Economics, Politics

Trump cuts $4.9B in foreign aid with rare budget maneuver that targets ‘woke’ spending

President Donald Trump moved Aug. 28 to cut nearly $5 billion in congressionally approved foreign aid programs through a “pocket rescission,” a rarely used budget maneuver that lets the White House withhold funds late in the fiscal year. 

In an Aug. 29 statement, the White House said the cuts target federal spending that is “woke, weaponized, and wasteful.” It pointed to millions spent on climate change projects, LGBTQ initiatives, and diversity, equity, and inclusion (DEI) programs as examples. 

The Office of Management and Budget (OMB) announced the action in an Aug. 29 X post, declaring: “Last night, President Trump CANCELLED $4.9 billion in America Last foreign aid using a pocket rescission. @POTUS will always put AMERICA FIRST!” 

OMB also released a photo of a letter Trump sent late Aug. 28 to House Speaker Mike Johnson, R-La., in which the President formally requested the rescission. 

According to the White House, roughly $3 billion of the cuts come from the U.S. Agency for International Development, $900 million from State Department programs, and $445 million from other international aid.

The administration said the move complies with the Impoundment Control Act of 1974, which permits the administration to withhold funding for up to 45 days while Congress considers a rescission request. If Congress does not approve the request, the funds must be released. 

A “pocket rescission” occurs when the president subjects the request within 45 days of the fiscal year’s end, effectively delaying the money until it expires on Sept. 30, regardless of congressional action, according to The Hill.

The outlet reported that the tactic was last used in 1977 under then-President Jimmy Carter. It is expected to face legal challenges. 

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