OMB Cancels Nearly $5 Billion in Foreign Aid Funding
The Office of Management and Budget (OMB) announced on Friday that it will terminate close to $5 billion in funding for various foreign aid programs.
On Thursday night, President Donald Trump wrote to House Speaker Mike Johnson, seeking to utilize a rarely used “pocket withdrawal” process for funds approved by Congress allocated to the U.S. Agency for International Development (USAID) and the State Department. This includes over $3 billion from USAID, more than $300 million from the USAID-States Democracy Fund, along with the State Department’s allocations for peacekeeping and international organizations.
Pocket withdrawals can only be executed within the last 45 days before the end of the fiscal year on September 30. Essentially, when funding is about to expire, a request can be made, leading to the cancellation of those funds regardless of Congressional approval.
This decision is likely to spark opposition in Congress, particularly from Democrats.
Senator Susan Collins of Maine, chair of the Senate Approval Committee, stated that “attempts to withdraw funds allocated without Congressional approval are a clear violation of the law.”
On the other hand, conservative lawmakers praised the Trump administration’s move to utilize pocket withdrawals as a way to rein in government spending. Representative Chip Roy from Texas referred to this funding cut as “historic,” noting that the last use of pocket withdrawal occurred under former President Jimmy Carter in 1977.
However, the administration’s actions could face legal challenges. The Government Accountability Office (GAO), which has previously had disputes with the Trump administration, is questioning the legality of this operation, asserting that it contradicts the powers designated to the Legislative Branch.
OMB lawyer Marc Paoletta has dismissed the GAO’s claims as “absurd,” referencing an earlier statement that indicated pocket rescissions were sanctioned under the Water Storage Control Act.
The new clawback request pertains to foreign aid and public broadcasting funds that Congress had previously approved after Trump signed a relevant law in July.
