President Donald Trump has moved to cancel $4.9 billion in foreign aid funds already approved by Congress, using a rare “pocket rescission” under the Impoundment Control Act.
The Office of Management and Budget (OMB) said the funds violate Trump’s “America First” priorities and would be eliminated if lawmakers do not act within 45 days.
The move targets $3.2 billion from USAID development assistance, $393 million from State Department peacekeeping, $322 million from the Democracy Fund, and $444 million in other aid.
US President Donald Trump has moved to block $5 billion of congressionally-approved foreign aid, the White House said Friday -- raising the likelihood of a federal shutdown as Democrats oppose the policy.https://t.co/JG17epk4GR
— Politiko (@Politiko_Ph) August 29, 2025
Critics, including Senate Appropriations Chair Susan Collins and Senate Minority Leader Chuck Schumer, called the maneuver illegal and a violation of congressional authority.
The Government Accountability Office has previously ruled that pocket rescissions are unlawful. Trump’s decision marks the first use of the tool since President Jimmy Carter in 1977 and sets up a likely legal showdown with Democrats and some Republicans.
Trump scraps $5B in foreign aid in rare ‘pocket rescission’ https://t.co/ZJBvU9SiZu pic.twitter.com/NDFZ9L0o1V
— New York Post (@nypost) August 29, 2025
