Trump invokes ‘pocket recession’ to slash $5B in Congress-approved foreign aid, raising risk of government shutdown
Trump invokes ‘pocket rescission’ to slash $5B in foreign aid, raising shutdown fears
US President Donald Trump has moved to cut $5 billion in congressionally approved foreign aid, a maneuver last used nearly 50 years ago, increasing the risk of a federal government shutdown as Democrats push back.
The reductions target programs under the Department of State and the United States Agency for International Development (USAID), according to a letter Trump sent to the House of Representatives.
The White House Office of Management and Budget said the president “will always put AMERICA FIRST” when announcing the move on social media.
Since returning to office in January, Trump has been systematically downsizing USAID, which was founded in 1961 under John F. Kennedy to promote development and counter Cold War influence. Under Trump, the agency has been further integrated into the State Department after Secretary Marco Rubio cut 85% of its programming.
Rubio praised the decision as a measure to “root out fraud, waste, and abuse in the US government, saving American taxpayers billions.”
Democratic Senate Minority Leader Chuck Schumer called the pocket rescission tactic “illegal” and warned it could sabotage negotiations to prevent a shutdown after September 30. “It’s clear neither Trump nor Congressional Republicans have a plan to avert a painful and entirely unnecessary shutdown,” he said.
Even some moderate Republicans have voiced opposition to halting funds already approved by Congress.
Trump’s move comes amid his broader campaign to expand presidential powers and retract federal spending late in the fiscal year, limiting the time Congress has to act.
A federal shutdown would disrupt everyday government operations, including food inspections, federal park access, and office services. Up to 900,000 federal workers could face furloughs, while roughly one million essential employees, from air traffic controllers to law enforcement, would work without pay until a resolution is reached.
The US narrowly avoided a shutdown in March, highlighting how quickly budget impasses can create widespread disruption.
