The Trump administration has moved to cancel nearly $1 billion in spending already approved by Congress, using a contested budget manoeuvre known as a pocket rescission.

The order, issued on September 26, 2026, targets about $810 million in health and education funds alongside other programmes. A pocket rescission is a rare move in which the president declines to spend appropriated money as the fiscal year ends, denying Congress time to override the decision.

Critics have called the action illegal, arguing it violates Congress’s power of the purse. The administration defends it as a lawful tool for cutting spending that the country cannot afford.

The move is likely to trigger court challenges and a fresh fight with lawmakers over budget authority. Congress had until September 30 to respond, leaving the rescission effectively unchallengeable in the short term.

Budget experts say pocket rescissions are extremely rare because most presidents have considered them legally doubtful. The Impoundment Control Act of 1974 was passed to stop presidents from unilaterally refusing to spend money Congress approved. Lawmakers from the opposition have vowed to challenge the move in court, while the administration insists the fiscal year deadline makes congressional approval unnecessary.