Sunita Somvanshi
The White House submitted a package on September 25 seeking to rescind $810 million in already-approved federal funding — and the timing is the central issue. Under federal law, funds subject to a rescission request must be made available for obligation if Congress does not complete action on a rescission bill within 45 calendar days of continuous congressional session. Multiple accounts in the package are set to expire at the end of the fiscal year on September 30.
The White House submitted 11 proposed rescissions totaling $810,496,000 to Congress on September 25, citing the Impoundment Control Act of 1974. The largest single item is $567.4 million from HHS’s Refugee and Entrant Assistance account. Other proposed cuts include $69.6 million in Education Department international programs, $56.1 million in HUD housing counseling, $27.7 million in the Agency for Healthcare Research and Quality, and $8.7 million from the Tropical Forest and Coral Reef Conservation Act program, which funds debt forgiveness tied to conservation investments in tropical forests and coral reefs. Senator Susan Collins publicly opposed the package, stating that Congress received it “without warning or consultation.”
Organizations awaiting federal disbursements under the targeted accounts face uncertainty about fund availability heading into the September 30 fiscal year-end. If Congress does not act and certain accounts expire without funds being released, program administrators running refugee services, housing counseling, and similar programs would need to address funding gaps. Affected organizations should monitor congressional and legal developments closely in the coming days.
What Is a Pocket Rescission — and Is It Legal?
Related Karmactive coverage: Karmactive rescission background and Karmactive rescission background.
Under Section 1012 of the Congressional Budget and Impoundment Control Act, the president may propose rescissions, but funds must be made available for obligation if Congress does not complete action on a rescission bill within 45 calendar days of continuous congressional session. By submitting the package with fewer than 45 calendar days of continuous congressional session remaining before September 30, the administration creates a situation where certain accounts could expire before the statutory review period closes — meaning those funds would lapse before Congress can complete a rescission vote.
The Government Accountability Office has previously stated that using impoundment procedures to withhold budget authority through its expiration date is inconsistent with the Act. That position is based on the GAO’s reading of the 1974 law and earlier impoundment disputes; it is distinct from the current 2026 package, which may be resolved through congressional or judicial action before the deadline. For background on the federal budget process and congressional oversight powers, see the linked explainers.
Beyond the refugee assistance account, the package targets $8.7 million from a program that forgives debt for countries that redirect savings toward tropical forest and coral reef conservation — a smaller item in dollar terms but one explicitly named in the White House submission.
Because multiple accounts in the package expire September 30, the statutory 45-calendar-day continuous-session review period may not close before those accounts lapse — that timing is the legal dispute at the core of congressional objections.
Congressional leaders and advocacy groups representing affected program recipients are closely watching developments ahead of the September 30 fiscal year-end. The congressional and legal response in the coming days will determine the fate of the affected accounts. Check back for updates as the deadline approaches.
