow a president to strike portions of legislation without congressional approval — a power the Supreme Court ruled unconstitutional.

A year ago, Trump issued the first pocket rescission in nearly 50 years, seeking to cancel $4.9 billion in congressionally approved foreign aid. The Supreme Court declined to block the move, citing the president’s authority over foreign affairs as it allowed litigation to continue.

The last pocket rescission took place under former President Jimmy Carter, who proposed it well before the 45-day congressional review deadline.

James Cirrone is a writer on the Breaking/Trending News team at Fox News Digital. Story tips can be sent to james.cirrone@fox.com.