Following President Donald Trump's late September 2026 cancellation of up to $810 million in federal funding, the Blue Dog Coalition introduced the Congressional Budget Reform Act on October 9, 2026. Sponsored by Representatives Jared Golden and Marie Gluesenkamp Perez, the bill seeks to ban 'pocket rescissions' and restore congressional power of the purse. The Government Accountability Office previously ruled Trump's actions illegal, but legislative guardrails remain a key focus for lawmakers.
Trump's September 2026 spending cuts
- ▪President Donald Trump's late September 2026 spending cuts targeted refugee and asylum assistance, high school and college success programs, and the Office of Minority Health.
- ▪In late September 2026, President Donald Trump rescinded between $800 million and $810 million in congressionally authorized federal funding, primarily targeting aid for undocumented immigrants and refugees.
- ▪The Government Accountability Office concluded in late September 2026 that President Donald Trump lacked the legal authority to withhold the $800 million in appropriated funds beyond their expiration date.
The Congressional Budget Reform Act
- ▪The proposed Congressional Budget Reform Act would require a 60-vote threshold in the Senate to approve presidential rescission requests.
- ▪The Congressional Budget Reform Act, sponsored by Representative Jared Golden and Representative Marie Gluesenkamp Perez, would trigger automatic 14-day continuing resolutions to prevent government shutdowns and package annual appropriations into four minibuses.
- ▪On October 9, 2026, the Blue Dog Coalition introduced the Congressional Budget Reform Act to ban pocket rescissions and prohibit the Office of Management and Budget from requesting rescissions within 90 days of funding expiration.
The Impoundment Control Act of 1974
- ▪Congress passed the Impoundment Control Act of 1974 to require the president to spend appropriated funds after President Richard Nixon refused to spend billions of dollars of approved congressional spending.
- ▪Under the Congressional Budget and Impoundment Control Act of 1974, the president is permitted to temporarily withhold appropriated funds for up to 45 days while Congress reviews a rescission request.
GAO legal action
- ▪Under an August 2025 ruling by the U.S. Court of Appeals for the D.C. Circuit, the Government Accountability Office is the only entity that can sue the administration for violating the Impoundment Control Act.
- ▪The Government Accountability Office has not brought a lawsuit against the Trump administration.
Debatable claims
- ▪President Trump's withholding of refugee and immigrant aid is a legitimate exercise of executive power
- ▪Congress should ban presidential pocket rescissions
- ▪Automatic continuing resolutions are an effective way to prevent government shutdowns
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