Trump Seeks to Cancel $810M in Federal Funds via Pocket Rescission
The White House targets refugee aid and minority business grants, arguing the spending is wasteful, while the GAO calls the move an illegal end-run around Congress.
KEY POINTS
- Trump requests cancellation of $810M in approved federal spending via pocket rescission
- Largest cut is $567M from refugee resettlement programs at HHS
- MBDA faces $10M cut; administration calls race-based grants unconstitutional
- GAO says maneuver illegally bypasses congressional spending authority
- Fiscal year ends Sept. 30, likely voiding funds before Congress can vote
President Donald Trump has notified House Speaker Mike Johnson of a plan to cancel $810 million in congressionally approved funding through a maneuver known as a pocket rescission. The proposed cuts span the Departments of Commerce, Education, Health and Human Services, Homeland Security, Housing and Urban Development, and Justice.
The largest single reduction targets $567 million from the Refugee and Entrant Assistance account, which funds the Office of Refugee Resettlement. The administration argues the office is overfunded because border policies have reduced crossings.
“The funds are "wasteful" and "harmful."”
Another proposal would eliminate $10 million of the $50 million allocated to the Minority Business Development Agency. The notification letter claims the agency's race-based grant programs are unconstitutional and discriminatory, noting the fiscal 2027 budget request sought to abolish the agency entirely.
The Government Accountability Office has determined the move illegally circumvents Congress's constitutional power of the purse. Because the fiscal year ends September 30, the 45-day congressional review window would expire before lawmakers can act, effectively nullifying the funds.
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