President Trump Cuts Spending with a Pocket Rescission

President Donald Trump sent a letter to the House Speaker Mike Johnson (R-La.) on August 28, 2025, notifying Congress that he rescinded $4.9 billion in foreign aid and international organizations funding.  This was the President’s fist use of a “pocket rescission,” which Citizens Against Government Waste (CAGW) praised as an effective tool to save taxpayer money.

CAGW noted that a pocket rescission would be a good next step to reduce spending after President Trump signed H.R. 4, the Rescissions Act of 2025, into law on July 24, 2025.  The bill repealed $9 billion in funds for foreign aid programs and the Corporation for Public Broadcasting.

A pocket rescission occurs when the president submits a rescissions request to Congress less than 45 days before the end of a fiscal year (FY).  This timing is meant to not give Congress enough time before the end of the fiscal year to approve the cancellation of funding like it did in the more traditional rescissions package in July.

The President’s pocket rescission cuts $3.2 billion in USAID’s development assistance, $838 million for some of the U.N.’s international peacekeeping activities, which, according to the Office of Management and Budget (OMB), lack “specific, measurable, and time-bound goals” and are generally unhelpful.  The list also includes $521 million in U.S. funding for the directorates of the United Nations and its affiliates.  These funding cuts for international organizations and foreign aid track recommendations in CAGW’s 2025 Prime Cuts® report.

Critics of President Trump’s decision argue that a pocket rescission is unconstitutional, because it circumvents Congress’ exclusive authority to control government spending established by Article I of the Constitution.  On July 30, 2025, CAGW joined 100 fiscally responsible organizations and leaders in supporting President Trump’s unilateral effort to curb the uncontrolled spending.

Sens. Mike Rounds (R-S.D.), Lisa Murkowski (R-Alaska), Susan Collins (R-Maine), Shelley Moore Capito (R-W.Va.), Kevin Cramer (R-N.D.), and Senate Majority Leader John Thune (R-S.D.) said that rescinding funds through the appropriations process would be preferred.  But any step to cut wasteful spending when the country has a $37.3 trillion debt should be welcomed by legislators and taxpayers.