President Trump Uses Pocket Rescission To Cancel $4.9 Billion Foreign Aid

Last Updated:August 30, 2025, 01:41 IST

Back in February, the Trump administration announced plans to eliminate nearly all of USAID’s foreign assistance contracts, amounting to approximately $60 billion in aid globally.

Trump administration appealed to the US Supreme Court to block lower court rulings that had preserved certain foreign aid programs (Reuters)

The administration of US President Donald Trump has moved to cancel $4.9 billion in foreign aid that had been previously approved by Congress earlier this year, according to a report from the Associated Press. In a letter sent Thursday to House Speaker Mike Johnson, Trump formally invoked a rarely used budgetary tool known as a pocket rescission, marking a significant step to bypass Congress on federal spending.

The letter, made public Friday morning via the official X account of the White House Office of Management and Budget (OMB), confirmed that the foreign aid funding would be cut from both the US State Department and the US Agency for International Development (USAID).

What Is Pocket Rescission?

A pocket rescission is a mechanism that allows a president to request that Congress not spend funds that have already been authorised, typically near the end of the fiscal year, which concludes on September 30. It is the first time in nearly five decades that a US president has utilised this budgetary manoeuvre.

If normalised, the move could set a precedent allowing future presidents to override Congress on spending decisions. The Trump administration’s use of the pocket rescission aligns with a broader pattern of expanding executive control across the federal government. During his tenure, Trump has dismissed federal employees, raised tariffs without congressional approval, and challenged the authority of key institutions including the Federal Reserve and the Centers for Disease Control and Prevention.

Many of these moves have sparked legal battles over the boundaries of presidential power.

Trump Administration’s Move Against Foreign Aid 

The $4.9 billion in rescinded funds includes $3.2 billion in development assistance grants, $520 million allocated for the United Nations, $838 million for international peacekeeping operations, and $322 million designated to promote democratic values overseas.

Back in February, the Trump administration announced plans to eliminate nearly all of USAID’s foreign assistance contracts, amounting to approximately $60 billion in aid globally. Since then, USAID has been largely dismantled, with most of its remaining programs transferred under the control of the State Department.

Secretary of State Marco Rubio acknowledged the agency’s shutdown on social media. Posting on X, he wrote, “USAID is officially in close out mode," and praised White House budget director Russ Vought, stating, “Russ is now at the helm to oversee the closeout of an agency that long ago went off the rails."

In a related development, the Trump administration on Wednesday appealed to the US Supreme Court to block lower court rulings that had preserved certain foreign aid programs. These include funding for global health initiatives and HIV/AIDS programs, which the administration had previously attempted to freeze.

Location :

Washington D.C., United States of America (USA)

First Published:

August 30, 2025, 01:40 IST

News world President Trump Uses Pocket Rescission To Cancel $4.9 Billion Foreign Aid

Read More