Trump Uses Rare Pocket Rescission To Cancel $5B Foreign Aid

President Donald Trump has invoked a rarely used presidential power called a "pocket rescission" to cancel nearly $5 billion in congressionally approved foreign aid and peacekeeping funds. This maneuver, not employed since 1977, allows the president to request a funding clawback so late in the fiscal year that Congress has little opportunity to act, effectively pausing the funds until the fiscal year ends. The rescission targets various programs including $3.2 billion for USAID development assistance, peacekeeping contributions totaling roughly $838 million, and other allocations deemed wasteful by the administration, such as funds for climate resilience in Honduras, support for democracy initiatives in the Western Balkans, and cultural projects like marketing paintings by Ukrainian women. The move followed a D.C. Circuit Court of Appeals decision lifting an injunction that previously blocked the rescission after a lawsuit by the Global Health Council. While the Government Accountability Office has historically ruled pocket rescissions illegal under the 1974 Impoundment Control Act, Trump administration officials cite precedents from Presidents Ford and Carter, leading to ongoing legal and congressional scrutiny.