White House Uses Contested Rescission to Cut Nearly $1B in Approved Funds
President Donald Trump announced that his administration is canceling nearly $1 billion in spending Congress approved, using a rare and disputed rescission authority. The cuts mostly affect immigrant services and diversity-focused programs, which the Office of Management and Budget labeled harmful spending. Sen. Susan Collins objected, saying the administration bypassed Congress and improperly seized its appropriations power.
The White House said it is withdrawing almost $1 billion that lawmakers had already approved. Most reductions target organizations assisting refugees and unaccompanied minors, plus diversity-related efforts. The Office of Management and Budget, led by Russ Vought, characterized these as among the most damaging federal expenditures.
Sen. Susan Collins, who chairs the Senate Appropriations Committee, criticized the move as sudden and unlawful, arguing it usurps Congress’s spending authority. Because the announcement came five days before the fiscal year ended, normal congressional review was effectively impossible. The Government Accountability Office has deemed such a maneuver illegal. Last year, a similar action affected $4.9 billion in foreign aid.
The funding reduction may disrupt nonprofits serving refugees and unaccompanied minors, potentially reducing available aid and creating uncertainty for grant recipients. Diversity-focused programs could also face closures or scaled-back operations. The dispute may intensify legal and political battles over executive spending authority, affecting how Congress and future administrations negotiate appropriations. Communities relying on these services could feel immediate effects, while courts may ultimately determine whether the cuts stand.