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HomeBusinessPocket Rescission Controversy: White House Cancels $4.9B Foreign Aid, Faces Legal Backlash

Pocket Rescission Controversy: White House Cancels $4.9B Foreign Aid, Faces Legal Backlash

A major pocket rescission controversy is now unfolding in Washington. The White House recently canceled $4.9 billion in foreign aid. Consequently, lawmakers from both parties are calling the move illegal. They also warn it could risk a government shutdown.

President Trump’s administration used a “pocket rescission.” This maneuver effectively bypasses congressional approval. The Office of Management and Budget announced the decision proudly. They said the president will always put America first.

However, this pocket rescission controversy immediately drew sharp criticism. The funding cuts target many international programs. For example, over $500 million is cut from international organizations. Another $445 million is cut from peacekeeping operations. Development assistance loses more than $3 billion.

Senator Susan Collins leads the Senate Appropriations Committee. She strongly condemned the White House action. She stated the move clearly violates the law. Furthermore, she referenced a Government Accountability Office finding. The GAO says pocket rescissions are illegal under current law.

The regular rescissions process gives Congress 45 days to decide. Lawmakers actually approved $9 billion in cuts earlier this year. A pocket rescission, however, avoids this process entirely. It is timed to make congressional review impossible.

Senate Minority Leader Chuck Schumer also blasted the decision. He called the package unlawful and proof of rejecting bipartisanship. He warned the action could lead to a government shutdown. Funding for the government expires on September 30th.

A White House official responded to the criticism. They expressed confidence in their legal position. They believe the administration would win any court challenge. The official also said this should not cause a shutdown.

The official stated the goal is eliminating USAID remnants. They also want a clean funding extension for the government. This means no new spending would be added. They hope this strategy will gain Republican support.

Despite this, the pocket rescission controversy continues to grow. The situation creates a significant new conflict. Lawmakers must now fund the government by the month’s end. This political battle over spending authority is escalating quickly. The nation now watches as the September deadline approaches.

For more business updates, visit DC Brief.

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