Search
Close this search box.
Blog » News » Trump to remove $4.9 billion in foreign aid without congressional approval

Trump to remove $4.9 billion in foreign aid without congressional approval

Trump to remove $4.9 billion in foreign aid without congressional approval
Trump to remove $4.9 billion in foreign aid without congressional approval

Using an unproven tactic that sparked outrage on Capitol Hill and sparked concerns about a government shutdown, the Trump administration moved to revoke $4.9 billion in foreign aid without congressional approval. President Trump said in a letter to congressional leaders that he would use the Impoundment Control Act, which permits the White House to halt spending in certain circumstances, to remove money from the State Department, international assistance programs, and the U.S. Agency for International Development.

Trump to remove $4.9 billion in foreign aid without congressional approval

The top Republican on the Appropriations Committee, Senator Susan Collins of Maine, referred to the action as an effort to circumvent Congress. She said “any effort to rescind appropriated funds without congressional approval is a clear violation of the law.” The plan was also criticized by Democrats, who warned that it might sabotage bipartisan talks to continue funding the government after September 30. Chuck Schumer, the Senate Minority Leader (D., N.Y.), denounced the move as an “unlawful gambit to circumvent the Congress all together with a so-called ‘pocket-rescission’ package” and said, “if Republicans are insistent on going it alone, Democrats won’t be party to their destruction.” The White House is testing the Impoundment Control Act, which mandates Congress to release funds after 45 days if it does not act on a rescission request.

Budget chief Russ Vought has advocated for a “pocket rescission,” in which the White House submits requests so late in the fiscal year that the money automatically expires. He testified that the Act’s restrictions are unconstitutional because congressional appropriations serve as a ceiling the White House can adjust.

The Government Accountability Office has rejected that interpretation. GAO “stands behind its legal position that pocket rescissions are illegal,” according to spokeswoman Sarah Kaczmarek. The agency is reviewing the new proposal but has not yet made a decision.

Challenges and critics

Legal challenges seem likely. Opponents have filed numerous lawsuits against the administration for spending freezes, and observers anticipate the case will eventually reach the Supreme Court. Rep. Steve Womack (R., Ark.) expressed his concerns to Speaker Mike Johnson and Appropriations Chair Tom Cole, warning that the recent action was “stretching the spirit” of the Act.

The first successful clawbacks in more than 25 years occurred earlier this year when the GOP-controlled Congress canceled $9 billion in broadcasting and foreign aid funds. The White House now wants to reduce peacekeeping and development assistance in Somalia and sub-Saharan Africa, as well as more than $500 million from U.N. programs “that do not support U.S. policies or priorities or have been operating contrary to American interests.”

Humanitarian groups condemned the move. Nicole Widdersheim of Human Rights Watch said, “It’s a very short sighted move, I just don’t understand how that is seen as being in America’s national security interests.”

Featured Image Credit: SHVETS production; Pexels: Thank you!

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

TAGS
Financial News Writer at Due
Matt Rowe is graduated from Brigham Young University in Marketing. Matt grew up in the heart of Silicon Valley and developed a deep love for technology and finance. He started working in marketing at just 15 years old, and has worked for multiple enterprises and startups. Matt is published in multiple sites, such as Entreprenuer.com and Calendar.com. Pitch Financial News Articles here: [email protected]
About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Editorial Process

The team at Due includes a network of professional money managers, technological support, money experts, and staff writers who have written in the financial arena for years — and they know what they’re talking about. 

Categories

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More