Trump Blocks $4.9B Foreign Aid Using 1970s Rescission, Sidesteps Congress/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump invoked a pocket rescission to block $4.9 billion in approved foreign aid. The maneuver, last used in 1977, bypasses Congress by allowing funds to lapse at the fiscal year’s end. Critics warn the move undermines congressional authority over spending.
Trump Blocks Foreign Aid Quick Looks
- $4.9B in foreign aid blocked by Trump administration
- Trump used pocket rescission, last seen under President Jimmy Carter in 1977
- Funds were set aside for the State Department and USAID
- Move comes as Trump dismantles U.S. foreign aid programs
- White House argues the tactic is legal under 1974 Impoundment Control Act
- Congress cannot act within 45-day timeframe before fiscal year ends Sept. 30
- Earlier in July, Trump secured $9B in congressional rescissions
- USAID dismantled; remaining programs shifted to the State Department
- Trump administration appealing to Supreme Court to block aid for global health
- Critics say cuts hurt U.S. diplomacy and global reputation
Deep Look: Trump’s Pocket Rescission Halts $4.9B in Foreign Aid
President Donald Trump has revived a fiscal tool not used in nearly half a century, halting $4.9 billion in congressionally approved foreign aid and reigniting debates about presidential power over federal spending.
In a letter to House Speaker Mike Johnson (R-La.), Trump informed Congress he would not be releasing funds appropriated for the State Department and the U.S. Agency for International Development (USAID). The announcement was shared Friday morning on the White House Office of Management and Budget’s X account.
What Is a Pocket Rescission?
The president used a rarely invoked mechanism known as a pocket rescission. By proposing to cancel funds so close to the end of the fiscal year — Sept. 30 — Congress lacks sufficient time to vote, causing the money to lapse.
The practice was last used in 1977 by President Jimmy Carter. The 1974 Impoundment Control Act allows presidents to propose rescissions, but normally Congress decides whether to sustain them. By timing his request late in the fiscal year, Trump ensures that the money effectively disappears without congressional approval.
White House Justification
The Trump administration insists the move is legal and necessary.
“Applicable foreign aid is being redirected to prioritize America’s needs,” the OMB statement read. Trump has long argued that U.S. foreign aid represents wasted spending, claiming it fails to generate domestic benefits while supporting adversarial governments abroad.
A History of Foreign Aid Cuts
Foreign aid reductions have been a hallmark of Trump’s economic agenda.
- In July 2025, Congress approved Trump-backed rescissions totaling $9 billion, targeting foreign aid and public broadcasting.
- In February 2025, the administration announced plans to eliminate most USAID contracts, slashing $60 billion in overseas assistance.
- USAID has since been largely dismantled, with remaining programs moved under State Department control.
- This week, the administration asked the Supreme Court to halt lower-court rulings that preserved funding for global health programs, including HIV/AIDS initiatives Trump tried to freeze.
Critics Warn of Risks
While the budgetary savings are relatively small compared to the national deficit, critics say the cuts damage America’s global standing. Humanitarian programs supported by USAID often provide food, health care, and infrastructure to struggling nations. Rolling them back could weaken U.S. influence abroad and empower rival nations like China and Russia.
Looking Ahead
The blocked $4.9 billion underscores Trump’s determination to realign U.S. spending priorities toward domestic programs and away from international commitments. But if the practice is standardized, future presidents could routinely bypass Congress on key appropriations battles, raising constitutional questions.
With Trump’s request already in motion and the fiscal year ending in just weeks, the aid will remain frozen unless courts or lawmakers intervene.
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