Trump Moves to Cancel $4.9 Billion in Federal Funding, Escalating Spending Clash With Congress
President Donald Trump announced plans to unilaterally cancel $4.9 billion in federal funding previously approved by Congress, intensifying the ongoing battle over who controls U.S. government spending.
In a letter published Thursday night, Trump informed House Speaker Mike Johnson that he intends to withhold funds designated for 15 international programs.
Under the U.S. Constitution, Congress holds the power of the purse and must pass annual legislation to authorize government spending. While the White House generally requires congressional approval to block allocated funds, Trump’s latest move—known as a “pocket rescission”—seeks to bypass Congress entirely.
Trump’s budget director, Russell Vought, argued that the president can legally withhold funds for 45 days, potentially running down the clock until the fiscal year ends on September 30. The White House noted this tactic was last used in 1977.
According to court filings, the targeted funds were earmarked for foreign aid, United Nations peacekeeping, and democracy-promotion programs, many of which were overseen by the U.S. Agency for International Development (USAID), a department that Trump’s administration has significantly scaled back.
Democrats said the administration has effectively frozen over $425 billion in funding. While many Republicans support spending cuts, even if it reduces Congress’ authority, some have raised concerns. Senator Susan Collins, a Republican who chairs the Senate Appropriations Committee, criticized the move as illegal, calling instead for bipartisan negotiations on reducing spending.
Senate Democratic Leader Chuck Schumer warned that Trump’s action signals a willingness to ignore laws passed by Congress, potentially setting the stage for a government shutdown at the end of September.
