Trump cancels $4.9 billion in federal funding

President Trump has announced plans to permanently withhold $4.9 billion in funding for 15 international programs, challenging Congressional control over the federal budget in a rare executive move.

President Donald Trump has taken a rare and contentious step by unilaterally moving to cancel $4.9 billion in federal funding authorized by Congress.

The funds targeted are allocated for 15 international programs, including some managed by the State Department and USAID.

The big picture: Trump communicated his decision in a letter to House Speaker Mike Johnson, posted publicly late Thursday.

  • The U.S. Constitution assigns funding authority explicitly to Congress, which yearly enacts laws to finance government operations.
  • According to established procedure, the White House must gain Congressional approval to withhold or cancel authorized expenditures.

Go deeper: In contrast, Trump’s budget director, Russell Vought, contends the president can withhold funds up to 45 days without Congress, delaying expenditure until the fiscal year ends Sept. 30.

  • This tactic to unilaterally block funding has not been used since 1983, per analysis by Project Democracy, a nonpartisan group.
  • Democrats argue the administration has frozen more than $425 billion in funding overall, sparking legal and political disputes.
  • Meanwhile, Republicans, like House Speaker Johnson, have expressed support for reducing spending regardless of the method.
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