White House Announces Plan to Claw Back $810 Million in Foreign Aid Funding
Quick Look
The White House announced plans to rescind $810 million in congressionally appropriated foreign aid funding, drawing criticism from lawmakers who cite the Government Accountability Office's determination that such pocket rescissions violate the Impoundment Control Act and Congress's constitutional power of the purse.
AI-generated summary
Why It Matters
The Impoundment Control Act of 1974 limits the president's ability to withhold funds appropriated by Congress. A pocket rescission occurs when a president attempts to cancel funding so late in the fiscal year that Congress cannot review it before the funds expire.
The White House on Friday evening announced plans to claw back $810 million in congressionally appropriated funding, prompting criticism from lawmakers.
A year ago, President Donald Trump's administration blocked $4.9 billion in congressionally approved foreign aid through a pocket rescission, marking the first time in roughly 50 years that the president has attempted to use that authority.
The controversial budget maneuver occurs when a president submits a request to Congress to block funding so close to the end of the fiscal year that the funds can expire before Congress receives the full 45-day consideration period under the law.
In the announcement, the White House cited the Impoundment Control Act (ICA) as the basis for the Trump administration's authority. But the Government Accountability Office has stated the ICA doesn't permit withholding proposed rescissions through expiration if Congress has not approved them.
Sen. Susan Collins, R-Maine, who chairs the Senate committee on appropriations, blasted the move in a statement posted on X.
"This is the most recent attempt by this Office of Management and Budget (OMB) to undermine Congress's Constitutional power of the purse," she wrote.
"The independent Government Accountability Office has concluded that pocket rescissions are unlawful and not permitted by the Impoundment Control Act," Collins added. "Any effort to rescind appropriated funds without congressional approval is a clear violation of the law."
Neither the White House nor Collins' office immediately responded to a request for comment from CNBC.
The rescissions would block $567 million appropriated for Health and Human Services programs for refugees, asylees and other non-citizens and $28 million for HHS research. Additional cuts target the Department of Education's special programs for immigrant students, among other programs.
What to Watch
AI outlook — possibilities, not facts
Congress will likely challenge the rescission through legislative or legal means
Likely · Within weeks
The White House may face a lawsuit over the legality of the funding clawback
Possible · Within months
Open Questions
- Will Congress take legislative action to block the rescission?
- How will the affected programs for refugees and immigrant students be impacted?
- Will the White House provide legal justification for its interpretation of the Impoundment Control Act?
