Trump Cancels $4.9 Billion in Foreign Aid via Pocket Rescission

President Donald Trump notified Congress on August 29, 2025, of his intent to cancel approximately $4.9 billion in approved foreign aid and peacekeeping spending. The administration utilized a "pocket rescission," a rare maneuver not used since 1977, by submitting the request so close to the September 30 fiscal year-end that the mandatory 45-day congressional review period expires before lawmakers can act, causing the funds to lapse.

The cuts primarily target the United States Agency for International Development (USAID), which loses $3.2 billion, and the State Department, which loses $1.7 billion. Specific targets include UN peacekeeping operations, democracy-promotion efforts, and programs the White House characterized as "woke, weaponized, and wasteful," such as climate resilience in Honduras and LGBTQ initiatives. Simultaneously, Secretary of State Marco Rubio announced that USAID is officially in "close out mode," with Budget Director Russell Vought appointed to oversee its final termination.

The move sparked a constitutional confrontation. Senate Appropriations Committee Chair Susan Collins and Democratic Leader Chuck Schumer condemned the action as illegal, citing the Impoundment Control Act and Government Accountability Office findings that such rescissions are unlawful. While some Republicans defended the cuts as necessary to reduce national debt, others warned the maneuver undermines the congressional "power of the purse."

Critics and lawmakers warn the dispute increases the risk of a federal government shutdown on October 1. While the administration maintains the tactic is a legal executive tool to put "America First," opponents argue it is an unconstitutional line-item veto. The United Nations warned that the loss of peacekeeping funds could severely limit its ability to protect civilians in South Sudan and the Democratic Republic of the Congo.