The White House is testing a 49-year-old legal boundary — and the Senate's top Republican on spending says it has crossed the line.
September 27, 2026 — President Donald Trump moved Friday to cancel nearly $1 billion in spending Congress had approved, deploying a rare “pocket rescission” just five days before the fiscal year ends.
Image: Illustration of the US Capitol with scissors cutting dollar bills, symbolizing budget cuts. Credit: Red Eye Eagle News / original AI illustration.
Editor's Highlight: This is only the second pocket rescission attempted in 49 years — and it works because it arrives too late for Congress to stop it: the money expires at midnight on September 30.
Table of Contents
- Key Facts
- What Got Cut: The $810 Million Hit List
- How a Pocket Rescission Works
- Collins Breaks Ranks: The Power-of-the-Purse Fight
- The Legal Question: What the GAO Says
- Bottom Line
- FAQ
- Sources
Key Facts
| Detail | Information |
|---|---|
| Total rescinded | Roughly $810 million across 11 rescissions of budget authority |
| Announced | Friday, September 25, 2026, at 7:45 PM (per AP) |
| Fiscal year deadline | Money expires September 30 — five days after the announcement |
| Biggest single cut | $567 million in HHS social-services grants for refugees, asylees and other noncitizens |
| Republican critic | Sen. Susan Collins (R-Maine), chair of Senate Appropriations, calls it “illegal” |
| Watchdog ruling | The GAO has ruled pocket rescissions illegal; the administration disputes that |
| Congressional recourse | House is out of session through the November election — no realistic vote before expiry |
What Got Cut: The $810 Million Hit List
In a notice to House Speaker Mike Johnson, Trump wrote that, in accordance with the Congressional Budget and Impoundment Control Act of 1974, he was reporting “11 rescissions of budget authority, totaling $810 million,” according to the New York Post.
The cuts break down as follows — the largest cut, the $567 million in HHS grants for refugees, asylees and other noncitizens, the administration says is no longer necessary because illegal border crossings have diminished considerably, per the AP:
| Program | Department | Amount |
|---|---|---|
| Social-services grants for refugees, asylees, noncitizens | Health and Human Services | $567 million |
| International education grants and fellowships | Education | $70 million |
| Housing counseling programs | Housing and Urban Development | $56 million |
| Research grants | Health and Human Services | $28 million |
| Education programs for migrant students | Education | $25 million |
| Community Relations Service (reducing racial tensions) | Justice | Part of remainder |
| Immigrant-serving programs | Homeland Security | Part of remainder |
| Minority-business and climate-related programs | Various | Part of remainder |
OMB called the targets “the most harmful government spending.” A White House press release notes that some of the targeted organizations are led by people who worked in the administration of Democratic President Barack Obama.
Newsroom Focus: The pattern is clear: refugee services, migrant education, immigrant programs, minority businesses, climate programs, and the DOJ racial-tensions office — a deliberate rollback of specific federal commitments, not random belt-tightening.
How a Pocket Rescission Works
Under the Impoundment Control Act of 1974, a president can ask Congress to cancel appropriated money, withholding the funds for up to 45 days while lawmakers consider the request. If Congress does not approve, the funds must be released.
A pocket rescission sends that request within 45 days of the fiscal year's end. The money stays frozen while the fiscal year ends — and then it expires, regardless of what Congress does. The cut happens without a vote.
The timing is the whole strategy: announced September 25, the money expires September 30, and the House stays out of session through the November election — so no vote can intervene before expiry.
Analysis Note: Only the second such move in 49 years — presidents avoid pocket rescissions because the legal authority is contested. Trump tried a similar package in late August 2026, again too close to the deadline for Congress to act.
Collins Breaks Ranks: The Power-of-the-Purse Fight
The sharpest pushback came from a Republican: Sen. Susan Collins of Maine, chair of the Senate Appropriations Committee, who said the move came without warning or consultation and pledged to work with colleagues to address “these illegal actions.” Facing a tough reelection campaign, Collins did not mince words:
“Not only is the delay itself an impoundment that was not reported to Congress, but also it is a usurpation of Congress's appropriations powers. OMB is an agency of the executive branch. It does not get to decide which programs are worth funding.”
She called it the latest attempt by OMB to “undermine Congress's Constitutional power of the purse.”
Practical Takeaway: The power of the purse belongs to Congress. When the Appropriations chair — of the president's own party — says it has been usurped, this is a constitutional fight, not a budget dispute. Watch whether Collins can build a coalition to close the pocket-rescission loophole before the tactic becomes routine.
The Legal Question: What the GAO Says
The Government Accountability Office — Congress's nonpartisan watchdog — has ruled that pocket rescissions are illegal, because they deny lawmakers their constitutional review period. The administration disputes that interpretation.
The 1974 law was written to stop presidential impoundments. The question now is whether a pocket rescission, timed to the fiscal year's final days, is an end-run around that very safeguard.
With the House out of session through the election, Congress has no path to act before the funds expire on September 30 — leaving the courts as the likeliest battleground.
Bottom Line
Trump's $810 million pocket rescission is designed to be unanswerable: too late for Congress to vote, backed by a disputed reading of the 1974 Impoundment Control Act. Watch whether Sen. Collins can turn Republican anger into a law closing the loophole — or whether this becomes the template for every September.
FAQ
What is a pocket rescission?
A presidential request to cancel appropriated spending, sent within 45 days of the fiscal year's end. The funds stay frozen while the fiscal year expires — so the cut takes effect without a vote. The GAO calls it illegal.
How much money is Trump trying to cancel?
Roughly $810 million across 11 rescissions, announced September 25, 2026. The largest single item is $567 million in HHS grants for refugees, asylees and other noncitizens.
Why is Sen. Susan Collins calling it illegal?
Collins, the Republican Appropriations chair, says the delay is an unreported impoundment and a usurpation of Congress's power. OMB, she argues, does not get to decide which programs are worth funding.
Can Congress stop it?
Realistically, no — not in time. The fiscal year ends September 30, and the House is out of session through the November election. Once the money expires, it is gone regardless of what Congress does.
Sources
- AP via KXL, Sep 26 — Freking/Cooper: Trump Administration Uses Rare Authority to Claw Back Nearly $1B in Spending Approved by Congress
- Martin D. Vasquez explainer, Sep 26 — how a pocket rescission works: Trump and Vought Cancel Nearly $1 Billion via Pocket Rescission
- iBtimes SG, Sep 26 — cuts breakdown: Trump Uses Rare Power to Cancel Nearly $1 Billion Congress-Approved Funds
- YouTube video embed: “White House Rescinds $810 Million in Federal Funds — Susan Collins Calls It a Clear Violation”
- Hero image: original AI illustration, credit: Red Eye Eagle News
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