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Trump cancels US$4.9 billion in foreign aid, escalating clash with Congress

Trump cancels US$4.9 billion in foreign aid, escalating clash with Congress
US President Donald Trump attends a cabinet meeting at the White House in Washington, D.C., US, August 26, 2025. (Photo: Reuters/Jonathan Ernst/File Photo)

WASHINGTON: US President Donald Trump has unilaterally cancelled US$4.9 billion in foreign aid authorised by Congress, escalating a constitutional fight over control of government spending.

In a letter posted online late Thursday (Aug 28), Trump told House Speaker Mike Johnson he would withhold funding for 15 international programmes, including United Nations peacekeeping and democracy-promotion efforts.

The White House used a tactic known as a “pocket rescission”, last employed in 1977, which allows funds to be frozen for 45 days, effectively running out the clock until the fiscal year ends on Sep 30.

FOREIGN AID PROGRAMMES AFFECTED

Court filings on Friday showed the affected money had largely been allocated through the US Agency for International Development, which Trump has sought to scale back.

“This is going to make our budget situation that much more challenging, but we will follow up with US authorities to get more details,” UN spokesperson Stephane Dujarric said.

Democrats accused Trump of freezing more than US$425 billion in funding overall, while most Republicans backed the move as consistent with his push for steep cuts.

Senate Appropriations Committee Chairman Sen. Susan Collins, R-Maine, presides over the first FY2026 markup on Capitol Hill in Washington, Thursday, July 10, 2025. (Photo: AP/Manuel Balce Ceneta)

REPUBLICAN SENATOR BREAKS RANKS

But Senator Susan Collins of Maine, who chairs the Senate Appropriations Committee, said the cancellation was illegal.

“Instead of this attempt to undermine the law, the appropriate way is to identify ways to reduce excessive spending through the bipartisan, annual appropriations process,” she said.

Senate Democratic leader Chuck Schumer said Trump was effectively threatening a government shutdown by signalling he was prepared to ignore spending laws passed by Congress.

“Republicans don’t have to be a rubber stamp for this carnage,” Schumer said.

Source: Reuters/fs
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