President Trump has invoked a rarely used “pocket rescission” to cancel $4.9 billion in congressionally approved foreign aid on Friday.
A pocket rescission occurs when a president submits a rescission request to Congress so close to the end of the fiscal year that lawmakers lack sufficient time to respond within the mandatory 45-day window. The Impoundment Control Act of 1974 was imposed after President Nixon attempted to withhold congressionally appropriated funds. The law was designed to prevent presidents from unilaterally canceling spending they opposed while providing a formal process for rescission requests.
The president can propose canceling funds, giving Congress 45 days to approve or reject the request. However, by timing the proposal within 45 days of September 30, the administration effectively ensures the funds expire before Congress can act.
This maneuver has not been attempted in nearly 50 years, with the last pocket rescission occurring in 1977 under President Jimmy Carter.
The rescission targets $4.9 billion across multiple programs:
- $3.2 billion from the U.S. Agency for International Development (USAID) Development Assistance account
- $322 million from State Department democracy programs
- $393 million from peacekeeping initiatives
- $444 million in additional peacekeeping support
The cuts specifically target what the administration calls “woke and weaponized foreign aid,” including climate change programs, diversity and inclusion initiatives, and LGBTQ activities abroad.
Trump previously succeeded in cutting $9 billion in foreign aid and public broadcasting funding through the normal rescission process when Congress approved his request in July 2025.
The Government Accountability Office has explicitly ruled that pocket rescissions are illegal. In a 2018 decision, GAO stated that the Impoundment Control Act “does not permit budget authority proposed for rescission to be withheld until its expiration,” calling such actions “an aversion both to the constitutional process for enacting federal law and to Congress’s constitutional power of the purse.”
The Constitution grants Congress exclusive authority over federal spending through Article I, Section 9, Clause 7, which states that “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law”. This “power of the purse” serves as a fundamental check on executive authority.
Political analysts warn the move significantly increases the likelihood of a government shutdown when current funding expires on September 30. Since Republicans need at least seven Democratic votes to pass spending bills in the Senate, Democratic opposition could prove decisive.
