September 25, 2026

President Donald Trump has taken a bold and controversial step by canceling nearly $1 billion in federal funding without the approval of Congress, a decision that has sparked intense debate over presidential powers and the legality of such actions. Utilizing what he refers to as a "pocket rescission," Trump's latest maneuver targets funds designated for immigration services, foreign aid, education, health research, and minority-owned businesses.
This strategy of canceling already approved funds could lead to a significant standoff with Congress, especially with the looming government funding discussions post-midterm elections. Historically, the president can request that Congress rescind funds, which then can be withheld for up to 45 days during deliberation. However, Trump's administration claims it can unilaterally cancel funding by issuing a rescission request within the final 45 days of the fiscal year, asserting that these funds then automatically expire by September 30 when the fiscal period ends.
Trump's administration previously engaged in a similar tactic last year, halting $4.9 billion in foreign aid, which has set a precedent for this type of fiscal intervention. The reaction from Congress has been swift and severe, particularly from Senator Susan Collins of Maine, the Senate’s top Republican appropriator. Collins has condemned the move as "illegal," arguing that it undermines the legal process of appropriated funds, which were approved on a bipartisan basis and signed into law.
Collins stated, "Any effort to rescind appropriated funds without congressional approval is a clear violation of the law." She also noted that the Office of Management and Budget (OMB) had intentionally delayed the allocation of these funds to facilitate their eventual cancellation. Moving forward, Collins pledged to collaborate with fellow lawmakers to address and rectify these perceived illegal actions.
As tensions mount, other congressional appropriators have heightened their vigilance, inquiring into several agencies about why certain funds have not yet been expended as the fiscal year's end approaches. This growing scrutiny signals potential upcoming legislative battles over budget authority and the separation of powers, questioning the extent of presidential reach into the purse strings of the nation.