Members of Congress from both parties are seeking legal action from the Government Accountability Office (GAO) to challenge President Donald Trump’s withholding of federal funds. The GAO, a nonpartisan legislative branch watchdog, has issued more than a half-dozen findings since the start of Trump’s second term concluding that the administration illegally withheld congressionally approved spending. These include a recent determination that the White House illegally withheld over $1 billion for education and health care research programs, as well as a "pocket rescission" that canceled $810 million in funding in September 2026.
The dispute centers on the Impoundment Control Act of 1974, which requires the executive branch to spend money as directed by Congress. The GAO found that the administration failed to spend more than $78 million for the Agency for Healthcare Research and Quality (AHRQ) after cutting the staff responsible for grant administration. While former Comptroller General Gene Dodaro previously viewed lawsuits as a "last resort," a 2025 Supreme Court suggestion indicated that the GAO may be the only entity with legal standing to sue the administration for these specific violations.
Efforts to initiate a lawsuit are complicated by the lack of a permanent GAO leader. The agency is currently led by acting Comptroller General Orice Williams Brown following Dodaro’s retirement nine months ago. A bipartisan group of 10 senior lawmakers responsible for recommending a successor has not yet met. Sen. Susan Collins (R-ME) stated that the acting director may be "wary of suing the administration without direct congressional approval." Meanwhile, the administration has floated Eric Ueland, a deputy to Budget Director Russ Vought, as a potential nominee, though his confirmation remains uncertain.
Separately, a coalition including Common Cause and the Service Employees International Union (SEIU) filed a lawsuit on October 8, 2026, in the Southern District of New York. The suit alleges the administration used public funds for partisan political advertisements, including one ad featuring a "Paid for by the United States Government" disclaimer that was nearly identical to a 2024 campaign ad. The complaint names the Department of Homeland Security and the Office of Management and Budget (OMB) as defendants, alleging they violated the Hatch Act and prohibitions against using appropriated funds for "self-aggrandizing" propaganda.
The central issue is the "power of the purse"—whether a president can decide not to spend money that Congress has legally mandated. If the administration’s actions remain unchallenged, some argue it sets a precedent that could allow future presidents to bypass the legislative process to defund programs they oppose. This would change how federal agencies operate, as they would no longer be able to rely on congressional appropriations as a guaranteed source of funding for staff paychecks, grants, or public services.
A decision by the GAO to sue would be a rare legal confrontation between the legislative and executive branches. The White House, through OMB Director Russ Vought, has dismissed GAO’s findings as partisan, while lawmakers like Sen. Patty Murray (D-WA) are calling for consequences to protect congressional authority. The next steps involve the congressional selection commission meeting to recommend a permanent Comptroller General and the progression of the Common Cause lawsuit in federal court. The administration’s new committee investigating Federal Reserve Governor Lisa Cook is also scheduled to hold a hearing on November 5, 2026.