What is a Pocket Recession? Explaining Trump’s Tactic
The White House has announced that $4.9 billion in foreign aid funding, already approved by Congress, will go unspent. The decision relies on a rarely used budgetary maneuver known as a pocket rescission, which effectively allows the executive branch to prevent spending without a direct vote by lawmakers. A pocket rescission occurs when the president sends Congress a request to cancel funds close to the end of the fiscal year. Under the 1974 Impoundment Control Act, Congress normally has 45 days to either approve or reject a rescission. But if that request is made late enough in the fiscal year, lawmakers cannot act before September 30, when unspent funds automatically expire. In practice, the timing guarantees that the money lapses before Congress can intervene. This is the first time in nearly five decades that a president has used the tool. The last known use was in 1977. While technically permitted
