White House Tries to Snip $810 Million, Lawmakers Cry Foul

The White House just dropped a bombshell Friday evening, announcing it wants to pull back $810 million in funds already approved by Congress. And yes, you guessed it, lawmakers aren’t happy. This isn’t some new trick. They’re using what’s called a ‘pocket rescission.’ Here’s the thing: a president tries to block money so late in the fiscal year that the cash just expires before Congress gets its full 45 days to weigh in. It’s a pretty controversial move, to say the least. Just last year, President Donald Trump’s administration tried something similar, blocking $4.9 billion in foreign aid. That was the first time in about 50 years a president even attempted that kind of power play.

The Law and the Pushback

Now, the White House claims it’s all good, citing the Impoundment Control Act (ICA). But the Government Accountability Office (GAO) begs to differ. They’ve already said the ICA doesn’t let presidents withhold proposed cuts until they expire if Congress hasn’t signed off on them. Sen. Susan Collins, a Republican from Maine and who chairs the Senate’s appropriations committee, didn’t mince words. She took to X, blasting the whole thing. “This is the most recent attempt by this Office of Management and Budget (OMB) to undermine Congress’s Constitutional power of the purse,” Collins wrote. She didn’t stop there. “The independent Government Accountability Office has concluded that pocket rescissions are unlawful and not permitted by the Impoundment Control Act,” she added. “Any effort to rescind appropriated funds without congressional approval is a clear violation of the law.”

We reached out. Neither the White House nor Collins’ office immediately responded for comment to CNBC. So, where’s this money supposed to go? A big chunk, $567 million, is earmarked for Health and Human Services programs helping refugees, asylum seekers, and other non-citizens. Another $28 million would hit HHS research. Oh, and don’t forget cuts targeting special programs for immigrant students under the Department of Education. It’s a lot of money that could disappear.