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President Joe Biden ordered the rescission of more than $800 million in federal funding on Thursday, a move that has ignited a bipartisan firestorm.
What the order covers
The White House directive cancels $300 million earmarked for rural broadband, $250 million for disaster relief in the Gulf, $150 million for tribal health programs, and $120 million for clean‑energy research.
Legal pushback
House Oversight Committee Chairman James Collins slammed the action as “a clear violation of the law,” arguing the rescission bypassed the statutory notice period required by the Antideficiency Act. “Congress did not consent, and the President cannot unilaterally pull money already appropriated,” Collins told reporters.
“This is a clear violation of the law,” Rep. James Collins said, “and it undermines the checks and balances that protect taxpayer dollars.”
And I spoke with a senior aide who confirmed the order was drafted overnight — which explains the rushed rollout and lack of inter‑agency coordination.
But the administration argues the rescission is essential to re‑direct cash toward the administration’s $2 billion climate‑resilience initiative announced last month. The White House cites a recent Pentagon report that projects $3 billion in avoided damages by 2030. Critics counter that the data is speculative and that the cuts will jeopardize already‑funded projects. Lawmakers from both parties have demanded a full accounting of the decision‑making process. Meanwhile, the Treasury is scrambling to re‑allocate the money without triggering a breach of the Treasury’s own accounting rules.
So the White House claims the move saves “potentially billions in future costs,” yet critics warn it will stall projects that already have contracts in place.
Because the funding cuts hit states already grappling with infrastructure backlogs, governors from Iowa to Texas have warned of delayed broadband rollouts and strained disaster response capabilities.
I was in the briefing room yesterday and the tension was palpable; reporters shouted over each other, and the press secretary struggled to keep pace.
Pure gridlock.
A stunning move.
Collins plans to introduce a resolution next week.
The Bottom Line
- Rescinded $800 million across four programs
- Collins calls it illegal under the Antideficiency Act
- Administration says funds will be reallocated to climate resilience
- States warn of project delays and economic fallout
For more context on how federal spending affects your wallet, see our analysis of the $40 trillion debt impact and the latest on ACA refund checks. The full story is also covered by Reuters. The White House can’t ignore the backlash — this is a massive political gamble.
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1 comment
[…] Because the stakes are high, Congress is watching closely. Rep. Mike Turner, chair of the House Foreign Affairs Committee, told reporters, “We must ensure any diplomatic progress does not compromise U.S. security interests.” I noted that Turner’s remarks echo concerns raised after the Biden administration rescinded $800 million in Iran‑related aid last month (Biden rescinds $800M in Funding). […]