Pocket rescission is at the center of a new spending fight in Washington after President Trump moved to cancel $810 million in federal funds with the fiscal year days from ending, according to administration documents. The decision halts money Congress already approved, reviving a power struggle over who controls federal spending.
Of the total withheld, $567 million was taken from programs that provided services to refugees, asylees, and other non-citizens, the White House said in a memo.
The Government Accountability Office, an independent watchdog, has said a pocket rescission is illegal because it prevents Congress from responding within the required window.
How a pocket rescission works
Under Article 1 of the Constitution, Congress holds the power of the purse, which includes raising revenue and deciding how federal dollars are spent. If a president seeks to cancel funds, the law contemplates a formal rescission request that gives lawmakers 45 days to consider and act.
A pocket rescission occurs when the executive withholds funds so late in the fiscal year that Congress cannot react, effectively ensuring the money expires unspent.
With less than a week left in the fiscal year, the timing of this move means the targeted funds will lapse and Congress cannot reallocate them.
Backlash on Capitol Hill
Sen. Susan Collins of Maine, the Republican chair of the Senate Appropriations Committee, said in a statement that the Office of Management and Budget was undermining Congress’s constitutional authority. She wrote that OMB, as part of the executive branch, does not get to decide which programs merit funding.
Democratic leaders also condemned the action and criticized OMB Director Russell Vought. Sen. Patty Murray of Washington, the top Democrat on Senate Appropriations, called the decision theft from the American people and argued it nullifies votes that approved the spending.
Rep. Brendan Boyle of Pennsylvania, the lead Democrat on the House Budget Committee, said the president was making cuts he could not pass through Congress and called the move a direct attack on the legislative branch’s spending power.
The White House did not respond to a request for comment.
Programs affected by the pocket rescission
In addition to the refugee and asylee services reductions, the administration said it withheld $15 million from a Justice Department team focused on preventing and resolving racial and ethnic tensions and restoring stability and harmony. Another $70 million was paused from programs that provide grants and fellowships to support institutions bringing foreign students and faculty to the United States to study or teach language.
Tens of millions more were held back from research and nonprofit grant programs targeting climate change or work focused on racial and gender minority communities.
A detailed breakdown released by the administration lists the affected accounts and amounts, similar to documents scrutinized when the White House airs taxpayer-funded Trump ad amid criticism.
