Trump Uses Rare Budget Tactic To Cut $5 Billion In Aid

President Donald Trump has moved to cancel almost $5 billion in foreign aid, using a rarely tested budget tactic that allows the White House to block spending Congress had already approved. The maneuver—described by Trump’s budget director Russ Vought as a “pocket rescission”—halts allocations to USAID, peacekeeping operations and international organizations. If lawmakers fail to act before the fiscal year ends, the funds could expire altogether.

A Rare Maneuver With Big Stakes

The decision draws on the 1974 Impoundment Control Act, which gives presidents authority to temporarily hold back funds for 45 days while Congress considers rescission requests. Previous presidents used it sparingly. Trump, however, has revived it aggressively—earlier this year rescinding $9 billion in public broadcasting and health programs. Constitutional lawyers say the tactic resembles a line-item veto, which the Supreme Court struck down in 1998. Republican senators including Susan Collins and Mike Rounds warned that Trump’s move risks upsetting the balance of power between Congress and the presidency.

Global Fallout And Humanitarian Risks

The impact of the cuts reaches far beyond Washington. According to Financial Times, USAID—the largest bilateral aid agency in the world—has already frozen key operations. Health officials in Africa say clinics are running short of antiretroviral drugs, and nutrition programs in fragile states are being scaled back. A Lancet study cited by aid groups warns that dismantling U.S. global health initiatives could lead to 14 million preventable deaths by 2030, including millions of children. The suspension of PEPFAR, the U.S. flagship HIV/AIDS program, threatens decades of progress in combating the disease.

A Strategic Opening For Rivals

Diplomats warn the retreat undercuts U.S. soft power at a moment when China is accelerating infrastructure and development financing through the Belt and Road Initiative. Britain’s Foreign Secretary described the cuts as a “strategic mistake,” noting that Beijing is already positioning itself as the primary partner for countries left behind by U.S. retrenchment. Analysts at Politico and Bloomberg note that Trump’s approach reflects his “America First” agenda but risks ceding geopolitical influence to rivals who tie aid directly to long-term strategic partnerships.