The White House eliminated spending for refugee services and diversity initiatives across seven agencies to prevent a congressional vote before the fiscal year ends. This action clawed back $810 million in approved appropriations, including a $567 million cut to Department of Health and Human Services funds for asylee and refugee resettlement. By executing these "pocket rescissions" before Sept. 30, the administration bypassed the statutory 45 day window required for Congress to approve or reject the cuts, marking only the second such move in 49 years.

Appropriations Committee Chair Susan Collins and other lawmakers described the maneuver as an unlawful attempt to undermine the constitutional power of the purse, noting that the Government Accountability Office has deemed such rescissions illegal. The Office of Management and Budget defended the cuts as a way to eliminate wasteful spending. Reports suggest the administration excluded officials like Jay Bhattacharya from discussions before the announcement, though supporters note the Supreme Court refused to block similar cuts to USAID funding in 2025.