President Donald Trump’s administration has moved to cancel nearly $1bn in funding already approved by Congress, setting up a dispute over who controls federal spending. The White House announced the cuts on Friday, targeting programmes involving immigrant services, education and other domestic priorities.
Domestic programmes face cuts
The administration said much of the funding was intended for services for refugees and unaccompanied minors. It argued that some spending was no longer needed because illegal border crossings had fallen. Other proposed cuts affect support for migrant students, housing counselling and minority business development, as well as grants the White House criticised on ideological grounds.
The decision has drawn opposition from both parties. Republican Senator Susan Collins, who chairs the Senate Appropriations Committee, said the administration had acted without warning or consultation. She argued that an executive agency cannot decide on its own which programmes approved by Congress should receive funding. Democratic Senator Patty Murray also condemned the move.
A dispute over Congress’s spending powers
Federal law gives Congress 45 days to consider a president’s proposed spending cuts. The timing makes that review difficult: the administration announced its decision with only five days remaining in the federal financial year, while the House of Representatives is out of session until after the November elections.
This approach is known as a “pocket rescission”. The Government Accountability Office, which works for Congress, says it is illegal. The administration maintains that the measure is permitted, leaving a legal and constitutional dispute over whether the president can withhold funds that lawmakers have already approved.
Trump used a similar approach last year to block foreign aid. This time, the proposed cuts concern domestic services, bringing the effects closer to communities across the United States. Their immediate future remains uncertain as lawmakers and the administration contest both the funding decisions and the limits of presidential authority.
Newshub Editorial in North America – 26 September 2026
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