Key Takeaways
- The White House announced a new pocket rescission covering nearly $1 billion in federal spending.
- The announcement lists programs involving immigration services, education, research, housing counseling, international education and minority-business programs.
- GAO says proposed rescissions can be withheld for 45 days of continuous congressional session, after which funds generally must be made available unless Congress approves the rescission.
White House Announces Nearly $1 Billion Federal Spending Rescission
The White House announced on September 25, 2026, that President Donald Trump was using a "pocket rescission" to withhold nearly $1 billion in federal spending.
The announcement says the action targets spending that the administration considers wasteful, harmful or not beneficial to American citizens.
The move involves several federal programs across the Department of Health and Human Services, Department of Education, Department of Justice, Department of Housing and Urban Development and other areas.
What the White House Announced
According to the White House, the new pocket rescission includes funding from several programs.
The announcement lists:
- $567 million in HHS services for non-citizens
- $15 million in DHS programs providing services to non-citizens
- $10 million in DHS programs related to immigration assistance
- $25 million in Education programs for non-citizens
- $15 million for the DOJ Community Relations Service
- $9 million for Treasury's Tropical Forest and Coral Reef Conservation Act program
- $10 million for the Minority Business Development Agency
- $70 million for international education programs
- $28 million in selected HHS research programs
- $56 million in HUD housing counseling support
- $5 million for an HHS Office of Minority Health
The amounts specifically itemized on the White House page total approximately $810 million. The White House describes the broader action as involving nearly $1 billion in spending.
Why the Administration Says It Is Withholding the Funds
The White House says the administration is seeking to reduce spending that it considers wasteful or inconsistent with its policy priorities.
The announcement includes several examples of programs and grants that the administration has identified as unnecessary, duplicative or harmful.
These descriptions represent the White House's stated rationale for the action and should be distinguished from independent findings about the programs.
The announcement also references funding related to immigration services, international education, minority-business development, housing counseling and health research.
What Is a Pocket Rescission?
A rescission is a proposed cancellation of budget authority that Congress has previously provided.
The Government Accountability Office explains that the Impoundment Control Act of 1974 is the main legal mechanism governing presidential efforts to delay or cancel federal funding after Congress has appropriated it.
Under the law, the President can propose a rescission by sending a special message to Congress.
Once a rescission is proposed, the President can withhold the relevant budget authority for 45 days while Congress is in continuous session.
If Congress does not complete action approving the rescission within that period, the budget authority generally must be made available for obligation.
GAO's Position on Pocket Rescissions
GAO's official guidance addresses the legal question surrounding so-called pocket rescissions.
GAO states that the Impoundment Control Act does not permit funds proposed for rescission to remain withheld through their expiration date when Congress has not affirmatively approved the rescission.
According to GAO, if Congress does not approve the proposed rescission, the funds must be made available for prudent obligation before they expire.
This provides important context for understanding the September 25 announcement.
The White House's announcement describes the action as a pocket rescission, while GAO's published legal guidance explains statutory limits on withholding funds proposed for rescission.
Congress and Federal Spending Authority
The dispute over impoundment involves the constitutional division of federal spending authority.
GAO explains that Congress has the power of the purse through its authority to approve budgets and appropriate federal funds.
The executive branch is responsible for administering those appropriations, while the Impoundment Control Act establishes circumstances under which the President may temporarily withhold or propose cancellation of appropriated funds.
The September 25 announcement therefore concerns both federal spending policy and the legal framework governing presidential impoundment.
What Happens Next?
The next stage will depend on the formal rescission process and congressional action.
The administration has announced the withholding, but the legal framework described by GAO establishes a time-limited process for proposed rescissions.
If Congress approves a rescission, the relevant budget authority can be cancelled. If Congress does not complete action within the statutory period, GAO's guidance says the funds generally must be made available for obligation.
The specific implementation of the September 25 action and any subsequent congressional or legal developments will therefore be important to follow.
TwikUp's Perspective
The significance of this development extends beyond the amount of money involved because it concerns the relationship between presidential spending decisions and Congress's constitutional appropriations authority.
The White House has presented the action as an effort to reduce spending it considers wasteful or harmful. GAO's official guidance provides a different type of information: it explains the statutory process and limits governing presidential withholding of congressionally appropriated funds.
For readers, the key distinction is between announcing a proposed rescission and permanently cancelling congressional appropriations.
The September 25 announcement begins another federal spending dispute that could involve congressional action and potentially further legal questions. The outcome will depend on how the rescission process proceeds and whether Congress approves the proposed cancellations.