Trump Administration Announces $810 Million Federal Funding Cuts as Lawmakers Raise Legal Concerns

September 26, 2026

The Trump administration has announced plans to rescind $810 million in congressionally approved federal funding, using a rarely used budget mechanism known as a “pocket rescission.” The announcement has triggered criticism from lawmakers over the process and the administration’s authority to cancel the funds.

What Does the $810 Million Cut Include?

According to the administration’s notification to Congress, the proposed rescissions cover funding across several federal departments and programs.

The largest portion—about $567 million—involves funding administered through the Department of Health and Human Services, including programs connected to refugee and other non-citizen services. Other affected areas include education, commerce, housing, justice, homeland security and international assistance.

Why Is the White House Making the Cuts?

The White House says the funding targeted by the rescission represents spending it considers unnecessary or harmful. Administration officials have particularly pointed to programs involving immigration, refugee services and initiatives related to diversity and minority programs.

The move comes only days before the end of the US federal fiscal year on September 30.

Why Are Lawmakers Objecting?

The announcement has prompted criticism from lawmakers, including some Republicans.

Senator Susan Collins, the Republican chair of the Senate Appropriations Committee, said Congress received the $810 million rescission package without prior warning or consultation. She questioned whether the administration's approach complies with federal law and Congress's constitutional control over spending.

Democratic lawmakers have also challenged the move, arguing that the affected funding was approved through the congressional appropriations process. Senator Tammy Baldwin said the cuts affect areas including health research, chronic-disease screening and education programs.

What Is a “Pocket Rescission”?

A pocket rescission refers to a situation in which a president asks Congress to rescind approved funding so close to the end of the fiscal year that the normal review period can effectively run beyond the time available before the money expires.

The legality of using the mechanism in this way has been disputed. The administration argues that the Impoundment Control Act provides authority for the action, while critics in Congress and other observers have raised questions about whether the timing complies with the law.

What Happens Next?

The funding dispute could lead to further action by Congress and potentially the courts. The central issue will be whether the administration can use the pocket-rescission process to prevent congressionally approved funds from being spent as the fiscal year comes to an end.

For now, lawmakers are examining the details of the $810 million package and its potential effects on the affected federal programs.

Conclusion

The Trump administration's $810 million funding rescission has opened a new dispute over federal spending authority just days before the end of the fiscal year. While the White House says the cuts target spending it considers unnecessary, lawmakers from both parties have raised questions about the process and the administration's legal authority.