“Trump cancels $1B in federal spending in latest challenge to Congress.”

On September 25, 2026, the Trump administration announced the cancellation of nearly $1 billion in federal spending. The administration utilized a tactic known as a "pocket rescission," which involves the president notifying Congress of an intent to cancel funds so close to the end of the fiscal year (September 30) that the funds expire before they can be utilized or before Congress can effectively respond. Reports indicate the specific amount canceled was approximately $810 million, often rounded to $1 billion in media coverage. The funds targeted were primarily directed toward immigrant services, including support for refugees and unaccompanied minors, as well as diversity-focused initiatives. The administration justified these cuts by labeling the programs as "wasteful and harmful" and arguing that the funds were no longer necessary due to a reduction in illegal border crossings. The move has drawn significant criticism from lawmakers, with some characterizing the action as an illegal impoundment of funds and a usurpation of Congress's constitutional power of the purse.