Trump administration rescinds Congressional spending: White House adopts 'pocket rescission' technique to bypass U.S. Congress. All about latest feud over budget before November Mid-term elections 2026

U.S President Donald Trump has decided unilaterally withhold more than $800 million in spending on immigration, race and education that Congress has approved. President Trump is committed to utilizing all possible tools to cut wasteful and harmful government spending that does not benefit American citizens, the White House said in a statement announcing the steps.

The move comes days before the federal fiscal year ends on September 30. White House's statement outlined several programs, including some focused on refugee assistance, racial-minority business development and overseas conservation.

Fund Amounts to $1 Billion


The money covers immigration services, assistance to foreign countries, education programmes, health research and support for minority-owned businesses, according to multiple media reports. CQ Roll Call placed the funding affected in health, education and other programmes at $810 million, while Politico said the overall cancellation approached $1 billion.

The move was the latest salvo in a fight between the Trump administration and Congress over control of the nation's spending. The Constitution gives Congress the power of the purse, but the White House said the programs supported illegal immigration, stoked racial tensions and promoted alarmist approaches to the environment.

The White House is deploying a rarely used technique known as a "pocket rescission" that bypasses Congress. Senator Susan Collins, who chairs the chamber's Appropriations Committee, described the step as "illegal."

"This is the most recent attempt by this Office of Management and Budget to undermine Congress’s Constitutional power of the purse," said Collins, a member of Trump's Republican Party fighting a tight race for reelection in Maine. "Any effort to rescind appropriated funds without congressional approval is a clear violation of the law."

The Supreme Court last year declined to block Trump from using the same tactic to withhold $4.9 billion in foreign aid Congress had approved, while litigation continued.

What is Pocket Recession?

Trump administration is using a disputed budget mechanism known as a “pocket rescission”. Under that approach, the White House submits a request to cancel money so close to the end of the fiscal year that Congress cannot complete its legally provided review period before the funds expire.

The administration described the action as a measure to eliminate wasteful spending. CQ Roll Call quoted it as calling the decision “historic action to eliminate wasteful and harmful spending.”

Leading congressional appropriators from both parties objected to the decision. They argued that the administration deliberately delayed spending money authorised by Congress and then attempted to cancel it without receiving legislative approval.

White House vs U.S. Congress

The latest cancellation is expected to intensify tensions between the White House and Congress over control of federal spending. The US Constitution gives Congress authority over appropriations, while the executive branch is responsible for implementing spending laws.

Under existing law, a president may ask Congress to rescind, or cancel, previously authorised funds. The administration may withhold that money for 45 days while Congress considers the request.

Congress can approve the cancellation, reject it or take no action. If lawmakers do not approve the request within the permitted period, the administration is generally expected to release the money.

The latest step could also complicate negotiations over government funding. Lawmakers from both parties have been asking federal agencies to account for money that remains unspent as the September 30 deadline approaches.

Trump used the same disputed procedure last year to cancel $4.9 billion in foreign assistance without receiving congressional approval. That action also drew objections from Democratic and Republican lawmakers concerned about Congress’ constitutional spending authority.

The modern rescission process was established under the Congressional Budget and Impoundment Control Act of 1974. The law was adopted after disputes over a president’s ability to refuse to spend money that Congress had appropriated.