Trump on Friday sought to cancel $810 million in unspent federal funds, including money tied to programs involving illegal immigrants and race-focused initiatives, through a disputed “pocket rescission” ahead of the Sept. 30 fiscal-year end.
A pocket rescission is timed so funds may expire before Congress completes its 45-day review. Under the usual process, if Congress does not approve a request within that period, the funds generally must be made available for obligation. The Government Accountability Office says the law does not permit withholding proposed funds through expiration without congressional approval; the Bipartisan Policy Center says no court has definitively settled the tactic’s legality.
Trump used the tactic in August 2025 to seek cancellation of about $4.9 billion in foreign aid; the Supreme Court allowed withholding during litigation without deciding whether pocket rescissions are lawful. A separate roughly $9 billion cancellation involving foreign aid and public broadcasting was approved by Congress in July 2025.
