President Donald Trump canceled $810 million in congressionally approved funding on Friday through a rare "pocket rescission," only the second such move in 49 years, hitting immigration, education, and housing programs across seven federal agencies.
In a notice to House Speaker Mike Johnson (R-La.), Trump wrote, "In accordance with… the Congressional Budget and Impoundment Control Act of 1974, I herewith report 11 rescissions of budget authority, totaling $810 million," the New York Post reported.
So what is a pocket rescission, exactly? It's a timing trick. The federal fiscal year ends Sept. 30, and Congress normally gets 45 days to review a rescission. By canceling funding this close to the deadline, the executive branch leaves lawmakers without enough time to complete that review before the money expires. Critics call that a workaround of congressional oversight.
Immigration, Education Programs Hit Hardest
According to the report, the reductions eliminate 11 funding pools. The largest, $567 million, ends Department of Health and Human Services (HHS) social-services grants for illegal immigrants, justified by reduced border crossings.
Other cuts target foreign academic fellowships, Department of Housing and Urban Development (HUD) housing-counseling programs and Justice Department race-relations offices, along with smaller sums from minority-business and climate-related programs.
The White House did not immediately respond to MarketDash's request for comment.
Legal Fight Looms
The Government Accountability Office, Congress's nonpartisan watchdog, has ruled that pocket rescissions are illegal because they effectively deny lawmakers their constitutional review period. The Trump administration disputes that interpretation.
That legal disagreement isn't new. Last year in September, the Supreme Court sided with Trump 6-3 in a separate case involving an approximately $4 billion foreign-aid rescission, ruling that his authority over foreign affairs outweighed the procedural objection. That precedent now looms over any potential future challenge to Friday's action.
