The Office of Management and Budget (OMB) announced the cancellation of nearly $5 billion in foreign aid funding.
“Last night, President Trump CANCELLED $4.9 billion in America Last foreign aid using a pocket rescission,” the OMB wrote on X, adding that Trump will “always put AMERICA FIRST!”
According to a White House statement, President Trump is using his authority under the Impoundment Control Act to deploy a pocket rescission, an action taken for the first time in 50 years.
The rescinded funds contributed to a Development Assistance account for the United States Agency for International Development (USAID), a Democracy Fund for USAID and the Department of State, contributions to international organizations (CIO), contributions for international peacekeeping activities, and separate peacekeeping aid.
“The Trump Administration is committed to getting America’s fiscal house in order by cutting government spending that is woke, weaponized, and wasteful,” the White House said, adding that the now-rescinded accounts violated the President’s “America First priorities.”
A pocket rescission is considered illegal by the Government Accountability Office’s “Watchblog.”
“Congress holds the power of the purse—approving a budget and appropriating funds. Presidents and executive branch agencies are responsible for administering those funds,” the blog post reads. “A pocket rescission could allow a president to avoid spending the money regardless of whether Congress approves the rescission request. This would cede Congress’s power of the purse by allowing a president to, in effect, change the law by shortening the period of availability for fixed-period funds.”
Mark Paoletta, general counsel for the OMB, said the GAO is “wrong on pocket rescissions (the Impoundment Control Act text specifically allows for them) AND GAO previously agreed with this view for 43 years – until 2018 (during Trump 45 Administration) when it abruptly reversed its position.”
“GAO reversed its position of 43 years simply out of a desire to thwart President Trump’s agenda,” he said. “It’s driven by Trump Derangement Syndrome.”
