Overview

• OMB sent a 15‑page notice to House Speaker Mike Johnson and posted it on X, formally initiating a pocket rescission that withholds State Department and USAID funds.
• The targeted accounts include roughly $3.2 billion for development assistance, $520 million for United Nations contributions, $838 million for peacekeeping, and $322 million for democracy programs.
• Under the Impoundment Control Act, Congress has 45 days to act, and critics warn the timing could let funds lapse at September’s end, with Senator Susan Collins calling the move unlawful and Democrats warning of shutdown risks.
• Secretary of State Marco Rubio and budget director Russ Vought defended the action as prioritizing U.S. interests, with Rubio saying USAID is effectively in closure mode.
• The step escalates a separation‑of‑powers fight backed by a recent appeals‑court ruling that allowed fund suspensions, and lawmakers signaled legal and legislative challenges ahead.