President Donald Trump notified congressional leaders on Friday, Sept. 25, 2026, that his administration is canceling nearly $1 billion in federal funding through a process known as a "pocket rescission." The move targets several programs previously approved by Congress, including funding for migrant services, health research, and international education grants. The White House stated that the decrease in border crossings rendered some of these funds excessive, while describing other initiatives as "wasteful and harmful."
The pocket rescission maneuver involves the president requesting that Congress cancel funds very close to the end of the fiscal year, which concludes on Wednesday, Sept. 30, 2026. Under the Impoundment Control Act, a president can withhold funds for 45 days while Congress considers a rescission request. However, by submitting the request less than 45 days before the fiscal year ends, the administration argues the funds automatically lapse before they can be spent. The Government Accountability Office (GAO) has previously characterized this specific tactic as illegal.
According to White House and congressional records, the cancellations include $567 million for Department of Health and Human Services (HHS) programs serving refugees, asylees, and other migrants, as well as $50 million for several other programs that aid immigrants and noncitizens. Additionally, the administration is rescinding $810 million total in specific categories, including $70 million in international education grants and fellowships and $56 million in Housing and Urban Development programs. Other cuts targeted HHS gender-affirming care research, minority business development assistance, and the Department of Justice's Community Relations Services.
Sen. Susan Collins (R-Maine), chair of the Senate Appropriations Committee, criticized the move Friday, stating that "any effort to rescind appropriated funds without congressional approval is a clear violation of the law." Collins alleged that the Office of Management and Budget (OMB) intentionally withheld the funds for months to ensure they would expire. Rep. Rosa DeLauro (D-Conn.), the top Democrat on the House Appropriations Committee, also opposed the move, stating the administration was attempting to steal money promised to communities.
The scale of the rescission is nearly $1 billion, following a $4.9 billion pocket rescission of foreign aid implemented by the Trump administration in 2025. For an individual program like the $70 million international education grant pool, this represents a loss of those specific funds for the upcoming cycle. Individuals served by these programs, such as unaccompanied children in court or students in migrant education programs, will notice the absence of these funded services as the current budget year expires this Wednesday. The administration stated that fewer people crossing the border justified the reduction in migrant-related spending.
The use of the pocket rescission sets a precedent regarding the balance of power between the executive branch and Congress over the "power of the purse." While the Supreme Court allowed a similar $4.9 billion freeze to stand in 2025 based on the president's foreign relations authority, it did not reach a final decision on the legality of the pocket rescission process itself. This latest move is expected to lead to legal challenges and a funding battle in Congress following the midterm elections. The immediate deadline is Wednesday, Sept. 30, 2026, at which point the funds will officially lapse if they are not spent.