What is the story about?
What's Happening?
President Donald Trump has informed House Speaker Mike Johnson that he will not spend $4.9 billion in foreign aid approved by Congress, effectively cutting the budget without legislative approval. This decision is executed through a 'pocket rescission,' a tool not used since 1977, which allows the President to propose the cancellation of funds close to the fiscal year's end, ensuring the money goes unspent. The rescission targets funds from the State Department and USAID, aligning with Trump's policy to reduce foreign aid. The administration argues the legality of this tool, but critics warn it could bypass Congress's control over spending.
Why It's Important?
The pocket rescission represents a significant shift in budgetary control, potentially allowing the executive branch to bypass Congress on spending decisions. This could lead to a redefinition of the legislative-executive relationship regarding budgetary authority. The cancellation of foreign aid could have implications for U.S. foreign policy, affecting global health and development programs. The move underscores the administration's focus on reducing foreign aid, despite potential impacts on America's international reputation and diplomatic relations.
What's Next?
The rescission proposal initiates a 45-day period during which Congress can act to approve or reject the cuts. If Congress does not act, the funding lapses. The administration's appeal to the Supreme Court to stop lower court decisions preserving foreign aid indicates ongoing legal battles. The fiscal year ends on September 30, adding urgency to congressional actions. The administration's stance on the rescission could influence future budgetary negotiations and legislative-executive dynamics.
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