Judge Amir Ali ruled on Friday that the legal battle over the first of President Trump's pocket rescissions can proceed even after the expiration of the relevant fiscal year. The administration had argued the case was moot because the funds had lapsed, but Ali stated that allowing the administration to escape judicial review via the calendar would create an "endless loop" where the president could repeatedly decline to spend funds to avoid court rulings.

The ruling arrives as the White House uses the same mechanism to unilaterally cancel $810 million in congressional appropriations, including $567 million for refugee services at the Office of Refugee Resettlement. The cuts, executing before the Sept. 30 fiscal year end, bypass a statutory 45 day window for congressional voting. Appropriations Chair Susan Collins and retiring Rep. Don Bacon have termed the maneuver unconstitutional, while the Government Accountability Office considers such rescissions illegal.

Supporters of the move cite a 2025 Supreme Court decision that refused to block similar cuts to USAID funding as evidence of the policy's legality. The Office of Management and Budget has defended the actions as a necessary tool to eliminate wasteful spending across seven federal departments and agencies.