Trump Cancels $4.9 Billion in Foreign Aid Through Rare Budget Maneuver
President Donald Trump has moved to cancel nearly $4.9 billion in foreign aid already approved by Congress, deploying a rarely used budgetary tactic not invoked in almost half a century.
The decision marks one of the most aggressive steps yet in his administration’s effort to roll back U.S. spending on international development and global organizations.
At the heart of the move is a mechanism known as a “pocket rescission” under the Impoundment Control Act of 1974. By submitting the rescission request late in the fiscal year, the administration ensures that the funds lapse before Congress has the chance to act, effectively bypassing lawmakers’ authority. The last president to attempt such a maneuver did so in 1977.
According to reports, the cancellations target more than a dozen programs overseen by the State Department and USAID.
About $3.2 billion in development assistance will be scrapped, alongside $393 million allocated for international peacekeeping missions. Another $521 million in contributions to global bodies such as the United Nations and World Trade Organization will also be withheld.
The decision has triggered swift bipartisan pushback. Senior Republicans and Democrats alike warned that the move not only undermines U.S. credibility abroad but also violates Congress’s constitutional power of the purse. Senator Susan Collins, a Republican, described the action as “an overreach that weakens America’s leadership,” while Democratic Senator Patty Murray called it “a blatant attempt to defund diplomacy.”
The nonpartisan Government Accountability Office (GAO) has previously argued that pocket rescissions are unlawful. Legal experts predict that the controversy could spark another constitutional clash between the executive and legislative branches, particularly as the U.S. edges toward a potential government shutdown with budget negotiations already strained.
The cuts fit into a broader pattern under Trump’s second administration. Earlier this summer, Congress passed a $9 billion rescissions act targeting global aid and public broadcasting programs, largely at the President’s urging. In addition, the U.S. Agency for International Development (USAID) has been dramatically downsized, with more than 90 percent of its foreign aid contracts cancelled since January.
Critics warn the move could deal a serious blow to U.S. soft power, disrupting humanitarian operations, health initiatives, and development projects in fragile regions.
Supporters, however, argue it reflects Trump’s longstanding promise to put “America First” by cutting international commitments and focusing resources on domestic priorities.
With this latest rescission, Trump has not only reignited the debate over America’s role on the global stage but also tested the limits of presidential authority over Congress’s spending powers—a dispute that could define Washington politics in the weeks ahead.
