The White House announced on Friday, Sept. 25, 2026, that President Donald Trump is canceling nearly $1 billion in spending previously approved by Congress. The administration is utilizing a maneuver known as a "pocket rescission," targeting funds for immigrant services, minority business development, and diversity-focused initiatives. The Office of Management and Budget (OMB) described the move as focused on what it termed "harmful" government spending.
The action follows a similar move a year ago when the administration blocked $4.9 billion in foreign aid. While the U.S. Supreme Court declined to block that previous rescission, citing the president's authority over foreign affairs, the current cuts target domestic programs. Federal law typically allows Congress 45 days to review proposed spending cuts, but by announcing these cancellations with only five days remaining in the fiscal year, the administration has left no time for such a review.
The largest portion of the cuts focuses on Health and Human Services programs for refugees and unaccompanied minors. The administration stated these funds are no longer required due to a decrease in illegal border crossings. Other specific targets include $70 million for international education programs, $28 million for Health and Human Services research grants, $10 million from a minority business development program, and $9 million in debt relief for foreign countries tied to climate change policies.
Sen. Susan Collins (R-ME), chair of the Senate Appropriations Committee, condemned the move as a "usurpation of Congress’s appropriations powers" and said she would work with colleagues to address "these illegal actions." Sen. Patty Murray (D-WA), the lead Democrat on the committee, described the action as "theft from the American people" and noted that Democrats had previously sought to include language in spending bills to prevent such executive actions. The White House noted that some organizations losing funding are led by former officials from the Obama administration.
Nonprofit organizations, minority entrepreneurs, and students are affected by the action, including those served by the Department of Education’s migrant programs and Health and Human Services refugee initiatives. By rescinding the funds in the final five days of the fiscal year, the administration prevents them from being spent as Congress intended. For organizations serving refugees and unaccompanied minors, this involves resources that the White House claims are surplus due to lower border crossing figures.
The cuts involve a range of domestic agencies, including the Department of Housing and Urban Development, which will lose funding for housing counseling services, and the Department of Justice, which will see cuts to an office focused on reducing racial tensions. A minority business development program will lose $10 million. Additionally, $70 million in international education funding and $28 million in research grants will be halted as the fiscal year ends on Sept. 30.
The Government Accountability Office (GAO) has stated that "pocket rescissions" are illegal because they bypass the 45-day congressional review period mandated by law. While the Supreme Court previously allowed a rescission of foreign aid, this new action involves domestic appropriations. With the House of Representatives out of session until after the November election, legal and legislative challenges to these cuts may move to the judicial branch. The current fiscal year ends on Wednesday, Sept. 30, 2026.