Trump Slashes Nearly $5 Billion in Foreign Aid Using Rare ‘Pocket Rescission’ Tactic
Washington, DC – August 30, 2025, President Donald Trump has unilaterally canceled $4.9 billion in congressionally approved foreign aid, leveraging a rarely used maneuver known as a “pocket rescission” to bypass legislative oversight, according to a letter sent to House Speaker Mike Johnson on Thursday, August 28, 2025. The move, announced by the White House Office of Management and Budget (OMB) via a post on X the following morning, marks the first use of this tactic in nearly 50 years, drawing sharp criticism from Democrats and some Republicans for undermining Congress’s constitutional authority over federal spending.
The cuts target funds allocated to the State Department and the U.S. Agency for International Development (USAID), which has been largely dismantled under Trump’s administration. The rescission includes $3.2 billion in USAID development assistance, $838 million for international peacekeeping operations, $520 million for the United Nations’ regular budget and other agencies, and $322 million from the State Department’s Democracy Fund. The OMB justified the move as eliminating “woke and weaponized foreign aid” that conflicts with Trump’s “America First” priorities, citing examples like $24.6 million for climate resilience in Honduras and $3.9 million for LGBT democracy promotion in the Western Balkans.
A pocket rescission exploits a loophole in the 1974 Impoundment Control Act, which allows a president to propose canceling funds within 45 days of the fiscal year’s end on September 30. By submitting the request late, Trump ensures Congress cannot act within the timeframe, allowing the funds to lapse. The Government Accountability Office (GAO) and Democratic lawmakers, including Senate Minority Leader Chuck Schumer, have called the maneuver illegal, arguing it violates Congress’s “power of the purse.” Republican Senator Susan Collins, chair of the Senate Appropriations Committee, also questioned its legality, signaling bipartisan concern.
This move follows Trump’s earlier success in July 2025, when Congress approved a $9 billion rescission package, cutting foreign aid and $1.1 billion from the Corporation for Public Broadcasting, which funds NPR and PBS. The latest cuts exacerbate the impact of Trump’s broader assault on foreign aid, including a February 2025 decision to eliminate $60 billion in USAID contracts, effectively shuttering the agency. Critics, including UN aid chief Tom Fletcher, warn of dire humanitarian consequences, such as a predicted surge in HIV/AIDS deaths by 2029 and the deaths of 652 malnourished children in northern Nigeria in the first half of 2025 due to reduced aid.
The decision has sparked legal challenges, with U.S. District Judge Amir Ali, a Biden appointee, previously ruling Trump’s withholding of USAID funds illegal. The case is expected to escalate to appellate courts or the Supreme Court, testing the legality of pocket rescissions. Democrats have threatened to withhold votes for a government funding bill by October 1, risking a shutdown unless Republicans push back against Trump’s actions.
As the fiscal year nears its end, the cuts underscore tensions between the White House and Congress, with implications for U.S. global influence and humanitarian efforts. Posts on X reflect public outrage, with users like @CalltoActivism warning that slashing USAID funding could cost 52,000 American jobs and destabilize global diplomacy. The controversy highlights the delicate balance between executive power and legislative authority, with far-reaching consequences for international aid and America’s role on the world stage.
Sources: ABC News, Al Jazeera, POLITICO, Mediaite, BBC, CBS News, PBS News, AP News, The Hill, Oxfam