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Latest News · CBS News · September 25, 2026

Trump cancels nearly $1 billion in spending, a move some lawmakers called illegal

Latest News CBS NEWS POLITIKOOL · LATEST NEWS

The Trump administration notified Congress it would cancel nearly $1 billion in previously approved federal spending just before the fiscal year closes Wednesday, using a disputed maneuver called a "pocket rescission" that lawmakers from both parties call illegal. It is the second such move, following last year's cancellation of $4.9 billion in foreign aid — the first pocket rescission since the Carter administration in 1977, according to CBS News.

The rescinded funds include $567 million for refugee, asylee and other migrant services at the Department of Health and Human Services, $50 million for other immigrant and noncitizen aid programs, $70 million in "Woke International Education" grants and fellowships, and $56 million in Housing and Urban Development funding. The White House said the cuts target "wasteful and harmful government spending that does not benefit American citizens." The Impoundment Control Act allows a president to propose rescissions that Congress has 45 legislative days to approve, but late proposals can let the money expire unspent.

Senate Appropriations Committee Chair Susan Collins said lawmakers were told of $810 million in pocket rescissions "without warning or consultation" and accused the Office of Management and Budget of holding the funds for months to force an unlawful cancellation, citing the Government Accountability Office's finding that the practice is illegal. Representative Rosa DeLauro, the House Appropriations Committee's top Democrat, said the administration was "trying to steal more money promised to communities across the country." Trump has repeatedly moved to halt funding for programs that don't match his priorities, drawing lawsuits.

Summarized by PolitiKool from CBS News’s reporting. Read the full story at CBS News →