Trump Administration Rescinds $810 Million in Appropriated Funds, Lawsuits Pending

The President issued a so-called pocket rescission on September 25 canceling $810 million in already appropriated funding for fiscal year (FY) 2026, citing “wasteful and harmful government spending that does not benefit American citizens.”

Within the rescission are cuts for immigration services and several health and education programs, such as the Department of Education’s International Education and Foreign Language programs. Also included are rescissions to the Department of Health and Human Services (HHS) Office of Minority Health, climate change initiatives, and programs dealing with transgender/gender identity and racism within the healthcare system.

The legality of the move is in question. The Administration contends that it can rescind, or “impound,” already-appropriated funds without Congressional approval if said rescission occurs within 45 days of the end of the fiscal year and Congress is not in session to respond. However, the Government Accountability Office (GAO) finds that pocket rescissions are illegal given that impoundment requires action by Congress. A lawsuit was filed in California on September 30 calling for the rescission to be blocked, citing violation of the Constitution’s spending clause. Members of Congress have also started speaking out against the rescission. This is a developing story.