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Home » Business » Trump Administration Uses Rare Power to Cut Nearly $1 Billion in Spending

Trump Administration Uses Rare Power to Cut Nearly $1 Billion in Spending

President Donald Trump arrives on stage to deliver remarks at the McDonald’s Impact Summit, Monday, November 17, 2025, at the Westin D.C. in Washington, D.C. (Official White House Photo by Daniel Torok)
By Digital News Editorial Team on September 27, 2026

President Donald Trump announced on Friday that his administration is canceling nearly $1 billion in spending that Congress had previously approved. The majority of the cuts target programs under Health and Human Services that provide assistance to refugees and unaccompanied minors accused of entering the country illegally. The White House stated that these funds are no longer needed because illegal border crossings have dropped significantly. A press release from the White House noted that some of the organizations receiving the funds were led by individuals who previously worked in the Obama administration.

Senator Susan Collins, a Republican from Maine and chair of the Senate Appropriations Committee, criticized the move as lacking consultation and advance notice, according to Yahoo News. Collins said the action constituted an impoundment that was not reported to Congress and represented a usurpation of congressional appropriations authority, according to a report from dailycamera.com. She emphasized that the Office of Management and Budget is part of the executive branch and not a separate entity with independent authority. Federal law typically gives Congress 45 days to review proposed spending cuts before they take effect, Newsday reported. However, Trump announced the cuts just five days before the end of the federal fiscal year, with the House not in session until after the November election.

The Government Accountability Office has said this type of action, known as a pocket rescission, is illegal. This move is part of a broader effort by the Trump administration to reduce federal spending and shift power away from Congress. The Supreme Court recently declined to block similar rescissions involving foreign aid, citing Trump’s authority in international affairs as a key factor.

In addition to immigrant services, the administration is also cutting $70 million from what it calls ‘woke’ international education programs. Another $28 million in grant funding for Health and Human Services research programs is being rescinded. The administration also plans to withhold $9 million in debt relief for countries that support climate change policies. An additional $10 million is being withheld from a program aimed at supporting minority business development.

Senator Collins also pointed out that in recent budget negotiations, Democrats had pushed for language to prevent the executive branch from undermining Congress’s spending authority. Republicans, however, have not agreed to include such restrictions in the final legislation.

This latest spending move follows other actions taken by the Trump administration that have tested the limits of executive power. These include firing federal employees, imposing record tariff increases, and initiating conflict with Iran without seeking congressional approval. Each of these actions has placed the judicial branch in a position to determine how much authority the president holds over domestic and foreign policy matters.

IMAGE: President Trump Official White House Photo by Daniel Torok) CC0

 

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