The Trump administration has moved to unilaterally cut $4.9 billion (€4.2 billion) in foreign aid previously approved by Congress.
The action employs a controversial and legally untested method known as a "pocket rescission" that aims to bypass legislative approval and is expected to significantly impact the operations and funding of numerous international organizations that rely on U.S. contributions.
Proposed cuts target appropriations for the U.S. State Department, the U.S. Agency for International Development which has already been mostly disbanded, and other international assistance programs.
The Office of Management and Budget publicly communicated the action on a social media account on Friday after sending formal notice from the White House a day earlier to Republican House Speaker Mike Johnson of Louisiana.
Trump explicitly said he would not spend the $4.9 billion in congressionally approved foreign aid, effectively cutting the budget without direct legislative involvement. Funds often channeled through or in partnership with international organizations for development, health, and humanitarian efforts are included in these cuts.
The administration asserts its authority under the Impoundment Control Act of 1974, a law that grants the president limited power to propose canceling approved funds. However, the move ignited significant opposition on Capitol Hill from critics such as Senator Susan Collins, Republican of Maine, who argues the U.S. Constitution vests the "power of the purse" with Congress.
They contend any attempt to rescind appropriated funds without direct congressional consent violates established law, challenging Trump's ability to unilaterally defund international commitments.
The Impoundment Control Act mandates a 45-day window for Congress to act on rescission proposals. If Congress fails to approve the cut within this period, the funds are legally obligated for their original purpose, including money designated for international bodies.
This marks the first use of a "pocket rescission" by a U.S. president in nearly five decades. Under this tool, a president asks Congress not to spend approved funds late in the fiscal year. President Jimmy Carter last employed it in 1977.
The timing of the Trump administration's request, near the Sept. 30 fiscal year-end deadline, appears strategically aimed at preventing Congress from acting within the 45-day timeframe before the fiscal year concludes. That would allow funds for international programs and organizations to lapse unspent.
Such a maneuver, if adopted as standard White House practice, could significantly alter the balance of power because it has the potential to bypass Congress on key spending choices. It could also wrest substantial control over federal spending from both the House and the Senate, with direct consequences for international cooperation.
The maneuver also has prompted warnings from key congressional figures such as Senate Democratic Leader Chuck Schumer of New York, who cautioned that the strategy risks undermining the standard appropriations process.
He added it could precipitate a government shutdown, further complicating funding for international partners. The administration's aggressive stance on foreign aid and global engagement is further underscored by a recent Supreme Court appeal.
Earlier this week, the Trump administration sought to overturn lower court rulings that had preserved foreign aid for critical global health and HIV/AIDS programs. Many of the initiatives are implemented through multilateral bodies or international non-governmental organizations that are direct targets of the administration's efforts to freeze funding.
U.S. Secretary of State Marco Rubio publicly endorsed Trump's action on social media, saying USAID is now "officially in close out mode." He commended OMB Director Russ Vought for overseeing the process of an agency Rubio claimed "long ago went off the rails."
The effective dismantling of USAID has already shifted the landscape for many international organizations that rely on its funding and partnership for development initiatives worldwide. The Trump administration has consistently pursued significant foreign aid reductions, aligning with its "America First" policy.
That includes successful efforts in July, when Congress approved $9 billion in cuts to foreign aid and public broadcasting that signal a broader re-evaluation of U.S. financial commitments to international organizations and global initiatives.