Saturday, September 26, 2026·Focal News

Focal News

Independent local reporting across America

Politics

Trump moves to withhold nearly $1 billion in federal funds as fiscal year ends

President Donald Trump told congressional leaders he plans to cancel nearly $1 billion in previously approved spending without a vote. The move relies on a disputed budget tactic that has drawn criticism from Republican and Democratic lawmakers.

Trump moves to withhold nearly $1 billion in federal funds as fiscal year ends
President Donald Trump notified congressional leaders Friday that his administration intends to cancel nearly $1 billion in federal spending, bypassing the congressional approval process normally required to rescind funds lawmakers have enacted into law. The proposed cuts affect immigration services, foreign assistance, education programs, health research and support for minority-owned businesses. The administration is using a strategy known as a “pocket rescission,” arguing that funds can be canceled if a rescission request reaches Congress with fewer than 45 days remaining in the fiscal year. Under the usual process, a president can ask Congress to rescind funds and temporarily withhold the money for 45 days while lawmakers consider the request. Congress may approve or reject it, or take no action. The administration’s position is that money covered by a late-year request expires automatically when the fiscal year ends Sept. 30, even without congressional approval. Many lawmakers dispute that interpretation. Sen. Susan Collins of Maine, the Senate’s top Republican appropriator, called the move illegal. “Any effort to rescind appropriated funds without congressional approval is a clear violation of the law,” she said in a statement Friday. Collins also accused the Office of Management and Budget of holding back the funds for months to enable the cancellation. She said she would work with other lawmakers to respond to what she described as unlawful actions. The dispute centers on Congress’ constitutional authority over federal spending and could intensify budget negotiations after the midterm elections. Trump used a similar tactic last year to cancel $4.9 billion in foreign aid.

More from Focal News