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Trump aims at cutting $5B in foreign aid through an unusual budget adjustment

Trump targets $5B in foreign aid via rare pocket rescission

President Trump is attempting to utilize a strategy known as “Pocket Rescue” in hopes of securing around $5 billion in funds for foreign aid programs that have already been approved by Congress.

This request was communicated in a letter dispatched to Speaker Mike Johnson (R-La.) late Thursday. The White House seeks to reduce the $4.9 billion earmarked for the State Department and the United States Agency for International Development (USAID), an international aid initiative that was previously dismantled under Trump’s administration.

The Water Storage Management Act (ICA) outlines procedures that enable the administration to temporarily withhold funds for a period of 45 days while Congress reviews the request. Should lawmakers opt not to accept this request, they will have to release the funds.

If Pocket is withdrawn, the President can submit a similar request to Congress within 45 days after the fiscal year concludes on September 30th. This timing is problematic, as funds will effectively be paused until they expire at the end of the year, irrespective of how Congress responds.

The New York Post initially reported on Trump’s intention to employ this rarely used mechanism, which has not been in effect for nearly half a century and may face legal scrutiny regarding Congressional authority over federal expenditures.

According to the report, the President aims to cut approximately $3 billion from USAID, along with plan reductions of about $900 million from State Department allocations and $445 million intended for peacekeeping operations.

The last time a president used a similar approach was in 1977, during Jimmy Carter’s term, as noted by a spokesperson from the Office of Management and Budget. At that time, recommendations were provided on how Congress could amend the law to prevent future use of pocket rescissions, but no amendments were enacted, leaving it as a legitimate option for the enforcement department.

This past July, Congress, controlled by the GOP, approved the White House’s initial request for a budget reduction, which targeted $9 billion for global aid programs and public broadcasting.

The Trump administration has aimed to align with its “America First” philosophy, identifying federal spending that it deems wasteful or unorganized. Nonetheless, some lawmakers have voiced concerns about relinquishing their financial authority to the administration, particularly regarding the revocation of previously sanctioned funds.

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