President Donald Trump announced on Friday the unilateral cancellation of $4.9 billion in foreign aid, utilizing a maneuver known as a "pocket rescission." The White House Office of Management and Budget (OMB) stated that the administration is reclaiming these funds, which were previously approved by Congress, as part of an effort to prioritize conservative spending goals. The decision comes as lawmakers face an October 1 deadline to pass a funding bill and avoid a government shutdown.
Under federal law, the White House may request that Congress "claw back" or rescind specific funds, allowing the administration to withhold that money for 45 days while Congress considers the request. Because there are fewer than 45 days remaining in the current fiscal year, White House budget director Russ Vought argues the administration can hold the funds until they expire at the end of the month. This ensures the money is never spent, regardless of whether Congress votes on the request.
The cuts target more than $3.2 billion intended for the U.S. Agency for International Development (USAID), as well as hundreds of millions of dollars earmarked for international peacekeeping efforts. The White House filed a memo in federal court on Friday to document the rescissions. A White House official told reporters that while they do not currently expect to cancel more funding this month, they "wouldn't take anything off the table."
The scale of the cancellation averages out to approximately $14.80 for every person in the United States, based on a population of 331 million. The concrete impact will be felt by international non-governmental organizations and foreign governments that receive these grants and contracts. Because the White House argues the funds will "lapse" or expire on September 30, these organizations will notice the absence of expected payments and project renewals immediately as the new fiscal year begins in October. This sets a precedent for the executive branch to bypass the traditional congressional "power of the purse" by timing rescission requests to the end of the fiscal year.
The action has created a legislative impasse in the Senate. Senate Minority Leader Chuck Schumer (D-NY) suggested that Democrats may withhold the votes necessary to pass a stopgap funding bill if the administration does not reverse the cancellations. Sen. Susan Collins (R-ME) also labeled the move a violation of the law. However, the White House maintains the tactic is a legal way to ensure the government is not forced to spend money on programs the president does not support. The legality of the pocket rescission is currently being reviewed by U.S. District Judge Amir Ali, with a decision expected to be appealed to higher courts. The current fiscal year ends on September 30.