Trump cuts another $5 billion in funding without Congress. Is that legal?


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Summary

Unilateral cuts

President Trump informed Congress that he’s cutting $3.2 billion from USAID, about $1 billion from the State Department and $445 million from the Peace Corps.

Pocket rescissions

Trump made what’s called a pocket rescission, which allows the president to make cuts at the end of the fiscal year without congressional approval.

Power of the purse

The Government Accountability Office has determined pocket rescissions are not permitted under federal law.


Full story

President Trump is bypassing Congress to unilaterally cut $5 billion in foreign aid from the federal budget. The president’s use of what’s called a pocket rescission is being described as illegal by both Republican and Democratic members of Congress.

What is the president cutting? 

President Trump informed Congress last week that he’s cutting $3.2 billion from the United States Agency for International Development, approximately $1 billion from the State Department and $445 million from the Peace Corps. 

That money was allocated to numerous programs, including: $400 million per year for global climate projects, $322 million to the USAID Democracy Fund, $393 million for international peacekeeping activities, which the administration stated had failed to meet their mission, and $521 million in contributions to international organizations.

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How did Congress respond? 

“Any effort to rescind appropriated funds without congressional approval is a clear violation of the law,” Sen. Susan Collins, R-Maine, said. “Instead of this attempt to undermine the law, the appropriate way is to identify ways to reduce excessive spending through the bipartisan, annual appropriations process.” 

“Donald Trump wants to zero out more bipartisan investments in our national security and global leadership,” Sen. Patty Murray, D-Wash., said. “No lawmaker should accept this absurd, illegal ploy to steal their constitutional power to determine how taxpayer dollars get spent.”

What is a pocket rescission? 

The Impoundment Control Act allows the president to send requests to Congress to cut specific items from the federal budget. The president must say how much money he wants to rescind, the accounts it will be taken from, the reason and the projected budgetary and economic impact. 

Congress has 45 days to approve the request, during which time the money is frozen. That’s where pocket rescissions come in. 

The fiscal year ends Sept. 30 each year. If the president sends a rescissions request to Congress within 45 days of that date, the funds are frozen for the remainder of the fiscal year and, for all intents and purposes, cut from the budget.

There are arguments for and against the practice. Sen. Tim Kaine. D-Va., said it is illegal.

“Congress is the appropriator under the Constitution. I don’t think the White House can use tricks to change the meaning of the Constitution,” Kaine told SAN. 

Democrats are warning Republicans that if the White House tries to cut any more funding that Congress agreed to spend on a bipartisan basis, they may not be able to support the budget package for fiscal year 2026

Sen. Rick Scott, R-Fla., said it’s okay for the White House to take steps to reduce spending. SAN asked him in July if he believed allowing these rescissions cedes power to the executive branch that should belong to the legislative branch.

“Remember, I’m an individual that liked line-item veto when I was governor, so I think allowing the president to come forward with ideas to reduce spending, I’m all for,” Scott said.

There’s little that could be done to force the White House to spend the money. An organization that is set to lose funding could sue, but it’s unlikely the courts could process the case before the fiscal year ends on the last day of September.

Snorre Wik (Director of Photography/Non-Linear Editor) and Mathew Grisham (Digital Producer) contributed to this report.
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Why this story matters

President Trump’s unilateral cuts to foreign aid without Congress’s approval highlight disputes over executive versus legislative powers and the future direction of U.S. international commitments.

Separation of powers

The story raises issues about constitutional authority, as both Republican and Democratic congressional members have claimed that the president's pocket rescission circumvents the legislative branch's power to allocate federal funds.

Foreign aid policy

Significant reductions to agencies like USAID and the State Department affect various global programs and organizations.

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Community reaction

Aid organizations, United Nations representatives and some lawmakers expressed concern about the impact on vulnerable populations who rely on U.S. assistance. The United Nations noted challenges to its operations and humanitarian missions due to the funding cuts.

Context corner

Historically, Congress controls appropriations while the president executes spending. Pocket rescissions have not been used by U.S. presidents since 1977, sparking concerns over checks and balances and the separation of powers in government.

Debunking

The Government Accountability Office (GAO) has repeatedly stated that pocket rescissions are not permitted by the Impoundment Control Act and considers them illegal, despite White House claims of legality under the law.

SAN provides
Unbiased. Straight Facts.

Don’t just take our word for it.


Certified balanced reporting

According to media bias experts at AllSides

AllSides Certified Balanced May 2025

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Awarded a perfect reliability rating from NewsGuard

100/100

Welcome back to trustworthy journalism.

Find out more

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