Trump cancels nearly $1 billion in spending on illegal immigrant and race-focused programs

 September 27, 2026
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President Trump canceled nearly $1 billion in federal spending on illegal immigrant services and race-focused programs through a late-year pocket rescission, a move Senate critics insist breaks the law.

The White House moved Friday to cancel $810 million in congressionally approved funds by sending a rescission request so close to the end of the fiscal year that the money runs out before Congress can act. The Hill reported the action hit programs at Health and Human Services, the Department of Education, and the Department of Justice that the administration called wasteful and harmful.

Most of the cuts targeted HHS programs that served illegal immigrants and unaccompanied children in court, the HHS Minority Health office, and Education Department Special Programs for Migrant Students. Other cancellations hit HHS gender-affirming care research, minority business development, and DOJ Community Relations Services funding the White House said promoted identity-conscious law enforcement practices.

In a notice to House Speaker Mike Johnson, Trump wrote that the package covered 11 rescissions totaling $810 million under the Congressional Budget and Impoundment Control Act of 1974. The New York Post reported this as the second pocket rescission in 49 years, timed with only five days left before the Sept. 30 fiscal year end.

The largest single cut was $567 million from HHS social services tied to illegal immigrants. Additional reductions reached DEI-linked housing counseling, migrant education, and other race-based programs. The timing left the standard 45-day congressional review window impossible to complete before the money expired.

White House ties cuts to border results and excess spending

A White House press release framed the cancellations as overdue cleanup after border enforcement worked. “These funds previously went to pro-illegal immigration programs and Non-Governmental Organizations that provided services to refugees, asylees, and other non-citizens and put unaccompanied children in harm’s way,” the release stated.

“Thanks to President Trump’s successful border policies, the illegal alien invasion is over and there are fewer people crossing our border than ever before,” the White House added. Officials said the drop in crossings made the old funding levels excessive and no longer justified.

Taxpayers had been underwriting a network of services built for a high-crossing environment that the administration says no longer exists. The rescission package treated that mismatch as a budget problem, not a talking point.

The same assertive posture has shown up elsewhere in the term, including when Trump barred several major outlets from White House grounds and enforced the order within hours.

How a pocket rescission works under the Impoundment Control Act

The Impoundment Control Act lets an administration temporarily withhold funds for up to 45 days while Congress considers a rescission request. If lawmakers do not approve the cuts, the money must be released.

A pocket rescission, as the Government Accountability Office has described it, “occurs when a president asks Congress to rescind (or cancel) funds very close to the end of the fiscal year, so close that the funds expire before they can be used for new obligations.” The request goes in inside that final window. The clock runs out. The dollars lapse whether Congress likes it or not.

Breitbart noted the House was out of session when the latest package landed, with five days left in the fiscal year. That calendar made a full 45-day review a non-starter before the money disappeared.

Trump used the same tool in 2025 to cut roughly $5 billion in congressionally approved funding. In that earlier fight, the Supreme Court allowed the administration to keep money set to expire the following week.

Senate critics call the move unlawful

Sen. Susan Collins, the Maine Republican who chairs the Appropriations Committee, called the latest rescission unlawful. She said the Office of Management and Budget held the money for months so it could cancel bipartisan appropriations already signed into law.

“This move shows that OMB intentionally withheld these funds for months to execute this unlawful cancellation of appropriations that were approved on a bipartisan basis and signed into law.”

Collins added that OMB “is an agency of the executive branch. It does not get to decide which programs are worth funding,” and that any effort to rescind appropriated funds without congressional approval “is a clear violation of the law.” She also pressed OMB to spend the full $1.3 billion appropriated from fiscal 2025 as Congress intended and pointed to a GAO view that pocket rescissions violate the Impoundment Control Act.

Sen. Jeff Merkley, the Oregon Democrat and ranking member on the Senate Budget Committee, condemned the package in similar terms. He said Trump and OMB Director Russell Vought “violated the law by sending Congress more illegal pocket rescissions in the dark of night.” Merkley added, “The law is not a suggestion, and the President is not a king.”

Sen. Patty Murray joined the criticism from the Democratic side, arguing the money Congress delivered on a bipartisan basis should help people rather than get cut off. Process fights like this have become familiar terrain, including when the Senate clashed with Trump over Iran war powers and only one Democrat broke ranks.

Programs on the chopping block

Beyond the big HHS illegal-immigrant and unaccompanied-children accounts, the package reached several other lines the administration flagged as misaligned with its agenda. Education’s migrant student programs lost support. Minority business development funding was pulled. DOJ’s Community Relations Services account was canceled over what the White House described as identity-conscious enforcement practices.

Gender-affirming care research at HHS was also on the list. So were race-focused housing counseling dollars. The common thread in the White House defense was straightforward: these were not core public safety or earned-benefit programs, and the border numbers no longer justified the old immigrant-services spend.

That is a different fight from the one Collins and Merkley want to have. They center the power of the purse and the Impoundment Control Act. The White House centers results at the border and the duty to stop paying for programs it calls excessive once the crossing surge ends.

Congress can still legislate. It can still write new appropriations. It can still try to force spending through other means. What it cannot do, under this maneuver, is keep expired dollars alive after the fiscal year closes. The administration has now used that reality twice, once for about $5 billion in 2025, and again for $810 million this cycle.

Some of Trump’s enforcement priorities have drawn bipartisan institutional buy-in in other lanes, including when the House voted 352, 72 to make his fraud enforcement division permanent with more than 140 Democrats on board. The pocket rescission fight is not one of those moments of overlap.

Process dispute does not erase the spending choices

Collins and Merkley are right about one institutional fact: Congress writes the spending bills. The Impoundment Control Act was built to limit unilateral freezes. GAO has treated pocket rescissions as unlawful under that statute. Those points belong in the record.

They do not answer the policy question the White House put on the table. Should federal agencies keep routing hundreds of millions to NGOs and programs built around high illegal immigration, migrant education tracks, minority set-asides, and identity-focused enforcement offices after the administration says border crossings have collapsed?

Voters sent Trump back with a mandate on the border and on waste. The rescission package is the executive branch acting on both. Senate appropriators can litigate the timing and the statute. They still have to explain why the underlying accounts deserved every last dollar through the end of the year.

Vice President JD Vance has defended other hard lines from this White House as necessary discipline, including when he called the media access crackdown “totally appropriate” as that fight escalated. The spending fight follows the same pattern: force the choice into the open and make opponents defend the old baseline.

For now, the money is on a path to expire. The programs lose the cash. The legal arguments continue. And the administration has shown it will use the calendar, not just the veto pen, to shrink accounts it rejects.

Taxpayers do not exist to keep refugee contractors, migrant-education pipelines, and race-focused offices flush after the border emergency the last administration tolerated has been forced back down. Congress can reclaim the purse the hard way, by writing cleaner bills. Until then, expired dollars are still expired dollars.

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