Fear of Trump funding ‘wrench’ escalates as Congress faces shutdown cliff

By Katherine Tully-McManus, Jennifer Scholtes | 08/21/2025 01:30 PM EDT

The White House is now within the window of attempting a contentious “pocket rescission” to cancel federal cash no matter what Congress says.

Russ Vought testifying on Capitol Hill.

Office of Management and Budget Director Russ Vought arrives for a House Appropriations hearing on June 4 on Capitol Hill in Washington. Julia Demaree Nikhinson/AP

President Donald Trump’s budget director has talked about attempting the ultimate override of Congress’ funding prerogatives during the final 45 days of the fiscal year — and that time is now.

With six weeks left until Oct. 1, lawmakers are staring down a government shutdown deadline alongside the threat of a “pocket rescission,” a controversial White House tactic to cancel federal cash without the consent of Congress. It’s a ploy that the government’s top watchdog, along with key lawmakers from both parties, say is illegal.

“The money evaporates at the end of the fiscal year,” White House budget chief Russ Vought said last month in defense of the gambit, adding it has “been used before.”

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Lawmakers anticipate Trump will send Congress a formal rescissions request to claw back billions of dollars in federal funding as soon as lawmakers return from their recess in September.

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